Mayor Eric Adams And Speaker Adrienne Adams Agree On Balanced FY25 Budget For NYC’s Future

New York City Mayor Eric Adams, made an announcement today regarding the balanced FY25 Budget for NYC’s future.

The announcement includes New York City Council Speaker Adrienne Adams, Council Finance Chair Justin Brannan, members of the City Council, and senior members of the Adams administration today announced an agreement for an on-time, balanced, and fiscally-responsible $112.4 billion Adopted Budget for Fiscal Year (FY) 2025 that invests in the future of New York City. Thanks to the Adams administration’s ongoing strong fiscal management and bolstered by better-than-expected revenue growth, the administration overcame unprecedented challenges in this budget cycle to stabilize the city’s financial outlook and close a $7.1 billion budget gap.

Because of that steady, decisive decision making, this Adopted Budget allows the Adams administration and the City Council to reinvest in protecting public safety, rebuilding the city’s economy, and making the city more livable for working-class people, including by investing in initiatives and programs that make New York City more affordable. As part of the budget agreement, the Adams administration and the City Council joined together to invest hundreds of millions of dollars of city resources in critical areas, including early childhood education, cultural organizations, libraries, parks, public safety, and more to deliver on shared priorities.

“We know New Yorkers, like all Americans, are struggling with an affordability crisis, so today, we are delivering a budget that invests in the future of our city and the working-class people who make New York City the greatest city in the world,” said Mayor Adams. “Our city faced unprecedented challenges — a $7.1 billion budget gap that needed to be closed, a $4.9 billion humanitarian crisis, and hundreds of millions of dollars used to fund long-term programs with short-term stimulus dollars. Despite all this, the actions taken by our city have helped us arrive at a strong, on-time, and fiscally-responsible budget, which has allowed us to partner with the City Council to invest in the programs and services New Yorkers want and deserve, and, most importantly, that address the three things that cost them the most: housing, childcare, and health care. I am proud to stand shoulder-to-shoulder with Speaker Adams and our Council partners to make key investments in New Yorkers and the programs that they rely on every day, with billions of dollars for early childhood education, cultural organizations, libraries, parks, public safety, housing, health care, transit, and more. Thank you to Speaker Adams and the Council for working with us to put the needs of New Yorkers first as we make our city safer, more affordable, and more livable.”

“The Council is proud to reach an agreement with Mayor Adams to restore and secure funding for essential services that are critical for New Yorkers’ health, safety, and well-being,” said Speaker Adams. “These investments in affordable housing and homeownership, early childhood education and CUNY, libraries and cultural institutions, parks and sanitation, senior services and youth programs, mental health, and public safety programs support our residents in every community. Despite the challenges, the Council has never wavered from our commitment to investing in solutions, and we will continue to push the city to meet the scale of our challenges. I thank my colleagues in the Council for our collective work to secure the resources our communities deserve and deliver on the priorities of New Yorkers.”

The City of New York faced major challenges in this budget cycle that drove gaps to unprecedented levels. Challenges included budget cliffs caused by expiring stimulus dollars that had been used to fund long-term programs, the rapidly expanding costs of housing and caring for more than 205,000 asylum seekers since the spring of 2022 — more than 65,000 of which are still in the city’s care — with very limited assistance from the federal government, and costs related to settling long-neglected and overdue labor agreements with hard-working city employees. This all occurred against the expected slowdown in the national economy.

By taking decisive action early and remaining committed to the principles of strong fiscal management — including achieving budget savings and controlling spending — along with better-than-expected revenues, the Adams administration closed the $7.1 billion budget gap and stabilized the city’s budget and fiscal outlook without layoffs, tax hikes, or major cuts to services.

By managing its way to a stronger fiscal position, the administration had already been positioned to hold school budgets harmless and safeguard more than $600 million in educational programs previously funded with short-term stimulus, make critical investments in adding more police officers to the New York City Police Department (NYPD) to keep New Yorkers safe, and protect cultural institutions.

