OMB Director Solomon: $1.77 billion in savings from Chief Savings Officers

This morning, I will discuss in greater detail the multifaceted approach we took to close the gap, focusing on three main areas, recurring savings initiatives, significant state aid,

and restructuring unfunded pension liabilities.

The executive budget includes $1.77 billion in savings from chief savings officers and vacancy alignment over fiscal years 2026 and 2027, all without slashing services.

By category,

Chief Savings Officers saved $24 million from giving up unused space, consolidating leases, and other leasing savings and efficiencies.

$28 million from modernizing city technology, software licensing efficiencies, and other IT savings.

$94 million.

From pursuing better contract rates, terminating contracts in favor of insourcing, and other contract savings and efficiencies.

$368 million from improving the efficiency of public services, managing overtime, and phasing out unused programs and other program savings.

At $947 million, improving our financial management, claiming revenue that the city's owed, and accurately estimating expenses.

And finally, $307 million from the...

vacancy alignment exercise.

This is the first phase of this exercise.

Executive Order 12 is now embedded into agency operations, and our savings officers will continue to work with OMB and the Office of the First Deputy Mayor to find savings and efficiencies.

As I noted, $307 million of the $1.77 billion was achieved by reducing vacancies.

This savings exercise was paired with the removal of the two-for-one hiring restriction that has largely been in place since COVID and slowed down the hiring process in many agencies.

Agencies can now move quickly to hire up to their funded personnel services budget, personal services budget, which will improve service delivery.