Summary
The City began FY 2024 (FY24) with $12.387 billion in cash-on-hand, versus $8.159 billion at the start of FY23, due to robust tax collections and Covid-19 federal aid, particularly in the second half of FY23. During FY24, the City’s cash balances averaged $10.931 billion, compared to $11.122 billion at the same time last year. The City collected $129.901 billion in revenues and incurred $131.877 billion in expenditures, for a reduction of the cash balance of $1.977 billion over the year. Both receipts and expenditures in FY24 were the highest amounts on record. During the period, receipts increased at a modest rate of 1.5%, while expenditures rose 6.5%.
Historically, the City dedicates year-end budgetary surplus to prepayments of the following year’s expenses. This year’s prepayment totaled $4.397 billion, compared to $5.478 billion in FY23 and $6.114 billion in FY22. The lower FY24 prepayment compared to FY23 means that the City’s budgeted expenditures for the year are expected to exceed its revenues by approximately $1.08 billion (final numbers will be available in October when the Comptroller’s Office publishes the City’s audited financial statements).
Receipts were $1.902 billion higher in FY 2024 than the prior fiscal year. Cash receipts were boosted by almost $3.1 billion in COVID-19 pandemic relief funds from the Federal government. Tax collections for FY24 totaled $73.849 billion, 1% lower than in the previous year. Property tax receipts for the period were $419 million lower due to the timing of payments. Non-property tax collections benefited from growing business income tax payments, robust consumer spending, and the recovery in the leisure and hospitality sector.
Expenditures were $8.106 billion higher than the prior year. The growth in expenditures is mostly attributed to the higher spending on payroll and the implementation of collective bargaining agreements; public assistance and other social services, including the provision of shelter for people seeking asylum; the timing of medical assistance payments; and spending on capital projects.
By the end of FY24, the cash balance stood at $10.410 billion, compared to $12.387 billion at the end of FY23, $8.159 billion in FY22, and $8.469 billion in FY21. The FY24 year-end cash balance include $1.964 billion in the Revenue Stabilization Fund (RSF), inclusive of an expected end-of-year General Fund surplus of $5 million.
Notes
In this report, tax receipts, with the exception of personal income tax, are gross of refunds. Real property tax and personal income tax are gross of any debt service funding.
Note that totals may not equal sum of components due to rounding.
Cash Balances
April 2024 – June 2024 (4Q24)
The City began the final quarter of FY24 with $13.143 billion in cash. As is typical for this time of the year, expenditures exceeded receipts during the quarter due to end-of-year prepayments, reducing the cash balance by $2.733 billion, though no deposits were made to long-term reserves in FY24 other than the expected and customary $5 million General Fund surplus at the end of the FY.
This year’s prepayment totaled $4.397 billion, compared to $5.478 billion in FY23 and $6.114 billion in FY22. The prepayment consisted of $1.954 billion of General Obligation (GO) debt service and $2.443 billion of Transitional Finance Authority (TFA) debt service.
This year’s payment to the RHBT for FY24 pay-as-you-go expenditures equaled $2.794 billion, versus $2.398 billion in FY23. [1]No prepayment of FY25 retiree health care was made in FY24.
Over the course of the quarter, cash balances averaged $11.237 billion, compared to $14.914 billion during 4Q23. The City ended FY24 with $10.410 billion in cash, $1.977 billion lower than the prior year but still high compared to historical figures. In the last ten years, the City’s average closing cash balance measured $9.312 billion.
July 2023 – June 2024 (FY24)
The City of New York began FY24 with $12.387 billion in cash, compared to $8.159 billion a year ago. During FY24, the City collected $129.901 billion in revenues and incurred $131.877 billion in expenditures, for a net loss of $1.977 billion. In FY24, receipts increased at a modest rate of 1.5%, while expenditures rose 6.5%. Both revenues and expenditures climbed to record high amounts. Cash balances declined from the peak levels reached in FY23 due to higher spending on payroll; public assistance and other social services, including shelter for people seeking asylum; medical assistance; and unreimbursed spending on capital projects.
