Thursday, June 4, 2026, 10 a.m. (New York City time), Council Chambers - City Hall
Committee: Committee on Finance
0:00 Want to say we really
0:00 appreciate the fact you guys
0:01 printed so many copies for us,
0:03 and that goes a long
0:05 . Way. Welcome, commissioner
0:07 aaron dalton and your team and
0:08 thank you all for joining us
0:11 today to answer questions on
0:13 May 12 2026, the
0:14 administration released the
0:16 executive financial plan for f
0:17 I 26 2 30 with a proposed 2
0:20 7budget $124.7 billion hr is
0:24 proposed fiscal 27 budget of
0:28 represents 11.7% of the
0:30 administration's proposed a 2
0:32 7budget in the executive plan
0:34 and this is a decrease of or
0:36 point 2% from the originally
0:41 budgeted in the 27 preliminary
0:45 plan. This decrease results
0:46 from several actions, mostly
0:47 City effects cost containment
0:49 plans and cash assistance re
0:50 estimate savings as of April
0:52 26, it jury's actual head
0:53 count is 10810 and budget head
0:57 count is 12445 wit ah vacancy
1:00 rate of 13.1% proposed 2
1:04 7budget of represents 3.4% of
1:08 the administration's proposed
1:10 27 budget and this is a
1:12 8.9% from the originally
1:19 budgeted in the f a 27
1:22 preliminary plan. This
1:23 decrease results from several
1:24 actions, including the shelter
1:25 cost containment plan, a re
1:27 estimate to project costs for
1:29 the asylum seeker response and
1:30 the elimination of 183
1:31 positions at the as of April
1:36 26 justice actual head count
1:37 is 1616, and the budget had
1:41 account is 2021, a vacancy
1:43 rate of 20% in the counsel's
1:46 preliminary budget response we
1:47 called on the Mayor to add 8
1:51 21 million 2 juries budget t
1:52 oinvest in fair fares to more
1:55 accurately budget for hossa
1:56 emergency shelters and to
1:57 baseline one time funding
1:58 added in fiscal 26, only for
2:02 housing stability, micrograms
2:05 for impacted individuals. The
2:06 anti harassment tenant
2:07 protection legal services
2:09 program and to continue
2:10 funding the legal services
2:12 pilot for survivors and
2:15 divorce proceedings. We were
2:16 pleased to see that a request
2:16 was partially included in the
2:17 plan with more than half of
2:19 our totalundi fng request for
2:21 f being included and baseline
2:23 in the out years. However, we
2:25 continue to hear the same
2:26 contracting issues from human
2:29 service providers as a forme
2:30 rof a community based
2:31 organization. I'm all too
2:32 familiar with the struggles
2:33 providers face when
2:34 reimbursements are not made in
2:36 a timely manner delayed
2:38 reimbursements. Put those in
2:39 difficult positions where they
2:40 end up scrambling to make
2:41 payroll and ensure that
2:43 services do not get disrupted
2:46 in addition to delays and
2:47 reimbursements to providers
2:48 have experienced stagnant
2:50 reimbursement rates frequent
2:51 changes in contracting steps
2:52 and approvals and few
2:54 opportunities to expan
2:55 dservices and funding these
2:57 issues on top of vo those
2:58 losses of federal dollars post
3:01 further challenges t
3:02 oorganizations that serve the
3:04 most vulnerable residents of
3:05 our City. I look forward to
3:07 hearing from you, commissioner
3:08 on how will help human
3:11 resources, human resources
3:13 providers and our most
3:13 vulnerable residents through
3:15 these challenges now and in
3:15 the years to come and I now
3:18 want to turn to my co chair of
3:20 this hearing chairman chair
3:21 and Council Member Hudson for
3:23 her opening statement. Thank
3:24 . You so much chair Lee and
3:26 good morning. I'm Crystal
3:27 Hudson of the general welfare
3:28 committee and my pronouns or
3:31 she her? Thank you for joining
3:32 us for the fiscal 20 27
3:34 executive budget hearing for
3:35 the general welfare committee.
3:37 We will hear from to agencies,
3:39 the human resources
3:40 administration, or h and and
3:41 the department of homeless
3:44 services testifying under the
3:45 umbrella of the department of
3:46 social services, or I'm
3:49 pleased to be here with my
3:50 colleague, chair of the
3:51 committee on finance council
3:53 member Linda Lee, city's
3:54 proposed fiscal 20 2
3:56 7executive budget totals $124.7
4:00 billion, of which or 15.1%
4:06 funds, making it the secon
4:07 dlargest agency budget after
4:08 the department of education
4:11 .this encompasses $14.6 billion
4:18 for 4. Two to billion for
4:19 . There were notable changes
4:20 made in the executive plan for
4:21 both agencies saw New needs
4:22 totaling 234 to me $235.4
4:27 million in fiscal 2027
4:29 ,growing to approximately $263
4:32 million in the out years for
4:35 several programs, including
4:35 domestic violence, shelters,
4:38 legal services, fair fares and
4:39 agencies staffing due to the
4:41 savings mandates and vacancy
4:42 reductions required by the
4:44 Mayor mayor's executive order
4:49 $1275.2 million in savings and
4:50 fiscal 2027 and $274.1 millio
4:55 nin savings baseline starting
4:57 in fiscal 20028, the largest
4:59 savings will be achieved in
5:00 the City thefts program
5:01 through a containment pla
5:05 nonly saw New needs in fiscal
5:06 20 26 with $72.7 million added
5:10 for operational costs at
5:11 contract and shelter providers
5:12 and maintenance of it programs
5:17 . Executive plan include
5:17 dsavings of $356.7 million I
5:20 nfiscal 20 27, largely from a
5:23 shelter cost containment plan
5:24 with the level of savings
5:25 decreasing in the out years.
