Mayor Adams Releases FY25 Executive Budget

Last Wednesday, Mayor Adams released the Fiscal Year 2025 Executive Budget. The Executive Budget for FY25 is $111.6B, higher than the Preliminary Budget at $109.4B. Due to better than estimated performance in calendar 2023 and increased estimates in 2024, revenue estimates have increased by $619M in FY25 and $1.7B in FY25. The Mayor also estimates saving on asylum seeker accommodations of $586M, coupled with a funding commitment of $2.4B from the State. New spending includes $514M for the Department of Education programs, which were formerly funded by stimulus spending, and the addition of two new police classes in FY25. The release of the Executive Budget is the starting point for negotiations between the Council and the Mayor to adopt a negotiated budget by June 30. The Council will begin holding hearings on the Executive Budget beginning on May 6 and continue throughout the rest of May.

Housing Deal in NYS Budget

Leaders in New York State reached a landmark housing deal, finalized in the FY25 budget two weeks ago. The new tax incentive for developers to construct affordable housing in NYC, 485-x, replaces the 421-a program, which expired in 2022. 485-x includes deeper affordability programs than its predecessor, and includes new labor standards. The budget also establishes “good cause” eviction protections, capping rent increases on covered apartments at 10% or 5% plus the consumer price index, whichever is lower. Landlords will be permitted to evict tenants who violate their lease, cause a nuisance, or if they plan to remove the unit from the market. Many renters are “carved out” of good cause legislation, including co-op and condo rentals, apartment buildings with 10 or fewer units, and those in “high-rent” units, with rent higher than 245% of the federally-set fair market rent. The deal has received criticism from both tenant advocates and members of the real estate industry.

Congestion Pricing to Begin in NYC

Janno Lieber, Chair of the Metropolitan Transportation Authority, announced that congestion pricing fees will go into effect for New Yorkers on Sunday, June 30. The toll will go into effect five years after the NYS Legislature passed it into law. Passenger vehicles will pay $15 during peak-hour tolls, with a 75% discount during off-peak hours. A full report on congestion pricing is available here.