Overall, daily cash balances during FY24 averaged $10.931 billion, compared to $11.122 billion in FY23, $7.524 billion in FY22, and $8.355 billion in FY21.
Cash Receipts
April 2024 – June 2024 (4Q24)
Receipts at a Glance
Receipts in 4Q24 measured $34.133 billion, compared to $33.608 billion in 4Q23 and $36.469 billion in 4Q22.
During the quarter, the City received $19 billion in tax revenues, about 1% less than at the same time in FY23. The real property tax, the City’s largest source of revenue, declined 20.5% due to the timing of early payments of FY25 taxes. 4Q24 ended on June 28, 2024, two days earlier than in FY23, and as a result, some real property tax receipts due by July 1st were received and counted in the July FY25 cash receipts.
Non-property taxes rose 13.5%. Unincorporated business tax and general corporation tax were particularly strong contributors, up 27.9% and 13.6%, respectively.
Two categories of non-property tax showed weakness in 4Q24 relative to the same period in FY23. Commercial rent tax was down 3% and mortgage and real property transfer taxes decreased 1.2%.
Net of reimbursements for capital expenditures, 4Q24 cash receipts declined 0.8% versus a year-ago.
July 2023 – June 2024 (FY24)
Receipts at a Glance
During FY24, total cash receipts measured $129.901 billion, 1.5% higher than during the previous year. Transfers to reimburse expenses for capital projects amounted to over $12.669 billion in FY24. Removing the effect of capital transfers, FY24 cash receipts were $1 billion lower than the prior year.
The five largest sources of cash accounted for 60.8% of total receipts in FY24.
These sources were real property tax collections of $31.8 billion, or 24.4% of total receipts; personal income tax, including PTET, of $15.908 billion, or 12.2% of total receipts; NYS education aid of $13.7 billion, or 10.6% of total receipts; sales tax of $10 billion, or 7.7% of total receipts; and general corporation tax of $7.7 billion, or 5.9% of total receipts.
Debt Service Funding includes retention of personal income and real property taxes for GO and TFA FTS debt service payments. Debt service funding is counted as a negative inflow (rather than a positive expense), offsetting the total cash receipts figure. Debt service funding is net of prepayments, which are reported as an expense in Table 11. In FY24, the City retained $2.921 billion in tax revenue, $399 million more than a year ago.
Tax collections for FY24 totaled $73.8 billion, 1% lower than the prior year[2]. The City collected $31.8 billion in property taxes, 1.3% lower than at the same time in the previous year, due to the timing of receipts. Total market value of all NYC properties increased 6.3% year-over year in FY24, and 0.9% in FY25, according to Final Assessment Rolls published by the NYC Department of Finance.
PIT and PTET collections declined 6.3%, down $1.1 billion from a year ago. The principal reason for this decline was the timing of PIT estimated tax overpayments made in FY 2023 by those utilizing the PTET in its initial year, and the post-filing reconciliation of those overpayments that extended through the first half of FY 2024.
Sales tax grew 4.7%, from $9.5 billion in FY23 to almost $10 billion in FY24. This growth has been boosted by higher prices, as a result of high inflation (although inflation dropped in recent months), and the return of domestic and international tourism. Hotel occupancy tax grew 9.3% and hit a record high of $732 million. Hotel occupancy rates approached 90% in May and June, almost back up to pre-pandemic levels, and revenue per room has increased over the past year.
Cumulative receipts from business taxes (general corporation and unincorporated business taxes) increased 10.7%, amidst strong stock market performance and profit margins.
Mortgage recording and real property transfer taxes were down 25.1%, as home buying activity weakened due to high mortgage rates, and commercial transactions have only recently showed signs of picking up.
Commercial rent tax was 1.5% lower, due to a sustained shift toward remote and hybrid work that has reduced demand for office and other commercial space in the central business district. See the Comptroller’s Spotlight: New York City’s Office Market for a more in-depth analysis.
Payments in Lieu of Taxes (PILOTs) were $123 million higher than the prior year, boosted by Hudson Yards Infrastructure Corporation (HYIC) which remitted $325 million to the City in FY24, compared to $200 million in FY23.
