New York City Cash Balance Projection March 1, 2022

On December 1, 2021, New York City’s unrestricted cash balance reached a seasonal low of $1.338 billion, compared to $2.143 billion in FY21 and $1.769 billion in FY20. This year, as in years past, a reversal occurred in the second half of December, when cash balances rose sharply due to incoming real estate tax receipts. The cash balance surged to $9.743 billion by January 6, 2022, and began to gradually decline afterward. On February 28, 2022, the cash balance measured $5.114 billion, compared to $7.293 billion last year. During the first 8 months of FY 2022, cash balances averaged $7.386 billion, versus $7.719 billion during the same period last year.

The accompanying updated projection outlines expected cash balances in the NYC central treasury from March 1, 2022 to June 30, 2022 and incorporates guidance provided in the February 2022 Financial Plan.

Projected Cash Balances (March 1^st – June 30^th)

Our forecast shows that cash balances will be lower than last year. We project that cash flow balances will average $6.921 billion during the next four months, compared to $9.552 billion in FY21, $6.137 billion in FY20, and $7.466 billion in FY19.

Last year, between March and June, 2021, the City received an unprecedented amount of Federal aid: $5.6 billion. On May, 18, 2021, the City received $2.1 billion and on June 17, 2021, the City received $809.7 million in State and Local Recovery Funds under the American Rescue Plan. The same amount is due at the end of this fiscal year.

This year’s prepayment is currently budgeted at $3.732 billion, but we expect that this number will higher. Last year’s prepayment equaled $6.107 billion. In addition, this year’s contribution to the RHBT will equal $2.655 billion, versus $2.775 billion last year.

Projection details are in the following pages of this document.