‘The New Flint’: Scathing report on NYCHA compares crisis to Michigan’s failures, surveys NYCHA residents on lead problems

IDC proposes comprehensive package of legislation to address major crisis facing NYCHA tenants

The Independent Democratic Conference on Monday released a bombshell report, “The New Flint,” comparing the lead crisis facing tenants of the New York City Housing Authority with the lead crisis that captivated a nation in Flint, Michigan. Along with a new survey of NYCHA residents on lead paint, the senators also unveiled a comprehensive package of legislation to protect residents from the failures of the Authority.

NYCHA houses 396,581 authorized residents nearly four times as many people as the city of Flint, Michigan with a population of 98,900. Despite the size of its population, the Authority’s admission of its failure to follow the law, no real action has been taken to cure the problems facing NYCHA tenants.

Alarmingly, despite NYCHA Chairwoman Shola Olatoye’s admission that lead paint inspection certifications were falsified, residents reported through an IDC survey that problems persist:

79% of residents said NYCHA did nothing when lead paint was discovered in their apartments

80% had children whose children’s blood-lead levels have not been tested

54% called NYCHA for repairs, but are still waiting in excess of a month for repairs

63% indicate their apartment has peeling or chipped paint

Over 82% said NYCHA did nothing to educate them about lead paint

“NYCHA is the new Flint, and we need to step up and protect tenants from the negligence of the Authority. Residents are in serious danger, especially children, if we do not take action now. The Independent Democratic Conference today unveiled a legislative package to protect nearly 400,000 tenants from the consistent mismanagement they face,” said Senator Jeff Klein (D-Bronx/Westchester).

“Every child growing up in NYCHA housing deserves to be free from lead poisoning. Every parent raising a family in NYCHA housing deserves to know that their apartment is not poisoning them. As someone who grew up in NYCHA housing myself, I know it is our duty to ensure NYCHA lives up to its responsibilities to every NYCHA resident. ‘The New Flint’ report we release today outlines the public health menace NYCHA created by its failures. Today, I stand with colleagues in advancing steps to combat these dangers – the serious danger a developmental neurotoxin poses to our community’s children. Today, I stand with colleagues to restore peace of mind to these families. And today, I stand with colleagues to ensure this type of crisis is never repeated,” said Senator Jesse Hamilton (D-Brooklyn).

“This survey indicates what we have been hearing around the City from the 400,000 NYCHA residents daily: action is desperately needed. No parent should live in fear that their young child has been exposed to lead paint in the home, especially if we are unable to grasp how widespread the severity of this failure on NYCHA's behalf,” said Senator Diane Savino (D-SI/Brooklyn).

“Considering the more than 400,000 people who live in NYCHA apartments and the falsification of lead inspection reports by NYCHA officials, it is entirely justified to compare the situation to that of Flint, Michigan. The inhabitants of NYCHA have a right to know when lead is found in their homes and the administration of NYCHA has a responsibility to comprehensively track and quickly deal with any lead problems. Lead poisoning is irreversible and lifelong, and we owe it to New York’s families to empower them to protect their children from the scourge of lead paint,” said Senator Marisol Alcantara (D-Manhattan).

“NYCHA residents should not be treated as second class citizens. I was alarmed when news reports surfaced indicating that the City had stopped inspecting lead-paint presence in their housing units, putting people’s lives in danger. In fact, according to published reports, NYCHA residents were exposed to lead paint. This is inconceivable. We must ensure NYCHA tenants are protected from lead paint exposure and other hazards,” said Senator Jose Peralta (D-Queens).