Miscellaneous (non-tax) revenues increased 1.8% or $146 million. Higher interest income (+$309 million) earned on the strong cash balance drove most of the growth. Water and sewer charges increased $265 million, while income from licenses, privileges, franchises, and other governmental charges rose $27 million.
Cash Expenditures (Including Capital)
April 2024 – June 2024 (4Q24)
Cash Expenditures at a Glance
Overall cash expenditures in 4Q24 were unchanged from the same period the prior year, but their composition changed. Personnel services spending, which includes payroll, pensions, health plan, social security, and supplemental (union-related) welfare benefits, totaled $16.2 billion in 4Q24, up 8.6% versus the year prior. Embedded in this number is the City’s FY24 payment to the NYC RHBT. This year’s payment to the RHBT for pay as you go expenses equaled $2.794 billion, compared to $2.398 billion in FY23[3].
Other-than-personnel-services expenditures decreased 4.5%, due to a 10.5% decline in vendor and other payments. Public assistance and other social services (where much of the spending on asylum seekers sits) rose 8.6%, while medical assistance increased 10.4%.
Outlays considered “All Other” were 7.2% lower than in 4Q23, mostly due to the lower prepayment of future debt service expenses this year. Prepayments have been falling for the last two years. This year’s prepayment totaled $4.397 billion, compared to $5.478 billion in FY23, $6.114 billion in FY22, and $6.107 billion in FY21.
“All Other” Spending
Cash Payments of Future Years’ Expenditures, 4Q, FY20 – FY24
| ($ in millions) | 4Q20 | 4Q21 | 4Q22 | 4Q23 | 4Q24 |
| General Obligation Debt Service | $1,269 | $3,000 | $3,318 | $2,812 | $1,954 |
| NYC TFA Debt Service | 2,550 | 2,682 | 1,964 | 2,166 | 2,443 |
| Lease Payments | 0 | 0 | 40 | 0 | 0 |
| Defeasance or Redemption of Debt | 0 | 0 | 0 | 0 | 0 |
| Payments to NYC H+H | 0 | 0 | 0 | 0 | 0 |
| Retiree Health Benefits Trust | 0 | 425 | 792 | 500 | 0 |
| Total | $3,819 | $6,107 | $6,114 | $5,478 | $4,397 |
July 2023 – June 2024 (FY24)
Cash Expenditures at a Glance
Total expenditures, including capital expenditures, equaled $131.877 billion in FY24, 6.5% higher than in the previous year. Personnel services spending totaled $58.9 billion in FY24, up 9.4 % versus a year ago. Gross payroll increased 13.9%, while spending on fringe benefits went up 0.3%.
Gross payroll increased due to the implementation of collective bargaining agreements. Also, higher headcount and growing overtime spending contributed to the higher payroll expenditures this fiscal year. The number of active City employees increased from 281,917 in June 2023 to 283,971 in June 2024. Even though the City’s full-time workforce grew, the City’s vacancy rate remained relatively high by historical standards at 5.8% as of June. In FY24, the City spent $2.7 billion on overtime, including uniformed and civilian, 13.6% more than in FY23.
Pension expenditures equaled $9.3 billion, up $193 million compared to FY23. Spending on health insurance equaled $8.8 billion in FY24, $198 million higher than the prior year. However, social security expenditures declined $331 million to $2.5 billion; FY23’s total was elevated because it included the payment of deferred FICA employer contributions which was part of the Covid-19 relief measures.[4]
Non-personnel outflows rose 3.1%, to $47 billion, with public assistance and other social services rising 13.6% and medical assistance increasing by 15.8%. Vendor and other spending fell 1.6%.
Public assistance and other social services mostly consist of cash and rental assistance, homeless shelter and services, foster care, and early learning programs. Caseloads for cash assistance continued to increase, with expenditures rising 18.9% in FY24 to over $2.5 billion. Asylum seekers that have applied for asylum but are still waiting for their work permit were made eligible by the State for safety net assistance in May 2023. Spending on CityFHEPS, a rental assistance voucher to help individuals and families in homeless shelters and at risk of homelessness grew $264 million from the previous year. At the same time, combined spending at the Department of Homeless Services on homeless shelters for families and sanctuary shelters for asylum seekers increased $647 million. Spending on childcare for low-income families rose $201 million
“All Other” spending grew 6.6%, due to the increase in City-funded capital spending. The City spent $3.3 billion more on City-funded capital projects versus a year ago.
