General Election
New York CityProposal 5
Rainy-day reserves
Adds a reserve target, a process for calculating deposits and a city-law withdrawal limit aligned with state law.
What changes
3 provisions1Reserve target
Set a target of at least 12% of the preceding fiscal year’s tax revenue, counting the rainy-day fund and other reserve funds identified in the methodology.
Reserve target
Set a target of at least 12% of the preceding fiscal year’s tax revenue, counting the rainy-day fund and other reserve funds identified in the methodology.
Today
There is no specified charter target for the amount held in reserves.
What stays in place
The methodology can determine that no deposit is required.
When: Upon certification of voter approval
Conditions and exceptions
- This is a balance target, not a requirement to deposit 12% of annual revenue every year.
2Deposit methodology
Require a published calculation method considering revenue trends, operating surplus and other relevant factors; update it by May 1, 2030 and at least every four years thereafter.
Deposit methodology
Require a published calculation method considering revenue trends, operating surplus and other relevant factors; update it by May 1, 2030 and at least every four years thereafter.
Today
Deposits depend on annual budget decisions without this required methodology.
What stays in place
Budget appropriations still govern deposits. OMB prepares the methodology in consultation with the Comptroller, with public notice and a hearing.
When: First methodology: 2027-05-01; annual deposit provision applies from fiscal years beginning 2027-07-01
Conditions and exceptions
- The methodology may allow no deposit in a year; reaching the target is not an immediate appropriation.
3Withdrawal limit
Add the corresponding 50% annual withdrawal limit to the charter.
Withdrawal limit
Add the corresponding 50% annual withdrawal limit to the charter.
Today
State law already limits withdrawals without a mayoral fiscal-need certification.
What stays in place
Withdrawals still follow the expense-budget adoption or modification process.
When: Upon certification of voter approval
Conditions and exceptions
- The mayor may certify a compelling fiscal need to exceed 50%.