Chapter 6: Expense Budget

Section 100.

Section 100. Format of expense budget departmental estimates, preliminary expense budget, and executive expense budget.

1. The expense budget departmental estimates, the preliminary expense budget, and the executive expense budget for each year shall consist of proposed units of appropriation for personal service and proposed units of appropriation for other than personal service for the ensuing fiscal year.
2. Each agency head, for the departmental estimates, and the mayor, for the executive budget, shall submit (i) a statement of the impact of the proposed units of appropriation on the level of services to be provided during the ensuing fiscal year and (ii) a written response to each of the expense budget priorities included in each community board’s statement of budget priorities submitted in accordance with section two hundred thirty of this charter, including the disposition of each such priority and a meaningful explanation of any disapprovals contained in such estimates or budget.
3. Each proposed unit of appropriation shall represent the amount requested for personal service or for other than personal service for a particular program, purpose, activity or institution; provided, however, that a single unit of appropriation for personal service or a single unit of appropriation for other than personal service may represent the amount requested for more than one particular program, purpose, activity or institution if the council has adopted, on the recommendation of the mayor, or if the council has adopted on its own initiative and the mayor has approved, a resolution setting forth the names, and a statement of the programmatic objectives, of each program, purpose, activity or institution to be included in such a single unit of appropriation. Copies of such resolutions must be included as an appendix to any preliminary budget, executive budget, and adopted budget to which they apply. If, in accordance with such a resolution, a proposed unit of appropriation for other than personal service shall represent the total amount requested for other than personal service for more than one proposed unit of appropriation for personal service, the amount of such unit of appropriation for other than personal service which is allocable to each unit of appropriation for personal service shall be set forth for informational purposes at the end of each such unit of appropriation for personal service. If, in accordance with such a resolution, a proposed unit of appropriation for personal service shall represent the total amount requested for personal service for more than one proposed unit of appropriation for other than personal service, the amount of such unit of appropriation for personal service which is allocable to each unit of appropriation for other than personal service shall be set forth for informational purposes at the end of each such unit of appropriation for other than personal service.
4. Each proposed unit of appropriation contained in the departmental estimates, the preliminary expense budget and the executive expense budget shall be accompanied by a statement of the programmatic objectives of the program, purpose, activity or institution involved.
5. Each proposed unit of appropriation contained in the departmental estimates and the executive budget shall be supported by line items showing how the total amount of such unit is determined.
6. The departmental estimates shall be in such form and contain such further information as may be required by the mayor or by law and shall be public records which shall at all reasonable times be open to public inspection.
7. For each city agency that has local or borough service districts within community districts and boroughs, the departmental estimates and the executive budget, where practicable, shall contain a statement of proposed direct expenditures in each such service district for each requested unit of appropriation.
8. The departmental estimates and the executive expense budget shall include a contract budget prepared in accordance with the provisions of section one hundred four.

Section 101.

Section 101. Preliminary expense budget.

The preliminary expense budget shall contain proposed expenditures and a forecast of revenues for the ensuing fiscal year, including, for each tax revenue source which represents five percent or more of the total forecast of tax revenues, a detailed statement of the methodology and assumptions used to determine the forecast of revenues estimated to be received from such source in sufficient detail to facilitate official and public understanding of the manner in which such forecasts are made, shall indicate proposed units of appropriations for personal service and for other than personal service, shall include a financial plan for the city for the four ensuing fiscal years (of which the first year is the year for which such preliminary expense budget is being prepared), consistent with section two hundred fifty-eight, with the amounts estimated to be available for discretionary increases, as defined in section one hundred two, in such years, shall include the departmental estimates of agency expenditures for the ensuing fiscal year pursuant to section one hundred together with proposed sources of revenue for each unit of appropriation specified therein and shall present a plan to ensure balance between the expense and revenue budgets during the ensuing fiscal year.

Section 102.

Section 102. Expense budget borough allocations.

