🍎 citymeetings.nyc #38
Last Week's Executive Budget Hearings: DOE, ACS, DYCD, DOHMH, H&H, NYC Libraries, DCLA
Hi!
Today's issue covers all of last week's Executive Budget hearings.
The format is the same as last week's, with expense & capital budget highlights followed by other meeting highlights.
Confused about the budget? There's a very short primer on the basics in last week's issue.
If you want to read this newsletter in a browser or share a link with folks, you can read it here. (These exec budget issues are long and might be easier to read in a browser.)
I think we're in the final week of hearings? If so, expect a final exec. budget newsletter on June 2nd before returning to regularly-scheduled programming.
Cheers,
Vikram
In case you missed it, there have been two more NYC Charter Revision Commission meetings since citymeetings.nyc started publishing them.
- On May 14th, ED Alec Schierenbeck presented the commission's preliminary report, followed by extensive discussion and debate (especially around election reform). Link
- On May 19th, the commission held a wide-ranging public input session in Brooklyn. Link
This week I'm highlighting executive budget hearings for all 7 agencies that had one last week in decreasing order of the size of their expense budgets.
The total Executive Budget is ~$115B.
- Department of Education (DOE) ($34.4B)
- Administration for Children's Services (ACS) ($2.91B)
- Department of Health & Mental Hygiene (DOHMH) (2.3B)
- NYC Health & Hospitals (H+H) (1.7B)
- Department of Youth & Community Development (DYCD) ($1.3B)
- NYC Libraries (NYPL, BPL, QPL) ($496.8M)
- Department of Cultural Affairs (DCLA) ($217.7M)
For a complete listing of published meetings, visit https://citymeetings.nyc.
Department of Education (DOE)
Expense Budget Highlights
Proposed budget: $34.4 billion (~30% of the budget). Link
Change from preliminary budget: +$860 million. Link
Newly-baselined items mentioned:
Many of these are restorations of programs previously-funded by expiring federal stimulus dollars.
- Early Childhood Education (3-K seats, preschool special education, extended day pilot): $192M. Link
- School nurses: $194M. Link
- Arts education. Link
- Project Pivot: $15M. Link
- Community schools: $14M. Link
- Restorative justice: $6M (with an additional $6M for FY25). Link
- Arts funding: $41M. Link
- Community schools (over 80): $14M. Link
- Affinity school networks: $10M. Link
- High impact tutoring: $4M. Link
- Civics for All, computer science education, and tutoring. Link
Federal/state impacts discussed:
- The budget includes $2B in federal funding. Continued threats of cuts are a concern. Link
- Title I funding, a major federal stream, remains stable for now, but the DOE is closely monitoring potential changes at the federal level. Link
- There is concern about potential cuts to the 21st Century Community Learning Center program, which funds approximately 30 community schools. Link
- Potential federal changes to Medicaid funding are being monitored, as this supports providers offering services in school-based health centers. Link
- Changes to the state foundation aid formula will result in $314M less for students and families than anticipated under the previous formula, despite an overall increase in aid. Link
Council priorities & executive budget responses mentioned:
- Council called for millions in additional funding for various programs; the majority were restored and baselined in the executive budget. Link
- The administration did not include the council's ask for $10M additional funding for school food workers. Link
- Student Success Centers and mental health services remain underfunded council priorities. Link
Capital Budget Summary:
Proposed capital plan:
- Building accessibility: $800M over 5 years. Link
- Class size compliance: Over $6B within School Construction Authority's (SCA) budget for new capacity. Link
Projects/infrastructure supported:
- The $6B for class size compliance will fund capacity for about 33,000 additional seats. Link
- The $800M accessibility funding aims to get every community school district to 40% fully accessible schools. Link
Other Meeting Highlights
- DOE officials reported an early childhood education capacity of about 130,000 seats with a 70% fill rate, acknowledging the sector is "stressed and strained." Link 1 Link 2
