Speaker Adrienne Adams, First Women-Majority New York City Council Celebrate Signing of Maternal Health Bills into Law

 

The legislative package, passed by the Council in August, addresses racial disparities, most severely affecting Black women and birthing people

 Speaker Adrienne E. Adams and the New York City Council celebrated the maternal health legislative package, which addresses significant disparities in maternal health, mortality, and morbidity for the first time in the City’s history, being signed into law today.

“Maternal health is a social justice issue that is a matter of life or death for many women and birthing people in our city and country, especially in Black communities,” said Speaker Adrienne Adams. “This historically diverse and women-majority Council prioritized addressing this issue to reduce the severe inequities faced by Black, Latino, and indigenous people in receiving equitable care. The horrifying lived experiences that have endangered too many lives are finally being acknowledged with concrete policy actions, and the enactment of these laws is a major step forward for our city. This progress would not have been possible without the leadership of women in the Council, and it shows the impact on policy when women are accurately represented in lawmaking.”

While about 30 birthing people in New York City die each year of a pregnancy-related cause, statistics indicate that approximately 3,000 women “almost die,” or experience morbidity, during childbirth, with the majority of cases being people of color. In New York City, Black women are eight times more likely than white women to die from a pregnancy-related cause, and nearly three times more likely to experience severe maternal morbidity than white women. In an effort to address this national maternal health crisis that impacts New York City, the Council crafted a package of bills to expand maternal health services and address systemic inequities that affect women and birthing people, particularly those that disproportionately harm Black, Latino and indigenous people.

The legislative package is a demonstration of the agenda advanced by the City’s first-ever women majority Council, distinguishing how women lead differently in prioritizing solutions for persistent issues that have disproportionately affected women and communities of color. In July, the Council passed a groundbreaking abortion rights package, which was signed into law last month. The Council will continue to take on the longstanding challenges facing women in this city, who are the majority, as well as the millions of families across communities.

The legislative package contains the following:

Introduction 86-A, sponsored by Public Advocate Jumaane Williams by request of the Bronx Borough President, requires the City to conduct public education on standards for respectful care at birth, as well as information regarding: the right to be free from discrimination in relation to pregnancy, childbirth or a related medical condition, reasonable workplace accommodations for persons who are pregnant or were recently pregnant and caregivers; rights for a person who is pregnant or was recently pregnant under the disability benefits law and paid family leave benefits law, earned safe and sick time act, and temporary schedule change law; and how to access information on appointing a health care proxy.

Introduction 409-A, sponsored by Council Member Farah Louis, requires the Department of Health to post the annual Maternal Mortality and Morbidity report on its website. The annual Maternal Mortality and Morbidity report is mandated per Local Law 188 of 2018 however, there was no requirement for the data to be posted on the department’s website – until now.  

Introduction 482-A, also sponsored by Council Member Louis, requires the Department of Health to provide education on polycystic ovary syndrome and endometriosis, by posting information on its website. DOHMH will also be required to submit a report regarding education efforts on both conditions to the mayor and speaker of the council no later than March 1, 2023.

Polycystic ovary syndrome and endometriosis are known to impact Black women and women of color more severely, due to a range of health access inequities that lead to misdiagnosis, underdiagnosis, and mistreatment. This legislation would expand public awareness about these conditions to ensure New Yorkers impacted by them, especially in communities of color, are more likely to receive appropriate treatment by helping them and their loved ones identify the signs.

Introduction 472-A, sponsored by Council Member Jennifer Gutiérrez, requires the Department of Health to establish a program to train doulas and provide doula services to residents of marginalized neighborhoods in all five boroughs at no cost to the resident. Doulas will be trained in birth equity, trauma-informed care, perinatal mood and anxiety disorders, navigating the hospital environment, and support services available to low-income birthing people and their families. DOHMH will also be required to submit a report to the mayor and speaker of the council on the merits of the program.   Doulas provide a humanizing approach to childbirth, giving families physical, emotional and practical support. Providing free doula care would empower birthing people who systemically face maternal mortality – particularly Black New Yorkers. With longstanding inequities and disrespect faced by Black and people of color in the healthcare system, doulas are a comforting and trustworthy alternative.