1. Definition. The term “discretionary increases” as used in this section shall mean an amount equal to the total amount of general fund expenditures of city funds and state and federal funds over which the city has substantial discretion proposed to be made in the ensuing fiscal year for all purposes other than debt service minus the sum of the following items as certified by the mayor, including related fringe benefits:

   (1) all such proposed expenditures which are necessary to continue to operate current programs and provide current services at the levels at which they were authorized to be operated or provided, pursuant to the expense budget for the current year as adopted in accordance with section two hundred fifty-four and two hundred fifty-five or at levels not exceeding such levels;

   (2) all proposed increases in such expenditures for current programs or services which are projected to be necessary to accommodate projected increases in the caseload of current programs or to accommodate a portion of such projected increases;

   (3) all proposed increases in such expenditures for current programs or services which are projected to be necessary as a result of federal, state or local laws or judicial decisions which require increases in benefit levels, service levels, or similar matters;

   (4) all proposed increases in such expenditures for new programs or new services required by federal, state or local law to be initiated during the ensuing fiscal year; and

   (5) all proposed expenditures, in excess of the expenditures specified in paragraph one of this subdivision, which are necessary to continue to operate current programs and provide current services at the levels at which they are currently authorized to be operated or provided pursuant to the expense budget for the current year as modified in accordance with section one hundred seven, excluding the portion of such excess which is attributable to budget modifications adopted in accordance with such section which were not necessary to (i) continue to operate programs and provide services at the level at which they were authorized in the expense budget for the current year as initially adopted, (ii) accommodate actual but unanticipated caseload increases in such programs, or (iii) accommodate actual but unanticipated increases in spending of the types referred to in paragraphs three and four of this subdivision, and excluding that portion of any expenditure increase which was financed by a decrease in any appropriations originally included in the executive expense budget for the current year to pay for a discretionary increase.

2. Borough allocation. Five percent of the total amount of the discretionary increases which the mayor includes in the executive expense budget for the ensuing fiscal year shall be allocated among the boroughs by a formula based on factors related to population and need and shall be known as the expense budget borough allocation. Such formula shall be established by local law, but in any fiscal year for which no such local law is effective, such expense budget borough allocation shall be allocated among the boroughs on the basis of the average of (i) each borough’s share of the total population of the city, (ii) each borough’s share of the total population of the city below one hundred twenty-five percent of the poverty level, and (iii) each borough’s share of the total land area of the city. Such a borough allocation shall be reduced by any amounts necessary, in excess of the amounts available pursuant to section one hundred two-a, to pay for the operating costs, as certified in accordance with the provisions of subparagraph a of paragraph one of subdivision c of section two hundred eleven, of capital project constructed with funds recommended for appropriation by the borough president in accordance with the provisions of section two hundred eleven.
3. Preliminary borough allocations; initial borough president notification. Concomitantly with the submission of the preliminary expense budget, the mayor shall inform each borough president of the portion of the executive expense budget for the ensuing fiscal year and for the three subsequent fiscal years that, pursuant to the formula required by subdivision b of this section, would be allocated to each borough if the amount of the discretionary increases for the ensuing fiscal year and for the three subsequent years were the same as the amounts projected by the mayor, in accordance with section one hundred one, to be available for such purposes in such years. The amount of such portion shall be known as the preliminary expense budget borough allocation.
4. Borough president proposals. Each borough president, during the consultations required by section two hundred forty-four, shall submit to the mayor, in such form as the mayor shall prescribe, proposed appropriations for the expense budget not exceeding such borough’s allocation of the expense budget borough allocation as certified by the mayor to the borough presidents during such consultations. The timing of such certification shall allow sufficient time for such consultations and for meeting the deadlines established by section two hundred forty-nine. The mayor shall include such proposed appropriations without modification in the executive expense budget in accordance with the provisions of subdivision two of section one hundred three; provided, however, that the mayor may also include such comments and recommendations relating to such proposed appropriations as the mayor may deem proper.

Section 102-a.

Section 102-a. Capital budget borough allocation expense budget contingencies.

An amount equal to nine tenths of one percent of the cost of capital projects constructed with funds recommended for appropriation in accordance with the provisions of section two hundred eleven, shall be available to provide for the expense budget requirements of such capital projects.

Section 103.

Section 103. Contents of the executive expense budget.

1. There shall be included in the budget:

   1. Units of appropriation, prepared according to section one hundred, in such amounts and upon such terms and conditions as may be determined by the mayor. Such appropriations shall include:

      (a) The amounts required by law to be appropriated to the several sinking funds as certified by the comptroller.