5:28 The council's budget response
5:29 called on the administration
5:30 to restore baseline one year
5:32 funding included in fiscal
5:35 2026, only for joint
5:35 priorities, and I was glad t
5:36 osee that the administration.
5:39 Baseline, $25 million starting
5:40 in fiscal 20 27 to support
5:42 their fares as well as
5:43 baseline funding for legal
5:46 services, housing stability
5:46 micro grants for domestic
5:48 violence impacted individuals
5:49 and to continue the legal
5:50 services pilot for and divorce
5:55 proceedings.
5:55 Well, I know all agencies
5:56 were under a mayoral mandate
5:58 to generate savings. I'm
5:58 concerned about how the
6:00 vacancy reductions, which
6:00 eliminated 183 positions at
6:03 and 79 positions at impact the
6:07 agency's ability to maintain
6:08 their current level of
6:09 services at a time when they
6:10 are more needed than ever. I'm
6:13 also concerned about the areas
6:13 where the budget not
6:15 adequately support the
6:16 sential programs
6:17 administered by and the
6:19 necessary level of staffing
6:20 required to provide clients
6:21 with services and a timely
6:24 manner well has been able to
6:25 improve the timeliness rates
6:26 for snap and cash assistance
6:28 applications denial rates have
6:29 increased, which is especially
6:31 troubling given the recently
6:32 implemented federal work
6:35 requirements
6:35 . We've still been hearing
6:36 that is very difficult to get
6:37 through to by phone and that
6:40 clients are experiencing very
6:40 long wait times at centers
6:43 while is shelter. Census has
6:45 decreased slightly in the past
6:47 few months it remains above
6:50 80000 placements into
6:50 subsidized housing must be
6:51 accelerated in order to
6:53 significantly decrease the
6:53 number of people living in our
6:54 cities shelter system programs
6:57 such as City flaps are more
6:58 important than ever, and the
6:59 best way to move long term
7:02 shelter residents into stable,
7:03 permanent housing
7:03 . However, this program is
7:05 still challenging for many to
7:06 access on top of the
7:07 difficulty of finding
7:08 affordable housing in a very
7:11 expensive City. I'm concerned
7:12 the City febreze cos
7:12 tcontainment savings impact and
7:14 further delay and already time
7:16 sensitive application process
7:18 for clients in today's hearing
7:19 we look forward to discussin
7:20 gadjustments made in the
7:21 executive plan, including New
7:24 needs and the vacancy
7:25 reductions in.
7:25 Savings. It is the council's
7:26 job to carefully review the
7:28 budgets and operations of City
7:29 agencies to ensure that we are
7:31 good stewards of public
7:31 dollars and that we are
7:33 providing our city's most
7:34 vulnerable residents with the
7:35 services they need, and this
7:36 is a job I take very seriously
7:40 . Finally, I would like t
7:40 othank general welfare
7:41 committee staff for their work
7:42 on preparing this hearing.
7:44 Maria roman senior financial
7:46 analyst elizabeth shoulders
7:47 garcia senior financial
7:48 analyst julia paramus,
7:50 assistant director, a man t
7:51 okill owen, senior counsel
7:53 Pierina rosenberg senior
7:55 policy analyst Justin campos,
7:56 policy alystna brian scarfo
7:57 finance committee counsel, my
8:00 chief of staff andrew, right,
8:01 aleka ruined tan, senior
8:02 manager of policy and
8:03 communications and demi brown,
8:04 my deputy chief of staff and
8:06 now commissioner dalton, our
8:08 finance council will swear you
8:09 in. Thank you. Thank you. So
8:13 lquick housekeepingned by
8:17 announcement that I've been
8:18 making at every hearing, which
8:19 is that as a reminder. I see a
8:21 lot of our awesome nonprofit
8:24 provider, a staff who are here
8:26 today, so wanted to remind
8:28 everyone that we are having
8:29 all of the agency public
8:33 testimony testimony on
8:34 Wednesday, June 10 beginning
8:35 at 9 30, so all the City
8:37 agencies public testimony.
