Governor Cuomo Updates New Yorkers on State's Progress During COVID-19 Pandemic - NOVEMBER 17, 2020

 

Positive Testing Rate in All Focus Zone Areas is 4.89 Percent; New York State Positivity Outside All Focus Zone Areas is 2.82 Percent 

Statewide Positivity Rate is 3.18 Percent

29 COVID-19 Deaths in New York State Yesterday

 Governor Andrew M. Cuomo today updated New Yorkers on the state's progress during the ongoing COVID-19 pandemic. 

"The number of cases across the country and in New York are only continuing to climb. Despite our success in managing the spread, New York is not immune to this national surge of COVID," Governor Cuomo said. "Our micro-cluster strategy and testing capacity will help us through this new season, but ensuring we don't go back to where we were in the spring is going to depend on our behavior. We all have a part to play - wear a mask, stay socially distant, avoid gatherings large and small, and wash your hands religiously. Our actions today determine our rate of positive cases tomorrow - it's that simple. We can manage this phase the same way we did before: by holding each other to account and staying New York Tough."

The Governor noted that the positive testing rate in all focus areas under the state's Micro-Cluster strategy is 4.89 percent, and outside the focus zone areas is 2.82 percent. Within the focus areas, 27,713 test results were reported yesterday, yielding 1,355 positives. In the remainder of the state, not counting these focus areas, 132,139 test results were reported, yielding 3,733 positives.

Today's data is summarized briefly below:

• Patient Hospitalization - 2,124 (+156)
• Patients Newly Admitted - 295
• Hospital Counties - 50
• Number ICU - 408 (+17)
• Number ICU with Intubation - 176 (+18)
• Total Discharges - 82,022 (+114)
• Deaths - 29
• Total Deaths - 26,189 

Each New York City borough's percentage of positive test results reported over the last three days is as follows:

BOROUGH	SATURDAY	SUNDAY	MONDAY
Bronx	2.6%	2.5%	3.7%
Brooklyn	2.1%	1.9%	2.3%
Manhattan	1.6%	1.6%	2.3%
Queens	2.5%	3.3%	3.1%
Staten Island	3.5%	3.1%	4.8%

MAYOR DE BLASIO SIGNS BILLS TO EXPAND GREEN NEW DEAL, COMBAT INCOME DISCRIMINATION AND PROVIDE ONLINE ACCESS TO RENTAL ASSISTANCE

 

Mayor Bill de Blasio today signed into law a package of bills that will expand New York City’s landmark Green New Deal, increase access to online rental assistance and strengthen income discrimination laws.

“Fighting climate change and increasing access to safe and stable housing are crucial to making New York City an equitable place to live for generations to come,” said Mayor Bill de Blasio. “These bills will chart a path forward for a fair and sustainable recovery.”

 

The bills include:

 

Intro. 1947-A (Constantanides): Increases the threshold for rent-regulated buildings to be exempted from Green New Deal emissions reduction requirements. Under the original law, buildings with one or more rent-regulated units were be exempted. Under this law, buildings that are up to 35 percent rent-regulated will required to meet the Green New Deal standards. The bill provides this newly added universe of buildings an extra two years to comply with the initial requirements.

 

Intro. 2072-A (Constantanides): Requires the City to report on its outreach and education efforts and methods buildings use to comply with greenhouse gas emissions limits pursuant to Local Law 97 of 2019, including information about non-compliant buildings, types of retrofits different building types are using, and funding available for these energy investments.

 

Intro. 2080-A (Levin): Requires the Department of Social Services provide clients online access to their CityFHEPS rental assistance application. This will help clients track their application status and serve as a way for New Yorkers to get help if they have questions about the application process.

 

Intro. 1339-A (Ayala): Requires the Department of Social Services to provide information to CityFHEPS rental assistance applicants about income discrimination at the time an applicant receives a “shopping letter” from DSS. The notice would provide information about protections under the New York City Human Rights Law related to discrimination on the basis of a person’s lawful source of income and use of rental vouchers.