- CM Brannan expressed concern over potential cuts to the $2B in anticipated federal funding for NYC Public Schools. Link
- CM Restler noted a 20,000-student drop in pre-K enrollment over eight years and questioned the DOE's 95% operational capacity target. Link
- CM Stevens questioned the Summer Rising program's effectiveness for middle schoolers, citing an analysis showing no significant academic gains for some. Link
- Students from "Seeds in the Middle" testified on limited access to affordable healthy food, advocating for funding to expand community fresh food markets. Link
- Leonie Haimson (Class Size Matters) stated 500 schools are too overcrowded to reduce class size. She emphasized the need for 70K new seats, with less than half funded. Link
- DOE's specialized autism programs, NEST and Horizon, boast a 97% four-year graduation rate, surpassing the general education average. Link
- CM Joseph highlighted that current 45-year-old school busing contracts limit services for students and require state legislative changes to allow for rebidding. Link
- A student from LaGuardia High School testified that with over 2,000 students, her school has only two social workers, far from the recommended 1:250 ratio. Link
- A student from the High School for Health Professions and Human Services described poor school conditions, including mold in classrooms and rodent problems. Link
Administration for Children's Services (ACS)
Expense Budget Highlights
Proposed budget: $2.91 billion, (~2.5% of the budget). Link
Change from preliminary budget: +$83.4 million. Link
Newly-baselined items mentioned:
- $25M for Promise NYC (approx. 1,000 children). Link
- $40M annual investment for Youth Safety and Success initiative (expanding Fair Futures, College Choice, Just Us, ACES, and creating Career Choice). Link
- $103M to address structural federal foster care deficit and fund state child care market rate increase. Link
- $8M reinvestment in prevention programs (workforce needs, concrete goods). Link
Significant PEGs or restorations of PEGs:
- No specific PEG actions mentioned, but key investments detailed above.
Federal/state impacts discussed:
- Uncertainty from federal funding and state funding impacting childcare vouchers. Link
- State budget imposed a 518% increase to NYC's annual maintenance of effort for childcare assistance, from $53M to $328M. Link
Council priorities & executive budget responses Mentioned:
- Council called for added funding for foster care, action on childcare vouchers, and adjustments to human service provider contract rates. Link
- Executive plan includes increased investments for foster care, childcare, and Promise NYC, but does not fully fund childcare voucher gaps. Link
Capital Budget Highlights
- The executive plan includes $1.5M in city funding in FY26 for facade-related repairs at the Children's Center. Link
- ACS has approximately $15M in capital dollars committed for the Children's Center. Link
- CM Hudson noted ACS had few, if any, capital requests from providers in recent fiscal years. Link
Other Meeting Highlights
- Commissioner Dannhauser reported progress in hiring frontline staff and reducing Child Protective Specialist (CPS) caseloads to an average of 7.7. Link 1 Link 2
- ACS noted an 18% decline in child fatalities where families were involved with the agency and is forming an external panel to review such cases. Link
- State budget changes forced ACS to stop issuing new low-income childcare vouchers as of May 5, 2025, placing new applicants on a waitlist. Link
- CM Brannan questioned City Hall's commitment to addressing the childcare funding crisis, noting its absence as a top lobbying priority in Albany. Link
- CM Stevens expressed concern over a 22% rise in the average daily juvenile detention population in early FY25 compared to FY24. Link
- Nearly half of children entering foster care are placed with kinship caregivers, and the Fair Futures program now supports over 4,300 youth. Link
- CM Stevens advocated for more diverse college courses and career skills training for youth in detention facilities. Link
- In response to the death of Jahmeik Modlin, ACS is forming an external expert panel to review the case and improve child protection. Link
- Frontline ACS positions are exempt from OMB's two-for-one hiring mandate, and the agency's overall vacancy rate is about 9%. Link
Department of Health and Mental Hygiene (DOHMH)
Expense Budget Highlights