Introduction 478-A, sponsored by Council Member Crystal Hudson, requires the City to provide education and information regarding services offered by doulas and midwives, the evidence-based benefits of such services, and free and low-cost resources related to such services in the city. The administering agency would also be required to submit to the Mayor and Speaker of the Council, and post online, a report describing the methods of targeted outreach used.

Introduction 490-A, sponsored by Council Member Julie Menin, requires the Department of Health to conduct research on sexual and reproductive health disparities within the city and provide sexual and reproductive health services. In providing these services, DOHMH will have the duty to provide outreach, education, and support to individuals, especially low-income individuals and those without health insurance, regarding issues related to sexual and reproductive health. DOHMH would also make referrals to affordable and accessible services related to contraception, abortion, family planning, breast and cervical cancer screenings, and counseling, testing, and treatment for HIV and sexually transmitted infections.

Introduction 509-A, sponsored by Council Member Althea Stevens, requires the City to administer a public education program that informs the public regarding maternal mortality and severe maternal morbidity. DOHMH would also be required to report on the total births in the city, disaggregated by vaginal and cesarean sections, and whether the pregnancy was considered low risk. DOHMH would also be required to issue recommendations to reduce maternal mortality and severe maternal morbidity, including efforts to reduce the risks associated with unplanned cesarean delivery, and efforts to address inequities across patient demographics. While C-sections can be lifesaving, they may also produce long-term and short-term effects like infection and immune development.  This legislation would ensure New Yorkers will receive important information on maternal health and C-sections so they can make proper decisions on their healthcare. Research shows that Black women are more likely to be subjected to cesarean sections than white women, even in low-risk situations. The use of unnecessary cesarean deliveries poses health risks to the mother and child, due to potential complications.

Also included in this package are several resolutions.

Resolution 95, sponsored by Council Member Carlina Rivera, calls on the New York State Legislature to pass legislation that would require maternal health providers to supply individuals with a planned c-section and those who undergo an unplanned c-section with a standardized written communication about the procedure, to ensure universal dissemination of information to improve health outcomes for birthing parents and newborns.

Resolution 205, also sponsored by Council Member Rivera, calls on the New York State Legislature to pass legislation making doula care more accessible to individuals with Medicaid and those without health insurance.

Resolution 92, sponsored by Public Advocate Williams, calls on Congress to pass and the President to sign the Black Maternal Health Momnibus Act of 2021, to make critical investments in and advance policies that would help end preventable maternal mortality and close the racial and ethnic disparities in maternal healthcare.

Resolution 244, also sponsored by Public Advocate Williams, calls on the Centers for Disease Control and Prevention to expand funding for the Healthy Start Brooklyn doula program, known as By My Side, in order to provide free doula services to low-income birthing parents in Brooklyn who disproportionately face the risks of infant mortality, low birthweight, preterm birth and other challenges.

Governor Hochul Announces Applications Open for Second Round of New York’s $40 Million Biodefense Commercialization Fund

$15.3 Million Awarded in First Round To Accelerate Growth in the Life Science Industry and Combat Infectious Diseases and Other Public Health Threats

Applications and Fund Guidelines Available Here

Applications Also Open for Fourth Round of $15 Million NYFIRST Grant Program To Bring World-Class Translational Researchers to New York State 

 Governor Kathy Hochul today announced applications are now available for the second round of New York's $40 million Biodefense Commercialization Fund. The Fund, which awarded $15.3 million in grants to eight startups and 10 academic centers in April, was established to accelerate the development and commercialization of life science research innovations that address serious infectious disease health threats while creating jobs and encouraging continued growth across New York State's expanding life science industry.

"Thanks to the $40 million Biodefense Commercialization Fund, New York businesses are applying lessons learned from the COVID-19 pandemic to spark innovation and grow the state's economy," Governor Hochul said. "With this funding, we are leading the fight to combat infectious diseases, bringing significant jobs and investment to New York State, and better preparing for our future. I am thrilled to announce that applications for the second round of funding are now live, and I encourage startups and early-stage companies to seize this opportunity to help grow our state's thriving life science sector."

