NYC Mayor Mamdani releases executive budget

0:05 Thank you.

0:06 Thank you.

1:00 All right.

3:38 Good morning.

3:40 12 weeks ago today we presented New

3:43 [clears throat] Yorkers with our preliminary budget.

3:46 It reflected a straightforward reality.

3:49 New York City was reckoning with a historic budget gap.

3:54 The causes were clear and numerous.

3:57 They included years of mismanagement

4:00 and under-budgeting from the Adams administration.

4:03 A long-standing relationship between the city and the state where too often New

4:07 York City was forced to carry costs it never should have shouldered alone.

4:12 An unwillingness to ask more of those with the most

4:16 asking working people to bear the burden instead.

4:20 And throughout it all a refusal to govern

4:23 with the honesty and transparency that New Yorkers deserve.

4:28 The accumulation of these failings was stark.

4:31 When we took office, the deficit was vast.

4:35 More than $12 billion.

4:36 dollars.

4:38 While you do not choose the deficit you

4:40 inherit you do choose how you respond to it.

4:44 In the month that followed we took aggressive steps

4:47 to tackle the deficit and drove it down to $5.4 billion.

4:52 Today after 3 more months of painstaking work I am proud

4:58 to announce that we have closed the gap entirely down to zero.

5:03 It has not been easy.

5:05 But we have balanced the budget and we have done so

5:08 without placing the burden on the backs of working New Yorkers.

5:12 This budget does not raise property taxes and it refuses to slash services.

5:18 We are often told that to govern responsibly we must scale back our ambitions

5:22 to provide little and then ask those we serve to expect even less.

5:27 We disagree.

5:28 This is what responsible government looks like.

5:32 Here is how we did it.

5:34 We scoured for savings and demanded greater

5:36 efficiency from every part of city government.

5:40 We partnered with Albany securing billions in new

5:43 funding and reversing many of the cost

5:44 burdens that Andrew Cuomo shifted to the city over his decade as governor.

5:49 And we taxed the rich, asking those with the most to contribute a little

5:53 bit more to support those with the least.

5:56 Through new revenues, savings, and a renewed partnership with the state,

6:01 we pulled New York City back from an existential fiscal brink.

6:06 Before I continue, I want to thank our partners who made this possible.

6:12 First, Governor Kathy Hochul.

6:14 For years, the relationship between City Hall

6:17 and Albany has been defined by dysfunction and infighting.

6:21 Governor Hochul and I, however,

6:23 share a belief that government works best when we

6:26 work together on behalf of the people we serve.

6:29 So, we have worked together through every step

6:32 of this process to protect the fiscal health of our city.

6:37 Second, I want to thank Senate Majority

6:39 Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie.

6:44 They have shown an unwavering commitment

6:45 to placing our city on firmer financial footing.

6:48 Just the latest example of their long-standing commitment to the five boroughs.

6:53 Third, I want to thank City Council Speaker Julie Menin and the council

6:57 for advocating for our city over the course of this budget process.

7:01 And finally, I want to thank the movement that carried us to City Hall.

7:06 Not only for winning an election,

7:08 but for continuing to demand that the power we won be used to improve

7:12 the lives of the many rather than to protect the interests of the few.

7:16 Thanks to the organizers, labor leaders,

7:19 and New Yorkers who knocked doors, made calls, and built a movement.

7:23 We partnered with Governor Hochul, Majority Leader Stewart-Cousins,

7:26 and Speaker Carl Heastie to secure New York City's first-ever pied-a-terre tax.

7:32 Together, we are laying the groundwork

7:34 for long-term stability and fiscal health.

7:38 This executive budget represents far more

7:40 than a collection of numbers and investments.

7:43 It is evidence of a new era of government in our city.

7:47 One that can balance both ambition and fiscal responsibility.

7:51 One that can invest in housing, child care, libraries, parks,

7:56 schools, and climate resiliency,

7:57 while also cutting waste and finding efficiencies.

8:01 One that does not accept austerity as the only answer to adversity.

8:05 One that refuses to kick structural challenges down

8:08 the road for someone else to have to solve later.

8:11 And one that understands that when working people organize,

8:15 they can fundamentally change what is politically possible.

8:19 In the years ahead, New York City will tell a story of transformation.

8:23 One where government lowers costs and leads with ambition.

8:26 And where the most expensive city in the nation is

8:28 affordable for the working people who build it every single day.

8:32 When that story is told, it will begin with this budget.

8:36 The heights we reach together, the sweeping affordability agenda we enact,

8:41 will only be attainable thanks to the solid foundation this budget has laid.

8:46 So now, let's get into how we landed on the specifics of the executive budget,

8:50 starting with the crisis we inherited.

8:53 The budget deficit was staggering.

8:56 Here's what Controller Levine had to say

8:58 when he testified in Albany earlier this year.

9:02 In no small part, we are paying the price

9:04 now for the questionable budget practices of years past.

9:08 First, chronic under-budgeting of known recurring costs

9:12 has obscured the true cost of ongoing obligations,

9:15 making it harder to fully understand,

9:17 plan for, and reasonably addressed rising long-term expenses.

9:22 Second, one-time accounting measures used

9:25 in the last budget cycle are now exhausted.

9:27 And third, the absence of systematic annual efficiency reviews has

9:32 limited the city's ability to tighten operations in a disciplined way.

9:37 We're facing our largest budget gap since the Great Recession.

9:42 According to the controller's estimates,

9:44 the gaps the Adams administration left behind were not only

9:46 more than double what had been publicly projected just months earlier.

9:50 They were more than three times higher than the pre-COVID 10-year

9:54 average and exceeded even the deficits we faced during the Great Recession.

9:59 A major driver of that crisis was under-budgeting for core city services,

10:04 rental assistance, shelter costs, due process cases.

10:08 Across six major areas alone, more than 7.5 billion dollars in expected

10:13 costs had simply not been accounted for.

10:16 Beyond that under-budgeting,

10:18 the city faced 5.85 billion dollars more in unfunded

10:21 mandates and unmet obligations over fiscal years 2026 and 2027.

10:28 [clears throat] We have tackled this crisis with a multi-faceted approach.

10:32 We invested in long-term efficiency instead of short-term

10:35 gimmicks to ensure that we never arrive here again.

10:41 First, let's talk about how we met our 1.77 billion dollar savings goal.

10:46 We launched an unprecedented citywide savings initiative.

