The Most Important Economic And Fiscal Decisions Facing The Next Mayor
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1 The Most Important Economic And Fiscal Decisions Facing The Next Mayor A Citizens Budget Commission Conference December 6, 2013
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The Most Important Economic And Fiscal Decisions Facing The Next Mayor. A Citizens Budget Commission Conference December 6, 2013. New York City Budget Briefing. The Most Important Economic and Fiscal Decisions Facing the Next Mayor A Citizens Budget Commission Conference December 6, 2013. - PowerPoint PPT Presentation
Transcript of The Most Important Economic And Fiscal Decisions Facing The Next Mayor
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The Most Important EconomicAnd Fiscal Decisions FacingThe Next MayorA Citizens Budget Commission ConferenceDecember 6, 2013
New York CityBudget Briefing
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The Most Important Economic and Fiscal Decisions Facing the Next MayorA Citizens Budget Commission ConferenceDecember 6, 2013
Composition of NYC RevenuesFiscal Year 2014
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$76.5Billion
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$76.5Billion
Composition of NYC ExpendituresFiscal Year 2014
Economic and Revenue Growth is Projected to be Slower than in Pre-
Recession Years
Average Annual Growth
Economic Indicators 2002-2008 2008-2014 2014-2017
Personal Income 6.1% 2.4% 4.3%
Wage Rate 5.1% 0.4% 2.7%
Revenue Indicators 2002-2008 2008-2014 2014-2018
Tax Revenues (Net of Changes) 9.4% 1.6% 3.9%
Tax Revenues (Budget) 9.8% 2.8% 4.0%
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Expenditure Growth Driven byDebt Service and Fringe Benefits
DEBT SERVICE•Largest annual growth: 8.3%•$1.6 billion increase
FRINGE BENEFITS (w/o pensions)•Steady annual growth of 5.8% •$1.6 billion increase•Rising health premiums
TOTAL BUDGET: 1.5% annual growth
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Growing Debt Service Driven By Capital Spending
Debt Burden Is HighAccording to Metrics Used by Rating
AgenciesDebt Outstanding, FY2013 Debt Service, FY2013
8Note: Does not include debt of the New York City Municipal Water Finance Authority.
High Health Insurance Spending Due to Generous Premium-Sharing Policies
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• Employee Health Insurance– Over 90% enrolled in 2 plans: GHI & HIP– City pays 100% of the premium cost for GHI & HIP for
employees, spouses and families
• Retiree Health Insurance– 10 years to vest; begins upon retirement w/o regard to age– City pays 100% of the premium cost for retirees and
dependents– City reimburses the full cost of Medicare Part B for retirees
over age 65 and their spouses
• CBC report finds NYC premium-sharing policies are generous relative to other US cities, New York State, the federal government and private sector
FY2015 Budget is Balanced with Transitory Resources
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Future Budget Gaps Appear Manageable;Greatest Risk from Expired Labor
Contracts
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HHC and NYCHA Will Also Impact City Budget
Health and Hospitals Corp.• HHC projects large gaps in
FY2014 and beyond• Cost containment measures
have yet to be identified• Counting on additional $500
million in Medicaid and Medicare starting in FY2014
NYC Housing Authority• Gap-closing initiatives face
community opposition• Estimated operating deficit
of $192 million in FY14• City allocated $71 million to
keep senior and community centers open
• NYCHA must fill remaining $121 million gap
12Source: Office of the State Comptroller