“It is shameful that the Mayor and the City of New York would put the health of so many people in danger but it is an absolute disgrace that the City would struggle to do the bare minimum to remedy any of the problems. When 79% of people respond to a survey saying that the City knew that lead paint was present in their home but did nothing about it, you have a very serious crisis on your hands. Our City cannot continue to put over 170,000 New York families living in NYCHA buildings in hazardous conditions and not answer to anybody. That is why I am proud to stand with my IDC colleagues to propose real solutions that will protect vulnerable children and give tenants across the City a voice,” said Senator Tony Avella (D-Queens)

“I know firsthand the deplorable conditions that far too many NYCHA residents face on a daily basis. Nobody has highlighted the lead-based paint, heating and mold issues that plague our developments more than Senator Klein and the IDC. I commend these common-sense proposals brought forth today that can affect real change and improve the quality of life for all NYCHA residents,” said Monique Johnson, President of Throggs Neck Resident Council.

"NYCHA needs both an infusion of money and oversight that ensures NYCHA residents that funds will be properly utilized to fix our homes so that these buildings are available to the next generation of New Yorkers. These bills start that process by allowing residents to access 311 to report repairs to HPD and oversight for money investments." said Maria Pacheco (UPACA 6 resident, member Community Voices Heard).

Over the years, the IDC issued numerous reports exposing NYCHA as the “city’s worst landlord,” showing problems with mold remediation, leaking roofs and peeling paint. The IDC lead the charge to invest $100 million, the first state funding in nearly a decade, to pay for serious repairs. But, the neglect continued without any transparency or oversight of the agency’s officials.

These problems will only be exacerbated by federal cuts to HUD and public housing authorities. In New York this could translate to a $466 million loss in operating funds for NYCHA and $346 million less from HUD’s budget.

The IDC laid out a package of legislation to clean-up NYCHA’s act and protect tenants:

Requiring 311 to accept NYCHA complaints - Currently NYHCA complaints are fielded directly by NYCHA and there is no public record or accountability. Requiring 311 to take and track complaints would provide transparency and allow residents to better track action.

An Independent NYCHA Monitor - Now more than ever, it is clear that NYCHA cannot be left to oversee its own operations. An independent NYCHA Monitor would be a watchdog who would ensure money invested in public housing in spent appropriately and report to the state.

City Council oversight - The New York City Council should be empowered to get the information they seek from NYCHA when their members request it.

The Repair Certificate Program - With buildings in dire need of repair, we need experienced developers to make quality, expedited fixes. In exchange experts would receive zoning bonuses for other projects.

Lead Based Paint Reports - This legislation would require NYCHA to submit lead based paint reports to the legislature, which would include valuable information on lead paint inspections by the authority.  

Property tax abatements for lead removal - This legislation incentivizes the removal of lead paint from buildings by providing owners with a tax abatement to keep their tenants safe.

Mandatory lead screening for children - This legislation would require children to be screened for lead when they enter kindergarten, second or fourth grade.

Follow-ups for children who test for elevated blood levels - Primary care physicians would be required to conduct follow-up tests to monitor blood lead levels if a child tests for elevated lead levels. In addition, the state must ensure there is a full environmental review of the child’s home if elevated blood lead levels are found.

The Occupant Protection Plan - Buildings inspected between 2012 and 2018 would have to be re-inspected for lead paint. All buildings constructing in 1978 or earlier would have to develop plans to protect occupants from the hazards of lead paint.

Senator Jeff Klein's Black History Month Celebration

Senator Jeff Klein's Black History Month Celebration

Four-hundred people were in attendance at State Senator Jeff Klein's Black History Celebration held at Villa Barone. After a hearty breakfast the program began with Senator Klein and Dwayne Gathers (President of the Bronx Veterans Mentors) reciting the Pledge of Allegiance. The National Anthems were sung by Evangelist Michelle Lindsay, followed by the Invocation by Pastor Jay Goodings of the Fellowship Tabernacle Church of God and Christ.

Above Left - Senator Klein greets some guests.
Above Right - Senator Klein and Mr. Dwayne Gathers during the Pledge of Allegiance.
Below Left - Senator Klein with Pastor Goodings during the Invocation.
Below Right - Councilman Mark Gjonaj was in attendance with the Democratic candidate to replace him in the 80th A.D. special election Ms. Nathalia Fernandez. Also seated at the table next to Councilman Gjonaj is current Assemblyman Luis Sepulveda who is the Democratic candidate ffor the 32nd Senate District special election to replace former State Senator Ruben Diaz Sr. who was elected to the City Council.