      (b) The amount required to pay the interest and principal of city obligations as certified by the comptroller.

      (c) An amount, as certified by the comptroller, equal to the average of all expenditures during each of the five preceding fiscal years for the payment of the expense of the removal of snow and ice, exclusive of salaries and wages of regular employees of the city except for overtime work and for work on Sundays and holidays, and exclusive of the purchase of equipment.

      (d) The several amounts which are payable from sources other than the real estate tax levy, provided however that amounts appropriated pursuant to chapter nine of this charter which are allocable to a particular program, purpose, activity or institution, shall be included for informational purposes only.

      (e) Such other amounts as may be required by law.

      (f) Such amounts as shall be determined in the manner provided in this chapter to be necessary to pay the expenses of conducting the business of the city for the ensuing fiscal year and for other lawful public purposes.

      (g) A reserve for unanticipated contingencies.

   2. The proposed appropriations submitted by the borough presidents in accordance with section one hundred two.

   3. An identification of the proposed appropriations, being proposed, by agency and project type and, within project type, by personal service and other than personal service, for the maintenance of all major portions of the capital plant, as such terms are defined in subdivision a of section eleven hundred ten-a.

   4. The terms and conditions under which appropriations shall be administered.

2. All such units of appropriation and other amounts shall be set forth without deduction of revenues from any source except as otherwise provided by law.

Section 104.

Section 104. Contract budget.

1. Each contract budget shall set forth by agency each major category of contractual services and each multiple purpose category of contractual services for which appropriations are being proposed.
2. Each agency head for the departmental estimates, the mayor for the executive budget, and the council for the adopted budget by a resolution adopted with the budget, shall certify that each major category of contractual services is presented as such and that no multiple purpose category contains a major category of contractual services.
3. For purposes of this section

   1. the term “major category” shall mean:

      (a) a programmatic category related to a major service provided by the agency or a major responsibility of the agency regardless of dollar amount; or

      (b) a programmatic category related to a particular state or federal requirement; or

      (c) a subcategory of those categories set forth in subparagraph a or b of this paragraph where the dollar amount constitutes a major commitment of city funds; or

      (d) a category established by the council as a major category pursuant to subdivision f of this section; or

      (e) a category certified by the mayor as a major category.

   2. the term “multiple purpose category” shall mean:

      (a) groupings of contractual services for related purposes, none of which individually constitute a major category, but which together facilitate public understanding of contractual spending provided by an agency; or

      (b) a grouping of unrelated contractual services, which individually do not constitute a major category, and which are not appropriately grouped with other contractual spending of the agency.

   3. the term “contractual services” shall mean technical, consultant or personal services provided to the city through contracts.

4. Major categories. Each major category of contractual services shall be accompanied by a detailed description of the programmatic objectives of the category, the number of contracts estimated to be included in the category and the proposed appropriations for that category.
5. Multiple purpose categories. All other contractual services shall be aggregated in multiple purpose categories. Each multiple purpose category shall be accompanied by the number of contracts estimated to be included in the category and the supporting schedules identifying the purposes and amounts involved in sufficient detail to allow the council to certify that the category does not contain major categories of contractual services.
6. Change of categories. The council may alter any category in the contract budget submitted by the mayor, or change any terms and conditions of it. The mayor shall provide sufficient information and technical assistance to allow the council to certify each category as a major or multiple purpose category. The mayor may disapprove any alteration by the council. The mayor’s disapproval may be overridden by a two-thirds vote of all of the members of the council.
7. Adoption of contract budget. The council may increase, decrease, add or omit any amount in the contract budget as submitted by the mayor, or change any terms and conditions of the amount in that category. The mayor may disapprove any increase or addition to the amounts in the categories, or any change in any term and condition of the contract budget. The mayor’s disapproval may be overridden by a two-thirds vote of all of the members of the council.
8. Modification of terms and conditions. All spending for contractual services shall be in accordance with the terms and conditions of the contract budget as adopted; provided, however, that during any fiscal year the mayor shall notify the council of any proposed modification of such a term or condition. Within thirty days of the first stated meeting of the council following the receipt of such notice, the council may disapprove the proposed notification.

Section 105.