10:49 For the first time in New York City history,

10:51 we directed every city agency to appoint a chief savings officer.

10:56 They were tasked with achieving aggressive savings targets.

11:00 1.5% in fiscal year 2026 and 2.5% in fiscal year 2027.

11:07 And they delivered.

11:08 Together, agencies identified 1.47 billion dollars in savings initiatives over

11:13 two years alongside more than 300 million dollars in vacancy reductions.

11:18 Let's break those numbers down.

11:20 CSOs have identified savings of 94 million dollars through procurement reform.

11:25 From DOE to DEP to DYCD,

11:28 we are terminating consultant contracts and bringing work in-house.

11:32 This administration will both demand public excellence and give the public

11:36 sector the opportunity to deliver From the NYPD to DCWP,

11:41 we are saving $28 million by modernizing

11:43 technology and reducing costs for software licenses.

11:47 From OTI to DSNY, we are saving $24

11:50 million by eliminating unused space and consolidating agency leases.

11:55 And across every agency, CSOs took a hard look at inefficiencies, overtime,

12:00 and unused programs and identified an additional $368 million more in savings.

12:07 And we are saving $947 million by improving financial management,

12:12 claiming old revenue, and accurately estimating expenses.

12:16 Throughout this process, we are making a clear choice.

12:19 Wherever possible, we are investing in the capacity

12:22 of public workers to deliver excellent public services.

12:27 But our work has never only been about short-term savings.

12:30 Our CSOs are going to continue to perform this work even beyond this budget.

12:36 This is part of our commitment to enduring fiscal

12:39 responsibility and stability for the city that we love.

12:42 In finding long-term savings,

12:44 we are doing what past administrations refused to do,

12:47 address the systemic issues in the programs

12:50 that are central to the purpose of government,

12:52 programs that we deeply believe in.

12:55 By identifying these issues, we will save an additional $1.2 billion

12:59 in this budget and more over the years to come.

13:03 One of the clearest examples is special education.

13:06 For decades in this city,

13:07 special education students and their families have faced

13:10 impossible barriers just to access the services they deserve.

13:14 Our school system has made important changes in recent

13:16 years to right this wrong by improving services.

13:20 Now, our administration is committed to building upon that critical work.

13:25 That is why we are increasing our investments to improve

13:28 access to services for special education students of all ages.

13:33 Yet the work cannot stop there.

13:36 When families cannot access the special education services they need,

13:40 they sometimes turn to the private school network instead.

13:43 Entering into litigation against the city over the cost incurred.

13:46 Over the past decades, the cost of these cases, known as due process cases,

13:51 have skyrocketed to a projected $1.5 billion for this year alone.

13:57 Payments have more than tripled from 2015 to 2025.

14:01 For too long, our city has accepted this dynamic as the status quo,

14:05 paying out settlements instead of fixing the underlying problem,

14:09 the chronic shortage of adequate

14:11 services available to special education students.

14:15 This is not only an abdication of our responsibility to our students,

14:19 it is also enormously costly.

14:22 We are committed to addressing this issue head-on.

14:25 We are investing in special education services across the five boroughs,

14:29 so that families can get the support they need inside the public school system.

14:34 We're also making changes to how these cases are managed.

14:37 That means better outcomes for families,

14:40 fewer unnecessary lawsuits, and long-term savings for our city.

14:44 We expect this investment will generate $149 million in annual savings.

14:49 Thanks to these changes, we will bend the steep curve on the cost incurred

14:53 by these cases for the first time in many years.

14:57 Our administration believes deeply in the state law capping class sizes,

15:01 and I am proud to have voted

15:02 for this mandate during my time in the state assembly.

15:05 That is why we are making an additional investment

15:07 of $122 million to hire a thousand more teachers,

15:11 and that is why we are adding $1.5 billion

15:15 for a total of $7.6 billion to SCA's current five-year capital plan.

15:20 We are committed to working with Albany and our partners

15:24 in labor as we invest in school construction,

15:26 teacher hiring, and long-term planning.

15:29 And we have asked Albany to extend the deadline to meet this mandate.

15:33 This extension will generate approximately $500 million

15:37 in savings in the upcoming fiscal year.

15:39 But more importantly, it will allow us to implement an achievable plan

15:43 that better serves both our students and our teachers.

15:47 Make no mistake.

15:49 We are fully committed to fulfilling the state mandate in a meaningful

15:52 way on a realistic timeline that New Yorkers can actually trust.

15:57 Smaller class sizes are better for our children and better for our educators.

16:02 We don't believe in empty promises.

16:04 We want to do this right.

16:07 We are also working to stabilize the CityFHEPS program for the long term.

16:11 CityFHEPS is a lifeline for thousands of New

16:13 Yorkers leaving the shelter system and seeking stable housing.

16:18 And yet through a combination of factors,

16:20 including the soaring cost of the housing

16:21 market and how much the program has grown,

16:24 the cost of CityFHEPS has more than tripled over the past three fiscal years,

16:29 as you can see on the chart.

16:31 As the stewards of CityFHEPS and as an administration

16:34 that firmly believes in its purpose,

16:36 we want to protect it by placing it on firm financial footing.

16:41 That is why we are pursuing reforms that protect the program's future.

16:45 As we do this work, we will help voucher holders transition

16:48 to long-term financial stability and seek efficiencies in the shelter budget.

16:54 These measures are projected to save $519 million in fiscal year 2027.

17:00 And while we have reduced inefficiencies and identified savings,

17:03 we know that's only part of the battle.

17:06 We need to increase revenue to support our city's growth.

17:10 I'm proud that together we have answered

17:12 a call New Yorkers have rallied around for years.

17:15 We will tax the rich.

17:17 Make no mistake.

17:18 This is the kind of progress that arrives too rarely and this is

17:21 the kind of progress that can only be won by a movement of New Yorkers.

17:25 Those who canvassed their neighbors, those who dialed endless numbers,

17:28 those who believed government can truly change the status quo.

17:32 The new pied-a-terre tax applies to non-resident New Yorkers

17:36 who own a second home worth more than $5 million.

17:39 It will generate $500 million in annual revenue.

17:43 This was made possible thanks to Governor Hochul's leadership.

17:47 And here in New York City, we will work with Speaker Menin and the City Council

17:51 on their proposal to reduce the unincorporated business tax credit,

17:54 which overwhelmingly benefits millionaires.

17:57 That partnership will raise an additional $68 million in annual revenue.

18:03 These are common sense measures.