Senator Klein then introduced Councilman Mark Gjonaj from the 13^th City Council District. Senator Klein also called up current Assemblyman Luis Sepulveda who is the Democratic candidate in the upcoming April 24^th special election to fill the vacant 32^nd State Senate seat left by now Councilman Ruben Diaz Sr. Senator Klein also called up Ms. Nathalia Fernandez the Democratic candidate for the vacant 80^th A.D. seat left by now Councilman Mark Gjonaj.

As the program continued Senator Klein called up his Keynote speaker Ms. Bertha Lewis the founder of ACORN. Ms. Lewis said that there are still twenty-five active chapters of ACORN in twenty-five states. The outspoken Ms. Lewis continued by saying 'Your going to enslave my people, and only give us one month for Black History”?

Ms. Lewis went on to say that through 'Power Rising' there is organizing in the Atlanta area. She mentioned the Democratic Party in a way that seemed to sound as though she wanted a third party, adding that black people will soon be the majority in this country. It was a very powerful speech which received a standing ovation when she finished.

Above Left - Ms. Bertha Lewis of President and Founder of the Black Institute was the Keynote speaker.
Above Right - Ms. Lewis poses with Senator Klein, and puts up the famous Bronx X of Bronx Borough President Ruben Diaz Jr.
Below Left - Councilwoman Vanessa Gibson also spoke at the event.
Below Right - Could State Senator Luis Sepulveda (if he is elected) become the ninth member of Senator Klein's Independent Democratic Conference?

The seven honorees were, Mr. Michael Barnes, Founder of C.A.L.F. Industries (Courageous Athletic Leaders Forever). Deputy Inspector Benjamin Gurley, Commanding Officer of the 43^rd Precinct. Ms. Stephanie Hill Commnity Organizer and Activist. Dr. Kenneth R. Hamilton, Superintendent of the Mount Vernon City School District. Ms. Katherine Hamm Principal of P.S. 107. Mr/ Larry Robinson, Chair Bronx Community Board #2's Youth Services Committee. Ms. Madge Leanna Holsey Shaw, Community Activist and Educational Advocate.

Team Diaz African-American Abrazo

  It was a nasty rainy Friday night which may have kept some people hime, but that did not stop Team Diaz from having their annual African-American Abroza at Maestros Caterers. The room was filled with over 400 people who enjoyed the delicious Maestros food, and some who had their photo taken with the elected officials on hand.

Above and Below - Some of the people who had their photos taken with Councilman Ruben Diaz Sr., Assembly members Luis Sepulveda and Victor Pichardo.

The five honorees were – Bronx Borough President Ruben Diaz Jr, - Ms. Norma Saunders. Assemblyman Marcos Crespo – Ms. Annie Johnson. Assemblyman Luis Sepulveda - Ms. Constance Walker Hendricks. Councilman Rafael Salamanca – Mr. Daniel Barber. A posthumous honor was bestowed upon Ms. Charlotte Terrel Sapp to her family by Assemblyman Victor Pichardo. 79^th A.D. Male District Leader John Tucker stood in for Assemblyman Marcos Crespo who was visiting Israel.

Above - The American and Negro National anthems were sung by Ms. Sherry Williams. 

Below - Bronx Borough President Ruben Diaz Jr. during his speech blasted the New York City Housing Authority for its poor maintenance and lack of heat in many of the NYCHA houses. He said it took the state less time to build a bridge (the new Mario Cuomo Bridge) than it takes NYCHA to change a boiler at the Patterson Houses. 

Above - Honoree Ms. Norma Saunders thanks Bronx Borough President Ruben Diaz Jr. for his recognition of her.

