City Comptroller Warns That City Faces Larger Budget Gap

CITY FACES LARGER PROJECTED BUDGET GAPS

Need for larger budgetary cushion grows as continued economic recovery shows signs of potential slowdown

(New York, NY) – An analysis released Tuesday by New York City Comptroller Scott M. Stringer of the City’s Executive Fiscal Year 2017 Budget and Financial Plan for Fiscal Years 2016-2020 anticipates higher projected tax revenues but growing out-year budget gaps. With a projected $3.8 billion budget gap in FY 2019 and signs of a potential economic slowdown, Comptroller Stringer emphasized the importance of building up the City’s budget reserves and finding savings in his testimony before the City Council Committee on Finance’s hearing on the Fiscal Year 2017 Executive Budget.

“Slow but steady economic growth has produced additional funds for the City budget, but signs of a potential slowdown are on the horizon,” Comptroller Stringer said. “Larger projected out-year budget gaps emphasize the need for the City to manage its resources efficiently so that vital services can be protected in the event of an economic downturn.”

The new report analyzes the Administration’s revenue and spending assumptions for FY 2016-2020 and identifies risks and offsets to the financial plan.

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