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.
We should do everything we can to avoid this.
One critical step we can take is to establish formal rules for our rainy day fund.
In April, I laid out a plan to establish a target balance for the fund of 16% of tax revenue.
with the 10% floor, a deposit formula when revenues exceed trend, and clear, narrow criteria for withdrawals.
In other words, rules that require we put money in.
in when times are good and only take money out when times are tough.
I'll be proposing a charter amendment to establish these rules in the coming days and hope you'll join me in this effort.
If we were to adhere to that funding for a rainy day for
to that formula for our rainy day fund this year, a year in which the economy is strong and tax revenues are up significantly, we would be adding $854 million to the fund, not leaving it flat as the current plan does.
I urge you to find ways to add to the rainy day fund as your work to finalize the budget in the coming weeks takes place.
I know that you will be pushing hard to fund the Council's priorities and initiatives in the final budget, as well you should.
I fought for many of these investments when I was in the Council.
My ask is that you avoid adding even more one-shots to the budget as you find ways to offset the additional expenses you're fighting for.
New York City has many strengths to draw on as we navigate these challenges.
Our economy is strong.
Our workforce is supremely talented.
Our tax base is the envy of other cities.
Yes, we face real economic uncertainty ahead.
Yes, we face a structural imbalance in our budget.
But we have all the raw ingredients we need to solve this.
And we still have time.
Let's act decisively.
Let's seize this moment.
Thank you, and I look forward to your questions.