Below - Honoree Mr. Daniel M. Barber thanks Councilman Rafael Salamanca for his recognition of him.

Bronx Chamber of Commerce Black History Celebration

  The Bronx Chamber of Commerce held their Annual Black History Luncheon which recognized six distinguished individuals for their outstanding vision, dedication and commitment to excellence, and for their contributions to the Bronx.

The six honorees were Retired Judge Hon. Eugene Oliver, Mr. Michael Nixon of the Bronx Overall Economic Development Corporation, Ms. Nicole McNulty VP Apple Bank Coop-City branch, Ms. Carolyn Harrison Bronx Regional Director for Young Life, Ms. Jacquie Wayans Television host and producer, and Mr. Bouna Coundoul former NYC Soccer Player of the Year.

The event was held at Tosca Marquee, and 13th City Councilman Mark Gjonaj stopped by to congratulate the six honorees and the members of the Bronx Chamber of Commerce.

Above - The Bronx Chamber of Commerce table with President CEO Nunzio Del Greco (seated left), Chair Joseph Kelleher, and BCC Events Director Phil Cardone are standing.

Below  - Former Assemblyman now Councilman Mark Gjonaj dropped in to say hello.He brought the Democratic candidate Ms. Nathalia Fernandez, his choice for the now vacant 80th assembly seat. 

Above - BCC Chair Joseph Kelleher congratulates  BCC President Nunzio Del Greco for announcing that 238 new members joined the Bronx Chamber of Commerce in 2017.

Below - L/R back row - Bronx Chamber of Commerce Chairman Joseph Kelleher, BCC President & CEO Nunzio Del Greco, Honorees Bouna Coundoul, Michael Nixon, and Hon. Eugene Oliver.

Front row - Honorees Jacquie Wayans, Nicole McNulty, and Carolyn Harrison, with Thomas Messina of Congressman Joe Crowley's office.

Bronx Man Sentenced To 75 Years In Prison For Murder In Front Of Bronx Daycare Center

  Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that RUBEN PIZZARO, a/k/a “Chulo,” was sentenced to 75 years in prison for murder, participating in a narcotics conspiracy, and firearms charges. PIZZARO was convicted on June 13, 2017, following a one-week jury trial before U.S. District Judge Gregory H. Woods, who also imposed today’s sentence.

U.S. Attorney Geoffrey S. Berman said:  “In November of 2015, Ruben Pizzaro murdered a rival drug dealer in broad daylight close to a nearby daycare center. Pizzaro’s actions are another example of the wanton violence that often accompanies the sale of drugs. Ruben Pizzaro will now serve 75 years in federal prison for his brazen crimes.” 

According to the Complaint, the Indictment, other filings in Manhattan federal court, evidence at trial, and statements made in court proceedings:

Between August 2015 and January 2016, PIZZARO was a member of a street gang that sold cocaine and crack cocaine in the vicinity of 180th Street and Arthur Avenue in the Bronx, New York.  PIZZARO and his crew of drug dealers were in competition with a neighboring drug crew on Hughes Avenue in the Bronx.  That competition played out in several violent shootings in late 2015.  For example, on at least three occasions in October and November 2015, PIZZARO and his drug crew fired at members of the Hughes Avenue drug crew.  Individuals were shot during two of those three incidents, and the third occurred in the vicinity of a Bronx middle school. 

On November 24, 2015, PIZZARO shot and killed rival drug dealer David Rivera in broad daylight in front of a daycare center in the vicinity of 175th Street and Crotona Avenue in the Bronx.

In addition to the prison term, PIZZARO, 26, was sentenced to 4 years of supervised release.

Mr. Berman thanked the Federal Bureau of Investigation and the New York City Police Department for their work on the investigation.

Partner At International Law Firm Sentenced For Insider Trading

  Geoffrey H. Berman, the United States Attorney for the Southern District of New York, announced today that WALTER C. LITTLE, a/k/a “Chet,” a former partner at an international law firm (the “Firm”), was sentenced today to 27 months in prison for conspiring to commit insider trading from at least February 2015 through May 2016.  LITTLE pled guilty on November 9, 2017, before U.S. District Judge Katherine Polk Failla, who also imposed today’s sentence.