18:05 Working New Yorkers cannot be asked to sacrifice as we sit

18:09 in the wealthiest city in the wealthiest country in the history of the world.

18:13 I want to again thank Governor Hochul, Majority Leader Stewart Cousins,

18:17 and Speaker Heasty for their commitment to our city.

18:20 We are working with Albany to deliver critical new gap closing funding.

18:24 $352 million in additional direct aid to our city.

18:28 $3.2 billion through state authorizations of savings measures,

18:32 including pension restructuring and class size flexibility.

18:35 And $500 million in new revenues, which come from taxing the rich.

18:40 With this budget, we have taken a critical step

18:43 in the recalibration of our city's relationship with the state.

18:47 Under past administrations, costs shifted from the state to New York City.

18:51 This budget reverses a number of those shifts.

18:54 If you look at the screen,

18:55 you can see some specifics of these restorations as well as the year

18:59 in which the cost was initially shifted to New York City.

19:02 They reflect our shared vision of a politics where

19:04 the city and the state are not at odds

19:06 and where we harness the mighty resources at our disposal

19:09 to to the lives of those we serve.

19:13 Yet, building an affordable New York is not just about balancing budgets.

19:17 It's about making it possible for families to stay

19:20 in the city and build a future here.

19:23 Nowhere is that commitment clearer from Governor Hochul

19:25 than the historic $1.2 billion investment we made

19:29 in free child care for 3-year-olds

19:31 and, for the first time in New York City history,

19:33 2-year-olds on day eight of this administration.

19:37 More families will be able to afford to stay in the city they love.

19:40 More parents will continue to be able to be a part of our workforce,

19:44 and our economy will be stronger as a result.

19:48 At every step of this process,

19:49 we made a choice to balance the budget without a property tax increase,

19:54 without slashing services,

19:56 without drawing down the rainy day fund and retiree health benefit trust fund.

20:02 In fact, we are doing one better.

20:04 We have poured through our city's budget for savings and efficiencies,

20:08 identifying an additional $1.2 billion the prior

20:11 administration set aside from prior payables,

20:14 and we will use that funding to restore

20:16 the retiree health benefit trust and the rainy day fund.

20:21 And we are restructuring pension payments in a way

20:23 that not only creates additional immediate savings for the city,

20:26 but protects retirees and preserves benefits.

20:31 As this chart shows,

20:32 New York City's pension funding rate exceeds the national average.

20:36 Our city pays nearly $10 billion in pension contributions annually.

20:40 We propose restructuring a portion of these contributions,

20:43 the unfunded pension liability,

20:45 to create consistent annual payments and ensure long-term stability.

20:51 This will result in savings for years to come,

20:53 including $1.64 billion in fiscal year 2027.

20:58 Let me be very clear.

21:00 This restructuring has no impact on retirees

21:03 and their benefits or current employees and their future benefits.

21:08 Now, let's talk about what this executive budget actually looks like.

21:11 The investments we're making, the needs we're meeting, the city we're running.

21:16 The fiscal year 2027 executive budget is balanced at $124.7 billion.

21:21 This This marks $2.3 billion less than the fiscal year 2027 preliminary budget.

21:28 You can see the breakdowns in funding here.

21:31 Out of $17.3 billion allocated to new spending in fiscal years 2026 and 2027,

21:37 just 8% is supporting new programs and investments.

21:41 The vast majority of new spending,

21:42 the other 92% is addressing agency cliffs and core needs.

21:48 This budget does more than just close a deficit.

21:51 It confronts the affordability crisis that hurts New Yorkers every day.

21:55 It asks that you put your phones on silent.

21:58 Because balancing the books means little if

22:00 working people still can't afford their rent,

22:03 child care, groceries, or the cost of staying in the city they love.

22:08 We are investing with a clear purpose to lower costs and make

22:12 this city livable for the people who build it each and every day.

22:17 Now, for those who have followed budgets in past years,

22:20 you know the term budget dance.

22:23 It describes a long-standing dysfunction in this process,

22:26 one where our parks, libraries, CUNY systems, cultural institutions,

22:30 and transit programs have to fight for every single

22:33 dollar in their share of the budget every single year.

22:37 The year after that, they have to do it all again.

22:40 And the year after that, too.

22:42 We know that negotiations with the City Council are only just beginning,

22:45 and we look forward to them.

22:47 And we want to ease that burden on these agencies

22:51 by transforming what were a number

22:52 of one-time investments into long-term commitments.

22:56 Traditional politics would decree that in a moment

22:58 like this, when a crisis is so stark,

23:01 when a budget gap is so wide that the first things cut should be parks,

23:06 libraries, and cultural institutions.

23:08 And yet we know that these services live at the heart of our city.

23:12 That they give meaning to millions of New Yorkers' lives.

23:16 Rather than cutting funding to these services, we will do the opposite.

23:19 And raise the baseline of what they can expect.

23:22 Because we reject politics as usual.

23:24 And we reject a budgeting process

23:26 that systematically erodes the bedrock of our city.

23:31 Our investments in the next generation begin with universal child care.

23:35 In addition to our historic push to make child care free for all,

23:38 we are dedicating $2.3 million to the first-ever

23:41 child care pilot program for municipal workers.

23:44 Or as we like to call it, the Little Apple.

23:46 We are also investing $40 million in increased

23:49 contract rates for the child care providers,

23:52 without whom there is no vision for universal child care.

23:55 For the woman who leaned over to me at the Liberty

23:57 game and asked for exactly this, this is your moment.

24:01 Child care providers have been reimbursed at the same rate since 2021.

24:05 While costs for basics like rent,

24:07 utilities, insurance, and food have skyrocketed.

24:10 Every single day, these providers make it

24:12 possible for parents to remain in the workforce,

24:15 for families to stay afloat, and for our city to function.

24:19 As we transform the child care landscape in our city,

24:22 we are making a commitment not just to families,

24:24 but also to those who look after New York's cutest.

24:28 And we are proud to make

24:29 this investment even amidst challenging fiscal conditions.

24:33 Beyond child care, we are allocating $17.3 million to expand New York City Reads

24:38 and Solves so that we can improve

24:40 our children's literacy and math skills K through 12.

24:44 We are also continuing to fund City Hall's top priority,

24:47 keeping every New Yorker safe.

24:50 First, we are committed to devising and implementing new

24:52 solutions to address domestic violence and the mental health crisis,

24:56 as well as to deliver on community-based violence prevention.

