Presenting the Budget: New York Financial Plan - Research Paper Example

The gap between revenue and expenses is forecasted to be widening further in 2015 and 2016. The government needs $3,117 million in 2015 and $3,070 in excess of the revenue to cover the expenses. However, in 2016 the growth rate of the revenue is greater than the growth rate in expenses. The growth rates of all the expenses mentioned above were computed together with the amount in dollars expected to increase. The highest growing category of the expenses is fringe benefits. In the year 2012-2013, these expenses will grow at the rate of 5.22% or $418 million in amount. A further increase is expected in the following years and the growth rate is expected to rise to 6.74% in 2013-2014 and ultimately 6.98% in the last year of the projection. Fringe benefits include compensation beyond salary or benefits in kind. There is another expense as well which does not look significant in percentage but the amount increased is significant. For example salaries and wages only increase by 0.55% in 2013-2014 but the amount increase is $119 million. Similarly growth rate in the last year so only 1.71% but the amount increase is $376 million. Another important area of the expense to be discussed is the amount increase in the lease and debt services.

In 2012-2013 total increase is $656 million and the percentage increase is 12.01% but the growth rate falls in the subsequent years and reached 3.86% in the last year but still the amount in Dollar increases. Some of the expense shows no permanent trends like pensions of projections expenses and medical assistance. These are expected to be increase and decrease in all years of projections. In 2013 there is an increase of $100 million in pension expenses and in 2014 the increase is expected to be only $52 million as compared to 2013 and next year there is a decline of $108 million. Similar is the situation with the medical assistance. 

General Property Tax

Description

2012

2013

2014

2015

2016

General Property Tax

17917

18417

18956

19617

20259

Total Revenue

68039

68501

69703

72111

74081

Percentage

26.33%

26.89%

27.20%

27.20%

27.35%

Increase/Decrease in $ amount

-

500

539

661

642

Percentage Increase/Decrease

-

2.79%

2.93%

3.49%

3.27%

Source:  (NYC, 2012)

General property tax is expected to be $17,917 in 2012 which constitutes around 26.33% of the total revenue in the first year of the projection. In the next year of the projection, the revenue under this head is planned to be increased by $500 million, or 2.79% growth is expected. The authority is estimating the continuous increase in the revenue from general property tax in next year the revenue is expected to grow from $18,417 million in 2013 to 20,259 million in 2016. There is a slight increase in the growth rate. It is expected to rise to 2.93% in 2014 from 2.79% in 2012 and 3.27% in 2016.

Budget Justification Proposal

Project Title: Hands-on Job Training Workshops

Principal Investigator: The Agency

Budget Justification

The budget justification for the proposed additional grant is presented in the following table;

Objectives

An additional $500,000 is requested to be placed in the budget for the next years from FY2013 to FY2015 under the category of the State Categorical Grants for the Department of Social Services.

·      To provide hands-on job training workshops for the Department of Social Services in office administration, security, construction, and apartment maintenance.

·      To schedule workshops over the next three fiscal years starting at the beginning of FY2013.

Benefits

Staff working in different departments of NYC will have a better understanding, expertise, and ability to deal with the changing environment.

Training Centers

Training will be provided at City Wide Training Centers (NYC.gov, 2013)

Staff Registration

Staff registration will be made to attend workshops to be scheduled over the next years’ period.

Workshop training will be provided on equal opportunity to all employees.

Costs

The requested amount of $500,000 will be allocated as per the following distribution:

Direct Costs:

Training Centers Cost: $275,000

City Wide Training Centers have been contacted to obtain training costs in different areas as indicated and based on the availability and number of employees the total cost has been received.

Supplies: $55,000

This covers materials to be prepared and provided to employees for attending workshops.

Equipment: $35,000

This covers equipment that will be used during workshops particular related to security workshops.

Travel: $65,000

This covers expenses incurred by employees for traveling to and from City Wide Training Centers.

Fringe Benefits Rates: Predetermined fringe benefit rates for FY2013: 3.5%, FY2014: 4.0%, and FY2015: 4.0% will be paid for employees.

These benefits are to be paid according to the position of employees in their respective departments.

Source: (Chen, et al., 2008; Mikesell, 2011)