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Housing Authority Breaks Down Budget as Threat of Future Cuts Loom

Thursday, June 02, 2011

New York City Housing Authority Chairman John Rhea broke down the fiscal budget during a City Council hearing Thursday — saying the 2011 budget is balanced but the fate of the 2012 budget rests in the hands of Congress.

Here’s the breakdown:

  • 68 percent of the budget will be used for operating expenses
  • 32 percent will be paid to private landlords under the Section 8 program.

The operating budget makes up a majority of the 2011 budget.

  • 38 percent ($1.2 billion) will be used for Personal Services, such as maintenance, elevator modernization and interior repairs. It also includes workers salaries, pension and health benefits.
  • 62 percent ($1.9 billion) will be used for items Other than Personal Services (OTPS) including utilities, leases and contracts, painting and fire safety.

Although NYCHA estimates it would cost $500 million to make interior repairs to all city apartments, the agency has allocated $31 million over five years from their capital budget to work on backlog of interior apartment repairs, allocating $11 million for 2011.

NYCHA said its ability to balance the 2011 budget without laying off workers was because of the $42 million it received from the Obama administration's budget. But NYCHA stands to lose $200 million from its 2012 budget under current negotiations that could result in cuts to 3,000 direct service employee positions. 

Other consequences of budget cuts could mean 69,000 apartments going without basic repairs, a reduction in community programs, contract renegotiations or larger transfers of funds from the capital budget to the operating budget.

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Comments [1]

John Doe from New york City

Chairman Rhea should reveal how much money is being paid to private consultants and for what services.

Jun. 04 2011 10:37 PM

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