Budget Plans
New York City Financial Plan
Are total revenues growing faster or more slowly than expenditures? Show the for revenues and expenditures in a table.
The expenditures and taxes are in sync for the first two years of the table (2012 and 2013) but the expenditures outstrip taxes by about 2500-3000 a year after that, for years 2014, 2015 and 2016. As requested, here are the annual growth rates analyzed
Tax Revenue
Growth %
Expenditures
Growth %
As noted before, the rate of growth from 2012 of 2013 is identical, so the two figures remain in sync. There is a sharp rate of increase in for expenditures in 2014 with a fractional change with revenue. The tax revenues then slows in terms of growth and the tax revenue starts to over-take the rate of growth of expenditures, but only in 2016 and after the tax revenues themselves also slow down a bit.
What is New York City’s fastest-growing category of expenditures during the planning period? Justify the answer with examples.
The is clearly fringe benefits. Pensions goes up slightly but is only 150 higher than the 2012 starting point when it reaches 2016. Medical assistance also edges up but only by about 200 in total over the five years. On the other hand, fringe benefits goes up by 2000, a 10-fold increase (or more ) as compared to the other groups of expenditures.
3) What percentage of New York City revenue comes from the general property tax? How much is this tax growing in each year of the financial plan? Justify the answer with examples.
The initial pattern is a general rise. In 2012, the rate of property tax as compared to the entire fund is 26.33%. It raises to 26.89% in 2013 and then 27.19% in 2014. The trend continues with a 27.20% rate in 2015 and a 27.35 rate in 2016. In short, the rate is going up about one percent from 2012 to 2016, or about a quarter of a percent for each .
Budget Justification Proposal
Current 2013
Revised 2013
Current 2014
Revised 2014
Current 2015
Revised 2015
Salaries & Wages
$21,801
$21,801
$21,920
$21,920
$22,139
$22,000
Pensions
$8,062
$8,062
$8,114
$8,114
$8,006
$8,006
Fringe Benefits
$8,429
$7,929
$8,997
$8,497
$9,597
$9,236
Retiree Health Benefits Trust
($1,000)
($1,000)
($1,000)
($1,000)
$0
$0
NASA Program
$0
$500
$0
$500
$0
$500
Subtotals – Personal Service
$37,292
$37,292
$38,031
$38,031
$39,742
$39,742
In short, the author simply reduced the fringe benefits amount to cover the NASA expenditure as the fringe benefits are simply going up way too fast and raising taxes, by extension, to cover the NASA expenditures would not be a wise thing to do. Salary growth is limited a little bit, but not much. Pensions are not touched as those are contractual obligations and they cannot be violated. Salaries and benefits are a much easier sell to the people of New York City given the rash of public employees that are being given lavish benefits and pay structures, and/or that are rewarding themselves with the same (Monga, 2012)(Niquette, 2012).
References
Monga, V. (2012, November 12). Pension Liability: How Did It Get So Big? – WSJ.com. The Wall Street Journal – Breaking News, Business, Financial and Economic News, World News & Video – Wall Street Journal – Wsj.com. Retrieved March 3, 2013, from http://online.wsj..html
Niquette, M. (2012, December 10). $822,000 Worker Shows California Leads U.S. Pay Giveaway – Bloomberg. Bloomberg – Business, Financial & Economic News, Stock Quotes. Retrieved March 3, 2013, from http://www.bloomberg.com/news/2012-12-11/-822-000-worker-shows-california-leads-u-s-pay-giveaway.html
