New York City revenues ahead of forecast for fiscal 2016: report

Reuters News
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Posted: Nov 12, 2015 4:13 PM

NEW YORK (Reuters) - New York City will take in $304 million more in taxes and other revenues than forecast for the current fiscal year, allowing it to meet additional expenses and pre-fund some of next year's budget, according to a report from city budget officials on Thursday.

The report is further evidence of the city's relatively strong economy, which is helping boost its tax haul. New York's unemployment rate fell to 4.8 percent in September, below the national average.

The city's overall budget rose to $79.93 billion for fiscal 2016 from the $78.53 billion adopted in June, according to the report. It attributed most of the increase to federal grants for Hurricane Sandy recovery efforts.

The higher tax revenue covers $183 million in additional expenses incurred by city agencies, which include $88 million for the Department of Homeless Services and $24 million for the Department of Correction to address violence at the Rikers Island prison facility, the report said.

The city said it is setting aside $135 million of the additional revenues to pre-pay expenses in the next financial year, which begins on July 1.

(Reporting by Edward Krudy; Editing by Paul Simao)