For Immediate Release: April 24, 2024

Press Contact: Press@fiscalpolicy.org

FPI on NYC FY25 Executive Budget: Real Revenue Not Aligned with City’s Pessimistic Forecasts

“As more working and middle-class families leave New York, cuts should be the last resort, not the first impulse”

NEW YORK, NY | April 24, 2024 — In response to the release of the New York City FY25 Executive Budget, Fiscal Policy Institute Director Nathan Gusdorf today released the following statement:

“This budget once again makes clear that real revenue does not align with the City’s pessimistic forecasts. The latest revenue projections underscore the fact that recent cuts to City jobs and services were unnecessary and should be immediately reversed.

“Additionally, the City should follow the City Council’s more realistic expectations about sustainable revenue levels and fully fund critical programs facing expiring federal funding, including 3-K and additional social services and education programs.

“While conservative revenue projections are routine, the City’s practice of implementing preemptive cuts can weaken its ability to deliver core services, hastening population loss and undermining New York’s long-term economic health.

“As more working and middle-class families leave New York, cuts should be the last resort, not the first impulse.”

Background:

• The executive budget increases revenue estimates for FY 25 by $2.2 billion.
• The budget increases revenue estimates for both FY26 and FY27 by $2.6 billion each year, and by $1.8 billion in FY 28.
• The budget also increases expenditures for FY25 through FY28 by approximately the same amount to price in some recurring spending from fiscal cliffs — making clear the City can afford to cover expenses previously funded by the federal government.
• The outyear gaps remain well within historic averages that typically resolve without significant policy action.