Nonprofit New York Statement on the January Plan Budget Cuts
Nonprofit New York Members and Community,
On January 16, 2024, Mayor Adams released the January Budget Plan and $109.4 billion fiscal year 2025 Preliminary Budget.
The January Plan cuts additional funding to arts, cultural institutions, older adult centers, and parks programs, but did not include further cuts to libraries or social services. Nonprofit New York continues to express concerns about the lack of transparency and engagement with nonprofits facing cuts and calls on the Mayor to be accountable for his commitment to fund vital nonprofit services. Learn more about Nonprofit New York's efforts to oppose these arbitrary cuts at #WHY15.
Nonprofit New York members, the sector, and the public are growing increasingly confused about the status of the city budget, directed cuts, and services for New York City’s communities. To date, Mayor Adams:
- Announced in September that every agency would be required to reduce their budget by 15% during fiscal year 2024, through three rounds of 5% cuts (in November, January, and April)
- In November, the administration made significant cuts to language access and legal services ($600K); environmental protection ($4M); after school community programs ($10M); library services ($23.6M); cultural development and cultural institutions ($8.6M); the participatory budget program, racial equity initiatives, and civic engagement efforts($643K), among other services. Major cuts to youth services are set to take place in fiscal year 2025. The Department of Youth and Community Development, which funds many culturally specific, BIPOC-led organizations and major youth services, is facing cuts of close to $4 million in the current fiscal year and $32.5 million in the next fiscal year.
- Prior to the January Plan, the administration announced certain funding cuts would be restored, including for NYPD ($15M), FDNY ($22M), and Sanitation Department ($2M)
In the January plan, the administration did not implement the expected across the board funding cuts for all agencies. The plan cuts funding for arts and cultural institutions by an additional $11.6 million this fiscal year, following the $8.4 million cut in November. The administration eliminated the Department of Probation’s Impact program and reduced the budget for older adult centers by $18.8 million. The budget did not include further cuts to library funding, following the $23.6 million cut to libraries in November. Department of Social Services, Department of Education, and Department of Youth & Community Development services were not reduced. The plan cuts three major parks programs by $10.9 million in fiscal year 2025.
Nonprofit New York is encouraged that the administration did not use the originally planned blunt 5% reduction to all agencies, as was done in November. However, the reversal of certain budget cuts from November does not restore the severe cuts to New York’s communities from the November plan.
The administration’s disproportionate reversal of police, fire, and sanitation cuts has us again asking for greater engagement with the nonprofit sector and transparency on these decisions. Nonprofits who will face impending cuts have received little to no guidance on how these budget cuts will affect their current and future contracts with New York City. Nonprofit New York members and partners continue to remain confused and anxious about the management of the city’s fiscal crisis and planned 15% budget cuts for fiscal year 2024.
Mayor Adams stated he may cancel the upcoming 5% budget reduction in April, citing better-than-anticipated tax revenue, reduced costs for migrant care, and expected funding from New York State to help the city respond to supporting arriving new New Yorkers. Nonprofit New York commends Governor Hochul for planning to move $500 million from the state emergency reserve to aid New York City during this time. We thank Mayor Adams for recognizing the contributions of the nonprofit sector at the end of his budget address and call on him and his administration to be accountable for his commitment to fully fund nonprofit services that make New York, New York.
We continue to ask #WHY15 knowing now the budget gap announced in Fall 2023 was likely overstated. We continue to oppose these arbitrary cuts and call on the administration for full restorations, full funding for nonprofit contractors, and cancellation of the April 2024 5% budget reduction directive.
Please join our #WHY15 campaign and call on NYC to provide greater clarity on the rationale and impact for the City’s 15% budget cuts, to demonstrate their understanding of the meaningful impact nonprofits have on NYC, and to create opportunities for substantive engagement with organizations that have the expertise and community connections to generate creative, concrete solutions. To include your voice:
- Join the 300 nonprofits who have signed our open letter to the City government calling for transparency and inclusion regarding the 15% budget reduction.
- Share how the budget cuts will affect your nonprofit by participating in our storytelling campaign. If interested, complete this form.
Questions? Please contact our Vice President of Policy, Chai Jindasurat-Yasui
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