Proposed budget: $2.3B (~2% of budget). Link
Change from preliminary budget:
Newly-baselined items mentioned:
- School nursing costs: Over $100M in baseline funding. Link
- Rapid STI testing: $3.8M. Link
- Tuberculosis case management: $7.2M. Link
- Community syringe redemption program: funds included in the executive budget. Link
Significant PEGs or restorations of PEGs:
- Groceries to Go program: $10M sustained for FY26 (not baselined). Link
Federal impacts discussed:
- ~20% ($600 million) of DOHMH's budget is federally funded. Link
- State's Office of Addiction Services and Supports (OASAS) had $40M in federal funding revoked, and NYS Office of Mental Health (OMH) lost $27M, impacting NYC providers. Link * (Currently protected by preliminary injunction)
- AmeriCorps funding cuts revoked nearly $400M in grants, impacting DOHMH's Peer Core program for substance use recovery. Link
- Potential cut of $100M to NYC for infectious disease programs due to federal rescission. Link * (Currently protected by preliminary injunction)
- Staffing reductions and reorganization at federal HHS creating administrative hurdles for DOHMH. Link
- Intensive mobile treatment teams and clubhouses, previously American Rescue Plan-funded, were preserved with city tax levy funding. Link
- Mobile food vending inspections: $2.8M in City funding replaces expired American Rescue Plan funding for FY26. Link
Council priorities & executive budget responses mentioned:
- Council called for an additional $183M for programs like supervised release, mobile treatment centers, and mental health clubhouses; Executive Budget preserves/funds mobile treatment and clubhouses. Link
- Council requested $48.2M for school health services, maternal outcomes, animal welfare, and glucometer distribution; the executive plan includes no additional funding for these. Link
- Council called for $3.8M for school-based mental health centers; operational costs for these are in the DOE budget. Link 1 Link 2
Capital Budget Highlights
- The City of Yes initiative includes $50M in state capital funding for supportive housing, with $30M for justice-involved populations. Link
- The Executive Plan includes over $54M in FY26 for construction of the new public health laboratory in Harlem, expected to open in 2026. Link
Other Meeting Highlights
- DOHMH highlighted a state funding inequity, as NYC receives only a 20% Article Six match for core public health services vs 36% for other counties. Link
- DOHMH aims to reduce Black maternal mortality by 10% by 2030 while acknowledging that 75% of such deaths are preventable. Link
- The city's 988 mental health crisis hotline now answers about 90% of calls within 30 seconds, and a previous geo-tagging issue routing calls incorrectly has been resolved. Link
- CM Cabán criticized the administration's approach to expanding involuntary hospitalization. Link
- The new community syringe redemption program successfully collected over 20,000 needles in its initial four weeks of operation. Link
- CM Schulman questioned DOHMH regarding new FDA COVID-19 vaccine guidance, voicing concerns about potential restrictions on access and increased prices. Link
- Justyna Rzewinski, a former Rikers Island social worker, testified about dire conditions including the "deadlocking" of mentally ill individuals, urging for the island's closure. Link
- Multiple animal welfare advocates testified on the critical need for increased city funding for Trap-Neuter-Return (TNR) programs and pet food pantries. Link
- Advocates from the NAACP Legal Defense Fund and Urban Justice Center called for removing police from mental health crisis responses. Link
- Chris Norwood of Health People criticized the city's failure to implement a diabetes reduction plan, noting a 100% increase in related amputations. Link
NYC Health + Hospitals
Expense Budget Highlights
Proposed budget: $1.7B (~1.5% of the budget). Link
Change from preliminary budget:
- A decrease of $579.2M (over 25%) from the preliminary plan, primarily due to a net reduction in asylum seeker funding, offset by increased funds for the H+H collective bargaining agreement. Link
Newly-baselined items mentioned:
- Baby Box Pilot Program includes a new need of $2.6M in FY26 and baseline funding of ~$3M starting in FY27. Link
Significant PEGs or restorations of PEGs:
- No specific new PEGs detailed beyond the overall subsidy adjustment primarily related to changes in asylum seeker funding. Link
