June 20, 2024

New York City Mayor Eric Adams Unveils Record $106.7 Billion Budget for Fiscal Year 2024

Mayor Eric Adams presents his Fiscal Year 2024 preliminary budget at City Hall on Thursday, January 12, 2023. Michael Appleton/Mayoral Photography Office
Mayor Eric Adams presents his Fiscal Year 2024 preliminary budget at City Hall on Thursday, January 12, 2023. Michael Appleton/Mayoral Photography Office

On April 26, 2023, New York City Mayor Eric Adams announced the city’s largest-ever Executive Budget, totaling $106.7 billion for Fiscal Year 2024 (FY24). The budget aims to protect critical programs for working New Yorkers, prepare for potential economic headwinds, and maintain fiscal responsibility. It includes strategic investments for sustainability and resiliency programs, mental health resources, college-to-career pipeline development, and support for working people.

Despite outyear gaps of $4.2 billion, $6.0 billion, and $7.0 billion for fiscal years 2025 through 2027, FY23 and FY24 remain balanced. Growth of $4.0 billion in FY24 over the Preliminary Budget is primarily driven by asylum seeker costs and funding labor settlements with the city’s workforce.

Mayor Adams acknowledged the city’s challenges, including the costs of the asylum seeker crisis, funding labor deals, and slowing tax revenue growth. However, the Program to Eliminate the Gap (PEG) achieved $1.6 billion in savings across two fiscal years and over $3 billion in outyears, without layoffs or service reductions. Libraries and cultural institutions also avoided budget cuts, and agencies’ savings targets were adjusted to prevent cutting critical needs.

In the past year, over 57,000 asylum seekers arrived in New York City, with over 35,000 still in the city’s care. The cost of providing shelter, food, clothing, and other services for asylum seekers is expected to reach $4.3 billion through the end of FY24.

In recent months, Mayor Adams announced labor agreements with District Council 37 and the Police Benevolent Association, setting the economic framework for labor deals with the city’s workforce. The total additional cost of reaching agreements with the remaining unionized workforce is expected to be around $16 billion over the financial plan’s duration.

The FY24 Executive Budget allocates almost 60% of its total, or $62.5 billion, to education, healthcare, and social services. This includes funding for schools that lost enrollment, childcare, summer youth employment, and affordable housing. The budget also expands broadband in NYCHA developments and adds online portals for childcare, workforce, and business services to the MyCity platform.

Investments in education include supporting the City University of New York’s (CUNY) Inclusive Economy Initiative programs, funding and expanding the CUNY Reconnect program, and investing over half-a-billion dollars in redeveloping the CUNY Brookdale Campus. Additional investments comprise the Medgar Evers College Brooklyn Recovery Corps and the Mayor’s Office for People with Disabilities’ workforce development plan.

The budget also strengthens mental health resources by expanding the Behavioral Health Emergency Assistance Response Division (B-HEARD) program, supporting mental health services for high school students and children in family shelters, and increasing the capacity of mental health support clubhouses.

Mayor Adams says he remains committed to paying the city’s workforce fair wages, as demonstrated by the recent settlement of long-expired labor contracts with DC 37 and the Police Benevolent Association.

The Adams Administration aims to support working families, create access to good jobs, and improve public safety. With this record-breaking budget, the administration hopes to continue making progress for New Yorkers now and in the years to come.

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