25:01 That is why we are investing more than $40

25:03 million in the new Office of Community Safety annually,

25:06 beginning in fiscal year 2027.

25:09 Our budget also allocates $26 million towards an expansion of hate

25:13 crime prevention efforts under the Office to Prevent Hate Crimes,

25:18 meeting our campaign pledge to increase hate

25:20 crime prevention funding by more than 800%.

25:23 And it invests another $9 million annually,

25:26 starting in fiscal year 2027, for new FDNY civilian staff.

25:31 We are committed to pairing safety with justice,

25:34 which is why we are also investing in right to counsel and expanding the CCRB's

25:39 capacity to investigate additional complaints.

25:43 This budget makes investments in New Yorkers' lives

25:45 in ways that they will feel every day, on their way to school and work,

25:50 when they cross the street, when they throw out their trash.

25:53 We are making our streets safer by installing pedestrian alerts on 3,000

25:58 heavy-duty vehicles across our city fleet and investing in Sammy's Law,

26:02 because too many children are losing their lives in the city

26:05 just to get from one side of the street to the other.

26:09 And we are taking the first steps towards fulfilling

26:11 our promise to fully containerize all trash citywide by 2031,

26:16 with $14.8 million in fiscal year 2027,

26:19 growing to $162.2 million in fiscal year 2030.

26:24 This budget also lays out a comprehensive agenda that advances

26:27 worker justice and protects those who keep our city running.

26:31 We are going to invest in DCWP's capacity to perform enforcement.

26:35 We are providing small business owners with legal assistance,

26:38 and we will support hardworking taxi drivers and street vendors.

26:42 Finally, this expense budget invests tens of millions of dollars

26:46 in building a healthier city and supporting New Yorkers' well-being.

26:50 We are going to support our seniors,

26:52 stand steadfast alongside survivors of domestic and gender-based violence,

26:56 and invest more than $47 million annually

26:59 to improve New Yorkers' access to mental health care.

27:03 And as we all follow the hantavirus outbreak,

27:05 we are protecting our disease testing and surveillance capacities

27:09 with a sustained city investment of $11.3 million annually.

27:15 As we come to the end of this presentation,

27:16 I want to speak briefly about the investments

27:18 New Yorkers can expect from our capital plan.

27:22 This is a high-level breakdown of our $117.1 billion 5-year capital plan.

27:28 This chart shows a breakdown in the funding

27:30 that our administration has added to the 5-year capital plan.

27:33 As you'll see again, the largest addition has been made to housing.

27:38 At the heart of our affordability crisis is the simple fact

27:40 that too many people cannot afford to live in New York City.

27:44 That is why we are investing an additional $4

27:46 billion in HPD capital funds over the next 5 years,

27:50 and $500 million more in fiscal year 2031

27:54 to build and preserve affordable housing across the five boroughs.

27:59 These funds will go towards the deeply

28:01 affordable housing that working-class New Yorkers need most.

28:05 The capital plan also makes transformative investments in NYCHA,

28:09 housing that is so often forgotten in plans like these.

28:12 We're investing an additional $500 million

28:14 in fiscal year 2028 for comprehensive NYCHA renovations.

28:19 And we're allocating $256 million from this fiscal

28:23 year to fiscal year 2028 in tandem with funds

28:26 from the expense budget to restore vacant units

28:28 so more families can move into safe, stable homes.

28:33 This investment is historic.

28:35 It is the most city capital funding ever dedicated to vacant unit turnover.

28:40 And it is part of a larger, similarly historic commitment to NYCHA.

28:45 This capital plan includes a total of $5.6 billion for NYCHA,

28:49 the most city capital to NYCHA in recent decades.

28:54 Now, let's run the numbers.

29:00 You can see here we have a 25 million 25 million

29:04 dollar and 50 million dollar revision on the assessments on our revenues.

29:09 You can see here an increase in 150 million

29:12 dollars in revenues from tax audits that we implemented.

29:15 This is the 68 million dollars from the unincorporated business tax

29:19 that we will partner with Speaker Menin and the Council on.

29:22 This is the reduction in revenue by not utilizing the property tax increase.

29:27 This is the 500 million dollars that comes from the pied-a-terre tax.

29:31 This is the unrestricted aid that we are receiving 117 million this year,

29:35 then baseline to 161 million next year from Albany.

29:40 This is non-tax revenue in the first year.

29:42 We are looking at Oh, sorry.

29:44 117 This is a combination of federal and city.

29:46 This then comes into the state assistance at 256 and 166.

29:50 These are the non-tax revenues that we're seeing from across the city.

29:55 Then if you go into the expense changes,

29:56 you'll see changes in expenses of 1.2 billion

30:00 and 2 billion in these two fiscal years.

30:03 You see an additional pension cost of 5 million in this year,

30:07 savings of 240 million the next year.

30:09 This is from the proposal to restructure city pension liabilities.

30:13 As you can see, 652 million this year saved,

30:15 1.6 billion next year saved, and then it continues in the out years.

30:19 These are about 515 million dollars savings

30:22 in fringe for this fiscal year and the next.

30:25 This is the 1.2 billion dollars that I

30:28 referred to earlier with regards to City Feps,

30:31 due process cases, and class size.

30:34 As part of the proposed restructuring of the city's pension liabilities,

30:37 H&H would see additional savings.

30:40 This is the reinvestment of that savings back into the city budget.

30:43 This is the assessment of the additional cost to the city

30:47 budget from changes in pension policy at the state level.

30:50 These are savings that we will see from the state,

30:53 101 growing to 362 million above that in the next year.

30:58 Savings from debt service at 213 additional cost of 16 in the year after.

31:02 This is the savings from the in-year reserve.

31:05 This is the investment back into the retiree health benefit trust

31:09 fund so that there is no utilization of that trust fund.

31:12 Here, however, you can see a savings as in the preliminary budget,

31:16 this was going to be the time of investment.

31:18 So, that is now not required.

31:20 This is the prior year expenses and receivables I referred to earlier,

31:23 1.2 billion and then 400 in the next fiscal year.

31:26 All of these things together comes out

31:29 to a fully balanced budget for our executive plan.

31:33 And to the next slide.

31:35 For fiscal years '26 and '27,

31:37 you can see that the tax total is about 84.4 billion,

31:41 grows to 88 billion in the next fiscal year.

31:44 When you add in additional funds from the city,

31:46 we're looking at 91.6 billion for this fiscal year, 94.8 for the next.

