NYC Council meetings, chaptered and linked by time.
Created by Uzair Qadir
Inspired by Vikram Oberoi's City Meetings
New York City Council
Executive Budget Hearings - Oversight and Investigations
Read summaries and jump into the video at the segment start.
Council staff and Chair Lee prepare to begin the continuation of the executive budget hearing for the Department of Investigation, with brief technical adjustments before the official welcome.
Chair Linda Lee welcomes colleagues and Commissioner Nadia Shahada to the FY27 Executive Budget Hearing for the NYC Department of Investigation, noting co-chair Krishnan and attending council members.
Lee presents DOI's proposed FY27 budget of $53.7 million, a 0.7% decrease from the preliminary plan, and raises concerns about an 11-position vacancy reduction on an already diminished headcount.
Chair Krishnan emphasizes DOI's vital role in rooting out corruption, protecting New Yorkers from greedy corporations and bad landlords, and restoring trust in government without fear or favor.
Krishnan criticizes former Mayor Adams for slashing DOI's budget and workforce by 28% while the agency was actively investigating corruption at the highest levels of City Hall, including the federal indictment of Adams.
Krishnan expresses concern that the executive budget still requires workforce reductions and over-relies on asset forfeiture funds from a years-old CityTime case that will run dry in approximately two years, arguing DOI needs more baseline resources.
Krishnan calls for an additional $4.5 million for DOI's 9/11 toxins investigation to bring accountability for what the Giuliani administration knew about air quality after the World Trade Center attacks, and urges restoring DOI's headcount and funding.
Krishnan thanks committee staff including financial analyst Owen Katowski, policy analysts Erica Cohen and Alex Yablon, committee counsel Nicole Kata, and his own staff, then welcomes Commissioner Shahada before passing back to Chair Lee.
Chair Lee announces public testimony on Wednesday, June 10th at 9:30 a.m., then committee counsel Brian Sarfo administers the oath to Commissioner Shahada before testimony begins.
Commissioner Nadia Shahata introduces herself in her sixth week as DOI Commissioner, describes DOI's mission to prevent and expose corruption, and praises the dedication of DOI's investigative, legal, and operational staff.
Shahada reports that the proposed FY27 budget of $53.7 million is insufficient, with headcount dropping from 588 in FY2020 to 444 in FY2027—a loss of 144 positions. She describes constructive discussions with the Mayor's Chief Counsel and OMB Director about DOI's budget crisis.
Shahada details DOI's need for approximately $6 million to stabilize operations, including $4.53M for OTPS restoration, $1.14M to reverse the 50% vacancy reduction, and $290K for five entry-level investigators, plus $4 million for the council-mandated 9/11 toxins investigation using a third-party vendor.
Shahada notes that prior DOI leadership raised the same budget alarms for years without success, that the agency is stretched to its limit, and that her funding request is strictly for stabilization—not enhancement—given her hope that City Hall will address the gap in the adopted budget.
Shahada breaks down the $53.7M FY27 budget into $29.3M in personal services and $21.4M in city-funded OTPS, supplemented by $3M in forfeiture funds. She explains that only 275 DOI-funded positions remain after accounting for CCPC staff, with 162 additional intra-city and on-loan staff bringing the total to 437.
Shahada explains that $3.4M of DOI's budget is pass-through funding for CCPC and a borough-based jails integrity monitor that doesn't support DOI operations. She describes space savings from relocating CCPC and renting a floor to OCA generating $1.8M annually, plus $6M in financial recoveries and $5M saved through the asylum seeker monitorship.
Shahada details $1.06M in one-time FY26 cuts and $1.14M in baseline FY27 PS cuts from the vacancy mandate, requiring DOI to defund nine funded vacancies including critical senior-level investigative and legal positions, and forgo prior new-needs requests for 14 vacant positions and 17 baseline positions.
Shahada explains DOJ rules governing forfeiture funds—they cannot fund permanent salaries and must supplement, not supplant, DOI's budget. She reports DOI has reprogrammed nearly $19M since FY2023 and plans $11M more in FY2026, but warns these finite funds will run out in 2-3 years and the city cannot legally base budget decisions on forfeiture availability.
Shahada requests $4.5M in OTPS restoration for critical technology needs including cybersecurity and data storage, then describes DOI's integrity monitorship program—rehabilitative monitorships paid by vendors and programmatic monitorships paid by the city—including the asylum seeker initiative and borough-based jail construction oversight.
Shahada advocates for budgetary independence for DOI, noting the agency proposed this reform to the City Commission to Strengthen Local Democracy and plans to submit it to the Mayor's new Committee on Government Efficiency. She argues independence would protect DOI from politically motivated retaliation and ensure adequate funding to oversee a $124.7 billion city budget.
Lee asks why DOI's savings target waiver was denied. Shahada confirms DOI applied but was not exempted, though the denial occurred before her tenure. Lee questions how to protect staffing given DOI's oversight role and revenue generation, and Shahada suggests charter reform for budget independence.
Lee asks for examples of how DOI investigations save the city money. Shahada cites $6M in FY26 restitution collections, including $1.6M from a defendant who inflated fire alarm system invoices, and $5M in overbilling identified through the asylum seeker monitorship. Lee requests a follow-up list of examples and titles that accomplish savings.
Lee asks which vacant positions are being removed. Shahada explains nine previously funded vacancies must be cut, including critical executive-level roles: acting general counsel, acting chief of investigations, and a departed deputy commissioner for compliance who also served as EEO officer.