 

Examples of actions that may indicate discrimination include: 

 

• Refusing to accept lawful source of income for rent payment (unemployment benefits, child support, alimony, foster care subsidies, Social Security, or any other form of federal, state, or local public assistance or housing assistance)  
• Publishing any type of advertisement that indicates a refusal to accept any lawful source of income 
• Refusing or delaying repairs because a person uses any lawful source of income for rent payment 
• Refusing to accept a CityFHEPS subsidy for payment of rent or a security deposit voucher  

Intro. 2082-A (Powers): Expands prohibition of income discrimination by landlords of small buildings (1-5 units). The bill also amends the definition of “lawful source of income” to clarify that the term encompasses other types of lawful income that low-income New Yorkers may have access to, including, but not limited to, “child support, alimony, foster care subsidies, income derived from social security, or any form of federal, state, or local public assistance or housing assistance including, but not limited to, Section 8 vouchers.”

 

"The Council is proud of our efforts to create and expand a Green New Deal for New York City and we will continue to strengthen the Climate Mobilization Act and other resiliency initiatives. We will also keep working to protect New Yorkers from income discrimination and increase access to rental assistance for tenants throughout this pandemic and beyond," said Council Speaker Corey Johnson.

 

"New Yorkers understand that climate change is an existential threat, especially in a city of islands like ours," said Department of Buildings Commissioner Melanie La Rocca. "Buildings are our largest source of emissions, and we look forward to continue educating and working with buildings owners on the necessary changes they must make to meet this threat head-on. We remain committed to implementing NYC's Green New Deal, and appreciate the continued support of the Council to do so." 

 

"We must, and will, ensure our climate interventions also protect every New Yorker's right to affordable, comfortable and healthy housing," said Mark Chambers, Director of Sustainability, City of New York. "Intros 1947 and 2072 signed today provide pathways for more buildings to meet our ambitious climate goals, and we stand ready to support their compliance."  

 

 “Since day one, we have made housing stability a top priority,” said Department of Social Services Commissioner Steven Banks. “Today’s legislation exemplifies that pledge and will take our progress even further, making it easier for New Yorkers in need and landlords alike to open and access doors of opportunity, like permanent housing, including by reinforcing the source of income discrimination protections provided under the law to New Yorkers who may use rental assistance to get back on their feet. We thank our partners and the sponsors of the legislation at City Council for their ongoing support and commitment to providing New Yorkers in need with a variety of tools to secure their homes.”   

 

"Fighting source of income discrimination remains a top priority at the NYC Commission on Human Rights” said Carmelyn P. Malalis, Chair and Commissioner of the NYC Commission on Human Rights. “Since 2014, the Commission has assessed over $1.2 million in damages and penalties in source of income cases, $450,000 of which was assessed in Fiscal Year 2020 alone. Because of the systemic nature of these violations, the Commission employs innovative strategies in our enforcement efforts to ensure maximum impact, such as requiring violators to set aside a percentage of their units specifically for tenants utilizing government rental assistance. Today’s bills serve to strengthen the Commission’s ability to protect New Yorkers. At a time when housing insecurity is made all the more dangerous by the COVID-19 pandemic, we applaud these steps taken toward eradicating housing discrimination and keeping people in safe and secure homes." 

Governor Cuomo Announces Statewide Seat Belt Enforcement Campaign

 

21st Annual "Buckle Up New York, Click It or Ticket" Enforcement Campaign Runs Through November 29, 2020

New State Law Requires Back Seat Passengers to Wear Seat Belt

Xfinity Series Driver Ross Chastain Helps Promote Seat Belt Use in New York

Watch GTSC's New Seat Belt PSA Here

 Governor Andrew M. Cuomo today announced that the 21st Annual "Buckle Up New York, Click It or Ticket" enforcement campaign is underway and will run through November 29, 2020. The statewide campaign, supported by the Governor's Traffic Safety Committee, raises awareness about the importance of wearing seat belts. Throughout the mobilization, state and local law enforcement agencies are using marked and unmarked vehicles, checkpoints, and roving details to patrol for unbelted occupants. Law enforcement is also making sure children are properly restrained. During last year's enforcement campaign, police issued 26,432 tickets for seat belt and child restraint violations.  

