0:00:13 16 sec
Procedure
Hearing called to order and housekeeping announcements
Council staff opens the hearing on finance, reminds attendees not to approach the dais, and asks everyone to silence electronic devices before the chair begins.
New York City Council
Committee on Finance
Executive Budget Hearings - Finance
Jun 9, 2026 · 10:00 AM · 5 hr 36 min
Hearing
Meeting chapters
Read summaries and jump into the video at the segment start.
0:00:29 1 min 55 sec
Remarks
Chair Linda Lee welcomes members and introduces Finance Division staff
Chair Linda Lee welcomes everyone to the final day of FY27 Executive Budget hearings, introduces colleagues including Speaker Menon, and thanks the Finance Division staff by name for their tireless preparation work.
0:02:24 1 min 49 sec
Remarks
Speaker Menon delivers opening remarks on executive budget progress
Speaker Menon thanks the finance team, welcomes OMB Director Solomon, and notes the executive budget no longer includes a property tax increase or reserve drawdown, incorporating over 20 council recommendations from its budget response.
0:04:13 1 min 40 sec
Remarks
Speaker Menon presents Council's updated revenue forecast
Speaker Menon releases the Council's updated revenue forecast showing nearly $2 billion more tax revenue than OMB in FY26-27, a manageable $2.5 billion FY28 gap, and calls for funding Fair Fares, parks, NYC Kids Rise, FDNY fifth firefighter, and DCWP.
0:05:53 1 min 18 sec
Remarks
Speaker Menon urges bolstering rainy day fund amid economic uncertainty
Speaker Menon highlights the Council's decade-long forecasting accuracy, notes economic uncertainty from Washington D.C. actions, and urges using surplus revenue to bolster the rainy day fund to protect city services from inevitable downturns.
0:07:11 2 min 13 sec
Remarks
Chair Lee summarizes Council's tax revenue forecast and economic outlook
Chair Lee details the Council's forecast of $2 billion more in tax revenue than OMB across FY26-27, driven by stronger personal income tax growth, and announces public testimony scheduled for the next day at 9:30 AM.
0:09:24 37 sec
Procedure
Committee counsel swears in OMB witnesses
Brian Sarfo swears in Director Sharif Solomon and six deputy directors who affirm to tell the truth before the committee. Chair Lee also recognizes additional council members who joined.
0:10:02 2 min 6 sec
Agency Testimony
OMB Director Solomon: Addressing inherited $12 billion budget gap
Director Solomon testifies about the administration's approach to confronting a $12 billion gap from chronic under-budgeting, applying savings plans, additional tax revenue, and state support to present a balanced $124.7 billion executive budget without raising property taxes or drawing down reserves.
0:12:07 2 min 13 sec
Agency Testimony
OMB Director Solomon: $1.77 billion in savings from Chief Savings Officers
Solomon details $1.77 billion in savings across leasing, IT modernization, contract efficiencies, program savings, financial management improvements, and vacancy alignment, all without slashing services, with Executive Order 12 now embedded in agency operations.
0:14:21 1 min 31 sec
Agency Testimony
OMB Director Solomon: Due process and CityFEPs cost containment reforms
Solomon discusses policy changes to contain costs in special education due process cases and the CityFEPs program, including $150 million for special ed pre-K, centralizing support functions, and strengthening oversight to curb spending growth without cutting vouchers.
0:15:52 1 min 55 sec
Agency Testimony
OMB Director Solomon: Significant state aid package from Albany
Solomon thanks Governor Hochul and legislative leaders for $383 million in foundation aid, corporate tax decoupling generating $700 million, a $1.5 billion commitment including youth programming and hospital funding, and approximately $4 billion total through direct aid, authorizations, and new revenue.
0:17:47 2 min 25 sec
Agency Testimony
OMB Director Solomon: Pied-à-terre tax and pension restructuring
Solomon explains the pied-à-terre tax on luxury non-primary residences over $5 million generating $500 million annually, and the pension restructuring proposal extending payments to 2037 with flat level dollar payments, generating $652 million in FY26 and $1.64 billion in FY27 with no impact on retiree benefits.
0:20:12 2 min
Agency Testimony
OMB Director Solomon: FY27 budget technical details and reserves
Solomon covers the balanced FY26-27 budget, the $7.1 billion FY28 gap in line with historical averages, replenished reserves at $2 billion for Rainy Day and $5.2 billion for Retiree Health Benefit Trust, and a revenue forecast revised up $75 million in FY26.
0:22:12 2 min 35 sec
Agency Testimony
OMB Director Solomon: New programmatic investments in the executive budget
Solomon highlights $17 billion in new spending across prelim and exec budgets with only 8% for programmatic initiatives, including baselined funding for libraries, parks, Fair Fares, cultural organizations, CUNY, childcare, community safety, hate crimes prevention, and waste containerization.
0:24:47 1 min 34 sec
Agency Testimony
OMB Director Solomon: $117.1 billion five-year capital plan and housing investments
Solomon presents the capital plan totaling $117.1 billion, including $4 billion in additional HPD capital for affordable housing, $500 million for NYCHA renovations, and $256 million for restoring vacant NYCHA units, with $5.6 billion total for NYCHA.
0:26:20 43 sec
Q&A
Speaker Menon questions OMB on response timeline for budget follow-up letter
Speaker Menon raises that OMB took nearly two months to respond to a council follow-up letter sent April 6th, and secures a commitment from Solomon to provide more timely responses going forward.
0:27:03 2 min 39 sec
Q&A
Speaker Menon questions OMB on Fair Fares expansion costs and utilization
Menon asks about costs to expand Fair Fares to 200% FPL ($150-300 million depending on utilization), potential enrollment of over a million riders, and concerns about chronic underspending, with Solomon detailing outreach efforts including subway ads and MTA partnerships.
0:29:42 2 min 45 sec
Q&A
Speaker Menon questions OMB on Bragg's Home Care contract and monitor
Menon presses OMB on why the administration continues contracting with Bragg's after federal bribery charges, questioning the independent monitor arrangement. Solomon cites a corrective action plan and DOI oversight. Patrick DiStefano confirms no new funding was added for the monitor.