Empire State Development President, CEO, and Commissioner Hope Knight said, "The state's life science industry is a key driver of New York's economy. The Biodefense Commercialization Fund is playing a critical role in this, not only by turning scientific research conducted across the state into cutting edge treatments and solutions for serious infectious disease threats, but also by expanding the life science ecosystem and growing the economy."

New York State Department of Health Commissioner Dr. Mary T. Bassett said, "Accelerating innovation in life sciences through the Biodefense Commercialization Fund will further enable our state and those on the front lines of public health to identify and respond to serious infectious disease threats. This investment in the expansion of the life science industry once again demonstrates Governor Hochul's commitment to further protecting the public health of all New Yorkers."

Kathryn Wylde, President and CEO of the Partnership for New York City, said, "The second round of the Biodefense Commercialization Fund comes at a critical time in the expansion of New York's life science industry, contributing to the momentum of new startup companies that we have seen during the pandemic. This Program reaffirms New York's leadership in the global innovation economy."

Grants awarded through the Biodefense Commercialization Fund will help bring to market advanced solutions that identify, treat, and prevent serious infectious diseases, encouraging growth across New York's expanding life science industry and positioning the state as a leader in infectious disease resiliency and mitigation. Among the projects being pursued by the initial round of grantees are those focused on the development of antivirals, antibacterials, and potent vaccines; rapid detection of infectious disease threats and biologic toxins; and prevention of infection transmission on surfaces.

Eligible companies that are developing promising diagnostics, vaccines, therapeutics, and other innovations to prevent, treat or mitigate serious infectious disease threats can apply for grants of up to $4 million. New York's academic research institutions also may apply for grants of up to $500,000 to help fast track advanced intellectual property in life sciences. An emphasis will be placed on supporting the development of innovations with the highest potential for commercial viability. The deadline to apply is October 6, 2022 at 5 p.m. EDT. More information can be found online here.

The Biodefense Commercialization Fund is managed by Empire State Development, with guidance from an Executive Committee that includes representatives from New York State's Department of Health, Columbia University, the Mount Sinai School of Medicine, and two venture funds. A panel of experts from the biopharma industry, life science venture community, and academia review, evaluate and provide recommendations to ESD on submitted applications. An important feature of the program is that grantees receive guidance from mentors with experience in the biopharma industry, venture investing, and academia to help ensure their development programs stay on track.

NYFIRST Fourth Application Round Now Open

The fourth round of grants from the New York Fund for Innovation in Research and Scientific Talent (NYFIRST) is now open. The $15 million medical school grant program encourages recruitment and retention of exceptional life science researchers focused on translational research, which builds on basic scientific research to find new ways to diagnose and treat medical conditions. NYFIRST offers grants of up to $1 million.

NYFIRST awards have been made to the following institutions:

• Columbia University Irving Medical Center in New York City
• The Icahn School of Medicine at Mount Sinai, New York City
• The University of Rochester, in Rochester
• The State University of New York, Upstate Medical School, Syracuse

Applications and guidelines are now available on the ESD website and can be accessed here.

New York State's $620 Million Life Science Initiative

New York State enacted a $620 million initiative to spur the growth of a world-class life science research cluster in New York, as well as expand the state's ability to commercialize this research and grow the economy. This multi-faceted initiative includes $320 million for strategic programs that attract new life science technologies to the state, promote critical public and private sector investment in emerging life science fields and create and expand life science-related businesses and employment throughout New York.

The life science sector encompasses the fields of biotechnology, pharmaceuticals, biomedical technologies, life systems technologies, and includes organizations and institutions that devote the majority of their efforts to the various stages of research, development, technology transfer and commercialization. Every day, firms in this sector are developing new medical and pharmaceutical breakthroughs that have the potential to save lives, whether through new therapies or the early detection of diseases like cancer and neurological diseases. These firms are also making significant advancements in the realms of agriculture and environmental biotechnologies, helping create a cleaner and more sustainable future.