"Wearing your seat belt isn't only the law, but it's the smartest choice you can make to help prevent a needless tragedy," Governor Cuomo said. "New York has been a national leader on this issue ever since my father helped institute the country's first seat belt law, and while we've made a great deal of progress over the years, we still see instances where they are not being used. There is no debate -- seat belts save lives and we will continue to raise awareness on this undisputable fact to help ensure all those who travel on New York's roadways do so safely."

In August, Governor Cuomo signed legislation that strengthens the state's historic seat belt laws to better protect everyone on New York's roadways. As of November 1, 2020, everyone in passenger vehicles, regardless of where they sit, needs to wear a seat belt or be properly restrained in a child safety seat. In New York, police can lawfully ticket motorists for not wearing a seat belt even if they are not committing any other traffic infractions. 

Enforcement efforts like the "Buckle Up New York, Click it or Ticket" mobilization and educational campaigns like the GTSC's new PSA are working. The state's seat belt compliance rate has remained at or above 90 percent since 2010, reaching a record 94 percent last year, according to data from the Institute for Traffic Safety Management and Research at the University at Albany's Rockefeller College. 

To further promote awareness, GTSC has continued its partnership with Xfinity Series driver Ross Chastain and Spire Sports to encourage seat belt use through the "Protect Your Melon" campaign. As part of this initiative, 1,500,000 watermelons labeled with "Protect Your Melon" and "Buckle Up" were sold in grocery stores throughout the state during the spring and summer months, along with Chastain cardboard cut-outs and watermelon bin posters.  Additionally, Chastain uses his large social media following to promote seat belt use in New York.   

According the National Highway Traffic Safety Administration (NHTSA), 37,133 people were killed in motor vehicle crashes nationwide in 2017 and 47 percent of those killed were not wearing seat belts. NHTSA estimates that in 2017, seat belts saved 14,955 lives and an additional 2,549 people could have been saved had they been wearing a seat belt.

GTSC Chair and DMV Commissioner Mark J.F. Schroeder said, "It's simple, buckling up is the easiest and most effective way to reduce the risk of death or injuries in a car crash. I encourage all New Yorkers to make the smart and safe choice of buckling up every time."

New York State Police Superintendent Keith M. Corlett said, "For more than three decades, the New York State Police have been stressing the importance of safety restraint use in motor vehicles. By using safety belts and child safety seats properly, operators and passengers dramatically reduce their risk of severe injury or death when in a motor vehicle accident. Seatbelts save lives. We will continue to do our part to reduce senseless injuries and deaths that result from not buckling up and remind drivers: click it or ticket."   

Financial Adviser Sentenced For Running A Multimillion-Dollar Ponzi Scheme

 

 Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced today that JAMES T. BOOTH was sentenced in Manhattan federal court today to 42 months in prison in connection with his years-long scheme to defraud customers of his financial services firm, Booth Financial Associates (“Booth Financial”), of nearly $5 million through a variety of lies and misrepresentations.  BOOTH pled guilty to one count of securities fraud on October 22, 2019, before U.S. District Judge John G. Koeltl, who also imposed today’s sentence.

Acting Manhattan U.S. Attorney Audrey Strauss said:  “Today, James T. Booth was sentenced for brazenly bilking some 40 clients of nearly $5 million by fraudulently convincing them that he would deliver solid and secure returns on their investments.  Instead, Booth delivered lies and deceit.  We will continue to aggressively pursue frauds like this one to preserve investor confidence in our capital markets.” 

According to the allegations contained in the Indictment:

From 2013 through 2019, BOOTH solicited money from clients of Booth Financial and falsely promised to invest their money in securities offered outside of their ordinary advisory and brokerage accounts.  Specifically, BOOTH directed certain of his clients to write checks or wire money to an entity named “Insurance Trends, Inc.”  Instead of investing his clients’ funds, BOOTH, who controlled the bank account of Insurance Trends, Inc., subsequently misappropriated his clients’ funds to pay his personal and business expenses.

