Director Chafee on pension costs, pied-a-terre uncertainty, and federal funding risks
Chafee says Tier 6 enhancements require $41 million more in 2027 growing to $69 million by 2030, and notes IBO cannot evaluate pied-a-terre revenue due to unknown variables. She highlights federal risks including 43,500 New Yorkers losing SNAP benefits and 450,000 statewide losing health insurance from Essential Plan changes.
Next on to city pensions.
IBO projects, based on estimates from the city chief actuary,
The state's new Tier 6 enhancements will require additional funding above that that is in the executive budget, $41 million in 2027, growing to $69 million in 2030.
Based on the actuary's analysis of a prior proposal, IBO finds that the administration's proposed extending pension liability payments to be consistent with sound practices.
IBO cannot evaluate the executive budget's assumption around the so-called pied-a-terre tax, as the amount of revenue will depend on variables such as how are property values calculated,
how will the city administer collections, and how will second property owners behave in relationship to the surcharge.
So finally, it is difficult to overstate the pressures and uncertainties weighing on the city during this budget process based on the federal administration's global actions and policies, as well as dramatic cutbacks in key programs.
For example, about 43,500 New Yorkers are at high risk of losing their Supplemental Nutrition Assistance Program, their SNAP benefits, in the near term.
And the relatively modest increases included in the state and executive budget of millions are likely insufficient to address the rising food insecurity.
As many as 450,000 people statewide, half of them living in New Yorkers,
will lose health insurance due to federal changes undercutting the state's essential plan.
Neither the state budget nor the executive budget addressed this health care access loss.