By strengthening incentives, investing in facilities, and improving access to talent and expertise, New York will significantly increase its share of industry-funded research and development, support the commercialization of existing academic research, and usher in the next generation of advanced technologies. Beyond the advancements in science, this initiative will position New York as a magnet for emerging manufacturing-based enterprises, bolstering regional economies and creating thousands of jobs. For more information visit the ESD website here.

 

We have so many exciting and fun events planned for our community this coming fall --

SEPTEMBER 8TH -- Bring a picnic and chairs and enjoy the beautiful grounds of the Van Cortlandt House Museum with

the Wayne Escoffery Organ Quartet. 

It's a great way to celebrate the first day of school

2014 Downbeat Critics Poll Winner and Grammy Award winning tenor saxophonist Wayne Escoffery is one of the Jazz world’s most talented rising stars and in-demand sidemen. In 2006 he secured one of the most coveted gigs in jazz: a frontline position in Tom Harrell’s working quintet. For over a decade Escoffery was mostly associated with trumpet master having toured the globe with the trumpeter, recorded seven CDs with The Tom Harrell Quintet and co-produced four of those releases. He has also been a member of The Mingus Dynasty, Big Band and Orchestra since 2000 and has made several recordings with the group. Over the years he has recorded and performed internationally with the who’s who in Jazz. WayneEscoffery.com

Also Join Us for More Events Coming Up Soon!

SEPTEMBER 15TH -- Erika Shallcross is a visual artist based in New York City. A photographer, painter, and collage technician, her pieces are both whimsical and evocative. Regularly experimenting with new techniques and touching on various themes, Shallcross believes these parameters simultaneously anchor, free, and guide her work.

Our Monday Fundays start on SEPTEMBER 12th, throughout the fall from 3:00 - 5:00 pm Our annual Halloween party continues on OCTOBER 31st! NOVEMBER 17TH -- "Beginning in the early 2000s, in addition to taking photos to record my travels with my wife Leah in the U.S. and abroad, I began to take pictures of nature, scenery and landscapes." HerbKaplanPhotography.com Look forward to seeing you! KRVCDC.ORG/EVENTS

Alexandria Ocasio-Cortez - Hunts Point

 

In honor of Labor Week, we want to share with you the story of the Hunts Point Workers’ strike and what we can learn from it.

In case you didn’t know, The Bronx is home to Hunts Point Market, the largest wholesale produce market in the country that provides more than half the fruits and vegetables to New York City.

After working tirelessly during the pandemic – putting themselves and their families at risk to feed New Yorkers – they asked for a $1 per hour raise and were denied.

So in January 2021, more than 1,400 workers represented by the Teamsters Local 202 union united together on the picket line after voting to strike. Hundreds of workers walked off the job for the first time in over three decades.

Alexandria skipped the inaugural festivities to instead join workers on the picket line. She said to the crowd:

“When you're standing on this line, you're not just asking for $1, you are asking for transformational change for your lives, and for the lives of every food worker across this country, for kids of food workers across the country.

Because there's a lot of things upside down right now in our economy. And one of those things that’s upside down is the fact that a person who is helping get the food to your table cannot feed their own kid. That's upside down.

We need you and we’ve got to pay you like we need you. Because we do. You are not replaceable, you are not expendable, you are valuable. It’s the solidarity of our actions that are going to get us through. It is sticking together.”

At first, management refused to budge. A corporation that enjoyed millions in PPP loans and tax giveaways was fighting a $1 raise for essential workers who risked their lives to feed us.

But then, on the seventh day of their walkout, the union won – ratifying a new three-year contract with the biggest pay increase in over 30 years.¹

This example proves just how powerful it is when workers join together to fight for their rights. Knowing when and how to organize your co-workers can be a daunting task, but we’re here to help.

If you’re interested in learning how to organize your workplace, click here for a list of tips, resources, and virtual trainings to help you get started in formulating a strategy and winning.

Thank you so much for reading and stay tuned for more emails as part of our Labor Week series.

Happy organizing,

Team AOC

P.S. To watch Alexandria’s full remarks on the picket line, click here.

