See the entire Budget Summary at: on.nyc.gov/1ivYFXB Today, Mayor Bill de Blasio presented New York City's Executive Budget for Fiscal Year 2015, a fiscally responsible plan that reflects the administration's priorities and moves the city in a new, progressive direction. The Mayor's executive budget acknowledges the short term and long term risks facing the city—notably the $2 billion structural deficit in FY 2016—and begins to address serious fiscal and management issues that previously went ignored. With the landmark deal reached with the UFT in May 2014, the executive budget removes one of the most significant uncertainties of the financial plan, which now reflects the UFT pattern of a 10 percent increase over seven years. This $73.9 billion FY 2015 budget invests in our children, creates economic opportunity for more New Yorkers, dramatically expands affordable housing in New York City, protects the most vulnerable citizens, and makes the city safer. This budget also takes major steps toward addressing New York City's fiscal health by addressing income inequality, prioritizing infrastructure improvements, and establishing clear and affordable capital commitments. The de Blasio administration is continuing efforts begun under the preliminary budget to end the "budget dance" by further reforming the budget process and moving forward shared priorities with the City Council. ECONOMIC OVERVIEW With the U.S. economy growing at a moderate pace, we are fortunate to be in a stronger situation than we were a few years ago. While we have addressed many concerns, there are still plenty of risks ahead. Most notably, all New Yorkers are not sharing in the benefits of our growing economy, as income inequality remains at levels not seen since the Great Depression. The rate of New Yorkers struggling economically has increased over the last five years, with 46 percent at or near the poverty line, according to the latest NYC Center for Economic Opportunity report. A RESPONSIBLE BUDGET The de Blasio administration's FY 2015 Executive Budget is a fiscally-responsible plan that continues to put New York City's financial house back in order. The executive budget, like the preliminary budget, acknowledges significant risks, including continued federal uncertainty and unforeseen economic events that could damage the fragile recovery. The Structural Deficit: The budget for FY 2014 and FY 2015 remains balanced. While the city is facing deficits of $2.2 billion for FY 2016, $2 billion for FY 2017 and $3.2 billion for FY 2018, these gaps are well below historical averages, and the city will take necessary steps to maintain budget balance through all years of the financial plan. Labor Contracts: The entire city workforce—more than 150 collective bargaining units—worked without contracts for years. The de Blasio administration has begun to address this unprecedented and unstable fiscal challenge, and, in settling the UFT contract that is now in final ratification, removed one of the major financial plan uncertainties. o The UFT contract, which will provide a 10 percent increase over the seven-year period, forms the basis for the budgeted labor reserve. o The Municipal Labor Council has endorsed a plan to secure $3.4 billion in health care savings, plus an additional $1 billion from the health stabilization fund, from FY 2015 -- FY 2018, which would offset a portion of the cost of implementing the pattern for all municipal bargaining units. These savings are enforceable by arbitration. Key State and Federal Commitments: The de Blasio administration has secured funding from the state for high-quality, full-day universal pre-K programs, as well as the largest school aid increase in years and key funds for after-school programs. The federal Medicaid waiver provides critical funds for health care. A PROGRESSIVE BUDGET THAT REFLECTS OUR VALUES The executive budget reflects Mayor de Blasio's progressive values, with $248 million in new initiatives to invest in New York City's children, create economic opportunity for all New Yorkers, expand affordable housing, protect the most vulnerable, and make New York City safer. Blue Room City Hall, Manhattan May 8, 2014

• published: 08 May 2014
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