31:51 Then, when you add that with other grants from multiple levels of government,

31:54 we're coming out to 124.3 billion and for next year 124.7 billion.

32:00 Then, when you're coming down into expenditures,

32:02 you can see personal service 60.3 billion in this fiscal year,

32:06 60.7 billion in the next fiscal year.

32:09 You add that to OTPS 60.8 billion for this year, 57.6 billion for the next year,

32:14 and you find the same total of 124 billion 394 million,

32:19 124 billion 700 million for the budgets

32:22 of this fiscal year and the next fiscal year.

32:29 If a budget is nothing more than a series of choices,

32:33 I believe deeply in the choices that this executive budget reflects.

32:37 Over the past 3 months, we have made the choice to search

32:40 for every efficiency and savings we could find.

32:43 We made the choice to forge a new relationship with Albany,

32:47 one built around collaboration instead of contention.

32:51 We made the choice to tax the rich

32:53 and to reject the false inevitability of austerity.

32:57 For too long, New Yorkers have been

32:58 told that ambition must give way to austerity.

33:01 That government can either be fiscally responsible

33:05 or invest in people, but never both.

33:08 This budget proves otherwise.

33:10 Together, we have stabilized our city's finances.

33:14 We have laid the foundation for a future where we

33:17 can continue to deliver the affordability agenda New Yorkers deserve.

33:21 That future seemed very far away a few months ago.

33:25 Today, my friends, it is within reach.

33:28 Thank you.

33:29 All right, thank you very much.

33:30 We're going to take on topic questions about the budget only and we'll

33:34 have our budget director and first deputy

33:36 mayor available to answer questions as well.

33:39 All right, on topic only.

33:41 Uh we'll start with Morgan.

33:42 Hi Mr.

33:43 Mayor.

33:43 Hi Morgan.

33:45 [laughter] Um do you see this as a win, I guess?

33:47 Um I know that Governor Hochul didn't quite give you the all of the money,

33:52 but she did allow you to postpone payments and um you

33:55 didn't get quite the tax the rich that you were originally proposing,

33:59 but do you see this as a win of you being able to get this money from the state?

34:03 And then separately, I just had a question about the UBT tax.

34:06 Absolutely.

34:07 Yes, I see this as a win,

34:10 not just for our administration, but for the city of New York.

34:13 A win to ensure that the city is back on firm

34:16 financial footing and it's doing so by taxing the rich,

34:20 by creating a fairer relationship with Albany,

34:22 by finally accounting for the mismanagement we'd seen

34:27 in prior years and embarking on a new chapter

34:30 of an approach to budgeting that that is

34:32 honest and that is actually building for long-term stability.

34:36 And I do want to thank Governor Hochul for her partnership in that.

34:40 It is a partnership that reflects a commitment

34:42 to the long-term health and vitality of the city.

34:44 I'll pass it over to Sherif for additional details on UBT.

34:49 Can you kind of go into more detail what

34:50 exactly is this tax targeting and how it works?

34:53 Sure.

34:54 So, the unincorporated business tax is charged to pass-through entities.

34:59 So, those can be like partnerships, for example.

35:02 Um about 24,000 payers of the unincorporated business

35:06 tax also get a personal income tax credit.

35:10 This proposal will begin to phase out that credit 23% to 15% uh and really

35:18 impact primarily um those who have more than

35:21 a million dollars in income from that tax.

35:25 All right.

35:26 Um we'll go Sally and then Hillary.

35:29 Hi there.

35:29 Hi Sally, how's it going?

35:30 Good, how are you?

35:31 All right.

35:32 I know there was talk about replenishing the reserves.

35:34 It looks like the general reserve still has the bare minimum

35:37 of a hundred million in it and I was just wondering if that's true,

35:41 if I'm reading that correctly.

35:42 What was the reason for keeping it so low?

35:44 It used to be much higher and do you

35:46 have any thoughts on how that might affect credit ratings?

35:49 I know some of the as I said, I know some of the reserves were replenished,

35:52 but but it looks like this one was not.

35:54 We are confident about the fiscal picture

35:59 that we are putting forward regarding our city,

36:01 not only in that we've been able to tackle

36:05 under-budgeting of immense proportions in the prior administration,

36:09 but also doing so while replenishing, as you said,

36:11 not just the rainy day fund, but also the retiree health benefit trust fund.

36:15 Uh I'll pass it over now to my team for additional details.

36:19 So, we did restore the two permanent multi-year reserve funds,

36:25 the rainy day fund and the retiree health benefit trust fund,

36:29 and that's the clear focus,

36:30 and that's what credit credit agencies are going to look to.

36:34 The general reserve is a is a reserve fund within the fiscal year,

36:40 and by the end of the fiscal year it normally goes to zero.

36:44 Um the history of that fund has actually been been very It's It

36:49 has It has gone from 100 to 300 for most of the city's history.

36:54 It was at over a billion dollars and in fiscal

36:58 year 28 and every one of the out years,

37:01 we restore it back to over a billion dollars.

37:05 I Look, we made priorities um what funds should be taken care of and what

37:12 was the most important things for us to do to show financial stability.

37:17 That's the retiree health benefit trust fund

37:20 and the rainy day funds cuz those are permanent reserves.

37:23 And reestablishing those should very much help our creditworthiness.

37:31 I Yes, I have two specific questions.

37:34 On City FEPs you mentioned, what does this mean for people who are

37:38 looking at renewals this year or the coming years?

37:40 The people that may be holding vouchers who want to get into the program,

37:43 does that mean that you're not allowing any new people?

37:46 And then could you give us some details on the pied-a-terre tax?

37:49 Is that What value are you guys basing that on?

37:52 What does it look like as of today?

37:54 So we are working with Albany on the administration of that tax.

37:59 It'll It'll be a tax that the city administers,

38:02 and that is an agreement on the premise

38:05 of it raising $500 million on an annual basis.

38:07 That's half a billion dollars that goes towards closing what was

38:11 the city's fiscal deficit that we have now brought down to zero.

38:14 When it comes to City FEPs, I want to be very clear that it's an invaluable tool

38:20 to to homeless New Yorkers who are getting out of shelter,

38:23 and the proposals that we've put forward will not cut vouchers.

38:26 I'll pass it over to my team for sharing additional details to that.

38:33 As the mayor said, the proposal does not um seek to cut vouchers.

38:37 Uh it seeks to uh to introduce some management um protocols into the program.