Section 105. Appropriations for goods, services or construction.

Appropriations for the procurement of goods or services or the provision of services, utilities, or facilities by the department of citywide administrative services for other agencies and institutions in accordance with the authority of the department of citywide administrative services under the provisions of this charter shall be made to the department of citywide administrative services but shall be segregated under the name of the agency or institution for which they are intended and shall be considered and accounted for as appropriated for such agency or institution. Nothing herein contained shall prevent the designation of part of such appropriations as a general stores account or under other appropriate designation to enable the department of citywide administrative services to maintain a stock in anticipation of requirements or to provide services, utilities or facilities for joint use by more than one agency or institution.

Section 106.

Section 106. Expense budget administration.

1. Except as otherwise provided by law, no unit of appropriation shall be available for expenditure by any city agency until schedules fixing positions and salaries and setting forth other expenses within the units of appropriation are established pursuant to the adopted budget, the administration of which is subject to the provisions of this chapter, the civil service law, and other applicable law.
2. The mayor shall establish and may modify for each agency (1) quarterly spending allotments for each unit of appropriation and (2) aggregate position and salary limits for each unit of appropriation, which shall be made available for public review upon adequate notice. No agency shall expend any sum in excess of such quarterly spending allotments, or exceed aggregate position and salary limits. The mayor may set aside specified sums as necessary reserves which shall not be included in the quarterly spending allotments until released by the mayor. Each agency shall administer all monies appropriated or available for programs and purposes of the agency in accordance with quarterly allotment plans proposed by the agency and approved or modified by the mayor. Each such plan shall set forth by units of appropriation for the quarter of the fiscal year during which it is to remain in effect: (1) rates of expenditures for personal services and other than personal services; (2) ceilings on the total number of uniformed, civilian and pedagogical employees; and (3) the total amount of funds to be spent or committed by the agency during such quarter.
3. The mayor shall keep informed, during the course of each fiscal year, of the progress of expenditures and the receipt of revenues, and it shall be the duty of all agencies, when requested by the mayor, to supply all information needed for this purpose.
4. The mayor may assume direct responsibility for the administration of the schedule required to be filed by the agency head pursuant to subsection a of this section when in the mayor’s judgment the fiscal condition of the city so requires or when an agency (1) is expending funds in excess of the quarterly spending allotments or (2) is otherwise not complying with spending allotments or aggregate position and salary limits or (3) is not maintaining adequate accounts pursuant to requirements of this charter.
5. Whenever the mayor determines, pursuant to the provisions of this charter or other relevant statutes, that the full amount of any appropriation should not be available for expenditure during the fiscal year, the mayor shall notify the council of such determination and the implications and consequences of those impoundments for service levels and programmatic goals affected. The mayor shall respond in writing to a request by the council for an explanation of why an appropriation should not be expended.
6. 1. Within thirty days of the adoption of the executive expense budget, the head of each agency responsible for one or more of the services listed in paragraph four of this subdivision shall submit to each borough president, a plan for the allocation within the borough of the personnel and resources appropriated for each such service in the borough.

   2. Within thirty days of receiving such a plan, the borough president may propose a reallocation of the personnel and resources within the borough. Such proposed reallocations shall be implemented by the agency, unless the head of the agency objects, in writing, to the borough president. If such an objection is submitted, the borough president may submit a revised reallocation proposal to the agency head which shall be implemented by the agency head provided that no such modification may increase or decrease the personnel or resources allocated to any community district for such service by more than five percent.

   3. If, during the course of the fiscal year, however, a material reallocation of personnel or resources within a borough is anticipated by an agency head to be necessary for any of the services listed in subdivision four, the agency head shall consult with the borough president prior to the implementation of any such reallocation.

   4. The services covered by this subdivision shall include the following services and any additional services identified for this purpose by the mayor: local parks services, street cleaning and refuse collection, housing code enforcement, highway and street maintenance and repair sewer maintenance and repair, and the maintenance of public buildings by the department of citywide administrative services.

Section 107.

Section 107. Budget modification.

