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Dear John,
Last week, Mayor Mamdani and I issued a joint statement [[link removed]] in support of strengthening New York City’s Rainy Day Fund with clear rules for putting in and taking out money.
Why is this a big deal?
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The Rainy Day Fund exists because New Yorkers voted in 2019 to give our city a tool to protect essential services during economic downturns and emergencies. It helps safeguard our schools, public safety, sanitation, housing, health care and social services when times get tough. But in a city with an annual budget of $125 billion we’ve only got $2 billion in this critical fund. Our reserves overall have been steadily dropping in recent years. Leaving us just 9th out of the top ten largest cities in the country, ahead only of Chicago.
The need to fully fund New York City’s reserves has become more urgent following a report my office released last month, AI and New York City's Fiscal Future [[link removed]] , which found that AI could negatively affect the City under several plausible scenarios and recommended increasing the Rainy Day Fund to make it a solid fiscal shock absorber against future economic disruptions.
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AI Is Coming for America’s Cities. We Need a Plan.
By NYC Comptroller Mark Levine
Artificial intelligence will not reshape America evenly. It will hit hardest and fastest in our cities.
Read Mark’s AI post on the NYC Comptroller Substack [[link removed]]
We need a stronger, more predictable approach to saving for our future. New Yorkers deserve confidence that their government is prepared not only for today’s challenges, but for tomorrow’s as well. So we are proposing a plan that would mandate deposits into the fund when times are good, and only allow withdrawals when times are tough. This is the kind of guarantee that should be in the City’s Charter, and together, we’ve got a chance to make it happen.
In an April report [[link removed]] , I outlined what a potential charter amendment should include:
* Target Balance. Reserves should be set at 16% of tax revenues to preserve vital City services in an economic downturn.
* Formula-Driven Deposits. When the fund is below its target level, the City should be required to make regular contributions based on revenue growth.
* Clear Withdrawal Rules. The Charter should establish clearly defined conditions on when money can be taken out, such as sustained employment losses or a catastrophic event, and should limit the amount that may be withdrawn in a single year.
* Regular Reporting. The Office of Management and Budget should be required to include a Rainy Day Fund section in each financial plan, including: the current balance, the target balance, the gap between the two, the deposit formula, whether withdrawal triggers have been met, and the planned use of any proposed withdrawal.
Now it’s up to you to make your voice heard.
You can share your input about rules for building up our reserves directly to the Charter Commission at this website [[link removed]] . You can also give your testimony in person at one of the hearings being held across the five boroughs [[link removed]] .
Building reserves is one of the most responsible steps government can take. It allows us to weather economic shocks without forcing working people to bear the cost through cuts to the services they depend on.
Let’s make sure that when the next storm comes, New York City is ready.
Sincerely,
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Mark D. Levine
New York City Comptroller
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Office of the New York City Comptroller
Our mailing address is:
Office of New York City Comptroller Mark D. Levine
1 Centre Street
New York, NY 10007
United States
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