ALBANY, NY | January 16, 2024 — In response to the New York City Preliminary Budget for Fiscal Year 2025, Fiscal Policy Institute Director Nathan Gusdorf released the following statement:
“Given the City’s improving fiscal outlook, the Mayor’s continued budget cuts are both unwarranted and fiscally irresponsible.
“Improving tax receipts and new State aid, combined with lower asylum seeker costs and the customary use of annual reserves, are more than sufficient to balance next year’s budget without cuts and to reverse many of the most recent cuts as well. While conservative revenue projections are routine, implementing drastic and preemptive cuts can weaken the City’s ability to deliver core services, hasten population loss, and hurt New York’s long-term economic health. As more working and middle-class families leave New York, the Mayor should invest more deeply in the programs and services that keep the City affordable.
“While the City is projecting additional budget gaps in the outyears, the City consistently overestimates outyear gaps due to low revenue projections and these gaps should not serve as justification for additional preemptive cuts.”