38:43 So, for example, um legal rent, just comparing that against state data,

38:48 looking at rent reasonableness, uh reducing broker fees, things like that.

38:53 So, it's not being cut, and we're not creating wait lists,

38:57 so vouchers will continue to be issued.

39:00 I just on the pier to pier tax, how can you assume that you're going to get

39:04 500 million if it's the details haven't been worked out?

39:10 We have a commitment with uh the state to be

39:13 able to have a revenue target of the 500 million dollars.

39:16 Um how we get there has a number of components to it.

39:20 These are still active discussions that we're

39:22 having uh with our partners in the state,

39:24 and we will have a a final product soon

39:27 that does generate the 500 million dollars per year.

39:30 Margo, go ahead and then Um hi.

39:33 Can Can you walk us through the elements of the savings

39:37 plan that requires state approval versus those that don't?

39:41 It seems like the UBT change doesn't require state No, it doesn't.

39:45 But um walk us through the the what

39:47 is required to achieve the pension and amortization?

39:51 Mhm.

39:51 Does it require not only state legislative sign-off,

39:53 but also the approval of the pension funds themselves?

39:57 Yes, that's correct.

39:58 To to give you a sense of what requires state authorization,

40:02 broadly, it is the pension restructuring.

40:05 It it's additional actions that then also

40:08 the final portion of it is class size flexibility.

40:12 Um so, I'll pass it to Sherif to speak a little

40:14 bit more specifically um about the pension restructuring and the approvals,

40:20 as you said, just to be clear,

40:22 it requires the approval both of the state and then also of the pension boards.

40:27 Absolutely.

40:28 As the mayor said, there are certain things that require authorization.

40:31 Obviously, the pied-a-terre is one of them.

40:34 We have the pension restructuring, which first has to be done in state law,

40:38 then subject to approval by each of the five retirement systems.

40:44 So, that is a procedure that is needed after the state law is enacted.

40:49 And there are other things, as the mayor mentioned, like class size,

40:53 that needs to be all also done in state law.

40:56 The balance is pretty much direct aid.

40:59 Beyond that to make up the $4 billion.

41:03 [clears throat]

41:03 The pension authorization, the original As the the mayor showed, right?

41:09 We We have a fund that's about with all five funds are about 86% fully funded.

41:17 The this pension the pension restructuring is

41:21 to take the remainder to get to 100%.

41:24 We're still paying over 8.7 billion in FY27 for pensions.

41:31 This is taking what was put in state law in 2010,

41:35 which was to get New York City to 100% fully funded system.

41:41 But what that what that state law had done, it backed ended the payments.

41:46 It made the payments grow considerably in the out years.

41:50 What we are doing is a level payment every

41:53 single year through 2037 to get to the 100%.

42:00 Hey, Mayor Adams or whoever can pick this.

42:04 The contracts that you've mentioned you've mentioned being negotiating some,

42:08 but also terminating some.

42:09 Could you Can you a few examples maybe of the largest contracts

42:12 that have been terminated and where work is going to be brought in house?

42:15 I can just tell you that broadly this is not specific to any one agency.

42:19 We found that whether we were speaking of DOE or even of DYCD,

42:23 that there were a number of contracts of multi-million dollar value

42:27 where not only could the same work be done in house,

42:31 but it could also be done at a savings to the city.

42:34 And this is a critical part of our approach to the stewarding

42:39 of this budget is that we are looking for ways to both

42:42 increase the opportunity for our incredible

42:45 public service workers to perform that public

42:47 excellence and for it to be done at savings to the city.

42:50 I'll pass to Sherif for any additional details.

42:53 Yes, and we can cover a lot of this in the technical briefing as well,

42:56 but um the mayor mentioned DYCD,

42:59 that was a contract that was cancelled for insourcing.

43:02 Uh there's also renegotiation of contracts.

43:04 So, in DOT for example, looking at one of the camera maintenance programs,

43:09 for example, that was a $6 million saving.

43:11 So, so it is a variety of options,

43:14 both renegotiation and terminating by insourcing.

43:20 Mr.

43:20 Mayor, um the members of the business community,

43:24 including the partnership for the homeless I mean, sorry,

43:28 the partnership for New York City has has argued that the budget could

43:32 reduce the number of employees in the city and the number of businesses.

43:36 And you also have businessmen like Steve Ross kind

43:39 of giving a warning that they may take their business elsewhere.

43:43 How worried are you about these warnings and these threats that in the long run

43:48 could reduce the city's tax base and cause

43:51 you future problems in the years ahead?

43:53 Yeah.

43:54 I've been very clear that I think we live in the greatest city in the world.

43:59 And I think what makes the city great comes also

44:02 from the people who keep it running each and every day.

44:06 And there were many who put forward

44:08 proposals to balance this budget by slashing services,

44:12 by laying off city workers.

44:14 That is not our vision for how to steward this budget.

44:17 Our vision for stewarding this budget is one that invests back

44:21 in those same working people because we know that the same city that is

44:24 the wealthiest city in the wealthiest country in the history of the world

44:27 is also a city where one in four New Yorkers are living in poverty.

44:30 And so many New Yorkers look to these kinds of programs for relief.

44:36 We talk about the investments we're making.

44:38 It's not just investments in libraries and parks and cultural institutions.

44:42 It's also investments in public housing,

44:44 investments in additional elevator mechanics

44:47 to ensure that a senior doesn't have

44:48 to walk up so many flights of stairs just to get home,

44:51 investments in turning over a vacant unit because in a city

44:54 where the most pressing crisis is that of housing,

44:56 the easiest thing to do should be to find a new tenant for a vacant unit.

45:00 And these are the kinds of investments that we're proud of and we

45:03 also believe that when you make the quality of life of this city better,

45:07 when you deliver the highest quality of public service,

45:10 when you keep New Yorkers safe at what are now record levels,

45:14 you also create the environment for others to choose this city

45:18 as their home and we look to every business leader and prospective business

45:22 leader to keep considering this city as a part of their future

45:25 because it is how we made this city a part of our present.

45:28 I'll try to keep our questions to budget.

45:29 So what you're basically saying is what you're

45:30 saying is you're not really worried about these types

45:33 because you think that what you're doing to improve

45:36 the city will attract other people and other businesses,

45:40 so whatever these businessmen are threatening isn't going to hurt you.

45:43 Well, we we want everyone to stay in this city

45:46 and we also want others to join them here in this city.

