Budget Tools Chapter 06 Exercise
1. Examine Table 6.1 (a spreadsheet version of which is available on the attached CD in the folder labeled "Budget Tools Chapter 06 Exercise") to answer the following questions: * Are total revenues growing faster or more slowly than expenditures? Show the annual growth rates for revenues and expenditures in a table. * What is New York City's fastest-growing category of expenditure during the planning period? * What percentage of New York City revenues comes from the general property tax? How much is this tax growing in each year of the financial plan? New York City Financial Plan October 2007 ($ in millions) Revenues FY 2008 FY 2009 FY 2010 FY 2011 Taxes General Property Tax $12,984 $14,100 $15,186 $16,171 Other Taxes 22,215 21,456 22,221 22,696 Discretionary Transfers (1) 546 - - - Tax Audit Revenue 659 559 560 560 Tax Reduction Program (68) (239) (283) (301) Subtotal: Taxes $36,336 $35,876 $37,684 $39,126 Miscellaneous Revenue 6,063 5,084 5,101 5,134 Unrestricted Intergovernmental Aid 340 340 340 340 Less: Intra-City Revenue (1,457) (1,367) (1,368) (1,368) Disallowances Against Categorical Grants (15) (15) (15) (15) Subtotal: City Funds $41,267 $39,918 $41,742 $43,217 Other Categorical Revenues 1,067 1,007 1,012 1,014 Inter-Fund Revenues 436 411 403 398 Total City Funds and Inter-Fund Revenues $42,770 $41,336 $43,157 $44,629 Federal Categorical Grants 5,606 5,373 5,358 5,344 State Categorical Grants 10,958 11,424 12,289 12,733 Total Revenues $59,334 $58,133 $60,804 $62,706 Expenditures Personal Service Salary and Wages $21,189 $22,323 $24,082 $25,353 Pensions 5,728 6,265 6,318 6,404 Fringe Benefits 6,406 6,815 7,282 7,795 Subtotal: Personal Service $33,323 $35,403 $37,682 $39,552 Other Than Personal Service Medical Assistance 5,797 5,602 5,756 5,916 Public Assistance 1,187 1,187 1,187 1,187 Pay-As-You-Go Capital 100 200 200 200 All Other (1) 18,044 17,547 17,971 18,376 Subtotal: Other Than Personal Service $25,128 $24,536 $25,114 $25,679 General Obligation, Lease & MAC Debt Service (1,2,3) 3,837 3,896 4,247 5,002 FY 2007 Budget Stabilization & Discretionary Transfers (1) (4,052) - - - FY 2008 Budget Stabilization (2) 2,255 (2,255) - - FY 2009 Budget Stabilization (3) - 350 (350) - General Reserve 300 300 300 300 Subtotal $60,791 $62,230 $66,993 $70,533 Less: Intra-City Expenditures (1,457) (1,367) (1,368) (1,368) Total Expenditures $59,334 $60,863 $65,625 $69,165 Gap To Be Closed $- $(2,730) $(4,821) $(6,459) (1) FY 2007 Budget Stabilization and Discretionary Transfers total $4.663 billion, including prepayments of subsidies of $639 million, Budget Stabilization of $3.313 billion, lease debt service of $100 million, $65 million in debt retirement and a TFA grants which increases FY 2008 revenues by $546 million. (2) FY 2008 Budget Stabilization totals $2.255 billion. (3) FY 2009 Budget Stabilization totals $350 million.