On top of investments already announced in the November 2023 Financial Plan and the Preliminary and Executive Budgets, new investments in the FY25 Adopted Budget and joint priorities with the New York City Council include:

Launching the Early Childhood Strategic Plan with $100 Million Investment

Over the last two years, the City of New York has offered more seats than ever before with more families getting their top choices than ever before. With future increases in demand, the administration is prepared to add funding as needed so that every family who wants an early childhood seat will have access to one. As part of the budget process, the Adams administration and the City Council agreed to a multipronged strategic plan that will reimagine early childhood education and address longstanding systemic issues with the early childhood education program, once-and-for-all. This builds on Mayor Adams and Speaker Adams’ recent announcement to launch a $5 million outreach effort to maximize the number of children enrolled. The strategic plan is supported by $100 million to:

• Reduce waitlists for Special Education Pre-K seats by creating new, city-run seats for children when providers do not have room ($30 million).
• Maximize take-up of extended day seats available to eligible families by expanding the investment made in the last Adopted Budget ($25 million).
• Support undocumented children and their families who are not eligible for federally subsidized extended day and yearly child care due to their immigration status through expanding the Promise NYC program ($25 million).
• Identify seats for more than 1,700 families who did not receive offers in the 2024-2025 school year for the Pre-K and 3-K application round ($20 million).
• Provide sustainable funding for the Mayor’s Office of Child Care and Early Education, which was previously funded with philanthropic dollars to continue its work supporting the city’s early childhood sector ($485,000).

Investing in an Equitable Education for All Students

In addition to investing over $600 million in new funding to protect critical programs that were funded with temporary stimulus dollars and protect schools with declining enrollment from budget reductions, the FY25 Adopted Budget builds on recently announced investments by:

• Restoring Summer Rising extended day and Friday programming for middle school participants ($19.6 million).
• Supporting community school programming ($14 million).

• Providing free MetroCards to this summer’s Summer Youth Employment Program participants ($11 million).
• Investing in teacher recruitment efforts that are critical to meeting state mandated class-size legislation standards ($10 million).
• Continuing the New York City Department of Youth and Community Development Adult Literacy Education contracted programs ($10 million).
• Funding Restorative Justice programming designed to reduce the reliance on suspensions or punitive discipline across city schools ($6 million).
• Continuing the cross-agency Mental Health Continuum partnership to provide mental health support to all students ($5 million).
• Supporting digital learning resources for students and teachers ($5 million).
• Expanding arts education in schools ($4 million).
• Supporting tutoring for kindergarten through second grade literacy and sixth through eighth grade math education at select schools across the city ($4 million).
• Funding for immigrant family engagement to address potential communication gaps between schools and support parents who do not speak English fluently ($4 million).
• Continuing support for incorporation of LGBTQ+ inclusive topics, history, and wellness into student curricula ($2.8 million).
• Funding fee waivers for community organizations using New York City Public Schools’ space ($2 million).
• Providing resources for parent and family engagement to support New York City Public Schools’ “Family and Community Engagement” initiative, which focuses on parent empowerment and engagement ($1 million).

Supporting Cherished Libraries and Cultural Institutions

Cultural institutions and libraries are a critical part of New York City’s social fabric, which New Yorkers depend on for children’s growth and the vibrancy of the city. The FY25 Adopted Budget ensures critical institutions will have what they need to serve New Yorkers and attract visitors every day of the week. After making multiple investments in New York City’s cultural sector by allocating more than $22 million to the New York City Department of Cultural Affairs for the city’s Cultural Institutions Group and Cultural Development Fund, the FY25 Adopted budget goes even further to:

• Restore the FY25 November Program to Eliminate the Gap (PEG) and add funding for the Cultural Institutions Group and Cultural Development Fund recipients ($53 million).
• Restore operations support funding for New York City’s libraries citywide ($58.3 million).

