What Is Local Law 63?
Local Law 63 (LL63) is a piece of legislation enacted by the New York City Council in 2012. It requires the city to develop a Plan Fiscal (Fiscal Plan) every two years that outlines the administrations financial priorities, revenue projections, and spending strategies. The 2017 Plan Fiscal reflects the citys fiscal outlook for the fiscal year 20172019.
The law was introduced to increase transparency, foster public participation, and improve the citys ability to meet longterm obligations while maintaining essential services.
Key Objectives of the 2017 Plan Fiscal
- Fiscal Stability: Ensure a balanced budget without compromising core services.
- Revenue Diversification: Reduce reliance on any single source of income, such as property taxes.
- Targeted Investments: Prioritize capital projects that support affordable housing, infrastructure, and public safety.
- Debt Management: Keep the citys debt ratios within statutory limits and maintain a strong credit rating.
- Transparency and Accountability: Publish detailed projections and assumptions for public review.
Major Revenue Projections
Tax Revenue
The 2017 Plan Fiscal projected a modest increase in property tax collections, driven by modest realestate market growth and adjustments to assessment practices. Sales tax revenue was expected to rise slightly due to higher consumer spending after the 20152016 economic recovery.
NonTax Revenue
Nontax sources, including fees, fines, and intergovernmental transfers, were projected to contribute an additional $1.2billion, reflecting ongoing efforts to streamline licensing processes and improve collection efficiency.
Special Grants and Federal Aid
The plan incorporated expected inflows from federal infrastructure programs and state education aid, which together were estimated to add about $850million to the citys budget.
Spending Priorities
The 2017 fiscal plan allocated resources across the following major categories:
- Education: $3.3billion continued support for the Department of Education, including earlychildhood programs.
- Public Safety: $2.8billion funding for NYPD, FDNY, and emergency preparedness.
- Housing & Community Development: $1.5billion expansion of affordable housing initiatives and community revitalization.
- Transportation: $2.1billion maintenance and upgrades to the subway, bus fleet, and street infrastructure.
- Health & Human Services: $2.2billion support for public hospitals, Medicaid, and social services.
Capital projects received a dedicated $4.1billion, focusing on school renovation, bridge repair, and green infrastructure.
Compliance and Reporting Mechanisms
LL63 requires the mayors office to submit the Plan Fiscal to the City Council at least 90 days before the start of the fiscal year. The plan must include:
- Detailed revenue assumptions with sources and methodology.
- Expenditure forecasts broken down by department and program.
- Debt service projections and compliance with the City Charter debt limits.
- Performance metrics to assess whether projected outcomes are achieved.
After approval, the mayor must file quarterly updates, highlighting any deviations and providing revised forecasts.
Impact and Outcomes
Overall, the 2017 Plan Fiscal helped the city achieve a modest surplus of $475million at the end of FY 2019, largely due to higher-thanexpected tax collections and disciplined spending.
Key outcomes included:
- Improved credit rating from Standard & Poors, maintaining an A+ rating.
- Completion of 15 major capital projects ahead of schedule, such as the reconstruction of the Willis Avenue Bridge.
- Expansion of the Housing Connect portal, resulting in 1,200 additional affordable units allocated.
- Implementation of a new performance dashboard, allowing residents to track budget execution in real time.
Critics pointed out that while revenues grew, the plan did not fully address rising rent burdens, and some community groups called for greater investment in underserved neighborhoods.
How Citizens Can Engage
Local Law 63 encourages public participation. Residents can:
- Review the full Plan Fiscal PDF on the Mayors Office of Contract Oversight website.
- Attend public hearings hosted by the City Councils Finance Committee.
- Submit written comments during the 30day public comment period.
- Participate in community board meetings where budget impacts are discussed.
Active engagement helps ensure that the citys financial priorities align with community needs.
Future Outlook
The 2017 Plan Fiscal set a benchmark for datadriven budgeting and transparent reporting. Subsequent fiscal plans (2019, 2021, 2023) have built on its framework, incorporating more robust climateresilience funding and postpandemic recovery strategies.
Looking ahead, policymakers anticipate:
- Greater use of performancebased budgeting.
- Enhanced integration of climateaction goals.
- Continued efforts to diversify revenue streams, including digital service fees.
These trends indicate that the principles established by Local Law 63 will remain central to NYCs fiscal stewardship for years to come.