NYC PUBLIC ADVOCATE PUSHES TO RESTORE EDUCATION BUDGET CUTS AHEAD OF FIRST DAY OF SCHOOL

 

Days before New York City public school students return to the classroom, Public Advocate Jumaane D. Williams pushed the administration to restore cuts to the city's education budget. In testimony to the City Council Committee on Education, he supported a resolution from Speaker Adrienne E. Adams on the issue which was then adopted by the Council following the committee hearing.

“Rearranging money is not the same as restoring it," said Public Advocate Jumaane D. Williams. "Cutting the DOE budget has real, tangible consequences for our students. It looks like larger class sizes, reductions in the number of teachers, elimination of arts programs and guidance counselors, and decreased support for students with disabilities. It means schools that are not investing in what we know promotes public safety, including healing-centered schools and mental health supports."

He continued, "After all that our students have endured during this pandemic, we should be doubling down on our investments in schools to reduce class sizes, allow a greater emphasis on social and emotional learning, create opportunities for creative expression in art and music classes, and make sure our students have the access to resources we have long been asking for."

The Public Advocate's full statement on the cuts and resolution to restore them is below.

TESTIMONY OF PUBLIC ADVOCATE JUMAANE D. WILLIAMS

TO THE NEW YORK CITY COUNCIL COMMITTEE ON EDUCATION

SEPTEMBER 6, 2022

Good morning,

My name is Jumaane D. Williams, and I am the Public Advocate for the City of New York. I would like to thank Chair Joseph and the members of the Committee on Education for holding this hearing.

As cited by the City Comptroller, the DOE must restore a minimum of $469 million to the education budget. While the mayor and DOE administration claim that these cuts are unavoidable and simply a result of the expiration of federal stimulus funding, we know this not to be the case. We know the city has the money: last year alone there was $620 million in unspent federal stimulus funds, plus Wall Street profits and $8 billion in city reserves. I do not accept that these cuts are inevitable, and I am proud to cosponsor Resolution 0283-2022, along with Speaker Adams and many of my colleagues in the City Council. This resolution calls on the Mayor and the Chancellor of the Department of Education to restore the detrimental and unnecessary cuts that were made to the DOE budget. 

Rearranging money is not the same as restoring it. Cutting the DOE budget has real, tangible consequences for our students. It looks like larger class sizes, reductions in the number of teachers, elimination of arts programs and guidance counselors, and decreased support for students with disabilities. It means schools that are not investing in what we know promotes public safety, including healing-centered schools and mental health supports. And while reduced enrollment is given as the excuse for these cuts, we have had, in the last few weeks, a major influx of new students, sent to our city from Texas whose parents and family members are seeking asylum in the United States.

After all that our students have endured during this pandemic, we should be doubling down on our investments in schools to reduce class sizes, allow a greater emphasis on social and emotional learning, create opportunities for creative expression in art and music classes, and make sure our students have the access to resources we have long been asking for. After experiencing―and continuing to experience―the trauma of the past two and a half years, our students need more support for their mental health, and school officials all over the city have emphasized this. 

I look forward to working with the Committee on Education and the City Council on how to best provide the programming our students need.

Thank you.

MAYOR ADAMS SIGNS LEGISLATION PROVIDING DOULA SERVICES ACROSS FIVE BOROUGHS, STRENGTHEN MATERNAL HEALTH

 

Package of Seven Bills Will Ensure NYC Remains National Leader in Maternal Health

 

Bills Will Codify Citywide Doula Initiative Launched Earlier This Year

 New York City Mayor Eric Adams today signed historic legislation to ensure New York City remains a national leader in maternal health. At a time when Black mothers are nine times more likely to die of pregnancy-related causes than white women in New York City, these bills will promote education, increase transparency, and expand access to maternal health care for pregnant New Yorkers. The passage and signing of these bills underscore the city’s commitment to ensuring every expecting family has the resources and support needed to welcome a newborn into their lives.

 

“This is a critical moment for women’s health in New York City and across the country,” said Mayor Adams. “For those who choose it, motherhood can be tough — physically, medically, psychologically. I’ve seen firsthand the resilience of mothers: My mother gave birth to six children. And the numbers are clear: Black women are nine times more likely to die of pregnancy-related causes than white women in New York City. Today, we are making sure all expecting families have access to health care when they need it most, no matter the color of their skin, their income bracket, or where they live. Our children are our most precious resource and by investing in them and their families from the start, we’ll build a safer and healthier city for generations to come. I’m grateful to the City Council for their partnership getting this important work done.” 