Federal impacts discussed:
- A U.S. House bill could cut H+H funding by hundreds of millions of dollars, impacting services and requiring system constraints. Link
- The same federal bill threatens cuts to Medicaid for trans care (for adults and children) and funding for immigrant healthcare. Link
- The Essential Health Plan, which allows undocumented individuals to purchase insurance, is also at risk due to potential federal changes. Link
- New York State could face $13-15B in total Medicaid cuts from federal actions if the bill becomes law. Link
Council priorities & executive budget responses mentioned:
- Council sought $65M for Metropolitan Hospital ER expansion; this was not included in the executive plan, though H+H is discussing the need with OMB. Link
- Council called for $5M to be baselined for the Mental Health Continuum program in schools; the executive plan includes a one-time $3.6M addition for FY26. Link
- Council has advocated for a new trauma hospital on the Rockaway Peninsula; the State Department of Health has indicated support for a level three trauma center. Link
- Council urged funding for a new outpatient building at Lincoln Hospital, estimated to cost $600M, which was not included in the executive capital plan. Link
- Council requested $65M in capital funding for Metropolitan Hospital ER expansion; not included in the executive capital plan. Link
Capital Budget Highlights
Proposed capital plan: $2.83B for FY2025-FY2029. Link
Projects/infrastructure supported:
- Primary focus on infrastructure needs (e.g., roofs, elevators, equipment modernization), with an estimated $1B in such needs system-wide. Link
- Significant funding for flood mitigation projects at Kohler Hospital ($114.5M), Bellevue Hospital ($90M flood wall), and South Brooklyn Health ($24.4M, completion expected by end of 2026). Link
- Funding for Woodhull ($306.8M) and North Central Bronx ($265.6M) correctional health outpost units, both targeting 2027 completion. Link
- The Far Rockaway Primary Care Center receives $28M in the executive plan and is expected to open in calendar year 2027. Link
Other Meeting Highlights
- Dr. Katz warned a U.S. House bill could cut H+H funding by hundreds of millions, impacting services like trans care and immigrant healthcare. Link
- H+H projects a $598M cash balance for FY2025, citing successful insurance billing for increased revenue. Link
- H+H is transitioning asylum seekers from closing HERC sites to the regular shelter system for care through programs like NYC Care. Link
- H+H hired over 3,000 permanent nurses, replacing temporary staff, and successfully transitioned off temporary COVID-19 funding. Link
- The Baby Box pilot program is active at four hospitals, with H+H seeking funds to expand it to Kings County. Link
- CM Restler expressed alarm over potential federal Medicaid cuts of $13-15B statewide, which could severely strain H+H. Link
- CM Narcisse highlighted severe overcrowding and long waits at Elmhurst Hospital's ER, which operates at triple its capacity. Link
- Midwives at North Central Bronx and Jacobi hospitals have worked under an expired contract for nearly two years, prompting Dr. Katz to urge renewed negotiations. Link
- Advocates urged city funding to support TGNB healthcare providers ($15M), the Trans Equity Fund ($10M), and homeless trans youth services ($10M) due to federal threats. Link
- Local 768's Carmen de Leon emphasized the urgent need for H+H infrastructure funding due to critical system failures and the impact of potential Medicaid cuts. Link
Department of Youth and Community Development (DYCD)
Expense Budget Highlights
Proposed budget: $1.3 billion, (~1% of the budget). Link
Change from preliminary budget: +$77.8 million. Link
Newly-baselined items mentioned:
- Maintaining foundations for youth, including After School for All. Link
- Additional beds for young homeless adults (Runaway and Homeless Youth - RHY). Link
- Fatherhood initiative (doubling to reach 3,000 fathers). Link
- Baselining workforce programming (including new CRED program). Link
- $21M in FY26 for Compass after-school (part of a multi-year $755M expansion). Link
- $11M in FY26 for Summer Youth Employment Program (SYEP) Metrocards. Link
- Additional $10M for adult literacy (totaling $22.2M). Link
Significant PEGs or restorations of PEGs:
- No specific PEG restorations mentioned.
