News
February 2014 Monthly Public Finance Wrap-Up
To Our Investor Community:
With no New York City bond sales in February, we would like to direct your attention to important City budget news. Our financing calendar picks up again in March.
Mayor’s Fiscal Year 2015 Preliminary Budget
On February 12th, Mayor Bill de Blasio presented the Fiscal Year 2015 preliminary capital budget and the financial plan for fiscal years 2014 through 2018. The financial plan reflects balanced budgets for both the current fiscal year 2014, which ends June 30th, and fiscal year 2015. The preliminary expense budget for FY 2015 is $73.7 billion, with a City-funded portion of $54.0 billion. You may also download the financial plan summary which provides an overview of New York City’s fiscal position.
Comptroller’s Office Analysis of Preliminary FY 2015 Budget
The Comptroller is mandated by the City Charter to review and comment on the Mayor’s preliminary budget and financial plan. Comptroller Stringer presented his preliminary analysis of the Mayor’s FY 2015 budget in the context of the city and national economies on February 19th. His analysis focused on the economic and fiscal trends affecting the City and the importance of resolving more than 150 expired labor contracts. This initial analysis is summarized in a press release. The Comptroller’s detailed review and report are underway; the report is expected to be released in early March, at which time the Comptroller will testify before the City Council’s Committee on Finance. The report will also be posted on the Comptroller’s website.
New York Metro Region has Largest Metropolitan Share of National GDP
A recent posting on the Washington Post’s website about how much of the country’s economic activity (as measured by the gross domestic product) is focused in a small number of major cities inspired us to look at the latest Bureau of Economic Analysis data on this. According to BEA data released in September 2013 for 2012, the New York metro area retained its top rank in Metropolitan GDP at $1.358 trillion or 8.4% of national GDP. The number two and three metropolitan areas were Los Angeles with metro GDP of $766 billion or 4.7% of national GDP and Chicago with metro GDP of $571 billion or 3.5% of national GDP.
Looking Ahead
March is expected to be a busy month with New York City offering $1.05 billion of General Obligation Bonds the week of March 3rd, and the New York City Municipal Water Finance Authority (NYW) expected to enter the market at the end of the month. Deal size and structure for NYW will be announced closer to the sale date.
Information on how to buy New York City bonds is available on the Comptroller’s website. You can subscribe to receive sale announcements and other City publications and reports, including the Budget Report coming out in March. The New York State Comptroller also maintains a website with a preliminary forward calendar for major State and City issuers.
As always, we appreciate your interest in New York City bonds. Please contact us if you have any questions or suggestions as to how we can improve our investor communications.
Carol S. Kostik
Deputy Comptroller for Public Finance