 

“The package of bills signed today help us take significant steps in supporting expectant families and in closing the racial maternal health gap,” said Deputy Mayor for Health and Human Services Anne Williams-Isom. “Thank you to our partners in government and to all the service providers that will work with expectant families in New York City.”

 

“Maternal health inequities demand urgent action,” said New York City Department of Health and Mental Hygiene (DOHMH) Commissioner Dr. Ashwin Vasan. “These bills will provide more data, more services, and more information to families about what’s available. They are forceful responses that we are proud to support.”

“This package of bills will help NYC Health + Hospitals in its ongoing efforts to provide our patients with high-quality, comprehensive health care before, during, and after pregnancy,” said NYC Health + Hospitals Chief Women’s Health Officer Wendy Wilcox, MD, MPH, MBA, FACOG. “I want to thank the Mayor Eric Adams and the City Council for making maternal health a priority. NYC Health + Hospitals will continue to work with our legislative partners, community-based organizations, and local and state health officials to ensure Black and Brown women across the city have the resources they need to take charge of their reproductive health.”

With the implementation of these bills, New York City is strengthening maternal health care, fighting maternal mortality, and raising public awareness around the resources that expecting families have access to in New York City:

 

• Intro 86-A establishes a public education program regarding the city’s standards for respectful care at birth and establishes a right to be free from pregnancy-related discrimination while receiving health care services in New York City.

 

• Intro 409-A improves access to data on maternal mortality and morbidity.

 

• Intro 472-A codifies the DOHMH program launched earlier this year to train doulas and provide doula services to residents in all five boroughs.

 

• Intro 478-A launches an education campaign in New York City to raise public awareness about the benefits and services provided by doulas and midwives.

 

• Intro 482-A requires DOHMH to provide public data on polycystic ovary syndrome and endometriosis.

 

• Intro 490-A codifies DOHMH efforts to provide sexual and reproductive health services and research sexual and reproductive health disparities within the city.

 

• Intro 509-A codifies a public education program on maternal mortality and morbidity, and requires DOHMH to report on the incidence of cesarean sections and recommendations to reduce maternal mortality and severe morbidity.

 

“Maternal health is a social justice issue that is a matter of life or death for many women and birthing people in our city and country, especially in Black communities,” said New York City Council Speaker Adrienne Adams. “This historically diverse and women-majority council prioritized addressing this issue to reduce the severe inequities faced by Black, Latino, and indigenous people in receiving equitable care. The horrifying lived experiences that have endangered too many lives are finally being acknowledged with concrete policy actions, and the enactment of these laws is a major step forward for our city. This progress would not have been possible without the leadership of women in the council, and it shows the impact on policy when women are accurately represented in lawmaking.”

 

“We are in a state of emergency in our country when Black women are still three times more likely to die during childbirth and the mortality rate is even higher for Black women living in New York City,” said Bronx Borough President Vanessa L. Gibson. “Today’s bill signing will ensure that Black and Brown birthing individuals in our city receive culturally sensitive, patient-centered care that is attuned to their unique needs free of bias and racism which has resulted in the deaths of far too many pregnant people. I want to thank Public Advocate Jumaane Williams for his partnership in pushing Intro 86-A forward, Speaker Adrienne Adams, the New York City Council Women`s Caucus, and our birth workers for their advocacy in ensuring all birthing individuals in our city receive unbiased maternal care before, during, and after childbirth.”

 

New York City Comptroller Lander Delivers Remarks at the New York State Financial Control Board Annual Meeting

 

Today, New York City Comptroller Brad Lander delivered remarks during the New York State Financial Control Board’s annual meeting. Full text of Comptroller Lander’s remarks, as prepared for delivery, is available below.