0:32:27 2 min 20 sec
Q&A
Speaker Menon questions OMB on DOE contract transparency
Menon raises concerns about DOE's failure to provide contract information, noting DOE blamed technical issues and staff capacity. Solomon highlights $30 million in DOE contract savings ramping to $200 million by FY30, and a summary of $1.25 billion in non-competitively bid contracts provided to the council.
0:34:47 2 min 14 sec
Q&A
Speaker Menon questions OMB on DCWP budget doubling commitment
Menon notes the mayor's campaign pledge to double DCWP's budget but the exec plan only increases it 4.4%, still $53.6 million short. Solomon highlights 181 new positions and ongoing discussions about appropriate resources, but does not directly confirm the doubling commitment.
0:37:01 4 min 4 sec
Q&A
Speaker Menon questions OMB on Office of Mass Engagement and PEU
Menon asks about the Office of Mass Engagement's $53 million budget, PEU's role and funding, and safeguards against political activity. Solomon explains OME's community outreach functions and states government offices cannot participate in political activities, with COIB training required.
0:41:04 1 min 53 sec
Q&A
Chair Lee questions OMB on state budget assumptions in executive plan
Lee asks whether all state budget assumptions were included in the executive plan. Solomon confirms commitments were met, noting one exception: Tier 6 pension enhancement legislation cost $36 million more than the $110 million initially budgeted.
0:42:57 1 min 8 sec
Q&A
Chair Lee questions OMB on new units of appropriation and transparency
Lee raises the council's call for new units of appropriation to improve transparency. Solomon lists new UofAs created for Office of Mass Engagement, City Council committees, and Office of Community Safety, and expresses willingness to discuss further.
0:44:05 2 min 20 sec
Q&A
Chair Lee questions OMB on Office of Community Safety structure and funding
Lee asks about OCS's restructuring and future funding needs. Solomon explains $260 million moved from existing offices into OCS, plus $41 million in new dollars for FY27 bringing the total to $271 million, with additional investments expected in out years.
0:46:25 52 sec
Q&A
Chair Lee questions OMB on reserves budgeting in dedicated units of appropriation
Lee asks whether reserves should be budgeted in dedicated UofAs rather than lumped in miscellaneous budget. Solomon expresses willingness to discuss improving the display of reserve information, noting everyone already knows the amounts down to the penny.
0:47:17 2 min 53 sec
Q&A
Chair Lee questions OMB on conservative out-year tax revenue growth assumptions
Lee questions OMB's 2% annual tax revenue growth assumption in out years, below inflation, which would mean less real revenue in FY30 than FY27. Solomon and staff explain they forecast conservatively for out years due to greater uncertainty and asymmetric downside risk.
0:50:10 4 min 3 sec
Q&A
Chair Lee questions OMB on property tax reform timeline and tax lien sale
Lee asks about property tax reform insights and timeline. Solomon says a comprehensive reform proposal building on the Advisory Commission recommendations is being developed for the next state legislative session. The 2026 tax lien sale is paused pending a six-month review.
0:54:13 3 min 42 sec
Q&A
Chair Lee questions OMB on streamlining hiring approvals and PAR delays
Lee raises agency complaints about slow OMB hiring approvals. Solomon details eliminating the two-for-one hiring restriction, approving 1,400 PARs in recent weeks, and ongoing efforts to track and streamline the PAR process, though background checks are handled outside OMB.
0:57:55 3 min 10 sec
Q&A
Chair Lee questions OMB on HPD term sheets and capital project approval delays
Lee asks about OMB's role in HPD project approvals and whether it's duplicative. First Deputy Director Tara Boirard explains OMB approves certificates to proceed, checking funding eligibility and term sheet compliance, and that the process runs concurrently with HPD's work, not sequentially.
1:01:05 2 min 3 sec
Q&A
CM Abreu questions OMB on lack of daylighting funding
Councilmember Abreu raises that DOT confirmed no funding for hardened daylighting despite the mayor's campaign promise. Solomon notes 400 daylighting projects budgeted, bike lane projects may include daylighting, and expresses willingness to discuss additional investment with the council.
1:03:09 2 min 3 sec
Q&A
Deputy Speaker Williams questions OMB on cultural funding baselining
Deputy Speaker Williams asks about baselining the remaining $20 million for cultural organizations beyond the $10 million included. Solomon cites the funding envelope constraints and expresses shared commitment to cultural institutions, looking forward to adoption discussions.
1:05:11 2 min 2 sec
Q&A
Deputy Speaker Williams questions OMB on racial equity budgeting tools
Williams asks about OMB's racial equity plan tools for agencies. Solomon describes developing a framework to screen new needs against racial equity goals, inspired by climate budgeting, targeting the next budget cycle, with two-way accountability between OMB and agencies.
1:07:13 2 min 8 sec
Q&A
Majority Whip Hanks questions OMB on SBS right-to-counsel pilot program
Hanks asks about the $4 million right-to-counsel pilot for small businesses facing commercial lease harassment. Solomon explains it differs from the existing commercial lease assistance program by providing counsel after disputes arise, and that the amount was determined by the overall funding envelope.
1:09:21 1 min 16 sec
Q&A
Majority Whip Hanks questions OMB on EDC president search status
Hanks raises that six months into the administration, EDC still lacks a president. Solomon says the search is ongoing and a priority, but notes EDC continues working on SPARC Kips Bay, Kingsbridge Armory, World Cup, and free grocery store projects.
1:10:37 3 min 25 sec
Q&A
CM Ariola questions OMB on fifth firefighter, EMS pay, and firehouse repairs
Councilmember Ariola asks about the fifth firefighter expansion, EMS pay raises, and firehouse disrepair. Solomon looks forward to discussing the fifth firefighter, notes ongoing labor discussions for EMS, and highlights $24 million in FY31 capital for six firehouse renovations with willingness to explore accelerating funding.
1:14:02 1 min 48 sec
Q&A
CM Schulman questions OMB on DOHMH vacancy reductions and public health funding
Schulman asks how vacancy reductions at DOHMH avoid impacting services. Solomon explains agencies have flexibility in implementing reductions, and notes added funding for community outreach teams, mobile food vending, disease surveillance, and the new public health lab maintenance.
