The Economy

3.9%

-0.4%

-2.2%

3.1%

2.5%

1.3%

4.0%

3.1% 3.0%

1.8%

-0.3%

-2.8%

2.5%

1.6%

2.3% 2.2%2.4%

3.2%

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%

2007 2008 2009 2010 2011 2012 2013 2014 2015 Est.

New York City and U.S. Economic Growth

NYC GCP US GDPProjected

NYC's Export Industries Performance in the Recovery(measured by change in national employment share, 4Q2014 vs 4Q2009)

NYC Industries that Gained Employment Share

Motion Pictures & Sound Recording

Advertising

Colleges & Universities

Computer Systems

Accounting & Related Services

Management & Technical Consulting

Telecommunications

Broadcasting

Architectural and Engineering Services

Publishing

Finance & Insurance

NYC Industries that Lost Employment Share

Manufacturing

Legal Services

8.2%

-2.3%

0.8%

1.7%1.2% 1.3%

1.4%

3.9%

0.4%

1.7%

2.8%

2.0% 1.7%1.3%

-4%

-2%

0%

2%

4%

6%

8%

10%

2008 2009 2010 2011 2012 2013 2014

NYC Wage Growth Compared to Metro Area Inflation RateNYC Wage Growth Metro Area Inflation Rate

Low Wage Industries

24.6%

Mid Wage Industries

52.7%

High Wage

Industries

22.6%

Low Wage Industries

59.2%Mid Wage Industries

18.3%

High Wage

Industries

22.5%

Change in Composition of Job Creation in NYC

Job Distribution as of December 2009 Job Growth Since December 2009 to Present

The Budget

10.0%

2.3%

7.3%7.6%

3.4%

4.2%

0.4%

1.7%

6.7%

3.9%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14

Expenditure Growth Rate (Adjusted for Prior Year Resources)

4.7% Avg

11.3%

10.0%

11.5%

0.6%

-7.1%

3.3%

8.5%

4.4%

8.6%

5.8%

-8%

-3%

2%

7%

12%

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14

Local Tax Revenue Growth Rate

5.5% Avg

11.6%

2.3%

8.8%

5.4%

-2.9%

4.4%

4.0%

1.5%

7.1%

2.6%

-8%

-3%

2%

7%

12%

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14

State and Federal Revenue Growth Rate

2.5% Avg

The Proportion of State and Federal Aid in the Citys Budget Decline in our Fair Share of Federal and State Revenue

18.5%

17.2%

16.8%

15.5%

15.0%

12.3%11.9%

10.6%

11.9%

9.3%

8%

12%

16%

20%

2010 2011 2012 2013 2014

State Share Federal Share

$7.7 Billion

$2 Billion

Missed Opportunities Money Left on the Table

NYCHA2006-2014

$692 million Cumulative

DOE 2012-2014

$779 million Cumulative

Operating

Subsidies

$76

Section 8

Vouchers

$263

Energy

Incentives

$353

E-Rate

$120

Medicaid for

Special Ed

$356State APPR

Penalty

$303

The Administrations FY 16 Budget Adds

$16 Million for Rental Assistance for the Homeless

$11 Million to EMS to Cut Response Times

$10 Million to NYPD to Increase Police Cadet

Headcount

$4.2 Million to the Department for Updated Bulletproof Vests

Expenditures Adjusted for Pre-payments

($ in millions)FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 15- 19

Annual

Growth

Salaries and Wages $23,898 $24,550 $24,683 $26,075 $27,504 15.1% 3.6%

Debt Service 6,242 7,031 7,414 7,736 8,051 29.0% 6.6%

Health Insurance 5,206 5,577 5,923 6,327 6,849 31.6% 7.1%

Other Fringe Benefits 3,368 3,509 3,663 3,859 4,069 20.8% 4.8%

J & C 695 710 746 782 817 17.5% 4.1%

Subtotal $39,409 $41,376 $42,429 $44,749 $47,255 20.0% 4.7%

Pensions $8,455 $8,405 $8,375 $8,360 $8,457 0.0% 0.0%

Medicaid 6,447 6,415 6,415 6,415 6,415 -0.5% -0.1%

Public Assistance 1,476 1,407 1,413 1,413 1,413 -4.3% -1.1%

Other OTPS 23,304 22,042 22,256 22,643 22,728 -2.5% -0.6%

Subtotal $39,682 $38,269 $38,495 $38,831 $39,013 -1.7% -0.4%

Total $79,091 $79,646 $80,888 $83,610 $86,304 9.1% 2.2%

$4

$5

$6

$7

$8

$9

$10

$11

$12

$19.5

$20.5

$21.5

$22.5

$23.5

$24.5

$25.5

$26.5

$27.5

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19

Pe

ns

ion

Co

ntr

ibu

tio

ns (

$ i

n B

illi

on

s)

Wa

ge

s a

nd

Sa

lari

es

($ i

n B

illi

on

s)