Comptroller Lander also released an analysis of the City’s fiscal year 2023 (FY) Adopted Budget of $101 billion. At a time of ongoing economic uncertainty and mixed signals, the City is facing record inflation, stock market volatility and rising interest rates, but the City has also benefited from stronger-than-expected tax revenue, strong job growth, rebounds in tourism levels and record numbers of new business applications. According to the analysis, the FY 2023 budget is $10.44 billion less than in FY 2022, predominantly driven by a reduction in COVID assistance from federal relief measures. The analysis also highlights changes to the Executive Budget that were supported by the Comptroller’s office.

Thank you and good morning.

I’m pleased to attend my first Financial Control Board meeting and honored to join my partners in government, Governor Hochul, Mayor Adams, and Comptroller DiNapoli, and the esteemed private members of the Financial Control Board, Bill Thompson, Rossana Rosado, and Steve Cohen. I’m joined today by Executive Deputy Comptroller Francesco Brindisi and Deputy Comptroller for Budget Krista Olson.

As we meet today, as summer turns to fall, as we move into what will, we pray, be a durable emergence from the pandemic, and with new political leadership in place, we have both an opportunity and a responsibility to rise to this complex economic moment with far-sighted action that helps to secure a more vibrant, inclusive, resilient economic future for New York.

As you are all well aware, we are currently facing a period of significant economic uncertainty and mixed signals. Fiscal Year 2022 was a year of robust economic recovery in New York City. Private sector payrolls increased by 300,000 and they were back to 96% of pre-pandemic levels, and the unemployment rate dropped by 4.6 percentage points. Tourism made a strong comeback. We saw a record number of new business applications. The City’s tax revenues reached a new peak. It is a testament to the strength of federal fiscal and monetary policy interventions and to the City’s economic resiliency that tax revenues continued to grow throughout the pandemic.

However, the recovery remains incomplete, precarious, and uneven. High inflation is biting sharply into families’ purchasing power to afford housing, food, health care, child care, and transportation. The City is still 160,000 jobs short of the pre-pandemic peak and commercial real estate faces a challenging adjustment to new work practices.

Even if the Federal Reserve successfully lowers inflation without causing a recession, higher interest rates will slow economic growth, causing real pain for New Yorkers and reducing revenues for the City. And we must reckon with the fact that the pains of both inflation and job losses are borne disproportionately by low-income New Yorkers. The unemployment rate among Black New Yorkers remains above 10%, three times the national average.

In June 2021, the Mayor forecasted FY 2022 tax revenues at $62.4 billion. In June 2022, the forecast rose to $68.6 billion, 10% higher than originally projected. And based on June tax collections, the final amount will be closer to $69.5 billion. No one sitting here today believes that these trends will continue.

Looking ahead, we believe that economic growth will moderate and tax revenues will drop next year, in line with OMB’s expectations. Only in FY 2025 and FY 2026 does our tax forecast rise moderately above City Hall’s.  Even with that slightly rosier outlook in the outyears, we do not expect tax revenues to cover additional expenses not yet reflected in the financial plan. Systematically under-budgeted expenses on overtime, Carter cases, homeless shelters, and others remain areas for concern. In addition, the expiration of stimulus funds creates fiscal cliffs in FY 2025 and FY 2026, particularly for important recurring programs funded through these one-time dollars like the 3K expansion.

Finally, starting in FY 2024 the budget will start reflecting the impact of adverse financial market conditions on pension returns. In the first half of 2022, equities had the worst performance in 50 years, and all major asset classes except commodities incurred significant losses. As a consequence, the combined return of the five pension systems was -8.65%. The pension funds remain well-funded, and the retirement security for the City’s current and future retirees is extremely solid. Still, we estimate that this will translate in higher pension contributions totaling nearly $6 billion from FY 2024 to FY 2026. Going forward, it will be important to reassess the pension systems’ asset allocations to better position the funds to meet the required rate of return.

Overall, we estimate budget gaps of $869 million in FY 2023, $6.43 billion in FY 2024, $7.07 billion in FY 2025, and $9.55 billion in FY 2026. These are sizable gaps and will require strong fiscal discipline in order to avoid harmful cuts to services. Ensuring the City can meet its obligations – to our creditors, our workforce, our vendors, and to the services expected and needed by our residents – is essential to our shared long-term thriving.