In total, BOOTH raised more than $4.9 million from approximately 40 investors.  BOOTH lured many of his victims with false promises of safe investments with high returns.  For example:           

•           BOOTH convinced a recently widowed elderly investor (“Investor-1”) to move money she had received from her late husband’s pension into Insurance Trends, Inc.  BOOTH falsely promised Investor-1 that she would have $1 million by the time she was 100 years old.  As a result of BOOTH’s false assurances, Investor-1 invested more than $600,000 with BOOTH.

•           BOOTH similarly convinced another investor (“Investor-2”) to move his money into an investment product that, according to BOOTH, would never lose its principal and would grow with the market.  Based on this false representation, Investor-2 moved money he had set aside for his child’s college expenses, at least approximately $60,000, to BOOTH.  BOOTH subsequently failed to provide Investor-2 with documentation of his investment or to allow Investor-2 to redeem his investment.

•           BOOTH convinced another elderly investor (“Investor-3”) to withdraw money from an annuity established for the care of his disabled sibling – approximately $18,000 – and invest that money with BOOTH.  Investor-3 gave the money to BOOTH with the understanding that BOOTH would invest that money for the benefit of Investor-3’s sibling’s continued care.

To prevent investors from seeking a return of their money, and to induce additional investments, BOOTH provided investors with fabricated account statements that falsely indicated that BOOTH had purchased certain securities on their behalf and that those investments had generated a profit.  BOOTH further concealed the truth from investors by using money obtained from new investors to make redemption payments to previous investors, in a Ponzi-like fashion.

In addition to the prison term, BOOTH, 75, of Norwalk, Connecticut, was sentenced to three years of supervised release, and was ordered to pay $4,969,689.00 in forfeiture.  BOOTH will pay restitution in an amount to be determined by the Court.

Ms. Strauss praised the outstanding work of Homeland Security Investigations and also thanked the Securities and Exchange Commission for its assistance in the investigation. 

Attorney General James Delivers Restitution to New Yorkers Cheated by Auto Dealership

 

Queens Dealership Targeted Chinese-speaking Community 

New Yorkers Affected Should Contact the OAG at 1-800-771-7755

Attorney General Letitia James today delivered justice and restitution for New Yorkers who were targeted and conned by a Bayside car dealership. Star Auto Sales of Bayside, Inc., d/b/a Star Toyota of Bayside, used fraudulent, deceptive, and unlawful practices to sell and finance used vehicles to Chinese-speakers who lacked English language skills and who were not familiar with typical auto sales practices.

“Stealing from our immigrant communities by taking advantage of language barriers is not only illegal, but downright shameful,” said Attorney General James. “New York values its immigrant communities, and we will not stand idly by while they are targeted. I look forward to returning hard-earned money back into the pockets of consumers, and I am proud to be able to fight for the rights of all New Yorkers.”

Star Toyota advertised in Chinese-language publications, inviting consumers to come in and meet with the dealership’s Chinese-speaking sales representatives. The sales staff built a trusting relationship with customers and reassured them that they could trust them because of their common language.

Instead, the auto dealership preyed upon the unsuspecting customers by having them sign contracts to purchase their vehicles at higher costs than agreed to during Chinese-language negotiations. Additionally, the sale representatives increased the consumers’ total costs by adding unwanted aftermarket products to customers’ contacts without the customers’ knowledge or consent; a practice called “jamming.” The aftermarket items jammed into the contracts included unwanted supplemental warranties, service contracts, and theft insurance policies. Additionally, the dealership often failed to provide buyers with copies of the sales or lending contracts, which prevented the consumers from discovering how the dealership had increased their final costs. Star Toyota then regularly submitted inflated or made up personal financial information to their lenders to secure loans that the customers struggled to pay. Finally, the sales reps would take advantage of these consumers’ lack of familiarity with domestic auto sales practices by demanding tips or taking cash from consumers for expenses that were already included in their transactions.

The initial consumer complaints were received from U.S. Representative Grace Meng’s office.