New $2 Billion in Capital Funding to Bring Affordable Housing Capital Commitment to Over $26 Billion in the Current Ten-Year Plan (FY24-FY33)

Mayor Adams has taken significant action to combat the city’s housing and affordability crisis. Under his leadership, the city financed a record number of new affordable homes in 2023 and is ahead of schedule on a 2024 State of the City commitment to advance two dozen 100-percent affordable housing projects on city-owned land this year through the “24 in ’24” initiative. Earlier this year, Mayor Adams and working-class New Yorkers kicked off the public review on “City of Yes for Housing Opportunity,” the most pro-housing proposal in New York City’s history. The Adopted Budget brings the housing capital commitment to a record $26 billion by:

• Investing an additional $2 billion in capital funds across FY25 and FY26 to the New York City Department of Housing Preservation and Development and New York City Housing Authority’s (NYCHA) capital budgets to support the Adams administration’s “moonshot” goal of 500,000 new homes over the next decade and the administration’s commitment to transforming NYCHA. 

Making the City More Affordable by Putting More Money Back in the Pockets of Working-Class New Yorkers

Under Mayor Adams’s leadership, New York City continues to reach new all-time high total jobs records and Black unemployment is at its lowest level in half a decade. The administration has successfully negotiated contracts with unions representing 96 percent of the city’s workforce and 100 percent of the city’s uniformed workforce — the quickest any mayoral administration has reached that milestone in modern city history. Building on generational investments, such as wiping out of $2 billion in medical debt and advancing the implementation of the MyCity portal to make it easier for New Yorkers to apply for subsidized child care, the FY25 Adopted Budget includes commitments to make the city more affordable and support working-class New Yorkers’ economic mobility by:

• Supporting over 700 food pantries across the city to maintain current funding levels ($31.9 million).
• Adding funding for ‘Fair Fares NYC’ and increasing the eligibility rate from 120 percent to 145 percent of the Federal Poverty Level to build on the resounding success of the program and make public transportation more affordable for even more New Yorkers ($20.7 million).
• Providing operational support to help The City University of New York (CUNY) adjust to declining enrollment ($15 million).
• Funding food and services for Older Adult Centers and Home Delivered Meals ($11.1 million).
• Supporting the Shelter to Housing Action Plan that provides staffing to connect eligible New Yorkers with legal services and help New Yorkers find and maintain stable housing ($10.1 million).
• Investing in CUNY Accelerate, Complete, Engage Program that helps students overcome barriers to graduation through academic advisement, career development, tuition scholarships, textbooks, and transportation assistance ($9.1 million).
• Continuing support for the Jobs NYC employment sprint monthly hiring halls in communities experiencing high unemployment ($2.5 million).
• Supporting legal services for New Yorkers facing wage theft and unemployment insurance hearings ($1.9 million).
• Funding housing navigators who assist runaway and homeless youth with safe and permanent housing placements ($1.6 million).
• Providing small businesses support with grant and loan applications, marketing assistance, business strategy, accounting and legal services, and digital tools ($1.5 million).
• Supporting the Brooklyn Recovery Corps at CUNY Medgar Evers College, which provides 200 students a year with internship opportunities that contribute to the ongoing economic recovery of Brooklyn and the city ($1 million).
• Funding CUNY STEM, a year-long enrichment program in Inwood to prepare students for careers in science, technology, engineering, and mathematics fields ($1 million).

