New York City Turns Inward With 2019 Budget

NEW YORK (S&P Global Ratings) June 25, 2018--New York City's fiscal 2019 budget process concluded on June 14 with the adoption of an $89.15 billion budget. The budget incorporates recently settled state and federal questions while managing for future risks, addressing new spending requests, and increasing reserve set-asides. Highlights include: Growth of 1.5% in fiscal 2019 spending, not including adjustments to prepayments, compared with the adopted fiscal 2018 financial plan; An increase of $125 million to the general reserve fund, combined with the capital stabilization reserve of $250 million, totals $1.375 billion for fiscal 2019; Higher prepayments of $4.576 billion, up $396 million from the prior year; A $100 million deposit into the Retiree Health Benefit trust; Additional spending for

...NEW YORK (S&P Global Ratings) June 25, 2018--New York City's fiscal 2019 budget process concluded on June 14 with the adoption of an $89.15 billion budget. The budget incorporates recently settled state and federal questions while managing for future risks, addressing new spending requests, and increasing reserve set-asides. Highlights include: + Growth of 1.5% in fiscal 2019 spending, not including adjustments to prepayments, compared with the adopted fiscal 2018 financial plan; + An increase of $125 million to the general reserve fund, combined with the capital stabilization reserve of $250 million, totals $1.375 billion for fiscal 2019; + Higher prepayments of $4.576 billion, up $396 million from the prior year; + A $100 million deposit into the Retiree Health Benefit trust; + Additional spending for city council initiatives above the mayor's executive budget of $494 million, inclusive of $106 million for a low-income transit subsidy program ("Fair Fares"); + Planned expenditures of...

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