FOR IMMEDIATE RELEASE
YONKERS MAYOR MIKE SPANO PROPOSES FISCAL YEAR 2025 EXECUTIVE BUDGET.
Reaffirms Commitment to Education with Largest-Ever Contribution to Yonkers Public Schools; No Cuts to Municipal Services and Active Workforce.
YONKERS, NY – April 24, 2024 – Yonkers Mayor Mike Spano today released his Fiscal Year 2025 (FY25) Executive Budget proposal, which contains no cuts to municipal services or active workforce and reaffirms the Administration’s commitment to Yonkers Public Schools.
“The City will continue to remain successful and we have a lot on the horizon, but to get there, we need to be fiscally responsible and reimagine how we navigate this cost-effective journey,” said Mayor Spano. “Together, despite the tight dollars, we will move forward by making the right financial decisions to benefit our taxpayers and our kids.”
Mayor Spano added, “This year’s Executive Budget is based on New York State’s adopted budget, which was passed over the weekend by the State Legislature. This Executive Budget is honest and lean, maintaining our workforce and services while reaffirming our commitment to education.”
Executive Budget Overview:
The Executive Budget for the Fiscal Year 2025 for the combined City and Board of Education (BOE) Operating Funds is $1.46 billion, an increase of $32.7 million or 2.28%.
Yonkers Board of Education
The Executive Budget includes a record $298.5 million appropriation for the Board of Education, the largest-ever budgeted by an Administration.
For FY25, the Administration has combined Debt Service and Maintenance of Effort contribution to education with an increased allocation of $7.3 million in comparison to FY24. This is an increase of $498.5 million cumulatively since Fiscal Year 2012.
In total, the Administration is providing $12.7 million of additional funding that includes an increased MOE, and the absorption of costs that will help pay for the projected BOE consolidated budget expenditure growth.
Mayor Spano reapportioned $5 million in Temporary Municipal Assistance Aid awarded by New York State and it directed toward Yonkers Public Schools.
“I want to thank the Governor and state delegation for endeavoring these important funds on behalf of our City,” Mayor Spano said. “We decided to place it where it was needed most, our schools, and unfortunately, it’s still not enough.”
This year, Yonkers Public Schools will see the loss of $33 million from non-recurring aid provided by the American Rescue Plan and Coronavirus Response and Relief Supplemental Appropriations Acts. As a result, Yonkers Public Schools will need to restructure and consolidate to accommodate for the changing District that has seen a reduction of approximately 2,400 (or 10%) in-district regular students and a substantial increase in the number of special education students.
Municipal Operating Budget
Included in the Executive Budget is a municipal General Fund operating budget of $715.7 million. General Fund Departmental Expenditures, Department Debt Services, and Special Items are budgeted at $375.8 million, a decrease of $3.4 million or approximately 1%.
With rising costs, an increased transfer to the public school budget due to the State’s lack of funding, a $23 million increase in healthcare costs, and subdued housing-related activity as a result of high mortgage rates, the Executive Budget proposes the tax rate per thousand dollars of assessed value would increase by $48.73, an increase in the tax rate of 5.51%, requiring the City to break the state-mandated tax cap.
Under the proposal, a typical one-to-three-family home at the median assessed value of $10,900 would see its annual property tax bill increase by $531, or approximately $44 per month.
This year’s Executive Budget contains a newly formulated Senior Citizen Tax exemption, which raised the income exemption level, providing Yonkers seniors an approximate total of $2.4 million in savings on their property taxes. Senior citizens, who applied, and for the first time qualified for the higher income limit senior citizen tax exemption program, will likely see a reduction in their property taxes.
Mayor Spano added, “The Administration continues to be efficient and conscientious of our fiscal challenges. I hope that the 2025 Executive Budget is a basis for discussions and decisions. I ask our City Council members to continue to build upon the spirit of cooperation that has passed twelve consecutive bipartisan budgets during my time in office.”
Budget Snapshot:
• $1.46 billion total budget
• Tax rate of 5.51%, requiring the City to break the state-mandated tax cap.
• $298.85 million appropriation for the Board of Education, the largest ever budgeted by an Administration.
• $59 million, which includes the school portion ($15.4 million), earmarked for capital improvements
• $18.3 million grant budget, including more than $6 million for paving initiatives
• The elimination of 10 vacant positions
• The addition of 15, revenue-producing, cost-containing, and/or revenue-neutral positions with the most budgeted for a January 1, 2025 start date. Eight of the 15 positions are contractually obligated.
• Maintains city services and municipal workforce
The Yonkers City Council must adopt the City budget by June 1 for it to take effect by the new fiscal year, which begins July 1, 2024.
To view Mayor Spano’s proposed Executive Budget, visit www.yonkersny.gov.
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