Throughout the budget debate, public discussion was too often hampered by misunderstanding of some key budget realities. Were cuts needed, given there eventually was more money available and some cuts were restored? And what about all that discussion of the accuracy of the budget estimates? 

CBC’s new chartbook fact checks five common myths about the City’s budget and corrects the record on these relatively common and inaccurate perceptions:

MYTH 1 — The Budget Cuts Were Not Necessary

FACT — Absent the PEGs, FY 2025 Would Have a $4.7 Billion Gap 

MYTH 2 — Most of the Budget Cuts Were Restored

FACT — Just 7.3 Percent of the PEGs Were Restored 

MYTH 3 — The Budget Includes Enough Money to Pay for Current Service Levels 

FACT — The Budget Is Short $2.6 Billion This Year and $3.3 Billion in Each Future Year to Support Current Services

MYTH 4 — Out-Year Budget Gaps Are Relatively Easy to Manage

FACT — Reported Gaps Are Understated and Likely Exceed $9 Billion a Year

MYTH 5 — FY 2024 Ran a $4.4 Billion Surplus 

FACT — FY 2024 Needed $1.1 Billion in Prior-Year Revenues to Cover its Obligations

Read the Myths and Facts Chartbook