Average Growth ($ in millions) Salaries Pensions Salaries Pensions Change in Avg. Salary Growth

Change in Avg. Pension GrowthFY 2009 FY 2013 $120 $447 0.5% 6.5%

FY 2013 FY 2019 $867 $67 3.6% 0.8% $747 ($380)

Wages and Salary Growth Up As Pension Contribution Growth is Down

Wages and Salaries Pension Contribution

Citywide Efficiency Savings Program

Following the fiscal crisis of the 1970s, the City regularly implemented gap closing programs - PEGs

The City saved more than $6.5 billion in FY14 from PEGs implemented between 2008 and 2013

If the City implemented an agency efficiency program equivalent in scale to those of the past, we would save $1 billion in FY16 alone

If that program were continued, together with new savings initiatives each year, the cumulative impact over those years could be $10

billion by FY19

$30.6$28.6 $28.2

$26.6$27.9

$34.7 $33.7

$61.7

$54.1 $53.7

$67.7

$0

$10

$20

$30

$40

$50

$60

$70

$80

May-09 May-10 May-11 May-12 May-13 May-14 Feb-15

Four-Year Commitment Plan Ten-Year Strategy

Four-Year Commitment Plan and Ten Year Capital Strategy$ in b

illio

ns

The Administrations Capital Strategy Additions

$5.3 Billion more for Education

$851 million more for Economic

Development and Business

Services.

$4.5 billion more for HPD

NYCHAs City-funded capital

budget, more than doubled

from $63.5 million to $145.7

million.

FY 2014 Actual to Planned Capital Commitments

The Report examined over $14 billion of Planned

Capital Commitments, 25 Agencies and over 1,600

budget lines

Sanitation achieved 89 percent of its commitments

Since FY 2005, the City had, on average, achieved

60 percent of its planned commitments

Only 52 percent of Planned Capital Commitments

were Achieved, the Second Lowest percentage

over the Past Ten Years

The Parks Department achieved 24 percent of its

commitments, the lowest of all major City agencies

Percent of Actual Commitments vs. Plan - All Funds

67%

61%

67% 66%

58%

66%

54% 55%

48%

52%

60%

30%

40%

50%

60%

70%

80%

90%

100%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Avg.2005-2013

Note: The City existing measure of actual commitments is relative to total commitments after the reserve for unattained commitments. Using this measure, the

FY 2014 percent achieved would be 68% compared to 52% as shown above.

AgencyActual FY 2014 Commitments

FY 2015

Executive Plan Commitments

Difference % Achieved

Sanitation (DSNY) 277 310 (34) 89.4%

Education (DOE) 2,060 2,513 (453) 82.0%

Environmental Protection (DEP) 1,160 1,663 (503) 69.8%

Transportation (DOT) 837 1,351 (514) 62.0%

Housing Preservation & Development (HPD)*

439 747 (308) 58.8%

*Includes commitment for New York City Housing Authority

Five Best Performing Agencies in Achieving Capital Commitments

$ in millions(With Planned Capital Commitments Greater Than $100 Million)

AgencyActual FY 2014

Commitments

FY 2015 Executive

Plan CommitmentsDifference % Achieved

Parks and Recreation (DPR) 365 1,516 (1,151) 24.1%

Cultural Affairs (DCLA) 215 713 (498) 30.1%

Small Business Services (SBS) 278 892 (614) 31.2%

Health and Hospitals Corporation (HHC) 242 718 (476) 33.7%

Corrections (DOC) 125 282 (158) 44.3%

Five Worst Performing Agencies in Achieving Capital Commitments

$ in millions

(With Planned Capital Commitments Greater Than $100 Million)

Risks and Offsets ($ in millions) FY 2015 FY 2016 FY 2017 FY 2018 FY 2019City Stated Gap $0 $0 ($1,048) ($1,370) ($2,074)

Tax Revenues

Property Tax $0 $113 $320 $210 $1,050

Personal Income Tax 232 424 542 559 517

Business Taxes (50) (53) (25) 60 50

Sales Tax 0 21 33 30 20

Real-Estate-Related Taxes 117 228 219 36 (137)

Subtotal $299 $733 $1,089 $895 $1,500

Speed Camera Revenues $5 $20 $6 $0 $0

Expenditures

Overtime ($76) ($174) ($100) ($100) ($100)

DOE Medicaid Reimbursement (60) (80) (80) (80) (80)

DOE Full Day UPK State Support 0 (40) (40) (42) (42)

Variable Interest Rate Savings 100 50 0 0 0

General Reserve 300 0 0 0 0

Prior-Year Estimates Adjustment 500 0 0 0 0

Subtotal $764 ($244) ($220) ($222) ($222)

Total (Risks)/Offsets $1,068 $509 $875 $673 $1,278

Restated (Gap)/Surplus $1,068 $509 ($173) ($697) ($796)