“I thank and commend Attorney General James for investigating the complaints that were referred by my office,” said U.S. Representative Grace Meng. “I’m pleased that these cases were pursued, and that restitution is being delivered to those who were duped into shelling out additional and unnecessary funds for their vehicles. Taking advantage of customers, particularly those with limited English proficiency, is unconscionable and shameful. Unfortunately, this is not uncommon in immigrant communities where cultural and language barriers exist. But these cases should serve as a warning to others who seek to swindle vulnerable individuals out of their hard-earned money. Ripping off consumers will not be tolerated and those who do will face the consequences of their actions.” 

“Queens lauds Attorney General Letitia James for securing substantial restitution for the customers duped by this unscrupulous dealership,” said Queens Borough President Sharon Lee. “This also sends a strong message to other businesses: such deceptive practices, especially ones that prey upon vulnerable populations and take advantage of non-English speakers, will be checked. Thank you, Representative Meng and General James for protecting and fighting for consumers." 

“It's truly reprehensible that a car dealer would use the native language of hardworking, trusting consumers to prey on and cheat them out of hard-earned money,” said State Senator John Liu. “Unfortunately, this is not the first time we have worked on this scam, but hopefully it will be the last thanks to the vigorous efforts of Attorney General Letitia James.” 

The Office of the Attorney General alleged that Star Auto Sales of Bayside violated Executive Law 63(12) for fraud or illegality in the conduct of business and GBL 349 for engaging in deceptive business practices. A consent order resolving these allegations was granted in New York Supreme Court, Queens County and signed by Hon. Richard G. Latin. The order awards $100,000 in civil penalties to the state of New York and $186,855 in restitution to 21 known consumers. A notice of this settlement will also be publicized in a local Chinese publication, allowing additional claimants to come forward to claim restitution during a 90-day window.

Attorney General James encourages any Chinese-speaking consumers who believe they were deceived by Star Toyota of Bayside from January 1, 2014 to March 1, 2018, to file a complaint online at https://ag.ny.gov/star-toyota-of-bayside-settlement or via telephone at 1-800-771-7755.

Attorney General James Stops Three Amazon Sellers from Price Gouging Hand Sanitizer and Recoups Funds for New Yorkers

 

Sellers to Pay More Than $52,000 in Penalties and Nearly $23,000 in Consumer Restitution

AG James Reminds Sellers Price Gouging is Unlawful During Pandemic

New York Attorney General Letitia James today announced that she has stopped three Amazon sellers from price gouging hand sanitizer during the coronavirus disease 2019 (COVID-19) public health crisis, and that she will help deliver tens of thousands of dollars back into the pockets of defrauded New Yorkers. Three sellers — Yvette Chaya d/b/a Northwest-Lux (Northwest-Lux), Mobile Rush, Inc. d/b/a Best_Deals_27 (Mobile Rush), and EMC Group, Inc. d/b/a Supreme Suppliers (EMC) — will pay the state of New York more than $52,000 in penalties and reimburse consumers almost $23,000 for overcharging for hand sanitizer during the pandemic.

“Price gouging on necessary consumer supplies during an unprecedented public health emergency is absolutely unconscionable and will not be tolerated,” said Attorney General James. “Instead of ensuring individuals could protect themselves from the coronavirus, these businesses operated with dirty hands by charging exorbitant prices on hand sanitizer and other cleansing products. My office will continue to clean up this unlawful practice by using all of the tools at our disposal to prevent price gouging during this pandemic.”

From March 1, 2020 to March 6, 2020, Northwest-Lux sold approximately 1,168 units of PURELL® hand sanitizer on its Amazon storefront at prices that grossly exceeded the price at which the same or similar products were readily obtainable in the trade area. Specifically, Northwest-Lux charged consumers $79.99 to $129.99 for 2-liter bottles of PURELL®, which typically sell for $20.87 to $35.00, and $69.99 for 2-packs of PURELL® 20-ounce bottles, which typically sell for $14.88 to $35.10. As part of this agreement, Northwest-Lux will pay $20,000 in penalties, fees, and costs to the state of New York, as well as $5,717.13 in restitution to consumers who purchased hand sanitizers at exorbitant prices. Northwest-Lux consumers will receive partial refunds — ranging from $13.78 to $209.27 — depending on the product purchased, amount paid, and quantity ordered. 