Spending on NYC Health + Hospitals (H+H), which is also included in the “All other” spending category, decreased by $112 million. During this period, the public hospital system received only a small amount of funding from the City for its remaining COVID-19 related efforts. However, beginning in 3Q23, H+H began receiving significant funding from the City for managing Humanitarian Emergency Response and Relief Centers (HERRCs) that serve newly arrived asylum seekers. In FY24, H+H received $1.3 billion in HERRCs funding, compared to $377 million the prior year. The number of individuals seeking asylum in H+H-managed facilities has increased from a monthly average of 618 in October 2022 to 24,054 in July 2024.
When the impact of capital expenditures is removed, FY24 net expenditures reflect an increase of 4.3% versus a year ago.
Capital Expenditures
City-funded capital expenditures are primarily financed from the proceeds of General Obligation (GO), New York City Transitional Finance Authority (TFA), and New York City Municipal Water Finance Authority (NY Water) debt. Non-City funded capital expenditures for education are financed by TFA Building Aid bonds. Capital expenditures are initially paid from the New York City Central Treasury and then reimbursed from various capital accounts and State sources.
April 2024 – June 2024 (4Q24)
Capital expenditures totaled $3.235 billion in 4Q24, up 29.5% from $2.498 billion in 4Q23. City-funded capital expenditures increased 33.2% while non-City-funded capital expenditures declined 13.1%.
Due to timing differences, reimbursements for capital expenditures in 4Q24 exceeded reimbursable expenditures, increasing the cash balance by $620 million for the quarter. The timing of the bond sales is discussed further below.
July 2023 – June 2024 (FY24)
Total capital expenditures equaled $13.810 billion in FY24, up 30.4% from $10.593 billion in FY23. The City-funded component increased 33.9%, while the non-City-funded component declined 15.1%.
FY24 reimbursements for capital expenditures totaled $12.669 billion and accounted for 9.8% of total cash receipts. Reimbursements during the fiscal year trailed reimbursable expenditures, decreasing the cash balance by $592 million. Over time, capital expenditures and the respective reimbursements should offset each other.
Financings
Two bond sales closed in 4Q24. The first transaction was a new money and refunding sale of almost $1.3 billion of tax-exempt GO bonds. The refunding portion of the transaction was small, only $180 million, and it produced $6.9 million in budget savings.
The second transaction was a new money sale of $1.8 billion of TFA FTS bonds. The transaction included $1.5 billion of tax-exempt fixed rate bonds and $300 million of taxable fixed rate bonds.
In FY24 the City issued $10.3 billion in GO and TFA bonds for capital purposes and $1.6 billion in refunding bonds. At the same time in FY23, the City issued $7.7 billion in bonds for capital purposes, and $4.9 billion for refunding purposes.
GO and TFA FTS FY24 refundings produced $179 million in budget relief over the life of the bonds, or $165 million on a present value basis.
Endnotes
[1] At the end of FY23, the City deposited $500 million into the RHBT to prepay FY24 retiree health benefits. At the end of FY22, the City deposited $792 million into the RHBT to prepay FY23 retiree health benefits.
[2] In this report, tax receipts, with the exception of personal income tax, are gross of refunds. Real property tax and personal income tax are gross of debt service funding.
[3] In FY 2023, the City deposited $500 million into the RHBT above what is needed for retiree pay-as-you-go health benefits for FY24 Retiree Health Insurance. In FY 2022, the City deposited $792 million into the RHBT above what is needed for retiree pay-as-you-go health benefits for FY23 Retiree Health Insurance. In FY 2022, the City also allocated an additional $750 million to the RHBT long-term balance.
[4] The CARES Act included a provision that allowed NYC to defer payment of the employer share of the Social Security tax between April, 2020 and December, 2020. The provision required that the deferred employment tax be paid over the following two years, with half of the amount required to be paid by January 3, 2022 and the other half by January 3, 2023.