New York City: Budget Basics

1

Other Taxes, $4.7, 6%Business Taxes, $5.7, 8%

Sales Taxes, $6.3, 8%

Personal Income Taxes, $8.8, 12%

Property Taxes, $19.8, 26%

Miscellaneous Revenues, $8.1,

11%

Surplus Roll, Net, $2.7, 3%

Federal Grants, $6.5, 9%

State Grants, $11.8, 16%

$ in billions

$75.2B

Composition of NYC RevenuesFiscal Year 2014

2

Other Grants and Aid, $.8, 1%

3

Salaries and Wages, $22.2, 29%

Other Fringe Benefits, $3.4, 5%

Pensions, $8.3, 11%

Health Insurance, $5.5, 7%

Debt Service, $6.2, 8%

Medical Assistance, $6.4, 9%

Public Assistance, $1.4, 2%

Other OTPS, $21.8, 29%

$ in billions

$75.2B

Composition of NYC ExpendituresFiscal Year 2014

Economic and Revenue Growth is Projected to be Slower than in Pre-Recession Years

Average Annual Growth 2002-2008 2008-2013 2013-2017

Economic Indicators

Real Property Market Value 12.5% 1.0% 4.4%

Personal Income 6.1% 2.0% 3.8%

Average Wages 5.1% 0.5% 2.3%

Revenue Indicators

Tax Revenues (Net of Changes) 9.4% 2.0% 3.2%

Tax Revenues (Budget) 9.8% 3.3% 3.2%

Total Revenues 7.2% 3.2% 1.7%

4

Health Insurance & Debt Service Drive Expense Growth; Pension Spending Remains High, But Level

5

FY2013 FY2014 FY2015 FY2016 FY20170%

5%

10%

15%

20%

25%

30%

35%

40%Debt Service

Pensions

Employee and Retiree Health Insurance

Total Spending

Perc

ent G

row

th fr

om 2

013

$111 Billion in Capital CommitmentsSince Fiscal Year 2003

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Educ

ation

; $2

7,87

4

Envi

ronm

enta

l Pr

otec

tion;

$2

5,44

4

Tran

spor

tatio

n;

$12,

469

Park

s & C

ul-

tura

ls; $

8,75

0

Tech & Equipment,

$7,272Protection,

$5,062

Hous

ing;

$4,

592

All O

ther

; $4

,469

Hosp

itals;

$4

,147

Econ

omic

Dev

.; $4

,016Buildings,

$3,691

Sani

tatio

n;

$3,2

50

Total Capital Commitments by Function, FY2003-2014

6Note: Fiscal Year 2014 total commitments planned as of September 2013.

Greatest Risk to the Financial Plan from Expired Labor Contracts

7

FY2014 FY2015 FY2016$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$3,500$900 $900

$3,700

$1,800 $1,800

$1,965 $1,769

Potential Cost of Labor Settlements to the City of New York

Three 2% raises for entire workforce for 2010-2013 round of bargaining

Two 4% raises for teachers and prin-cipals for the 2008-2010 round of bar-gaining

Projected Budget Gap (June 2013)

Dolla

rs in

Mill

ions

Budget Calendar

8

Jan.

Mayor submits Prelim. Budget to City Council

Feb.

The City Council holds public hearings on the Prelim. Budget

March

The City Council reports its findings and recom-mendations

April

The Mayor submits the Executive Budget to the Council

May

Second set of hearings on the Executive Budget

June

Budget nego-tiations occur

July 1

Start of the new Fiscal Year

Nov.

First quarter mod. and update to the budget