45:48 We want every New Yorker to succeed and when it comes to business owners,

45:51 we want them to create good paying jobs and to strengthen our economy.

45:54 And everyone that you mentioned is a part of that vision.

45:57 And we also know that to ensure that others can make that choice,

46:01 we have to deliver them the best quality of public service.

46:04 This is doing that.

46:05 Yala, go ahead.

46:05 We'll try to keep it focused on the budget, please.

46:07 Thank you.

46:07 Uh thanks for taking my question.

46:09 The Pia tax, those $500 million, do you know where that will be invested?

46:13 If not, um have you considered anything about the free buses proposal?

46:18 I know that you're very keen on that.

46:20 However, uh uh the governor, who's your ally,

46:23 uh a very good ally for the city, is very reluctant on that, very reluctant.

46:28 Um have you had any progress with her as to whether

46:31 that could be included uh in this executive budget,

46:35 or perhaps are you looking at the next executive budget,

46:38 because she did tell me in an interview that she's considering for future?

46:42 You know, I continue to believe in the importance

46:44 of making our buses not only fast, but also free.

46:47 And that will continue to be a part of not just our long-term vision,

46:51 but even our medium-term vision here in New York City.

46:53 The Pia tax, the $500 million that will raise on an annual basis,

46:58 that will go back to closing the deficit to ensure

47:00 that we can continue to deliver essential services in the city.

47:04 Jacob, go ahead, then Chris.

47:05 Okay.

47:06 Can Can you expand on how this increase

47:10 uh would actually address uh and and fight anti-Semitism,

47:14 which is a majority of the hate crimes?

47:16 And also, how much of this investment is on new

47:20 city programs to to be more effective in that?

47:24 So, broadly, what I would say is that these are

47:26 investments in programs that have been found to be effective.

47:29 And too often, the only response offered to a hate crime is exactly that.

47:33 It's a response to the hate crime.

47:35 We want to also do the work of preventing those hate crimes.

47:38 And as we've seen that Jewish New Yorkers constitute

47:41 a minority of New Yorkers across the five boroughs,

47:43 and yet constitute a majority of New Yorkers who face hate crimes in this city.

47:49 And the work we want to do is not just going to be responsive, but preventive.

47:54 And this This also be done alongside

47:57 the work of the mayor's office to combat antisemitism,

47:59 which is embarking on a listening tour to create

48:02 the first-ever municipal approach to fighting antisemitism in the city.

48:06 Chris, go ahead and pass.

48:07 Thank you.

48:08 Um Nice haircut.

48:10 Thank you.

48:11 Appreciate it.

48:12 Getting so many comments about my hair.

48:14 Jeez.

48:14 See, I mean, it's a drastic shift.

48:16 Yeah, I guess it is.

48:17 It's a We both cut the deficit.

48:21 Pretty good.

48:21 Yeah, that's right.

48:22 I was trying.

48:23 I I know you said you're you're taxing the rich this year,

48:25 but um your main two proposals during the campaign,

48:29 income tax hikes and corporate reductions, they're not happening.

48:33 So, is this executive budget kind

48:34 of an admission that that's not happening this year?

48:37 And looking ahead, is this now a 2027 priority?

48:41 And then there's some technical questions beyond.

48:46 I don't know how else to describe a tax on secondary homes of non-resident

48:50 New Yorkers worth more than $5 million than as a tax on the rich.

48:54 And I think as you make clear in the question,

48:58 wealth is measured in many different ways,

49:01 in income, in profit, also in property.

49:05 And this is a tax that is on the very kind of properties that developers

49:10 have told local legislators they will not even

49:15 often times be filled with anyone in them.

49:17 That they will not have an impact on city services, to quote those developers.

49:21 And yet what we've seen is a reluctance

49:24 to pass this legislation into actual practice.

49:28 I say that because the idea of a pied-a-terre

49:30 tax has been one that has been floated for many,

49:33 many years and has never quite crossed the finish line.

49:36 And it is thanks to Governor Hochul's leadership,

49:39 thanks to New Yorkers across the five boroughs

49:42 who have made clear their vision for a city

49:45 and for a fairer tax system that we're

49:47 now able to put that vision into actual practice.

49:50 I'll pass it over to our budget team for your specific questions.

49:54 So, are you are you giving up on the corporate corporate business increases?

50:01 this This This in some ways is not too different from the prior question,

50:03 which is the fact that I've been very open and honest about my vision,

50:07 whether it be fast and free buses or whether it be higher

50:11 personal income taxes on the wealthiest

50:12 New Yorkers or the most profitable corporations.

50:15 This budget is a reflection of that vision in its tax

50:18 on the rich and in its provision of services for working New Yorkers.

50:22 Um and Sherwin for the first deputy mayor,

50:26 was I seeing it right there that city tax revenues are down in FY 26 and 27?

50:31 What what's kind of causing those decreases?

50:35 So, what you see is pretty much flat when we look at FY 26 revenues.

50:41 So, you know, collections are pretty much coming in on target.

50:45 What you see in fiscal 27 is also flat.

50:49 And the movements there,

50:50 we're seeing higher property taxes in terms of the forecast,

50:55 but also lower PIT and some other takedowns, sales tax for example.

51:01 So, the combinations of those taxes offset

51:05 and clearly we're watching very closely what happens

51:10 in terms of oil prices and what that means

51:12 in terms of consumer sentiment and also inflation.

51:16 So, but that is where the tax forecast is for now.

51:19 Class size Class size flexibility.

51:22 Super super quick on class class size flexibility.

51:25 I actually think this might be Alex's question from Chalkbeat.

51:29 Okay, shoot.

51:29 Alex, go ahead.

51:31 Yeah, and I am curious.

51:33 Um [laughter] Seamless transition.

51:38 So, you're expecting like Consolidation of meters.

51:40 half a billion in savings next fiscal year

51:42 and more than 700 million in the fiscal year after for I'm wondering if you can

51:45 share any details about the nature of the delay.

51:48 Like, will the city have to hit right now?

51:50 The law says you have to be at 60%.

51:52 Next year we're supposed to be 80%.

51:54 Like, what is the target for next year or any?

51:55 What is your understanding of what the delay consists of?

51:58 So, that's an active conversation with our partners

52:00 in Albany as well as in labor.

52:02 And we are confident on not only instituting a timeline that yields savings,

52:08 but frankly more importantly instituting a timeline

52:11 that the city will actually be able to hit.

52:13 And I'll give you an example.