1:15:50 1 min 31 sec
Q&A
CM Schulman questions OMB on federal funding loss and state support for DOHMH
Schulman asks about risks from loss of federal public health funding. Solomon highlights the reversal of Article 6 public health funding cost shifts worth $60 million annually, and the importance of disease surveillance investments given recent outbreaks and pandemic history.
1:17:20 1 min 8 sec
Q&A
CM Schulman questions OMB on community engagement unit (CAU) assignments
Schulman raises that council districts no longer have assigned CAU liaisons. Solomon offers to take the concern back to Office of Mass Engagement leadership. Schulman also notes for the record her role in pushing for the Article 6 reversal.
1:18:28 32 sec
Q&A
CM Cabán questions OMB on gender-affirming care funding
Councilmember Cabán asks about contingency plans for federal threats to gender-affirming care, particularly for youth. Solomon notes $15 million added for gender-affirming care in prelim budget. Cabán responds that advocates say $60 million is needed, with specific gaps in youth services.
1:19:00 3 min 24 sec
Q&A
CM Cabán questions OMB on IMT/ACT mental health teams baseline funding
Cabán asks about restoring and baselining $15.5 million for mobile treatment teams and Step Down programs. Solomon says OMB will take back the baseline question but looks forward to adoption discussions on ongoing ACT and IMT funding. Cabán contrasts funding priorities: 500 more cops but no money for trans youth healthcare.
1:22:24 2 min 16 sec
Q&A
CM Dinowitz questions OMB on K-12 special education funding gap
Dinowitz raises that DOE requested approximately $40 million for K-12 special education programs including AIMS, NEST, and Horizon, which were not funded. Solomon notes $150 million invested in special ed pre-K and ongoing discussions about K-12 within the funding envelope.
1:24:40 1 min 25 sec
Q&A
CM Dinowitz questions OMB on school safety agent cuts and restorative justice
Dinowitz questions cuts to school safety agents and failure to restore $6 million for restorative justice, which DOE testified would impact 25% of schools. Solomon cites 3,801 SSAs with 8% vacancy rate, new dismissals agents, and states restorative justice will be addressed through the Office of Community Safety.
1:26:05 2 min 1 sec
Q&A
CM Dinowitz questions OMB on Mitchell-Lama rent increases and HPD oversight
Dinowitz raises Tracy Towers facing 30.6% rent increases over four years, contrary to the mayor's affordability promises. Solomon says OMB is not involved in rent increase oversight but offers to discuss HPD's role in ensuring affordability in city-managed Mitchell-Lama properties.
1:28:06 2 min 54 sec
Q&A
CM Lewis questions OMB on housing capital plan and city-owned property development
Councilmember Lewis asks how the $22 billion housing capital plan compares to prior administrations and whether agencies must absorb planning costs for city-owned property development. Solomon points to the LIFT task force for city property opportunities. Boirard explains most funding goes to HPD or DCP for environmental studies.
1:31:00 1 min 46 sec
Q&A
CM Wong questions OMB on DOB inspector position reductions
Councilmember Wong raises concerns about a net decrease of nine DOB positions and asks whether inspector vacancies will be reduced. Solomon and Boirard explain the vacancy reduction exempts revenue-generating positions and that agencies prioritize inspectors, with 58 current vacancies.
1:32:46 1 min 17 sec
Q&A
CM Wong questions OMB on sidewalk shed reforms timeline
Wong asks about implementation timing for DOB sidewalk shed reforms and how many sheds will be removed. Solomon says DOB is in the rulemaking process and has sufficient resources to implement the reforms once rules are promulgated.
1:34:03 2 min 31 sec
Q&A
CM Krishnan questions OMB on DOI funding and 9/11 toxins investigation
Councilmember Krishnan raises that DOI has only $175,000 in public funds after fixed costs, forcing reliance on drying asset forfeiture funds. Solomon commits to ensuring a well-resourced DOI and is confident progress can be made in the adopted budget, including the $4 million for the 9/11 toxins report.
1:36:34 1 min 9 sec
Q&A
CM Krishnan questions OMB on Parks Department funding and PEP officers
Krishnan asks about increasing parks funding toward a proportionate budget and supporting PEP officer lines expiring June 30th. Solomon highlights $15 million baselined for parks covering rangers, forestry, and maintenance workers, and looks forward to discussing PEP officers.
1:37:43 2 min 38 sec
Q&A
CM Narcisse questions OMB on Health + Hospitals and FEMA reimbursements
Councilmember Narcisse asks about protecting H&H if federal Medicaid matches shrink and about FEMA COVID reimbursement status. Solomon notes ongoing state conversations on Medicaid and reports H&H has received over $2 billion in FEMA COVID reimbursements with the vast majority of the portfolio closed.
1:40:21 1 min 55 sec
Q&A
CM Narcisse questions OMB on homeless services spending and permanent housing
Narcisse questions why homeless services spending is higher now than during the migrant crisis peak. Solomon emphasizes the primary goal is permanent housing through the block-by-block plan targeting 200,000 new affordable units, while acknowledging the legal obligation to serve the unhoused.
1:42:16 4 min 13 sec
Q&A
CM Banks questions OMB on NYCHA PACT vs Section 9 capital funding balance
Councilmember Banks questions how OMB determined $500 million for PACT conversions versus $90 million for Section 9. Boirard explains funding was based on shovel-ready projects and pipeline needs, with $2.7 billion going to PACT/TRUST and $2.8 billion to Section 9 over FY26-30.
1:46:29 2 min 24 sec
Q&A
CM Banks questions OMB on comprehensive modernization vs privatization for NYCHA
Banks presses on why the administration relies on PACT conversions rather than comprehensive modernization, calling it privatization. Boirard explains CompMod doesn't draw down federal Section 8 resources and would require the city to pick up full development costs, which is less efficient.
1:48:53 2 min 4 sec
Q&A
CM Morano questions OMB on inherited budget gap components and transparency
Councilmember Morano asks about the five largest components of the FY27 gap and whether costs were genuinely unforeseeable or known obligations not budgeted. Solomon lists six under-budgeted areas totaling $7.5 billion and confirms it was a transparency problem, not a forecasting problem.
1:50:57 2 min 26 sec
Q&A
CM Morano questions OMB on Comptroller's $1.65 billion gap analysis
Morano raises the Comptroller's analysis that FY27 may contain a $1.65 billion gap. Solomon says OMB believes it has accounted for under-budgeting, notes the Comptroller applauded the transparency, and offers to discuss any additional costs the Comptroller identifies as missing.
