New York City's out-year budget gaps are manageable under current economic conditions, according to an analysis by New York State Comptroller Thomas P. DiNapoli at the annual meeting of the Financial Control Board.
"New York City's economy is strong today and shows no signs of slowing," DiNapoli said Aug. 4. "The city deserves credit for prudently increasing its reserves to hedge against an economic setback. While the out-year budget gaps appear manageable, the city should continue its efforts to narrow them."
The state legislature created the board in September 1975 amid the city's financial crisis.
The city projects budget gaps of $1.5 billion in fiscal 2017 and $1.9 billion the following year, which are smaller than projected one year ago. The city also expects a gap of $2.9 billion for fiscal 2019. The gaps are relatively small, ranging from 2.5% to 4.5% of city fund revenue. Moreover, the budgets for these years include a general reserve of $1 billion, which could be used to help close the budget gaps.
In fiscal 2015, tax collections reached a record $51.7 billion, $3.1 billion more than the city's forecast at the beginning of the year, contributing to a $3.6 billion surplus. City officials used the surplus to increase reserves and to help balance the fiscal 2016 budget.
DiNapoli's
Although the city's fiscal outlook continues to improve, said DiNapoli, the Health and Hospitals Corp. and the New York City Housing Authority face significant fiscal challenges, which have required greater financial assistance from the city.