U.S. Attorney Geoffrey H. Berman said:  “Walter Little, a law firm partner with access to sensitive nonpublic client information, selfishly chose to exploit it for personal gain rather than safeguard it.  Today’s sentence underscores the seriousness of insider trading, as Little will now serve serious time in prison.”

According to allegations in a Complaint and Indictment filed in Manhattan federal court, as well as previous court filings and statements made in public court proceedings:

LITTLE began working for the Firm as an associate in 2005 and eventually became a partner.  The Firm provided legal services in connection with financial transactions and regulatory issues to a wide variety of clients.  Those clients entrusted the Firm with nonpublic information when using its services.  Contrary to Firm policies requiring that this information be kept secret and be used only for business purposes, LITTLE improperly accessed sensitive information on the Firm’s servers and used it to make profitable securities trades.  LITTLE viewed numerous documents that contained material nonpublic information about, among other things, an anticipated delisting from the NASDAQ stock exchange, unannounced mergers and acquisitions, anticipated earnings releases, and a planned securities offering.  All of these events had predictable impacts on the associated stocks’ prices, and, between February 2015 and May 2016, LITTLE made hundreds of thousands of dollars trading stocks and options based on the information contained in these documents.

In addition to trading on the information himself, LITTLE also provided the information to Andrew Berke, his business associate and friend, who also traded on it and made hundreds of thousands of dollars in illegal gains as well.  At LITTLE’s request, Berke subsequently kicked back portions of his own profits to LITTLE through the use of fake legal invoices.  Berke pled guilty on December 28, 2017, to his role in the scheme and is scheduled to be sentenced on April 17, 2018.  

In addition to the prison sentence, LITTLE, 44, was sentenced to three years of supervised release.  The Court further ordered LITTLE to forfeit a sum of $452,998.           

Mr. Berman praised the work of the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission for its assistance. 

Wave Hill Events Mar 9‒Mar 16

 Fri, March 9    The Garden and Beyond: An Afternoon of History at Wave Hill

This elegant and intimate afternoon celebrates Wave Hill’s rich historical legacy and extraordinary gardens. Relish a light-fare buffet—inspired by a traditional afternoon tea—as you enjoy a historical lecture and behind-the-scenes tour of the early spring gardens. The presentation takes place in the Mark Twain room, the former library of the estate, and continues outside with a walking tour of working areas of the garden. The afternoon concludes in The Shop at Wave Hill with a complimentary gift and a 10% discount on all purchases. Space is limited. $50/$45 Wave Hill Member. Registration required, online at wavehill.org or onsite at the Perkins Visitor Center.

WAVE HILL HOUSE, 1‒3:30PM

Sat, March 10    Family Art Project: Avifauna Fun Monoprints

Notice the elegant and distinctive shapes of our local bird species. Working with simple templates or your own design, use large pieces of construction paper and tempera paint to make simple, bold, large-scale birdy monoprints. Free, and admission to the grounds is free until noon.

WAVE HILL HOUSE, 10AM‒1PM

Sat, March 10    Art Workshop: Embossed Mementoes Paper-Making Workshop

Take a tour of Michele Brody’s Winter Workspace studio and learn the art of paper-making, embossing and embedding natural materials or mementos into one-of-a-kind, handmade paper. Experiment with paper pulp to create sentimental works of art that can be decorative and practical. Ages 12 and older welcome with an adult. $55; 10% discount to Wave Hill Members. Registration required, online at wavehill.org or onsite at the Perkins Visitor Center.