1:53:23 2 min 23 sec
Q&A
CM Epstein questions OMB on DCWP staffing shortfall vs OMB's own report
Councilmember Epstein notes an OMB report said DCWP needed 321 lines but the budget only provides 181 over two years, leaving roughly 150 positions short. Solomon says the new commissioner conducted a top-down assessment and the funded lines are sufficient for current legislative mandates.
1:55:47 1 min 15 sec
Q&A
CM Epstein questions OMB on street vendor and delivery worker outreach funding
Epstein asks why no funding was included for nonprofit organizations doing outreach to street vendors and delivery workers in multiple languages. Solomon notes SBS received funding for multilingual outreach to mobile food vending, and that direct nonprofit funding would be a Schedule C conversation for adoption.
1:57:02 55 sec
Q&A
CM Epstein questions OMB on Mitchell-Lama capital funding and animal welfare office
Epstein asks about capital money for struggling Mitchell-Lamas and funding for the animal welfare office. Solomon notes the state budget included $60 million in capital for Mitchell-Lama and offers to follow up on the city's capital plan and the animal welfare office.
1:57:57 3 min 16 sec
Q&A
CM Restler questions OMB on pension amortization risks and bond rating
Councilmember Restler raises that pension re-amortization could cost $7.6 billion over 10 years and asks about next steps, union negotiations, and bond rating risks. Solomon clarifies the $7.6 billion is for all employers, with the city's cost at $5 billion, and reports positive discussions with all four rating agencies.
2:01:13 4 min 29 sec
Q&A
CM Restler questions OMB on childcare voucher waitlist and SECC vouchers
Restler details 25,600 children on a childcare waitlist, delayed mandated voucher take-up creating available funding, and asks about one-year SECC vouchers for FY27. Solomon confirms the maintenance of effort will be met and expresses willingness to discuss the one-year voucher suggestion in coming weeks.
2:05:42 1 min 25 sec
Q&A
CM Brewer questions OMB on DOI 9/11 toxins funding and DOF FOIL portal
Councilmember Brewer asks whether Solomon's DOI meetings included the $4 million for 9/11 toxins investigation (yes) and whether OMB will fund DOF's $255,000 request to codify their open records portal. Solomon looks forward to discussing both in coming weeks.
2:07:07 1 min 21 sec
Q&A
CM Brewer questions OMB on COIB funding and EV vehicle purchasing
Brewer asks about $450,000 for COIB staff and attorney, and about EV purchasing costs for 640 vehicles annually. Solomon notes ongoing conversations for COIB and details $4.7 billion in capital for greenhouse gas reduction projects including $28.9 million for medium-duty EVs over three years.
2:08:28 1 min 22 sec
Q&A
CM Brewer questions OMB on DYCD after school RFP controversy and CUNY funding
Brewer raises that DYCD's RFP changes upset every council member and asks about CUNY ASAP/ACE/Reconnect funding. Solomon says it wasn't cost-saving but an RFP issue being reviewed with the commissioner, and highlights $15 million baselined for CUNY plus $50 million in capital for state of good repair.
2:09:50 1 min 24 sec
Q&A
CM Brewer questions OMB on healthcare and SNAP threats from federal government
Brewer asks about planning for Medicaid/Medicare cuts under Trump. Solomon notes close coordination with H&H and the state on Medicaid, and highlights investments in food assistance programs including Community Food Connection, Groceries to Go, and SNAP eligibility specialists, while acknowledging the city can't fully backfill federal cuts.
2:11:15 2 min 11 sec
Q&A
CM Pierina Sanchez questions OMB on $1.9 billion hotel shelter contract
Sanchez questions whether a $1.9 billion three-year no-bid contract for homeless hotels is a good investment. Solomon emphasizes the primary goal is permanent housing but the city has legal obligations and capacity constraints requiring hotel use, with active efforts to move families into shelter capacity.
2:13:26 2 min 19 sec
Q&A
CM Pierina Sanchez questions OMB on CityFEPs vs shelter cost comparison
Sanchez asks OMB to confirm that CityFEPs houses roughly double the people at half the cost of shelter. Solomon agrees CityFEPs is a lifeline but does not directly confirm the cost comparison, noting shelter census continues rising in certain populations while voucher savings haven't yet materialized on the shelter side.
2:15:45 52 sec
CEREMONY
Deputy Speaker Williams welcomes PS 147 student council to the hearing
Deputy Speaker Williams interrupts the hearing to welcome students from PS 147 in her district, giving a shout-out to the student council members she recently visited and helped arrange a City Hall tour for.
2:16:37 1 min 33 sec
Q&A
CM Brooks-Powers questions OMB on Rockaway trauma center funding
Councilmember Brooks-Powers asks why the executive budget includes no funding for the Rockaway trauma center despite $50 million previously secured and a publicly owned site. Solomon says he's evaluating cost estimates and funding availability, but cannot provide a commitment, drawing frustration from Brooks-Powers who raised this since preliminary budget.
2:18:10 5 min 9 sec
Q&A
CM Brooks-Powers questions OMB on Brookville Park Recreation Center funding removal
Brooks-Powers asks why $10 million was removed from the Brookville Park Recreation Center capital plan, leaving $22.5 million of a $32.5 million commitment. Solomon offers to look into the funding change and continue discussions, but Brooks-Powers expresses frustration at the lack of answers after previewing questions the day before.
2:23:19 2 min 1 sec
Q&A
CM Avilés questions OMB on immigrant legal services funding restoration
Councilmember Avilés asks about restoring $53 million in immigrant legal services funding cut from last year, noting the partnership with OMB on designations. Solomon highlights $33 million baselined in FY27 and $54 million total in FY26, and expresses willingness to continue working together.
2:25:20 2 min 46 sec
Q&A
CM Avilés questions OMB on NYCHA vacant unit readiness funding
Avilés presses for $100 million capital and $70 million expense to address 6,200 vacant NYCHA units. Solomon details $374 million total allocated ($256 million capital, $118 million expense) as historic funding, but Avilés argues it's insufficient and units need to be front-loaded, not stretched to 2030.