Federal impacts discussed:
- DYCD will monitor potential cuts to federal support. Link
Council priorities & executive budget responses mentioned:
- Council priorities (Compass, RHY, SYEP, adult literacy) valued at $184.1M were identified in the preliminary budget response. None of it was added in the executive budget. Link
Capital Budget Summary
- CM Louis inquired about DYCD's support for Community-Based Organizations (CBOs) when facilities operated by other agencies (e.g. NYCHA) undergo capital projects. Link
Other Meeting Highlights
- DYCD announced a significant Compass after-school program expansion, aiming to serve 132,000 youth by FY28 with a $755M investment. Link
- The Summer Youth Employment Program (SYEP) plans to enroll 100K participants for the fourth consecutive summer, with $11M added for Metrocards in FY26. Link
- CM Stevens criticized the timing of the Compass expansion rollout and the delay of provider rate increases until FY27, stressing current underfunding. Link
- CM Avilés echoed concerns about the Compass funding gap, stating providers are currently "underwater" despite future investment promises. Link
- DYCD reported a 10.5% vacancy rate, with the finance department most affected, and cited the hiring freeze and approval delays as challenges. Link
- CM Stevens urged DYCD to reimagine youth workforce development, asserting that programs like SYEP are outdated and youth seek real jobs. Link
- CMs raised concerns about the responsiveness and effectiveness of Cure Violence programs, with one citing a group's alleged unavailability on a Monday after a shooting. Link
- The Legal Aid Society advocated for restoring $1.5M for legal services to the Crisis Management System, calling it vital for community-led public safety. Link
- Youth from Covenant House testified about their experiences with homelessness, urging increased Runaway and Homeless Youth (RHY) bed rates to $70,000. Link
- United Neighborhood Houses highlighted ongoing payment delays for summer programming and called for immediate rate increases for existing after-school programs. Link
NYC Public Libraries
Expense Budget Highlights
Proposed budget: $496.8M across all three systems (< 1% of the budget). Link
Change from preliminary budget: +$16.4 million, mostly due to added funds for collective bargaining. Link
Newly-baselined items mentioned: None mentioned.
Significant PEGs or restorations of PEGs:
- The FY26 executive budget added $15.7M in operating support for libraries, though this was described as a partial restoration relative to past cuts and not baselined. Link
Federal impacts discussed:
- Libraries face national attacks, including threats against the Institute for Museum and Library Services (IMLS). Link
- Libraries have lost federal grants from agencies like IMLS, NEH, and NEA due to unacceptable attached conditions or agency gutting. Link
Council priorities & executive budget responses entioned:
- The Council called on the Mayor to add $62.5M to reverse funding cuts and expand services, including reinstating Sunday service. Link
- The Council's $62.5M request included $44.8M for unmet expense needs and $2M to expand seven-day library service; the administration only included a small portion in the executive plan. Link
Capital Budget Highlights
Proposed capital plan: The FY25-FY29 plan includes $1.1B for library systems. Link
Projects/infrastructure supported:
- Brooklyn Public Library received $50M in capital funds in the executive budget, described as a "meaningful start". Link
- New York Public Library received $75.3M from the Mayor for capital needs, which is less than one-sixth of their total requirement. Link
- Council called for an additional $345M in FY26 for the system's capital needs and a meaningful inclusion of library capital needs in the ten-year plan with an additional $1.2B. Link
- NYPL plans for Seward Park (Manhattan) renovation and desires comprehensive renovations at Francis Martin (Bronx), Soundview (Bronx), and Great Kills (Staten Island). Link
Other Meeting Highlights
- Underfunding severely impacts library staffing, causing service disruptions and reduced programming. Link