MEET AT GLYNDOR GALLERY, 10AM–1PM

Sat, March 10    Talk & Tasting: Wine-Growing in the Hudson Valley

Viticulturist and winemaker J. Stephen Casscles has evaluated all of the grape varieties historically grown in New York State, and recently re-introduced several heirloom cultivars back into the commercial market. Join him for a talk and tasting of heirloom wines as he speaks about the fascinating story of this locally-produced beverage. Followed by a signing of his bookGrapes of the Hudson Valley. Free with admission to the grounds.

WAVE HILL HOUSE, 1–2PM

Sun, March 11    Spring Birding

Welcome migratory birds back to Wave Hill this spring. Explore the gardens and woodlands with naturalist Gabriel Willow on a quest to spot both resident and rare birds as they pass through on their northern journey or settle down for the season. Ages 10 and older welcome with an adult. Severe weather cancels. Free with admission to the grounds. NYC Audubon Members enjoy two-for-one admission. 

MEET AT PERKINS VISITOR CENTER, 9:30AM

Sun, March 11    Family Art Project: Avifauna Fun Monoprints

Notice the elegant and distinctive shapes of our local bird species. Working with simple templates or your own design, use large pieces of construction paper and tempera paint to make simple, bold, large-scale birdy monoprints. Free with admission to the grounds.

WAVE HILL HOUSE, 10AM‒1PM

Sun, March 11 Family Nature Walk

Join naturalist and educator Gabriel Willow on a family-friendly walk through the gardens or woodlands. Registration not required. Ages six and older welcome with an adult. Severe weather cancels. Free with admission to the grounds.

MEET AT WAVE HILL HOUSE, 1PM

Sun, March 11    Pre-Concert Tea

Enjoy Afternoon Tea in the Mark Twain Room prior to today’s concert in Armor Hall. The Café at Wave Hill pairs a classic menu with an assortment of green, black and herbal teas. This traditional tea service includes the four classic elements of savory, scones, sweets and tea. The menu, presented by Great Performances, includes an array of tea sandwiches, scones and bite-sized desserts. Afternoon Tea also includes a glass of sparkling wine. Afternoon Tea Service is $36. Wave Hill Members receive a 10% discount. Advance registration is required online. We will take reservations until 5PM, Thursday, March 8.

WAVE HILL HOUSE, NOON–2PM

Sun, March 11    Winter Workspace Drop-In Sunday

Artists in the Winter Workspace program share their studio practice with visitors on this Drop-In Sunday. This year’s Session 2 artists are Michele Brody, Tamara Kostianovsky, Athena LaTocha, Maika’i Tubbs and two New York Community Trust Van Lier Fellows, Ashton Agbomenou and Yelaine Rodriguez. For more about who is in residence on Sundays, visit wavehill.org. Free with admission to the grounds.

GLYNDOR GALLERY, 1–3PM

Sun, March 11    Concert: Ann Schein, Piano

The Washington Post reveres Ann Schein as a pianist who “simply reaches right into the heart of whatever she is playing—and creates music so powerful you cannot tear yourself away." She is one of the greatest pianists of her generation. Over the course of her career, Schein has earned similar high praise in major American and European cities and in more than 50 countries around the world. Since her debut in Mexico City in 1957 when she performed both the Rachmaninoff 3rd Concerto and the Tchaikovsky B-flat Concerto, she has performed thousands of concerts on every continent. In a return engagement at Wave Hill, Ms. Schein will offer works by Beethoven, Chopin and Rachmaninoff. Tickets for this concert are $28 plus admission to the grounds/$24 Wave Hill Member/$12 Children ages 8–18. Order tickets online at wavehill.org or onsite at the Perkins Visitor Center. For additional information, please call 718.549.3200 x251.

WAVE HILL HOUSE, 2PM

Sun, March 11    Garden & Conservatory Highlights Walk

Join a Wave Hill Garden Guide for an hour-long tour of seasonal garden highlights. Free with admission to the grounds.

MEET AT PERKINS VISITOR CENTER, 2PM

Mon, March 12

Closed to the public.