2:28:07 1 min 24 sec
Q&A
CM Marte questions OMB on NYCHA physical needs assessment update
Councilmember Marte asks about the updated NYCHA capital needs number. Solomon confirms it's $78 billion as of January 2026, a slight decrease from $78.6 billion. DiStefano explains the decrease reflects progress on PACT, TRUST, and Section 9 renovations bending the cost curve.
2:29:30 1 min 14 sec
Q&A
CM Marte questions OMB on Ombudsman Call Center (OCC) and CRI funding
Marte asks about the OCC budget ($7.5 million in FY27-28, dropping to $2.5 million in FY29-30) and why CRI funding decreases in out years. Staff explain the first two years include one-time costs and funding will be reevaluated annually.
2:30:45 3 min 56 sec
Q&A
CM Hankerson questions OMB on Parks baseline funding and 1% goal timeline
Councilmember Hankerson asks about baselining remaining one-shot parks positions including PEP officers and the plan to reach 1% of the budget for parks within the mayor's term. Solomon highlights $15 million baselined and the 1% commitment, but cannot provide a specific timeline, stating it depends on continued fiscal stability.
2:34:41 2 min 44 sec
Q&A
CM Mealy questions OMB on SNAP work requirements for older adults
Councilmember Mealy raises concerns about SNAP work requirements now applying to adults 60-64 under HR1, with June being the first month people could lose benefits. Solomon notes investments in SNAP eligibility specialists, Community Food Connection, and other food programs, but cannot provide specific waiver estimates.
2:37:24 1 min 19 sec
Q&A
CM Mealy questions OMB on home-delivered meals reimbursement gap
Mealy raises that CBOs are reimbursed $14.78 per meal when the true cost is $16.17, asking how the gap will be addressed. Solomon notes the per-meal rate was increased by $1 and that OMB continues discussing appropriate costs with the agency, while Mealy emphasizes CBOs are getting shortchanged.
2:38:43 13 min 31 sec
Procedure
Chair Lee calls a five-minute break before round two
Chair Lee announces a five-minute break before resuming with second round questions from council members.
2:52:14 3 min 38 sec
Q&A
Chair Lee questions OMB on SNAP cost shifts from HR1 and state budget
Lee raises the $111 million SNAP cost shift from HR1 not included in the executive plan or state budget. Solomon confirms no state funding was provided and no confirmation from the state that the reduction will be passed to the city, but if confirmed in a future plan, OMB would have to reflect it.
2:55:53 1 min 57 sec
Q&A
Chair Lee questions OMB on Office of Healthcare Accountability budget
Lee asks about the Office of Healthcare Accountability created by the Speaker's legislation. Solomon reports it's fully funded at $2 million per year within DOHMH, fully staffed, published a report last year, and is working on the next iteration.
2:57:49 2 min 22 sec
Q&A
Chair Lee questions OMB on childcare workforce development and CUNY training
Lee raises CUNY's $6 million request for early childhood education training and certification programs. Solomon notes CUNY's role in workforce development, the $40 million for childcare provider rate increases, and ongoing evaluation of the request, while Lee also raises pay parity between CBO and school-based providers.
3:00:11 2 min 4 sec
Q&A
Chair Lee questions OMB on city-supported grocery stores development
Lee asks about the $70 million for city grocery stores, whether they'll be contractor-run, and workforce plans. Solomon says EDC is identifying sites including La Marqueta and Hunts Point, optimal program design is under consideration, and more information will be shared as progress is made.
3:02:15 2 min 12 sec
Q&A
Deputy Speaker Williams questions OMB on library capital funding and PICA costs
Williams asks how OMB determined library capital funding levels and how much remains unfunded. Solomon cites $50 million spread across the three systems with discussions ahead for additional investment. Williams also raises PICA as an unfunded mandate for libraries; Solomon says they're looking at parity funding numbers.
3:04:26 2 min 6 sec
Q&A
Deputy Speaker Williams questions OMB on racial equity framework and climate budgeting parallel
Williams asks whether a framework comparable to climate budgeting exists for racial equity. Solomon says they're developing one for the next budget cycle, but in the meantime are already investing in disadvantaged communities through Community Parks Initiative, NYC Her Future, 2K siting, and the housing plan.
3:06:32 2 min 22 sec
Q&A
Deputy Speaker Williams questions OMB on racial equity accountability mechanisms
Williams asks about accountability for agencies failing to incorporate equity considerations. Solomon describes a two-way street where OMB's framework and agencies' submission process must align, with the racial equity plan charging all agencies to think this way from the inception of new needs.
3:08:54 2 min 25 sec
Q&A
Deputy Speaker Williams questions OMB on internal workforce diversity and pay equity
Williams asks whether OMB has identified disparities in its own workforce and what corrective actions are considered. Solomon discusses professional development, the OMB Institute for analyst advancement, and commitment to diverse leadership, while Williams asks if the agency's leadership reflects the city's diversity.
3:11:19 1 min 26 sec
Q&A
Majority Whip Hanks questions OMB on community grocery store impact on small businesses
Hanks asks whether studies have been conducted on how community grocery stores will impact bodegas and local stores. Solomon says EDC is attuned to the issue, the program relates to affordability, and it doesn't have to come at the expense of small businesses. Hanks also asks about engaging council members in siting.
3:12:45 2 min 12 sec
Q&A
Majority Whip Hanks questions OMB on DOE immigrant family communication funding
Hanks raises that the $4 million DOE Immigrant Family Communication and Outreach Initiative is not included in FY27 or out years. Solomon cites the overall funding envelope and foundation aid supporting ELL programs, but acknowledges language access is critical and discussions will continue at adoption.
3:14:57 2 min 43 sec
Q&A
CM Brooks-Powers questions OMB on Rikers closure, JISH, and ATI funding
Brooks-Powers asks about incorporating the Independent Rikers Commission's recommendations, funding 380 remaining JISH units, and increasing ATI funding. Solomon details 120 current JISH units with a goal of 350+, an active RFP, and says DOC technology including visitation software has been self-funded by the department.
3:17:40 4 min 34 sec
Q&A
CM Brooks-Powers presses OMB on JISH funding timeline and RFP status
Brooks-Powers presses for when the administration will fund the remaining 380 JISH units at higher reimbursement rates. DiStefano clarifies that $4.8 million in baseline funding exists and units are filled as applicants come in through a rolling RFP. Brooks-Powers also asks about ATI funding increases, with Solomon deferring to adoption discussions.