1. Subject to the quarterly spending allotments and aggregate position and salary limits established pursuant to section one hundred six, and to other applicable provisions of this charter, of the civil service law and of other law, changes in schedules, within units of appropriation, may be made by the head of each agency. Any such changes shall be reported to the mayor and the comptroller before the effective date thereof, and shall be made available for public inspection under reasonable terms and conditions.
2. The mayor during any fiscal year may transfer part or all of any unit of appropriation to another unit of appropriation, except that when any such transfer (1) shall be from one agency to another or (2) shall result in any unit of appropriation having been increased or decreased by more than five percent or fifty thousand dollars, whichever is greater, from the budget as adopted for such unit of appropriation, the mayor shall notify the council of the proposed action. Within thirty days after the first stated meeting of the council following the receipt of such notice, the council may disapprove the proposed action; provided, however, that the mayor may recommend such a transfer if it is related to an appropriation included in the budget pursuant to section one hundred two only with the concurrence of the relevant borough president; and a borough president may make such a recommendation with regard to such an appropriation if it is concurred in by the mayor and does not include a reduction in an appropriation other than one included in the budget pursuant to section one hundred two on the recommendation of such borough president. Written notice of any transfer pursuant to this subdivision shall be given to the comptroller and shall be published in the City Record as soon as possible after such transfer.
3. The provisions of this section shall not be deemed to authorize any transfer from appropriations required by law.
4. The council may during any fiscal year transfer part or all of any unit of appropriation within the council appropriation to any other council unit of appropriation for any of its programs or projects or for any other purpose, solely by adoption of a council resolution. Each such transfer shall be published in the City Record and written notice thereof shall be given to the mayor and to the comptroller not less than ten days before the effective date thereof.
5. The procedures and required approvals pursuant to sections two hundred fifty-four, two hundred fifty-five, and two hundred fifty-six, without regard to the dates specified therein, shall be followed in the case of: (1) any proposed amendment to the budget respecting the creation of new units of appropriation, or (2) the appropriation of new revenues from any source except for revenues from federal, state or private sources in regard to the use of which the city has no discretion; provided, however, that the mayor shall give notice to the council of the receipt and proposed utilization of any such revenues, or (3) the proposed use by the city of previously unappropriated funds received from any source. Any request by the mayor respecting an amendment to the budget that involves an increase in the budget shall be accompanied by a statement of the source of current revenues or other identifiable and currently available funds required for the payment of such additional amounts.

Section 108.

Section 108. [Detailed quarterly accountings.]

The council shall be required to publish quarterly accountings of its actual and planned expenditures, in sufficient detail to indicate the positions and their purposes which have been funded, as well as the activities and categories of materials and supplies purchased.

Section 109.

Section 109. General fund.

All revenues of the city, of every administration, department, board, office and commission thereof, and of every borough, county and other division of government within the city, from whatsoever source except taxes on real estate, not required by law to be paid into any other fund or account shall be paid into a fund to be termed the “general fund.”

Section 110.

Section 110. Expenditure reports.

Any public or private agency, authority, corporation, board or commission which receives city funds and is not otherwise subject to the requirements of section one hundred six of this chapter shall submit quarterly reports of the expenditure of such funds to the mayor in such form and detail as the mayor may prescribe.

Section 111.

Section 111. Self-dealing among members of the governing boards of charitable institutions.

1. Any charitable institution which receives any payment from the New York city charitable institutions budget shall pass and implement by-laws which will:

   1. Require disclosure to the agency responsible for the administration of charitable institutions budget and approval by such agency of the material terms of any contract or transaction, direct or indirect, between an institution and any member of its governing board, any partnership of which he or she is a member or any corporation in which he or she holds ten per cent or more of the outstanding common stock.

   2. Preclude any member of the governing board of any institution from sharing, participating or benefiting, directly or indirectly, in the proceeds from any contract or transaction entered into between the institution and any third party unless such participation or benefit has been approved in advance by the agency and the governing board of the institution has approved the transaction by a two-thirds majority excluding the vote of member to be benefited.

   3. Require each member of its governing board to submit to the agency each year a disclosure statement including such member’s name, home address, principal occupation and business interests from which such member or such member’s spouse or domestic partner received income equal to or greater than ten per cent of their aggregate gross income during the previous year.

2. At the discretion of the agency, any payment or any portion of any payment may be withheld from any institution which has failed to pass and implement such by-laws.