On April 26, Mayor Eric Adams released his FY 2023 Executive Budget. The expense budget totals $99.7 billion, a $1.2 billion increase over February’s Preliminary Budget. The Network has done a preliminary review of the budget and will be following up if more details emerge.
The Executive Budget includes an additional $3.5 million for the Department of Social Services (DSS) in FY 2022 and $5.8 million in FY 2023 for resources to expedite supportive housing placements. After months of advocacy, the Network is very pleased to see concrete resources dedicated towards moving people experiencing homelessness more expeditiously into supportive housing. We are continuing to work with the Administration to improve existing processes.
$174.6 million in FY 2023 has also been added for street outreach, drop-in centers, and new stabilization beds and safe havens. We are working with our partners to better understand the details of this new funding.
Unfortunately, the Executive Budget neglected to include any funding for a Cost of Living Adjustment (COLA) for New York City’s human services workers. The Network is deeply disappointed that the City continues to ignore this essential workforce and the people who dedicate themselves daily to ending chronic homelessness. We are particularly concerned that the City is not planning to match the 5.4% COLA that was included in the State’s final budget. We will work with the administration and the Council to rectify this omission in the final spending plan.
$317,000 is added to HPD’s FY 2023 and FY 2024 expense budget for NYC 15/15 staff and rental assistance, with $16.9 million in FY 2025 and $26.5 million in FY 2026. This funding is an adjustment to keep pace with the existing NYC 15/15 commitment, and its annual 2% escalator, and new buildings coming online, as well as add staff to support the administration of the rental assistance.
On the capital side, the Executive Budget commits $2.1 billion for the Department of Housing Preservation and Development (HPD), a 22% increase over February’s Preliminary Budget for FY 2023, and a 38% increase over the planned commitment for the current fiscal year, FY 2022. Before the increase in the Executive Budget, the City budgeted an average of $2 billion for HPD and the New York City Housing Authority (NYCHA). In the current plan, total housing capital funding will be approximately $2.5 billion per year.
While this is an important step, it falls short of the $4 billion per year the mayor promised on the campaign trail. In an environment of rising interest rates and construction costs, the funding increase is not nearly enough to meet the need.
While the NYC Council Response to the Preliminary Budget included $28.4 million to expand the Justice Involved Supportive Housing (JISH) program, the Executive Budget does not appear to include this expansion.
The Executive Budget adds $33.8 million in FY 2023, including $24 million in City funding, for HASA emergency housing and SROs.
Land Use Review
The Executive Budget adds $1.2 million in FY 2023 and each year through FY 2026 for new land use review positions at the Department of City Planning (DCP).