A 28-acre public garden and cultural center overlooking the Hudson River  and Palisades, Wave Hill’s mission is to celebrate the artistry and legacy of its gardens and landscape, to preserve its magnificent views, and to explore human connections to the natural world through programs in horticulture, education and the arts.

HOURS  Open all year, Tuesday through Sunday and many major holidays: 9AM–4:30PM, November 1–March 14. Closes 5:30PM, starting March 15.

ADMISSION  $8 adults, $4 students and seniors 65+, $2 children 6–18. Free Saturday and Tuesday mornings until noon. Free to Wave Hill Members and children under 6.

PROGRAM FEES  Programs are free with admission to the grounds unless otherwise noted.

Visitors to Wave Hill can take advantage of Metro-North’s one-day getaway offer. Purchase a discount round-trip rail far and discount admission to the gardens. More at http://mta.info/mnr/html/getaways/outbound_wavehill.htm

DIRECTIONS – Getting here is easy! Located only 30 minutes from midtown Manhattan, Wave Hill’s free shuttle van transports you to and from our front gate and Metro-North’s Riverdale station, as well as the W. 242nd Street stop on the #1 subway line. Limited onsite parking is available for $8 per vehicle. Free offsite parking is available nearby with continuous, complimentary shuttle service to and from the offsite lot and our front gate. Complete directions and shuttle bus schedule at www.wavehill.org/visit/.

Information at 718.549.3200. On the web at www.wavehill.org.

Comptroller Stringer Releases Analysis of New York City’s Preliminary FY 2019 Budget

Stringer creates new ‘agency watch list’ to spotlight City agencies that must deliver better results

Despite warning signs, budget cushion remains inadequate

Stringer renews call for more vigorous citywide savings program

  Amidst growing indications that the economic expansion of the last decade is waning, and as a hostile federal government targets the nation’s urban centers, New York City Comptroller Scott M. Stringer today presented his analysis of the Mayor’s fiscal year (FY) 2019 Preliminary Budget and Financial Plan. The Comptroller’s annual presentation rolled out a new ‘agency watch list’ to spotlight City agencies that raise the most budgetary concerns, and for which data-driven approaches are critically needed to measure and improve performance. Agencies included on the list for FY 2019 are the Departments of Homeless Services (DHS), Education (DOE), and Correction (DOC).

“Our economy is in solid position, but it won’t last forever, as economic and job growth slow in the years to come. With President Trump’s proposed budget cuts going after the most vulnerable New Yorkers, and his tax bill targeting our economy, it’s absolutely critical that New York City prepare today for whatever comes tomorrow. That means spending our limited resources in a way that achieves maximum impact,” said New York City Comptroller Scott M. Stringer. “Budgets are about priorities, and ours need to be on making sure that those who need our help the most get it, and that we can continue to provide all New Yorkers the critical City services they count on—in both good times and bad. Mayor de Blasio has offered a Preliminary Budget that puts forward a number of laudable initiatives that I support. But as we confront the challenges ahead, we will have to grow our budget cushion and implement a more vigorous agency savings program. That’s why this year, I’m introducing an ‘agency watch list,’ to shine a light on the departments that absolutely must deliver better results if we’re going to maintain City services, while keeping our fiscal house in order.”

The Comptroller’s wide-ranging presentation covered several aspects of the City Preliminary Budget and the state of the City’s economy, including:

Overview of the FY 2019 Preliminary Budget.

• Spending grows a modest 1.4% in FY 2019;
• Spending is projected to accelerate to an average annual rate of 2.6% over the entire Plan period, fiscal years 2018 to 2022;
• In contrast, revenues are projected to grow at an average 2.2% each year until FY 2022, resulting in budget gaps of $2.2 billion in FY 2020, $1.5 billion in FY 2021, and $1.7 billion in FY 2022; and
• So far this year, the February Plan shows a $2.6 billion budget surplus in FY 2018, down nearly $1.6 billion from the $4.2 billion budget surplus of FY 2017.

