Communication from the Office of Management & Budget - Transfer of City funds between various agencies in Fiscal Year 2026 to implement changes to the City's expense budget, pursuant to Section 107(b) of the New York City Charter (MN-3).

Summary

This budget modification (MN-3) for Fiscal Year 2026 proposes the transfer of $2.646 billion in City funds between various agencies to implement changes in the City's expense budget, including reallocations of City Council initiatives.

Major Reductions (FROM):

• Miscellaneous: A substantial $2.12 billion reduction from citywide savings, general reserve, and collective bargaining reserves.
• Police Department: Cuts of $123.99 million, primarily from Patrol, Traffic Enforcement, and Administration-Personnel, with a smaller reduction from the Detective Bureau's "At-Risk Youth" funding.
• Administration for Children's Services: A significant $190.48 million reduction, largely from Juvenile Justice programs, including "At-Risk Youth" initiatives.
• Department of Correction: $57.98 million cut from operations and health programs.
• Department of Health and Mental Hygiene: $55.17 million reduction across various health administration, disease control, family & child health, environmental health, and mental hygiene services.
• Law Department: $12.71 million cut, including $18 million from "At-Risk Youth" programs.
• Department of Probation: $18.47 million reduction, mostly from "At-Risk Youth" probation services.

Major Increases (TO):

• Police Department: A substantial $545.28 million increase for Personal Service Adjustment, FIFA World Cup coverage, IT adjustments, Emergency Response Vehicles, and the Domain Awareness System.
• Department of Education: An allocation of $317.59 million, including $75 million for Charter Schools, $66.62 million for Contracted Related Services, $100.32 million for DIIT Core Operations and technology, and $25.79 million for School Safety.
• Department of Correction: An increase of $244.45 million for administration, jail operations (PS), and IT projects.
• Department of Homeless Services: $113.99 million allocated, with significant portions for "Asylum Seeker Expense Re-estimate" ($64 million) and "Asylum Seeker Reallocation" ($44.49 million).
• Department of Social Services: $83.41 million increase, including $57 million for the Indigent Care Pool and $6.68 million for Immigration Legal Services.
• Fire Department: $327.97 million increase for personal services adjustments, EMS revenue, and other operational costs.
• Miscellaneous (Fringe Benefits): A $444.32 million increase, including $911 million for Stabilization Fund Costs.
• Debt Service: $164.04 million for Debt Service Prepayment.
• Department of Sanitation: $142.25 million increase for personal services adjustments, cleaning & collection, and waste disposal.
• Department of Info Tech & Telecomm: $78.41 million for CP Expense Costs, DOE Chromebook Initiative, and 911 Technical Operations.
• Board of Elections: $32.53 million for Election Funding.
• Department of Small Business Services: $26.94 million for economic development, including FIFA World Cup initiatives and modular bathrooms.
• Housing Preservation and Development: $16.08 million for Emergency Demolition Contracts, Emergency Repair Program, and the Mayor's Office to Protect Tenants.

Citizen Impact

This budget modification shifts significant city resources, reducing funding for "At-Risk Youth" programs and various health services while increasing allocations for the Police, Fire, and Sanitation Departments, as well as education (including charter schools) and services for asylum seekers. Residents may see changes in public safety presence, educational support, and social services, with a notable impact on juvenile justice and health programs.

Confidence

high