Keeping New Yorkers Safe and Improving Quality of Life

The Adams administration previously announced funding for three new police classes to add 1,800 additional recruits in April, July, and October classes, putting New York City on a path to have 35,000 uniformed officers in the coming years. Continuing to build on the double-digit decrease in shootings and homicides in 2023 and 2024, and the decrease in overall crime in 2025, year to date, the FY25 Adopted Budget includes upstream solutions to protect public safety and make the city more livable by:

• Funding for New York City Department of Parks and Recreation’s Brownsville Recreation Center demolition and construction ($160 million).  
• Continuing current levels of litter basket pick-ups citywide ($25 million).
• Adding staff to complete a second cleaning shift at hotspot park locations during peak days and hours ($15 million).
• Continuing part-time security at 55 NYCHA buildings for senior residents ($6.8 million).
• Helping manage and adjudicate growth in administrative legal cases related to the crackdown on illicit cannabis sales ($4.2 million).
• Continuing support for 50 Urban Park Rangers ($4.1 million).
• Ongoing support for GreenThumb gardens with new soil, new raised beds, and other resources utilized by gardeners ($2.6 million).
• Providing additional resources for tree stump removal ($2 million).
• Funding for Civilian Complaint Review Board’s staffing ($2.1 million).
• Funding of 32 civilian positions to staff the new 116^th Precinct in Southeast Queens, which is scheduled to open in October 2024 ($1.2 million).

Keeping New Yorkers Healthy

Mayor Adams is committed to improving the physical, emotional, and mental health of all New Yorkers. That’s why the administration launched “HealthyNYC,” an ambitious plan to extend the lifespan of all New Yorkers with ambitious targets to address the greatest drivers of premature death, including chronic and diet-related diseases, screenable cancers, overdose, suicide, maternal mortality, violence, and COVID-19. The Adams administration also previously released “Care, Community, Action: A Mental Health Plan for New York City,” a sweeping mental health agenda with $20 million in commitments to invest in the mental health of children and families. The FY25 Adopted Budget further invests in programs to help keep New Yorkers healthy by:

• Restoring the New York City Department of Health and Mental Hygiene contracts for HIV related programs ($5.4 million).
• Expanding the Office of Health Care Accountability to bring rising health care costs down and ensure hospitals and health care providers are not gouging New Yorkers ($2 million).
• Continuing programming for Asian American and Pacific Islander communities, including direct services, mental health support, youth programs, and other culturally-competent services ($5 million).
• Raising meal reimbursement rates to help the city’s contracted nonprofit home-delivered meal providers with the rising costs of food and labor ($4.8 million).
• Supporting existing Trauma Recovery Centers, which provide case management, therapy, and crisis intervention services to underserved victims of violent crime ($4.8 million).
• Replacing expiring stimulus dollars that currently support the Mayor’s Office of Food Policy staffing and food research projects ($800,000).

Keeping New York City on the  Path of Strong Fiscal Management

The FY25 budget is balanced with a combination of savings and increased revenues. Outyear gaps are $5.5 billion, $5.6 billion, and $6.5 billion in Fiscal Years 2026 through 2028, respectively. Growth of $805 million in FY25 over the Executive Budget is driven by revenue and grant funding.

Projected tax revenues were adjusted upward over the Executive Budget by $198 million in FY24 and $454 million in FY25, reflecting better than anticipated business and property taxes. However, the city must remain cautious as tax revenue growth is expected to remain modest in outyears and national economic growth has recently slowed. This reinforces the need to remain thoughtful about spending, fiscally prudent, and not rely solely upon revenue growth to solve immediate financial challenges.

The Adopted Budget achieves savings of $380 million over FY24 and FY25, driven by  $275 million in debt service savings. Total savings over the two years in this budget cycle is $7.9 billion, prior to restorations, driven by 5 percent PEG savings plans in both the November and Preliminary Budgets, and includes asylum seeker PEGs in the Preliminary and Executive Budgets that brought migrant-related costs down by nearly 30 percent.

The FY25 Adopted Budget maintains a near-record $8.2 billion in reserves, which includes $1.2 billion in the General Reserve, $1.96 billion in the Rainy Day Fund, $4.8 billion in the Retiree Health Benefits Trust, and $250 million in the Capital Stabilization Reserve.

Photo credit: 1) Dunbar Bank, Harlem, Wiki. 2) Teck Harlem business.

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