Originally published in Issue 2 - Feb 12, 1997

Federal Budget: NYC Impact

President Clinton's $1.7 trillion 1998 federal budget proposal would increase spending for several major programs benefitting New York City, according to a preliminary IBO analysis.

Approximately 13 percent of the City's budget - over $4 billion per year - is comprised of federal grants. State and community programs are also supported by millions of dollars in additional federal funds. The effects of federal assistance are particularly marked in social services, education, housing, and health.

The IBO will monitor the federal budget as it progresses through Congress and report periodically on its City impact. Estimated funding levels for major City programs are as follows. (Numbers are the estimated City allocations of proposed federal FY 1998 funds as compared to current year appropriations.)

ProgramFY 98 RequestIncrease (+) or Decrease (-) from FY 97Program Description
Head Start$138 million+ $11 millionProvides educational, nutritional, and social services to pre-school children in low-income areas.
Ryan White
AIDS Funds
$98 million+ $1 millionProvides direct funding for cities to provide HIV/TB housing as well as health care and supportive services to people living with HIV/AIDS.
Home Energy
Assistance Program
$21 million+ $1 millionProvides heating subsidies to poor New Yorkers, primarily low-income elderly persons and families with young children.
School ConstructionNew Programn/aProposal for a one-time nationwide $5 billion appropriation to help localities pay interest costs associated with school construction and renovation.
Title 1$445 million+ $21 millionProvides funds for improving the teaching and learning of children in high-poverty schools; schools determine how resources will be spent.
Bilingual and Immigrant Education$32 million+ $6 millionFunds school districts to assist children with limited English proficiency to learn English and meet educational standards and offers aid to districts with increasing immigrant enrollments.
Community Development Block Grant$229 millionno changeBenefits low and moderate income persons, prevents or eliminates slums and blight, and meets urgent needs; 75 percent of City CDBG funds are targeted to housing and homelessness.
HOME Investment Partnership Program$86 million- $3 millionLeverages private financing for creating and rehabilitating low and moderate income housing.
Housing Opportunities for Persons with AIDS(HOPWA)$44 million+ $2 millionProvides resources and incentives to devise long-term comprehensive strategies for meeting the housing needs of persons with AIDS and their families.
Public Housing Operating Funds$536 million+ $15 millionUsed for the operating costs of public housing.
Public Housing Modernization$350 million- $5 millionUsed for capital maintenance of public housing units.