52:15 When we came in to office, we found an estimate of class size compliance

52:22 in the capital side that numbered at about $18 billion.

52:26 In just 4 months, we have managed

52:29 to reduce that $18 billion target to $14 million.

52:33 What we're showing is that if you pressure test some of these numbers,

52:36 if you actually put an emphasis on efficiency and on savings,

52:41 you are able to drive down a lot

52:43 of the costs of some of the long-term commitments

52:46 of the city that prior administrations have cited

52:50 as a reason that they cannot actually deliver on this.

52:52 So, I'll pass it over for additional specifics.

52:55 In addition to In addition to what the mayor just said,

52:59 the mayor also pointed out that no matter what the modifications are,

53:04 we're committing an additional 1.5 billion in capital

53:08 to the class size commitment in this coming fiscal year.

53:13 And an additional commitment to hire an thousand more teachers at number of I

53:19 believe it's $123 million or $122 million to to focus just on class size.

53:29 On the due process cases,

53:30 can you speak at all to like how you're achieving those savings?

53:34 Like, are you going to sort of fight families more when they file those plans?

53:38 Like, how are you saving money there?

53:42 [snorts] Oftentimes the city's approach to the skyrocketing increase

53:44 in due process cases has been exclusively a legal approach.

53:48 What we are going to do is invest

53:51 significant amounts of additional money into actually providing

53:55 the kinds of services that the absence of which

53:58 has driven families to take those legal measures.

54:02 And we are confident that in that investment

54:04 as well as in the stewarding of this program,

54:06 we will be able to not only yield savings,

54:09 but also deliver better outcomes for families.

54:11 What's the dollar amount of the investment in special ed?

54:15 You'll see 128 150, my apologies.

54:22 So, which is to expand programs in special education and also

54:27 to enhance the efforts at the department to build more capacity.

54:34 You [clears throat] know, um the 40 million 40.9 million funding

54:38 for Office of Community Safety Can you clarify,

54:41 is that all new funding that wasn't previously going

54:44 to the office for gun violence or community mental health?

54:47 Is that all new funding first off?

54:48 And then second, uh what kind of programs is that going to?

54:52 What senses that going to?

54:54 Will there be funding for new B-HEARD teams for example?

54:57 Can you just walk us through some of that funding?

54:59 So first, as part of the conversation we were

55:02 having earlier on the question of one-time versus baseline,

55:06 a lot of the funding,

55:07 more than 50 million dollars that was part of the initial Office

55:12 of Community Safety budget was one-time funding from the previous budget cycle.

55:16 We have made the decision to baseline

55:18 that funding as an annual commitment of the city.

55:21 We've also made the decision to go beyond that baselining

55:23 to invest additional millions of dollars into the office.

55:27 And what you'll see in some of that, it's

55:30 the retention of programs that otherwise would have expired.

55:33 In others, it's investments beyond that which we've already seen.

55:37 You raised an example of Be Heard,

55:39 that is one of the examples where we are investing in expanding

55:43 the city's capacity because what we've seen time and time again,

55:46 especially when it comes to Be Heard,

55:47 is an underfunding of that program as well as a lack of support,

55:52 uh, all encompassing in in that term for the program as well.

55:55 So, what's the new funding amount?

55:58 The new funding amount on top of the baseline funding?

56:04 So, it's around total 270.

56:06 In in FY26, it was 260 million.

56:09 There was a drop off, uh, to 207 in fiscal 27.

56:14 So, our investment takes that above the 260 to get to 270.

56:20 We're happy in the technical briefing to go

56:21 through all of the additions with you.

56:24 All right, I'll ask for just two more

56:25 and then we still have the technical briefing.

56:27 So, go Melissa and then Most of the questions are already answered, but Mr.

56:30 Mayor, on those due process cases,

56:32 how quickly can you actually expand those special, you know, uh,

56:37 services and how can you do it in time

56:40 to get the savings as quickly as you're counting on?

56:44 We have made this very clear that this is

56:45 a top priority to our New York City public school system.

56:49 It is a top priority frankly not because of the savings it will yield,

56:52 but because of the services it will deliver.

56:54 We are speaking about students who have been left behind by our city's

56:58 education policies and thought of purely in the context of legal settlements.

57:03 It is time to actually deliver them the kind of education that would mean

57:06 their families don't have to consider going

57:07 to a private school system to receive that.

57:10 Those who say that your pension readjustment

57:14 is actually kicking the can down the road,

57:16 your response to that, why in simple terms

57:18 is it not kicking the can down the road?

57:20 It is fiscally prudent to have predictable payments.

57:23 If you look at the payment schedule that was initially, um,

57:27 agreed upon from 2010 to 2032, it's a payment that increases every single year,

57:33 increasing to upwards of $6 billion by the final

57:35 year before then dropping like a cliff down to $0.

57:39 What we are proposing is extending that cycle by 5 years.

57:45 And that is an extension that would ensure that we would pay the same amount

57:49 every single year as opposed to what is

57:51 currently a variable amount increasing year after year.

57:54 And I will just add one additional thing on the pension is

57:57 that we are currently funded at 86% across all five pension systems.

58:02 There is not a question of if we will get to 100,

58:05 it is simply when, and we are stating 2037 is our proposal.

58:08 We look forward to working with our partners in labor on that.

58:10 Thank you.

58:11 Just one more, and then we do still have the technical briefing after this.

58:15 Hi Mr.

58:15 Mayor.

58:15 Hi Liz, how are you?

58:16 Good.

58:17 On FEPS and the reduction in spending,

58:20 how does that account for the fact that the city is

58:23 still in litigation with the city council to expand that program?

58:28 What happens if you lose that battle in court?

58:31 What happens if you simply settle it and it needs

58:33 to expand it by a lesser number than the law mandated?

58:39 If you're reducing the current spending on it,

58:42 how will you account for what happens to

58:44 So I I I think your question gets to the heart of it,

58:46 which is the fact that this is an approach for FEPS as it exists today.

58:50 The conversations continue with the council around the questions

58:54 of the scope and nature of its expansion.

58:57 However, at the core of both those conversations

58:59 and this proposal is a fundamental belief

59:02 in the purpose of this program and in the place

59:05 that it has within New York City government.

59:07 Thank you.

59:07 That's all the time we have.

59:09 And reporters can please stay.

59:11 We're going to have the technical in about just a few minutes.

59:14 We're going to take a very short break.

59:51 Mhm.