8:38 We're doing it all in one day
8:39 ,so it's going to be a long day
8:40 , but we'll try to make it as
8:41 interesting as possible and on
8:44 time as possible, so please
8:45 make sure to sign up for
8:47 public testimony on Wednesday,
8:50 June 10, and I will now turn
8:50 it over to our committee
8:51 counselors were in the
8:58 witnesses. Good morning. Do
8:58 you affirm to tell the truth,
8:59 the whole truth and nothing
9:00 but the truth before this
9:01 committee and to respond
9:03 honelyst to Council Member
9:04 questions commissioner dalton.
9:07 I do?
9:08 Administrator french. I do
9:11 administrator fellini, first
9:12 deputy garden garden. Okay. Uh
9:17 oh. Chief johns. I do an
9:27 officer, gonzalez
9:28 . You be Gale. Good morning
9:31 , I want to thank speaker
9:32 mennen chair chair, person
9:33 Hudson share personall
9:34 ymembers of the committee on
9:36 general welfarend m aembers of
9:37 the committee on finance for
9:38 holding today's hearing and
9:39 for the opportunity to testify
9:41 about the department of social
9:42 services fiscal year 20 2
9:46 7executive budget. My name is
9:47 aaron dalton, commissioner for
9:48 New York City department of
9:49 social services. I am joined
9:51 by human resources
9:52 administration administrator
9:53 scott french department of
9:55 homeless services interim
9:55 administrator christine
9:58 fellini, first deputy
9:59 commissioner's commissioner
10:00 sarah to guard chief program
10:03 performance off and financial
10:05 officer richard johns and
10:06 chief strategy officer Chris
10:08 gonzalez. Collectively we
10:10 represent approximately 12500
10:12 hardworking staff who dedicate
10:13 their lives to supporting New
10:15 yorkers living at or below the
10:18 poverty line as I approache
10:19 dmy first three months as
10:19 commissioner. I want t
10:20 oexpress my gratitude to the
10:22 dedicated staff as well as our
10:25 nonprofit providers advocates,
10:26 community partners and clients
10:27 who have helped me to better
10:29 understand the extraordinary
10:30 scope and complexity of New
10:31 York city's social safety net
10:34 since stepping into this role
10:35 I visited dozens of shelters h
10:37 r a benefits access centers
10:37 across the five boroughs
10:39 shadowed outrage, teams
10:40 working with New yorkers
10:42 experiencing straight
10:43 melessness and joint staff
10:44 and door to door outreach
10:45 efforts to help snap
10:47 recipients understand New
10:47 federal work requirements and
10:49 avoid losing critical benefits
10:51 these experiences have
10:52 deepened my appreciation for
10:53 both the challenges our
10:56 clients face and the
10:56 commitment of the people who
10:57 serve them every day.
10:58 I have these first months
10:59 listening and learning. And
11:00 while I've gained valuable
11:02 insight I recognize there's
11:03 much, much more to learn, and
11:04 I look forward to continuing
11:06 that work in partnership with
11:07 all of you
11:09 , I would like to take this
11:10 opportunity to express my
11:11 appreciation for the
11:11 conscientious leadership of
11:12 the New York City Council in
11:14 New York City Council as we
11:16 engage in the challenging
11:19 issues, addresses. I've had a
11:20 chance to meet with a number
11:21 of council members during my
11:21 time here and hear about the
11:23 successes, ideas and concerns
11:24 that impact your constituents
11:26 for those of you. I have not
11:28 engaged with directly. Yet I
11:29 look forward to that future
11:33 collaboration supporting
11:33 vulnerable populations trouble
11:34 , trouble shooting on the
11:35 ground challenges in
11:36 neighborhoods as they arise
11:37 and delivering social services
11:39 to New yorkers that meet the
11:40 high standards Mayor madonna
11:43 set out is consistently on my
11:43 mind and our work and in our
11:46 budget the topic at hand today
11:50 , is pleased to play a major
11:50 part in pursuing the whole of
11:52 government vision presented by
11:53 Mayor ma'am donny's housing
11:55 plan published last week
11:55 blocked by block the housing
11:56 plan for a New era alongside
11:59 our sister agencies, including
12:00 the department of housing
12:02 preservation and development
12:03 in New York City housing
12:04 authority, the department of
12:05 health and mental hygiene and
12:06 New York City health and
12:09 hospitals serves as a partner
12:10 in tackling the housing crisis
12:12 and uplifting the marriage of
12:13 a City more affordable for
12:17 working people contributions
12:18 to that comprehensive housing
12:19 strategy include investments
12:20 in technology and systems that
12:22 connect New yorkers
12:23 experiencing homelessness t
12:24 ohousing, streamlining the
12:27 support housing application
12:27 process pursuing reforms to
12:29 minimize the amount of time
12:30 people spend in shelter and
12:32 breaking down bottlenecks and
12:33 barriers crucial to housing
12:34 stability to better serve
12:38 clients.
12:38 As you know, through serves
12:41 approximately 3 million New
12:42 yorkers on any given day.
12:44 The consolidated management
12:45 structure and the shared
12:45 mission of the Eric agencies
12:48 provides an integrated
12:49 continuum of client services
12:50 that helps create a path t
12:52 osustainability for low income