New York City Council released the latest economic and tax revenue forecasts on May 21. It estimates that the tax revenue for the fiscal years 2024 and 2025 (from July of this year to June of next year) in New York City will be $1.1 billion more than the projection from Mayor Adams’ Budget Office. This prompts Adams to fully restore the budget cuts.
The Office of Management and Budget (OMB) raised its revenue projections for the fiscal years 2024 and 2025 by $2.3 billion just last month. The Council’s latest forecast surpasses this by an additional $1.1 billion. In response, Council Speaker Adrienne Adams and Finance Committee Chairman Justin Brannan stated in a joint statement that New York City has sufficient tax revenue to restore all cut and unrecovered budget items. These include comprehensive pre-K and kindergarten programs, senior services, public schools, City University, cultural institutions, libraries, parks, housing, mental health services, crime prevention, and community safety promotion, all of which aid working families and ensure essential services for public safety and health.
The Independent Budget Office (IBO) of New York City also released a report last week, predicting that the tax revenue for the fiscal years 2024 and 2025 will exceed the city’s estimates by $2.2 billion. However, Adams still insists on “sound fiscal management.”
Jacques Jiha, Director of the Office of Management and Budget, also believes that a more conservative approach is necessary in revenue forecasting. While Adams has restored some previously cut items, dozens of branches in the public library system are still not offering Sunday services, and other branches may even cut Saturday services. Budget cuts to the Department for the Aging that sparked protests last week have not been reversed. Adams and the City Council are currently engaged in budget negotiations and must reach an agreement by June 30 to pass the budget for the 2025 fiscal year. Adams and Brannan stated that the aforementioned priority items will be the focus of budget negotiations.