3:22:14 1 min 34 sec
Q&A
CM Wong questions OMB on out-year gaps and recurring vs one-time savings
Wong challenges that the $7.07 billion FY28 gap represents kicking the can down the road, asking what recurring spending was permanently aligned with recurring revenue. Solomon cites $17 billion in expenses from chronic under-budgeting, recurring state aid, and savings plans, noting the FY28 gap is in line with historical averages.
3:23:48 2 min 1 sec
Q&A
CM Wong questions OMB on water rental payments diverted to general fund
Wong questions why ratepayers are charged $4.7 billion over two years while $300+ million annually is diverted from the water system for general budget use. Solomon says the rental payment was already in the revenue forecast and removing it would create a $300 million hole, with no impact on system maintenance.
3:25:49 2 min 3 sec
Q&A
CM Justin Sanchez questions OMB on sanitation garage capacity and containerization
Councilmember Sanchez asks whether truck procurement aligns with planned garage capacity for containerization. Solomon explains DSNY is also reducing rear-loader trucks to offset space needs, funding is distributed by fiscal year based on schedules, and they're evaluating options to advance garage replacement funding.
3:27:52 2 min 18 sec
Q&A
CM Justin Sanchez questions OMB on 21 sanitation workers for the Hub and Hunts Point Produce Market
Sanchez raises maintaining 21 sanitation workers for Third Avenue Hub given new charter schools and the opioid crisis, and asks about the Hunts Point Produce Market contract deadline. Solomon offers to work with DSNY on Hub staffing. DiStefano reports $130 million in city capital and $505 million in grants for the produce market.
3:30:11 4 min 2 sec
Q&A
CM Lewis questions OMB on deed theft prevention and capital delivery reforms
Lewis asks about the Office of Deed Theft Prevention's interaction with HPD and existing programs, and about capital commitment rate falling from 78.3% to 67.7%. Solomon details DOF's holistic approach to deed theft and outlines capital process reforms including streamlined CPs, fewer questions, and blanket eligibility.
3:34:12 2 min 21 sec
Q&A
CM Brewer questions OMB on courthouse renovations and decarbonization investments
Brewer asks about capital funding for courthouses in disrepair, particularly Bronx Family Court. Solomon says meetings with OCA and DCAS have occurred. Brewer also asks about $4.7 billion in decarbonization; Solomon confirms the number and details $7.5 billion for flooding, $1 billion for extreme heat, and a comprehensive climate action plan coming next spring.
3:36:33 3 min 50 sec
Q&A
CM Brewer questions OMB on Chief Savings Officer examples and water fountains in schools
Brewer asks for largest examples of agency efficiencies and when the next assessments are due. Deputy Director Gustorf details the five savings categories and confirms ongoing tracking. Brewer also raises that school water fountains can't be fixed standalone without a larger project, which Solomon offers to discuss.
3:40:23 3 min 39 sec
Q&A
CM Banks questions OMB on emergency housing vouchers for NYCHA residents
Banks raises that 4,000 NYCHA households face uncertain futures with EHV funding expiring in November, asking about the $124 million annual cost. Solomon says OMB reallocated federal HOME tenant-based rental assistance for a two-year transition period and will look at other voucher programs for any remaining gaps.
3:44:02 2 min 20 sec
Q&A
CM Banks questions OMB on NYCHA capital needs impact of PACT conversions
Banks asks what impact PACT conversions have had on the $78 billion capital needs assessment, noting NYCHA testified that conversions don't impact capital needs. Solomon and DiStefano explain the 2026 PNA shows PACT reduced needs by $3.2 billion, but new needs and inflation offset the decrease, keeping the number stagnant.
3:46:23 3 min 26 sec
Q&A
CM Morano questions OMB on veterans services savings and impact
Councilmember Morano, chair of the Veterans Committee, asks how OMB determined savings for DVS's $6.6 million budget. Solomon explains the only savings was $60,000 from a planned parade cancellation, DVS was exempt from vacancy alignment, and no veteran services were cut. He guarantees no reduced services or longer wait times.
3:49:49 3 min 56 sec
Q&A
CM Restler questions OMB on vacant NYCHA and supportive housing units
Restler raises that NYCHA vacant units grew from 486 to over 6,000 under the prior administration, plus 1,157 vacant supportive housing units, totaling 7,200+ vacant units. He asks what investment would make the greatest difference. Solomon cites the $374 million investment as historic but acknowledges more to do, and agrees to continue discussions.
3:53:45 4 min 25 sec
Q&A
CM Pierina Sanchez questions OMB on CityFEPs cost containment plan development
Sanchez asks how OMB worked with DSS to develop the $543.5 million FY27 cost containment plan and what indicators were used. Solomon details centralized support, rent reasonableness comparisons, reducing broker fees, and using arrears as alternatives, all without cutting vouchers. DiStefano adds investments in right to counsel and self-sufficiency programs.
3:58:10 2 min 18 sec
Q&A
CM Narcisse questions OMB on Rockaway trauma center and Canarsie rec center
Narcisse voices support for the Rockaway trauma center, noting 100,000 people rely on one hospital and a police officer was lost due to response time. She also asks for construction dollars for a Canarsie rec center for youth, noting she has $500,000 secured and emphasizing prevention over crisis response.
4:00:29 4 min 31 sec
Q&A
CM Maloney questions OMB on business formation decline and tax incentive analysis
Councilmember Maloney asks about net business closures, struggling industries, and how the budget supports small businesses. Solomon cites SBS investments including BEST program, commercial lease assistance, and mobile food vending, plus job creation through the housing plan. Maloney also asks about RACE/REAP incentive analysis, which Solomon says is underway.
4:04:59 2 min 12 sec
Q&A
CM Maloney questions OMB on tourism funding cuts and marketing investment
Maloney raises that NYC tourism is 10 million visitors short of projections yet funding decreases from $28 million to $23 million in FY27. Solomon notes World Cup investments in international advertising and openness to discussing NYC Tourism's budget request. Maloney notes smaller cities spend 2-3x more on tourism marketing.
