Director Chafee on IBO's FY27 budget overview and $1.1 billion gap
Chafee presents IBO's tax revenue forecast aligning with administration projections, noting a $1.1 billion gap in the $124.7 billion budget that can be addressed during adoption. She highlights the two-year extension of the class size law deadline and teacher bonus costs of $21 million.
Okay, good afternoon.
Council Finance Committee Chair Lee and members of the City Council.
I'm Louisa Chafee, Director of the Independent Budget Office, and with me today are Sarah Parker and Sarita Subramanian, IBO's Senior Research and Strategy Officers.
And do you all hear the echo?
Okay, it's just me.
I think this room is just, doesn't have the best acoustics.
No problem, I just, sorry.
So thank you so much for the opportunity to testify on Mayor Zoram Kwame Wandame's
year 2027 executive budget.
This testimony is a condensed version of our submitted testimony.
The late state budget presented challenges to New York City, but the funding included in the state budget aligns quite closely with the administration's projections for the current fiscal year and for 2027.
For 2027, IBO's tax revenue forecast also aligns closely with the administration's projections.
Within the total $124.7 billion budget, IBO projects a gap of $1.1 billion, a gap that can easily be addressed during the budget adoption process.
On the last day of session, a two-year extension of the deadline to implement the state class size law was passed.
Including, or thereafter, it became clear that there would be bonuses for up to 2,450 teachers whose classes exceeded the class size caps.
Which IBO estimates will require an additional $21 million.