From February 10, 2020 to March 11, 2020, Mobile Rush sold approximately 3,037 units of hand sanitizer on its Amazon storefront at prices that grossly exceeded the price at which the same or similar products were readily obtainable in the trade area. Mobile Rush sold six types of Germ-X and PURELL® hand sanitizer products, ranging in price from $19.99 to $159.99. For example, Mobile Rush charged consumers $19.99 to $29.99 for single 8-ounce bottles of Germ-X hand sanitizer, which typically sell for $1.00 to $3.00. As part of this agreement, Mobile Rush will pay $17,500 in penalties, fees, and costs to the state of New York, and an additional $9,113.00 in restitution to consumers who purchased these six hand sanitizer products at exorbitant prices. Mobile Rush consumers will receive partial refunds — ranging from $3.16 to $1,477.40 — depending on the product purchased, amount paid, and quantity ordered. 

From February 10, 2020 to March 4, 2020, EMC sold approximately 1,884 units of hand sanitizer on its Amazon storefront at prices that grossly exceeded the price at which the same or similar products were readily obtainable in the trade area. EMC sold seven types of PURELL® hand sanitizer products, ranging in price from $22.45 to $299.95. For example, EMC charged consumers $35.98 to $52.99 for 8-packs of PURELL® 1-ounce bottles, which typically sell for $12.00 to $22.00. As part of this agreement, EMC will pay $15,000 in penalties, fees, and costs to the state of New York, and an additional $8,113.77 in restitution to consumers who purchased these seven hand sanitizer products at exorbitant prices. EMC consumers will receive partial refunds — ranging from $6.10 to $403.67 — depending on the product purchased, amount paid, and quantity ordered. 

Consumers do not need to do anything to receive restitution. Under the terms of the agreement, the companies are required to automatically issue partial refunds to the credit card, debit card, or bank account that consumers used to make their original purchases. Consumers should see the credit to their account within one or two billing cycles or may have already received a credit. In addition to paying a combined $52,500 in penalties, fees, and costs and $22,943.90 in consumer restitution, the companies have agreed to comply with New York state’s price gouging statute going forward.

Attorney General James has been focused on protecting consumers and vulnerable communities since the onset of the pandemic and these agreements with Northwest-Lux, Mobile Rush, and EMC are part of a broader investigation by the Office of the Attorney General (OAG) into price gouging during the COVID-19 pandemic. The OAG has already issued more than 1,800 cease-and-desist orders to businesses that stand accused of violating New York’s price gouging law. Additionally, Attorney General James filed a lawsuit against Hillandale Farms in August — one of the nation’s largest producers and wholesale distributors of eggs — for illegally gouging the prices of eggs during the coronavirus pandemic. 

Attorney General James reminds sellers of goods and services vital to and necessary for the health, safety, and welfare of consumers or the general public that New York’s price gouging statute is still applicable and in effect as the coronavirus pandemic remains ongoing. Sellers should be aware that New York revised its price gouging statute, effective June 6, 2020, to impose increased penalties against those who price gouge essential items during a pandemic.

The OAG wishes to thank Amazon for its assistance with this investigation and looks forward to continued cooperation with the company.  

BRONX DA DARCEL D. CLARK RELEASES REPORT ON FATAL SHOOTING OF KAWASKI TRAWICK BY POLICE

 

42-Page Report Outlines Public Integrity Bureau’s Investigation and Finding of No Criminality in Death

 Bronx District Attorney Darcel D. Clark today released the report on the investigation into the fatal shooting of Kawaski Trawick inside his apartment by a member of the New York City Police Department on April 14, 2019, as well as video of the shooting and the events leading up to it.

 The investigation found no criminality on the part of the responding police officers, but revealed the responders lacked information that would have been helpful when they encountered Mr. Trawick in his apartment, as well as a gap in communication with the non-profit supportive housing facility where he resided at 1616 Grand Avenue. The investigation also revealed the need for a thoughtful review of police procedures and training techniques for these types of interactions.