4:07:12 2 min 29 sec
Q&A
Chair Lee questions OMB on $1.86 billion hotel shelter contract renewal
Lee asks about the three-year $1.86 billion hotel trade group contract for shelters. DiStefano confirms it's a renewal of an existing umbrella contract terminable with a month's notice, paying only for rooms used. Lee asks about competitive bidding and plans to reduce hotel shelter use, with Solomon citing cost containment efforts.
4:09:41 2 min 41 sec
Q&A
Chair Lee questions OMB on DSS cost containment plan development and savings calculation
Lee asks how OMB worked with DSS to develop the cost containment plan and calculate savings. Solomon describes convening new DSS leadership, Corporation Counsel, and the Deputy Mayor to identify controllable measures, then using DSS data to make reasonable assumptions about results, producing recurring savings without cutting vouchers.
4:12:22 5 min 34 sec
Procedure
Transition from OMB to Comptroller testimony segment
Chair Lee concludes the OMB questioning segment, thanks Director Solomon and his team, and transitions to the next portion of the hearing with the Comptroller. A break and room move occurs before the Comptroller segment begins.
4:17:57 1 min 44 sec
Procedure
Chair Lee reconvenes hearing for Comptroller Levine testimony
Chair Lee reconvenes the hearing in the committee room, introduces colleagues present, welcomes Comptroller Mark Levine and his team, and reminds the public about tomorrow's 9:30 AM public testimony session before swearing in the witnesses.
4:19:41 3 min 3 sec
Public Testimony
Comptroller Levine: Economic contradictions and strong but uncertain outlook
Comptroller Levine begins testimony by highlighting contradictions: a strong economy with near-record stock market and 6% tax collection growth, but also halted private sector job creation, 4.6% inflation, declining real wages for lower-paid workers, and greater economic uncertainty than any time in recent memory.
4:22:43 2 min 36 sec
Public Testimony
Comptroller Levine: Relief on property tax and baselined programs, but gap closed with one-shots
Levine expresses relief that the executive budget no longer calls for property tax increases or rainy day drawdowns, and praises baselined funding for DOE, right to counsel, libraries, and Fair Fares. However, he warns the budget relies on $6.1 billion in one-time measures including pension re-amortization, accounting adjustments, and delayed class size implementation.
4:25:19 2 min 53 sec
Public Testimony
Comptroller Levine: $8.8 billion FY28 gap and structural imbalance warnings
Levine warns that reduced prepayments and prior year expense re-estimates mean spending $4.4 billion more than revenue this year, with the General Reserve at just $100 million. He projects an $8.8 billion FY28 gap, noting the city won't have one-shot measures available next year and faces this without assuming a recession or AI disruption.
4:28:12 1 min 21 sec
Public Testimony
Comptroller Levine: Inadequate reserves and credit rating downgrade risk
Levine highlights that the $2 billion rainy day fund ranks NYC ninth of the ten largest cities in reserves relative to revenue, ahead only of Chicago. He notes Moody's, Fitch, and Kroll lowered the city's credit outlook to negative, warning that structural gaps, low reserves, and repeated one-shots increase downgrade risk.
4:29:33 1 min 55 sec
Public Testimony
Comptroller Levine: Proposed rainy day fund rules and charter amendment
Levine proposes formal rules for the rainy day fund: a 16% of tax revenue target, 10% floor, deposit formula when revenues exceed trend, and narrow withdrawal criteria limited to recessions or catastrophes. He notes adherence would mean adding $854 million this year, not leaving it flat, and urges the council to avoid adding more one-shots.
4:31:28 2 min 23 sec
Q&A
Chair Lee questions Comptroller on class size compliance costs
Lee asks about DOE's $122 million estimate for 70% class size compliance. Levine estimates ultimate cost of $1 billion annually by 2030 for expense side, plus $14-18 billion in capital needs not currently in the plan. Staff estimate $25 million for proposed differential payments to teachers in exempted classes.
4:33:51 2 min 55 sec
Q&A
Chair Lee questions Comptroller on AI report scenarios and revenue impact
Lee asks about lessons from past technology shifts and AI's potential revenue impact. Levine describes five scenarios ranging from very positive to very negative, including potential loss of 250,000 jobs and $9-14 billion in revenue losses if the AI bubble pops, urging reserve buildup as preparation.
4:36:46 3 min 30 sec
Q&A
Chair Lee questions Comptroller on rainy day fund rules and deposit formula
Lee asks about proposed rainy day fund rules. Levine details a 16% target ($13.5 billion), 10% floor, deposit formula of 20% of revenue above 3% growth plus a six-year lookback, and withdrawal limited to recessions (two consecutive quarters of job loss) or catastrophes including AI disruption, requiring state legislation.
4:40:17 2 min 26 sec
Q&A
Chair Lee questions Comptroller on pied-à-terre tax revenue estimates
Lee asks about revised pied-à-terre tax revenue now that final legislation is public. Levine says the office is now confident the $500 million target will be met, potentially exceeding it, with a no-behavior-change estimate of $1 billion. He notes watching for impacts on sale prices and real estate market effects.
4:42:43 3 min 13 sec
Q&A
Chair Lee questions Comptroller on school budget hold harmless policy costs
Lee asks about the cost of holding school budgets harmless amid declining enrollment. Levine estimates approximately $260 million currently, warns of growing mismatches between budget and enrollment, suggests phasing in changes, and raises that 200 schools have under 200 students, suggesting consolidation could save money.
4:45:56 1 min 33 sec
Q&A
Chair Lee questions Comptroller on due process case cost containment realism
Lee asks whether $149 million in FY27 due process savings is realistic. Levine notes Carter cases tripled from $500 million to $1.5 billion in six years, supports the mayor's strategy of offering more public school services, but notes it's hard to assess exact savings since additional service spending may precede savings.
4:47:28 3 min 51 sec
Q&A
Chair Lee questions Comptroller on FY28 gap variance and forecasting differences
Lee asks on the Speaker's behalf how the FY28 gap changed from $13.9 billion to $8.8 billion. Levine explains the change is mostly explained by the property tax increase reversal and pension re-amortization, notes his office is slightly more conservative than OMB on revenue, and that monitors are clustered within about a billion of each other.
