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Q&A

CM Morano questions Comptroller on finding $854 million for rainy day deposit

New York City Council · Jun 9, 2026 · starts 5:20:24 · 1 min 25 sec

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.

Frank Morano

Your testimony says the city would be adding approximately $854 million to the rainy day fund if your proposed reserve policy were already in place.

Frank Morano

Given the competing demands for public safety, sanitation, education, housing, everything we've all talked to you about already,

Frank Morano

and other essential services, where specifically would you find that $854 million?

Frank Morano

What spending would you reduce, defer, or eliminate in order to make that deposit?

Speaker

Well, first of all, the point of having a rainy day fund is so that you do not have to cut services when the tough times hit.

Speaker

The impact of not having prepared is that every kind of service that you and your constituents need could be cut.

Speaker

And I've already spoken about a few ways I think we could save money in this year's budget by...

Speaker

Combining small schools so you avoid having to have duplicate two principals and two assistant principals and two school secretaries, et cetera.

Speaker

I think that benefits kids ultimately so that they have critical mass to field sports teams.

Speaker

I think we are going to have to look at the whole harmless structure.

Speaker

That alone I put at a quarter billion dollars this year.

Speaker

I say with great sensitivity, I do think we can bend the curb on city FEPS and save money there as well.