The city will finish its fiscal year this month with a budget surplus of $3 billion, according to a review by State Comptroller Thomas DiNapoli.
According ot the comptroller, higher than expected tax collections account for most of the current year’s surplus. The de Blasio administration will use the extra money to balance the budget for fiscal year 2016, which starts July 1. This must be done to reflect the mayor’s proposed revenues and expensive for fiscal 2015.
“New York City’s budget is balanced for next year, and the out-year budget gaps appear manageable,” the State Comptroller Thomas DiNapoli said in a statement. “The city’s economy is strong and shows no signs of slowing. Still, Mayor [Bill] de Blasio and the city’s budget team deserve credit for increasing reserves to hedge against any future economic setback.”
The Executive Budget, released in May, projects budget gaps of $1.6 billion in FY 2017 and $2 billion in FY 2018. While these gaps are larger than those projected in February 2015, they are smaller than the gaps projected last year, despite higher agency and capital spending. For FY 2019, the city projected a budget gap of $2.9 billion.
The comptroller’s office estimates that tax collections are expected to exceed the city’s original forecast by $2.4 billion to reach $51 billion, 32% higher than before the recession. The increased tax revenues are due to job growth, tourism and the real estate market. Since the end of 2009, the city has added 503,000 jobs, and employment now totals a record 4.2 million.