4:51:19 2 min 16 sec
Q&A
Chair Lee questions Comptroller on conservative revenue growth assumptions
Lee asks why the Comptroller projects tax revenue growth falling to 2.2% in FY28 and whether a recession is projected. Levine says no recession is assumed but they're being cautious given Wall Street uncertainty, AI risks, and geopolitical factors, with economists putting recession odds at 35-40% for 2027.
4:53:35 2 min 13 sec
Q&A
Chair Lee questions Comptroller on conservative budgeting and upside risk
Lee asks why the Comptroller's outlook is more conservative than OMB's and about upside risk. Levine notes they're within 1% of OMB's projection, explains benefits of caution, and states the city is under more fiscal strain than any time in his 12 years in government despite a currently strong economy.
4:55:47 3 min 54 sec
Q&A
Deputy Speaker Williams questions Comptroller on AI task force and economic disruption
Williams asks about her bill requiring an AI task force and what steps to ensure AI gains are broadly shared. Levine expresses worry about rapid job disruption, supports exploring new economic models and ownership stakes, and calls for building reserves to support potentially unemployed workers, noting nothing is currently in the budget for this.
4:59:41 2 min 47 sec
Q&A
Deputy Speaker Williams questions Comptroller on reserves vs investment trade-offs and racial equity
Williams asks when accumulating reserves becomes less valuable than investing in workforce development, and about the Comptroller's role in measuring racial equity spending. Levine says building reserves isn't a choice given uncertainty, supports rethinking K-12 and CUNY AI curriculum, and wants his office to be a resource for equity accountability.
5:02:28 1 min 42 sec
Q&A
Deputy Speaker Williams questions Comptroller on Southeast Queens flooding claims process
Williams raises flooding claims in Southeast Queens and asks if the Comptroller's office has resources to help residents file claims. Levine explains his office can't help fill out claims due to adjudication conflicts, but is launching an effort to partner with every council member to educate residents and improve the process.
5:04:11 3 min 35 sec
Q&A
Majority Whip Hanks questions Comptroller on fiscal accountability concerns and capital delivery
Hanks asks which agencies present the greatest fiscal accountability concerns and what capital delivery reforms are needed. Levine cites DOE's self-registration of contracts under $25,000 as a blind spot with 150,000+ annual uses, and calls capital costs like $5 million parks bathrooms and $80-100 million subway elevators an absolute scandal requiring reform.
5:07:46 3 min 39 sec
Q&A
CM Narcisse questions Comptroller on homeless spending, H&H pension clawback, and reserves
Narcisse asks whether the city is getting value from shelter providers, what the H&H pension clawback means for an already-cut system, and whether $100 million General Reserve is adequate. Levine says hotels drive high shelter costs, the H&H pension savings pass back to the city, and $100 million is an unprecedented low that is not adequate.
5:11:24 2 min 15 sec
Q&A
CM Wong questions Comptroller on water rental payments and most worrying budget assumption
Wong asks the Comptroller to audit water rental payments diverted to the general fund, which Levine agrees to work on. Wong also asks what single budget assumption worries Levine most; Levine identifies CityFEPs' exponential growth without a budget limit as unsustainable, recommending it be incorporated with a fixed price tag.
5:13:39 3 min 21 sec
Q&A
CM Brewer questions Comptroller on retiree healthcare, commercial rent tax, and credit ratings
Brewer asks about retiree healthcare status, the commercial rent tax, and credit ratings. Levine says Advantage is gone, retiree healthcare is not in jeopardy, he'd support lifting the CRT trigger point further, and three rating agencies lowered the outlook to negative though recent good news may help avoid a downgrade.
5:17:00 1 min 28 sec
Q&A
CM Brewer questions Comptroller on pension-funded housing investments
Brewer asks about the status of using pension funds for housing. Levine describes a $4 billion plan to invest city pension funds in deeply affordable housing, workforce housing, preservation, and office-to-residential conversion, emphasizing the pension fund will maintain investment criteria while seeking win-win outcomes in NYC.
5:18:27 1 min 56 sec
Q&A
CM Morano questions Comptroller on pension re-amortization vs reserve building
Morano asks what OMB is getting wrong on pension re-amortization and what Levine would have done instead. Levine acknowledges the accounting justification for smoothing but would have preferred using the windfall to build reserves rather than plug the gap, noting the decision rests with pension trustees where labor unions have dominant votes.
5:20:24 1 min 25 sec
Q&A
CM Morano questions Comptroller on finding $854 million for rainy day deposit
Morano asks where specifically the Comptroller would find $854 million for a rainy day deposit. Levine points to combining small schools, phasing out hold harmless ($250 million), and bending the CityFEPs curve, emphasizing the purpose of reserves is to avoid cutting services when tough times hit.
5:21:49 1 min 55 sec
Q&A
CM Morano questions Comptroller on whether budget is truly balanced without cuts
Morano asks whether Levine agrees with OMB's characterization that the $12 billion gap was closed without raising taxes, drawing reserves, or cutting services. Levine says the mayor presented a balanced budget but it relied on Wall Street strength, state aid, savings, and one-shot measures that won't be available next year, with an $8.8 billion FY28 gap ahead.
5:23:44 4 min 55 sec
Q&A
CM Maloney questions Comptroller on AI economy leadership and tourism funding
Maloney asks about NYC's role as an applied AI leader and ensuring AI companies grow here. Levine notes AI firms are already driving commercial real estate growth and the city should be the capital of applied AI. Maloney also raises tourism underfunding; Levine agrees NYC is way underfunding tourism relative to peer cities like Las Vegas.
5:28:39 7 min 16 sec
Q&A
CM Avilés questions Comptroller on AI in schools, CityFEPs curve-bending, and pension housing guardrails
Avilés raises concerns about unregulated AI in public schools and digital inequities, asks for recommendations on bending the CityFEPs curve while maintaining housing access, and questions guardrails on pension-funded housing to ensure benefits for the lowest-income New Yorkers. Levine supports a fixed CityFEPs budget with trade-offs and emphasizes mixed-income housing across all income levels.
5:35:55 36 sec
Procedure
Chair Lee concludes Comptroller testimony and transitions to DOF segment
Chair Lee thanks Comptroller Levine for his testimony and answers, concludes this portion of the budget hearing, and announces the committee will move to the Department of Finance segment in the committee room.