The City set aside $2.2 billion in long-term reserves (the Revenue Stabilization Fund and the Retiree Health Benefit Trust) in FY 2022 to help weather the possibility of a recession. While this deposit was slightly lower than the $2.5 billion that my office recommended, it was a strong step towards fiscal stability, and the Mayor and City Council deserve credit for it. The total of our long-term reserves currently sits at 9.4 percent of tax revenues, below the 16 percent we estimate is needed to weather the full length of a recession. For this reason, and given the FY22 year-end excess revenues, an additional $800 million should be deposited into the Revenue Stabilization Fund at this time.

We continue to recommend that the City formally adopts an explicit policy, backed by a quantitative assessment of economic risks and revenue volatility, to set a goal for the size of long-term reserves and policies for deposits and withdrawals.

Over the years, many of the provisions of the Financial Emergency Act have been incorporated in the City Charter, with the notable exception of the General Debt Service Fund, whereby the State Comptroller retains property tax revenue for general obligation bonds’ debt service before it goes into the City’s general fund. My office supports state legislation to make the General Debt Service Fund a permanent feature of the City’s financial and budgetary system.

This period of high inflation, tight labor markets, and shifts in working patterns poses unique challenges for maintaining a strong public workforce, which is essential to serving New Yorkers. Most labor contracts will soon be expired, and the financial plan funds annual increases of 1.25 percent. Given current inflationary pressures, it is likely contractual increases will be higher and add to projected budget gaps.

Beyond the fiscal impact, there are important medium- and long-term questions about the City’s workforce, including how the shift to hybrid and remote work and other transformations in the labor market will affect the City’s ability to meet its staffing needs.

In the coming months, we also have the best opportunity in many years to reform New York City’s broken property tax system to address both the unequal burden on outer borough and working-class homeowners, and the excessive burden on multifamily rentals. Working together with a coalition of city and state elected officials, we are building public support for much needed reforms, and with the help of everyone in the room today, I hope this will be the year to finally pass changes in Albany and implement a new property tax system in New York City.

Many critical questions about our City’s economic and fiscal future remain.

• How will shifts to remote and hybrid office work affect our central business district, our commercial corridors, and our property tax revenues over the long term?
• How will we live up to the commitment we made to address the inequalities in the labor force and health care that played a deadly role in determining who contracted and died from Covid?
• How can New York City confront the ongoing crisis of housing affordability, which is increasing homelessness, preventing families from buying homes and building wealth, and serving as a disincentive for families and businesses to locate here?
• How will demographic and migration patterns affect the city’s economy, the services we need to provide, and the cost of providing them? We are already seeing those questions play out in our schools. While I support using the remaining federal stimulus funds to cover this year’s $469 million reduction to individual school budgets, in the longer run we need to make a plan for our public school system that balances City and State resources, students’ needs, and educational goals. The Foundation Aid funding levels that Governor Hochul secured in the budget this year will be essential to that plan.
• How will we make the upgrades needed to our public transit system with lower fare box revenue? Both the federal infrastructure bill and the implementation of congestion pricing will help, but more resources will be needed to secure the transit improvements and operations necessary for a thriving city and region.

These are large and daunting questions. Nonetheless, while the economic uncertainty of this unique time in New York City history remains challenging, it is beyond doubt that the City is in a far stronger governance position than during the crisis that drove the creation of this Board in the 1970s.

I want to credit Governor Hochul and Mayor Adams for establishing a joint task force, co-chaired by former Deputy Mayors Dan Doctoroff and Richard Buery, an important and unusual sign of collaboration on the critical challenges. And I want to thank the Mayor for his collaboration with my office on important long-terms questions of procurement, infrastructure, and capital projects management.

The challenge of our moment is to build thoughtfully on NYC’s strengths, to remain diligent in our fiscal responsibilities, and to guide the city toward a more just, inclusive, and fiscally sustainable future for all New Yorkers.

Thank you for the opportunity to comment on the City’s Adopted Budget and financial plan, and on our shared economic future.

To read the Comptroller’s full report on New York City’s FY 2023 Adopted Budget, click here.