Overview
Local Law 63, adopted by the New York City Council in 2017, establishes a Plan Fiscal 2019 that aims to strengthen the citys fiscal health while ensuring the continuation of essential public services. The law requires the Mayors Office of Management and Budget (OMB) to develop a multiyear fiscal plan that aligns revenue projections, spending priorities, and debt management with the citys longterm strategic goals.
The 2019 plan was the first comprehensive exercise under this framework. It set a baseline for future fiscal cycles, introduced new transparency measures, and mandated a series of performancebased budgeting practices.
Key Provisions of the 2019 Plan
- MultiYear Budget Horizon The plan spans a fiveyear window (FY 2019FY 2023) and includes projected revenues, expenditures, and capital outlays.
- Revenue Diversification Emphasizes expanding the tax base, enhancing fees, and leveraging publicprivate partnerships to reduce reliance on property taxes.
- Spending Controls Introduces caps on discretionary spending growth and establishes a zerobase review for major agencies every two years.
- Debt Management Sets a ceiling on net debt at 48% of the citys operating budget and requires a debt service reserve fund equal to 1% of total debt.
- PerformanceBased Budgeting Agencies must link program funding to measurable outcomes, with quarterly performance reports submitted to OMB.
- Public Transparency The full fiscal plan, supporting data, and assumptions must be posted on the Citys Open Data portal within 45 days of adoption.
Implementation Process
The implementation of the 2019 Plan follows a structured workflow:
- Data Collection (Q1 FY 2019) Agencies provide historical financial data, projected service demands, and staffing needs.
- Scenario Modeling (Q2 FY 2019) OMB uses the Fiscal Simulation Engine to produce three scenarios: baseline, optimistic, and pessimistic.
- Stakeholder Review (Q3 FY 2019) The Mayors Office, the City Council Finance Committee, and community boards review the draft plan and submit comments.
- Final Adoption (Q4 FY 2019) The Mayor signs the final plan, and the City Council enacts it through a resolution.
- Annual Updates (Every FY) A midyear review adjusts assumptions based on actual performance and economic conditions.
Budgetary Impact
The 2019 fiscal plan projected a modest surplus of $115 million for FY 2019, driven largely by higher property tax revenues and a slowdown in overtime spending. Key highlights include:
- Operating budget: $94.5billion (up 2.1% from FY 2018)
- Capital budget: $5.8billion (focused on affordable housing, green infrastructure, and school modernization)
- Debt service costs: $3.4billion, representing a 0.3% reduction in the debttobudget ratio.
- Agencylevel savings: $27million in administrative overhead through shared services agreements.
The plan also earmarked $150 million for a new Fiscal Resilience Fund to support agencies during economic downturns, a direct response to lessons learned from the 2008 financial crisis.
Monitoring & Reporting
To ensure accountability, Local Law 63 instituted a robust monitoring framework:
- Quarterly Dashboard Published on the OMB website, displaying realtime variances from projected revenues and expenditures.
- Annual Performance Report A comprehensive review of outcomes versus targets, submitted to the City Councils Finance Committee.
- Independent Audit The Comptrollers Office conducts an external audit of the fiscal plans adherence and publishes findings each June.
All reports are freely accessible and downloadable in PDF and CSV formats, fostering public oversight.
Additional Resources
For readers who want to explore the Plan Fiscal 2019 in greater depth, the following resources are available:
- Official Local Law 63 page NYC Department of Finance
- Plan Fiscal 2019 Office of Management and Budget
- Open Data Set Fiscal Assumptions & Scenarios
- Comptrollers Review 2019 Fiscal Plan Audit
Stakeholders are encouraged to submit feedback through the OMB Contact Portal before the next revision cycle.