 District Attorney Clark said, “Once again, we have a death that painfully illustrates that changes are needed in the response to those in mental health crisis, and that we as a community must do better to provide appropriate assistance for residents of supportive housing in the City. There must be treatment and services readily available to prevent persons from reaching a point where they may cause harm to themselves or others. I continue to encourage a productive conversation about how to better approach calls to help people in crisis to avoid an escalation resulting in a fatality.

 District Attorney Clark said, “Once again, we have a death that painfully illustrates that changes are needed in the response to those in mental health crisis, and that we as a community must do better to provide appropriate assistance for residents of supportive housing in the City. There must be treatment and services readily available to prevent persons from reaching a point where they may cause harm to themselves or others. I continue to encourage a productive conversation about how to better approach calls to help people in crisis to avoid an escalation resulting in a fatality.

The family of Mr. Trawick and their advocates met with the Public Integrity Bureau today. District Attorney Clark thanked the Public Integrity Bureau for its scrupulous investigation.

 The complete 43 page report by the Bronx District Attorney's office can be found HERE.

Comptroller Stringer Releases FY 2021 First Quarter Revenue Update and Budget Outlook

 

Additional revenues—including $834 million in tax revenues above projection for the first quarter of FY 2021—reduce risks to balance in FY 2021

 New York City Comptroller Scott M. Stringer released a first quarter revenue update for fiscal year (FY) 2021 showing that tax revenues are running $834 million ahead of the City’s projections.  While potential State budget cuts continue to present a sizable risk to the City’s budget condition and a robust Federal stimulus package is essential to the City’s recovery, Comptroller Stringer said that the higher-than-expected tax revenues provide a path to closing the City’s budget gap next year. Existing resources include debt service savings from refinancing of outstanding City bonds, a Revenue Stabilization Fund that would allow access to nearly $500 million in General Fund balances, surplus revenues from fiscal year 2020, and tapping into reserves. Comptroller Stringer said that New York City Mayor Bill de Blasio is now in a position to present an updated Financial Plan in November that provides a clear path to a balanced budget for FY 2022 without cuts to essential services, layoffs of city workers, or borrowing to support operating expenses.

“While we should not underestimate the scale of the challenge before us, with thoughtful leadership, there is a clear path to financial stability,” said Comptroller Stringer. “If we get the support we need from Washington, the resources we have available give us a strong start on a balanced budget for FY 2022 and beyond without impacting critical city services, laying off City employees, or borrowing against decades of future investments in education, housing and other vital city services.”

Since FY 2021 budget was adopted in July 2020, a number of factors have changed that merit an update in advance of the November Plan. As adopted, the FY2021 budget was balanced, and projected a $4.2 billion gap for next year (FY 2022). Since then, additional resources have become available to help address the gap:

• The Comptroller’s Office and OMB together have refinanced outstanding bonds, resulting in $610 million in debt service savings ($469 million this year and $141 million next year).  Additional refinancings are expected during the course of the year that will add to this total.
• FY 2020 tax revenues were $1.019 billion more than projected;
• State legislation authorized the City to access $493 million in fund balances for gap-closing purposes through creation of a Revenue Stabilization Fund (a rainy day fund);
• Through September, this year’s tax revenues are running $834 million ahead of projections:

State and Federal Risks 

This is not to say that the budget picture is without further risks.  The most significant risk is the State’s budgetary situation, which as of the Division of the Budget’s Mid-Year Update, continues to rely on $8 billion in cuts in local aid for balance.  A 20% reduction in local aid to New York City is approximately $3 billion, two-thirds of which would fall on the Department of Education.

For this reason it is imperative that another federal stimulus package be enacted that includes relief for families, workers, and businesses – but also for state and local governments that, by taking the appropriate measures to protect public health, have lost billions in tax revenues.

The risks from insufficient federal aid and state budget cuts makes it all the more urgent to begin work now to bring the City’s budget into balance and better position the City to face future uncertainties.