The Comptroller’s Economic Outlook

While the City’s economy is still growing, the Comptroller’s office forecasts that growth will slow.

• Any short-run stimulus effects of federal tax cuts and spending are likely to wear off quickly as the Federal Reserve and markets react to rising federal deficits and inflationary expectations.
• As a result, job growth in the City is expected to decelerate from an average of nearly 90,000 new jobs per year since the end of the Great Recession in 2010, to 22,700 in 2020, 15,900 in 2021, and 16,300 in 2022; and
• The City’s declining cash balances constitute an early warning signal, as they currently sit more than $2 billion below last year’s level, after falling to a low in December of $1 billion – the lowest point since 2010.

Agency Watch List

This year the Comptroller is introducing an Agency Watch List of the City agencies that are of most concern when it comes to budgeting.

DHS: Citywide Spending for Homeless Services Continues to Rise While Homeless Population Grows

• Citywide spending on homelessness across all agencies has more than doubled from $1.1 billion in FY 2013 to a projected $2.6 billion in FY 2019;
• Spending on shelters alone has nearly doubled since FY 2013 – from just over $1 billion to $1.9 billion dollars in FY 2019; and
• Despite major investments in prevention and housing, the number of individuals residing in shelters has steadily increased from 49,673 in 2013 to 61,029 as of February 2, 2018.

DOE:  More for the Classroom, Less for the Bureaucracy

• Since 2012, Central Administration staff has increased by more than 400, a 24% rate of growth – twice the rate of teaching staff growth, at 12%.
• There is rampant waste and lack of accountability at DOE. Comptroller audits have found:
  • In a sample of just 8 schools and one administrative site, one-third of computer hardware was unaccounted for, with no follow-up action to implement basic controls;
  • $1 billion investment in high-speed broadband while one in three teachers remain dissatisfied with the service; and
  • $2.7 billion in no-bid contracts.

DOC: Inmate Population is Down, but Spending – and Violence – Are Up

• In the last decade, the average daily inmate population has declined by over 30 percent, from 13,850 in 2008 to 9,500 in 2017;
• But over the same period, the average annual cost of housing an inmate on Rikers has more than doubled, from about $117,000 in 2008 to over $270,000 in 2017; and
• The number of violent incidents against both inmates and correctional officers has more than tripled over the same period, from 441 per 1,000 average daily population in 2008 to 1,332 per 1,000 average daily population in 2017.

Budget Cushion Must be Bolstered

The City’s projected budget cushion – the budget resources available at the beginning of each fiscal year to help the City weather unexpected events – is currently insufficient, at just 9% of adjusted FY 2019 spending.

• The optimal range for the City’s reserve cushion is between 12% and 18% of spending;
• At the start of the last recession in 2009, the City’s budget cushion was equivalent to more than 17% of spending;
• At the start of FY 2018, the City made progress towards the lower bound of the optimal range by boosting the budget cushion  to 11.7% of adjusted spending, up from 11.1% at the start of FY 2017;
• As of the February Plan, the City’s accumulated FY 2018 surplus is over $1.5 billion less than at the start of the year;
• That means that in the absence of adding more to the accumulated surplus or reserves before the end of the fiscal year, the City would start FY 2019 with a cushion equal to just 9% of projected spending – about $8.5 billion; and
• To reach the lower bound of the optimal range, the City needs to add more than $2 billion to the budget cushion.

Need for Vigorous Agency Savings Plan

The Mayor has proposed a $3.3 billion dollar Citywide Savings Program over the Financial Plan period. In the past, City agencies contributed more relative to the City-funds budget, and Comptroller Stringer once again recommends that City agencies do a serious scrub of their budgets and operations to identify more savings and efficiencies to help address potential risks – something City agencies have not been asked to do in the last four budget cycles.

• The average agency savings was about 2.7% of City-funds agency expenditures in FY 2008 through FY 2013; and
• However, the average agency savings in the Citywide Savings Program since amounts to 1.1%.