Lee asks how the cuts will impact ongoing investigations. Shahada praises staff dedication but warns that years of doing more with less has reached a tipping point where triaging is no longer sufficient and DOI may have to decide which investigations it can and cannot open.
Lee asks about a plan B if positions aren't restored. Shahada describes presenting cases to prosecutors early to maximize shared resources, working with state and federal law enforcement partners, and utilizing on-loan staff governed by MOUs, but warns difficult operational decisions will be required if cuts proceed.
Lee asks if $6M is sufficient for stabilization. Shahada confirms it covers avoiding nine vacancy cuts, reducing forfeiture reliance, and hiring five entry-level investigators. Lee then asks about the total lease cost; Shahada reports approximately $18.5M, consuming the vast majority of city-funded OTPS alongside one integrity monitorship, leaving only a few hundred thousand dollars to operate the agency.
Lee asks about centralizing IT and technology needs with other agencies. Shahada notes independence requirements limit sharing but is open to exploring options. Lee then asks how the lease being included in the peg impacts other budget areas; Shahada explains the lease is not excluded from the savings target, making the peg much more difficult since it's DOI's largest OTPS item.
Krishnan agrees with Lee on the need for charter reform for DOI budget independence, then confirms the $6M request is purely for stabilization—not new programs—and verifies the executive budget is $2.1M less than FY26 and $12.8M less in baseline funding than prior years.
Krishnan confirms DOI-funded headcount dropped from 365 four years ago to 275 under the Adams administration. Shahada reveals that after paying for the lease and one integrity monitorship, DOI has only $175K-$400K remaining to run all operations before tapping forfeiture funds.
Krishnan asks when forfeiture funds will run out. Shahada estimates 2-3 years at the current spend rate, after which DOI would be left with only a few hundred thousand dollars to run the entire agency, with no forfeiture supplement available.
Krishnan asks for the total number of positions affected by cost-saving mandates. Shahada confirms nine funded vacancies must be cut, including critical executive leadership and the IG for NYPD, but notes the impact extends agency-wide as remaining staff face higher caseloads with fewer resources.
Krishnan asks about conversations with OMB and the mayor. Shahada reports she has spoken plainly about DOI's situation, believes City Hall understands the importance of DOI's mandate and the budget challenges, and is confident additional funding will be addressed in the adopted budget, though she has no specific numbers to share.
Krishnan asks about ideal headcount. Shahada describes a prior planning exercise projecting 585 DOI-funded positions as optimal—412 investigative, 98 operations, 48 executive and training. She notes current headcount is roughly half that level, and if new needs are approved, DOI would reach 318 funded positions plus 142 on-loan for a total of 460.
Krishnan asks how DOI protects shared resources when MOUs are renewed. Shahada explains there is no mechanism to force agencies to maintain funding levels, and that intra-city funding hasn't kept pace with actual salaries—DOI must supplement from its own PS dollars, citing examples where H+H and DEP MOU funding falls short of actual salary costs by $28K-$43K per staffer.
Krishnan asks about staff retention and promotions. Shahada confirms DOI has no funding for promotions, OMB does not approve merit-based raises, and all retention efforts have been self-funded by reallocating vacancy funds. She describes a prior plan to address pay disparities among deputy inspector generals and create a promotional path for investigators, all funded by repurposing vacant position dollars.
Krishnan notes the agency is 'robbing Peter to pay Paul.' Shahada describes DOI's in-house IOTA training program that certifies investigators as peace officers, but warns that trained investigators are routinely poached by federal and state agencies after a short time because DOI cannot offer competitive salaries or promotions.
Krishnan asks whether funding cuts will affect DOI's public reports, citing the helpful sanctuary compliance report. Shahada affirms public reports are integral to transparency and she intends to prioritize them, but acknowledges they are time-intensive and budget cuts reduce staff capacity to produce them.
Krishnan asks what happens if the $4.5M for the 9/11 investigation isn't funded. Shahada reports the vendor's best and final offer is $4M, which DOI has requested in new needs, but without that funding DOI cannot conduct the investigation at all. Krishnan also asks about public-private partnerships; Shahada says she'll need to look into it.
Brewer raises FIFA as an example of fast money going out the door where DOI oversight is needed. Shahada agrees expedited spending carries the highest corruption risk. Brewer then asks about the NYPD IG; Shahada confirms the position has been posted, resumes are being reviewed, and interviews will begin shortly.
Brewer discusses the 9/11 Health Watch Article 78 victory, noting the city rarely loses such proceedings, and asks about the unusual discovery order. Shahada won't comment on the litigation but confirms DOI has already identified where relevant records should be located across city agencies and is ready to begin the investigation once funding is secured, with an estimated two-year timeline from funding start.
Brewer raises concerns about the FOIL system after the law department claimed no records existed despite evidence to the contrary. Shahada acknowledges the frustration from her private practice experience and suggests FOIL could be an area DOI examines, which Brewer encourages.
Brewer suggests the 9/11 investigation could serve as a model for DOI's capabilities in complex investigations, raises concerns about disorganized city warehouse records, and notes the council previously hired DOI-trained investigators who were excellent. She pledges to fight for the 9/11 funding and emphasizes the Article 78 win demonstrates why it's needed.
Ariola raises concerns about NYC spending approximately $81K per person on homeless services, citing a lobbyist who described payments to developers, and asks whether DOI is investigating potential corruption in homeless services contracting. Shahada confirms DOI has historically investigated shelter-related issues, issued public reports with recommendations, and will continue to look at the area.
Chair Krishnan thanks Commissioner Shahada and her team for testifying, and concludes the DOI budget hearing and the day's hearings.