The City of New York

For Immediate Release
February 2, 1998
Contact: Paul Greaves
(212) 442-8614



The $1.7 trillion federal budget for 1999 proposed today by President Clinton would result in increases for various major programs affecting New York City, according to a preliminary analysis by the New York City Independent Budget Office (IBO).

"Federal grants constitute about 12 percent of New York City's budget, or over $4 billion a year. Millions of dollars in additional federal funds also support community and State programs. The impact of aid from Washington is significant on the lives of New Yorkers and is especially felt in the areas of social services, education, housing and health. The IBO will monitor the federal budget as it progresses through Congress and will periodically report on its impact on the City," said Douglas A. Criscitello, IBO Director.

Some of the estimated funding levels for major City programs are as follows (numbers are estimated City allocations of proposed federal FY 1999 funds as compared to current year appropriations):


Child Care Development Fund - new initiative

The President's budget requests a five-year expansion of child care programs. The President's proposal would increase funding for the Child Care Development Fund by $7.5 billion over five years, enabling states to provide child care subsidies for more than 2 million children nationwide by 2003. Funding allocations for the state and city have yet to be determined.

Head Start - $145 million (increase of $9 million)

Designed to prepare children for elementary school in target areas that are 150 percent to 181 percent below the poverty line, Head Start is administered by the Agency for Child Development (ACD). Head Start provides a wide range of educational, nutritional and social services, in a classroom setting, to low-income pre-school children and their families.

Ryan White AIDS Funds - $103 million (increase of $5 million)

Title I of the Ryan White Comprehensive AIDS Resources Emergency (CARE) Act --- Emergency Relief Grants to Eligible Metropolitan Areas -- provides direct funding to municipalities such as New York City to provide HIV/TB housing as well as health care and supportive services to people living with HIV/AIDS. Also, a portion of the City's allocation is given to the State for its reimbursement pool that provides, drugs, primary health care and home care for uninsured people living with HIV/AIDS.

Home Energy Assistance Program - $23 million (increase of $2 million)

The Low Income Home Energy Assistance Program (HEAP) provides heating subsidies to poor New Yorkers, primarily low-income elderly persons and families with young children. HEAP funds are dispersed directly to qualified clients through the Department of Social Services and the Department of Youth and Community Development; the City also allocates funds to the Department for the Aging to refer elderly clients to HEAP.


Class Size Reduction and Teacher Financing - new program

The President has proposed a new program to help reduce class sizes in the early grades when children need the most attention in learning to read proficiently. The budget requests about $1.1 billion in 1999 and proposes total spending of $7.4 billion over the next five years.

Title 1 - $501 million (increase of $37 million)

The purpose of the Title I program is to improve the teaching and learning of children in high-poverty schools. Schools decide how to spend their Title I resources and have the authority to combine these revenues with others to support comprehensive reform through schoolwide programs.

Bilingual and Immigrant Education - $38 million (increase of $3 million)

Bilingual education aid helps school districts assist children with limited english proficiency to learn english and meet educational standards. Immigrant education aid is awarded to those districts with increasing immigrant enrollments. These funds can be used for any expenses incurred to educate these students.


Community Development Block Grant - $237 million (increase of $16 million)

There are three general objectives for the use of CDBG funds: 1) to benefit low and moderate income persons; 2) to prevent or eliminate slums and blight; and 3) to meet urgent needs. Although about 80 percent of the funds in New York City are targeted to housing and homeless programs, these funds are also used for economic development activities, landmarks preservation and cultural affairs, and neighborhood planning.

HOME Investment Partnership Program - $131 million (increase of $34 million)

The City uses HOME funds combined with City funds to leverage private financing in creating and rehabilitating low and moderate income housing. HOME funds are generally used for substantial and moderate rehabilitation, homeownership, new construction, and administration and planning.

Housing Opportunities for Persons with AIDS - $47 million (increase of $3 million)

HOPWA provides 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 - $604 million (increase of $6 million)

Operating subsidy payments are provided to assist the New York City Housing Authority (NYCHA) in the operation of public housing. These funds offset the difference between the rent payments that residents pay and the operating costs that NYCHA incurs.

Public Housing Capital Fund - $352 million (increase of $7 million)

This fund is designed to respond to the capital and management improvement requirements of public housing, including modernization of existing public housing and capital technical assistance.

The Independent Budget Office was established pursuant to the New York City Charter to provide expert, nonpartisan analysis to both elected officials and the public on relevant fiscal and budgetary issues facing New York City.

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