- Rising costs for materials, security, and software strain library budgets and diminish purchasing power. Link
- The widening digital divide necessitates ongoing investment in library technology and digital literacy programs. Link
- NYPL is pursuing co-location projects combining new libraries with affordable housing. Link
- Libraries critically need children's librarians, but hiring is hindered by competition and budget uncertainty. Link
- NYPL President Tony Marx highlighted national challenges like book bans, positioning libraries as key defenders of democratic values. Link
- Library worker representative John Hyslop testified that inadequate funding leads to understaffing and low pay, causing staff attrition. Link
- A second-grader testified for fair pay for library workers and better maintenance, citing elevator breakdowns. Link
- Teen interns underscored the library's importance for personalized recommendations, education, and as safe community spaces. Link
Department of Cultural Affairs (DCLA)
Expense Budget Summary
Proposed budget: $214.7 million. Link
Change from preliminary budget: +$50.7 million. Link
Newly-baselined items mentioned:
- $45M in baseline funding for DCLA. Link * $21.5M for the Cultural Institution Groups (CIGs). Link * $23.5M for the Cultural Development Fund (CDF). Link
Significant PEGs or restorations of PEGs:
- The $50.7M increase from the preliminary plan is mostly a partial restoration of PEGs to the Cultural Development Fund (CDF) and the Cultural Institution Group (CIG) operating subsidy. Link
Federal impacts discussed:
- Hundreds of NYC nonprofits received over $23M from NEA, IMLS, and NEH in the current fiscal year, now facing uncertainty or termination due to federal actions. Link
- Federal funding cuts represent a loss of ~$32M (IMLS, NEH, NEA) for NYC cultural institutions, with zoos, gardens, and science museums losing tens of millions more in science funding. Link
Council priorities & executive budget responses Mentioned:
- The Council called for an additional $75M to DCLA's budget to fully restore and baseline cuts. Link
- The administration's executive budget included a $45M baseline increase, but not the full $75M requested by the Council, leaving a $30M gap. Link
Capital Budget Highlights
Proposed capital plan: $1.2B for DCLA in the FY2025-2029 capital commitment plan. Link
- CM Brannan noted this was a ~6.5% decrease from the preliminary plan's five-year commitment Link
Projects/infrastructure supported:
- Renovation of the New York Botanical Garden's Everett Children's Adventure Garden ($8.5M total, $4M city support). Link
- $220M renovation of The Frick Collection. Link
- Construction of the Tang Wing for American Democracy at the New York Historical Society, future home of the American LGBTQ+ Museum, with nearly $60M in city commitment. Link
- Capital Feasibility Planning (CFP) pilot program to help small and mid-sized organizations plan capital projects. Link
Other Meeting Highlights
- DCLA Commissioner Cumbo described the executive budget, with a historic $45M baseline increase, as the "best budget ever." Link
- DCLA plans to add up to five new Cultural Institutions Group (CIG) members to promote equity. Link
- DCLA highlighted initiatives like the Chinatown Welcome Gateway and expanded Public Artist in Residence program. Link
- The agency aims to support artists via increased local arts council funding and the "After School For All" program. Link
- CM Brewer advocated for earlier SU CASA program decision-making to aid organizational planning. Link
- The Brooklyn Museum testified that funding cuts directly impacted educational programs and fellowships. Link
- Flushing Town Hall reported a potential 37% DCLA operating budget cut despite the baseline increase, risking layoffs. Link
- A call was made for greater transparency and reevaluation of DCLA's panel review process for equitable fund distribution. Link
Comments, questions, or feedback? Reply to this email or shoot me a note at vikram@citymeetings.nyc
Don't miss what's next. Subscribe to 🍎 citymeetings.nyc: