Tuesday, June 9, 2026, 10 a.m. (New York City time), Council Chambers - City Hall
Committee: Committee on Finance
The Finance Committee held its final executive budget hearing of the day, first questioning Department of Finance Commissioner Richard Lee and his team on the FY2027 executive budget, and then hearing from the Independent Budget Office. Topics with DOF included property tax reform, the paused tax lien sale and land bank, outstanding debt collections (including the $9 million Amazon idling violations recovery), a ten-year miscalculation of Section 1127 waivers for non-resident City employees, the pied-à-terre surcharge, co-op/ condo abatement compliance, deed fraud prevention, and the mayor's racial equity plan. The IBO testimony covered the late state budget, class size law costs, childcare voucher shortfalls, pension costs, federal cutbacks to SNAP and the Essential Plan, and a recent Fair Fares expansion report. The chair noted public testimony would be held the following day.
0:01 Did sound tech stuff with my
0:01 church back in the day.
0:05 So fun packs. Are you guys
0:11 ready
0:12 ? Hello, commissioner Lee and
0:14 young xingu. Okay. Sorry if,
0:17 um, okay, so welcome to our
0:20 third hearing of today I'm
0:22 Council Member Linda Lee. T
0:25 oour familiar.
0:27 Face commissioner richard
0:28 Lee and your team. Thank you
0:31 all for joining us today to
0:33 answer our questions and as a
0:35 reminder. My usual before each
0:37 section of the hearings we're
0:39 doing all day public day
0:42 testimony tomorrow starting at
0:42 9 30, so make sure you sign u
0:44 p, have folks sign up public
0:46 testimonies all day tomorrow
0:47 starting at 9 30 a. M.
0:50 So I think that's actually
0:51 it on my part. I'm just happy
0:53 to see you here and we got to
0:57 lease cheering
0:57 . Leave no relation brother
0:58 from another mother. So I'm
0:59 very excited. Okay. Sorry
1:02 . That's right. Yeah. Okay, so
1:03 I'm going to pass it off t
1:05 obrian software all our amazing
1:07 committee counsel to admit
1:09 you're the youth. Good
1:12 afternoon. Do you affirm t
1:13 otell the truth, the whole
1:14 truth and nothing but the
1:15 truth before this committee.
1:17 And to respond honestly t
1:19 ocounsel member questions
1:20 commissioner Lee. I do, deputy
1:25 commissioner share I do and
1:25 deputy commissioner James, you
1:31 begin. Okay. Good afternoon, a
1:33 chair, Lee three members of
1:35 the finance committee, members
1:36 of the City Council. My name
1:37 is richard Lee. I am the
1:38 commission of the New York
1:39 City department of finance.
1:41 Thank you for the opportunity
1:42 to testify today on fiscal
1:45 year 20 27 executive budget. I
1:47 to my left and jacquelyn James
1:52 , our chief financial officer
1:55 and deputy commissioner for
1:56 administration and planning t
1:57 omy.
1:57 Right. I am grateful for
1:58 their leadership and their
1:59 deep commitment to this agenc
2:01 y. Um, this is my first
2:03 opportunity to appear before
2:04 you as commissioner.
2:07 I am honored to lead an
2:07 agency that plays a central
2:08 role in the life of the City
2:10 ,the department of finance
2:12 collects the revenue that
2:13 makes the City government
2:16 possible. We assess more than
2:17 1 million properties
2:18 administer tax benefits and
2:19 relief programs collect taxes
2:21 and other charges adjudicate
2:23 parking summonses record
2:24 property documents and t
2:25 oprovide services that touch
2:28 homeowners, renters, small
2:28 businesses and many others
2:31 collects more than 50 billion
2:32 in taxes and other revenues in
2:34 50 fiscal year 20 25 alone
2:38 since joining the I have been
2:39 struck by the expertise and
2:40 dedication of the people who
2:42 work here have also been clear
2:44 with our agency staff about
2:45 the people who were about the
2:49 values that I want to guide
2:49 our work fairness, customer
2:52 service, clarity and accuracy,
2:54 New yorkers interact with the
2:56 because they have an
2:57 obligation, a question or
2:59 problem that they might find
3:02 unpleasant. It is our duty to
3:02 ensure that those interactions
3:03 are as helpful and efficient
3:05 as possible since our
3:07 preliminary budget testimony
3:08 in the off has advanced
3:10 several important priorities
3:12 for this administration first
3:13 we completed a comprehensive
3:14 review of this city's
3:15 collection of debt that
3:19 includes unresolved violations
3:20 issued by several agencies
3:22 that have become judgments and
3:24 have been referred to deal
3:24 with for collection. Following
3:27 that review the cit
3:28 ysuccessfully recover more than
3:30 $9 million from amazon for
3:32 unpaid idling violations a
3:33 nimportant example of what it
3:34 means to enforce the city's
3:35 lost fairly and effectively
3:39 ,just as important. This review
3:39 has given us a clear
3:40 understanding of how we can
3:42 strengthen collections going
3:43 forward. This includes
3:45 improving coordination across
3:46 agencies using data more
3:48 efficiently and identifying
3:50 cases where enforcement can
3:51 produce meaningful results
3:55 . Will continue to build on
3:55 this work, including an
3:57 amnesty program in y 27 upon
4:00 authorization by the council
4:03 . Second half has identified
4:04 and implemented both
4:05 operational and tax
4:06 expenditure savings totally
4:07 more than $22 million in the
4:09 current fiscal year and $29
4:11 million in fiscal year 27 at
4:14 atime of significant fiscal
4:16 pressure deal remains focused
4:17 on protecting the city's
4:18 revenue base and that public
4:20 dollars are used as intended
4:24 .third iowa issued the final
4:25 property tax roll, reflecting
4:27 evaluation of more than
4:29 properties and supporting the
4:31 city's single largest source
4:35 of revenue
4:35 . This work is highly
4:36 technical but underpins the
4:37 property tax system and the
4:38 services New yorkers rely on
4:40 every day we have.
4:41 Also supported several major
4:43 administration priorities
4:44 sense Mayor mamdani
4:45 established the mayor's office
4:47 of deep theft protection led
4:48 by peter white, the city's
4:51 first office dedicated to
4:53 coordinating prevention
4:54 ,outreach, enforcement and
4:54 victim support related to the
4:58 theft, the New office will
4:59 coordinate work of the City
4:59 records office, the sheriff's
5:01 office and various other
5:04 divisions while also providing
5:05 New services and resources t
5:06 ovulnerable New homeowners we
5:09 look forward to continuing our
5:10 partnership with City Hall law
5:11 enforcement, the courts
5:13 elected officials and
5:16 community partners
5:17 . The administration has also
5:18 brought on New leadership,
5:18 I'll mark. Editor has been
5:21 appointed to lead the mayor's
5:23 office of pension investments,
5:25 mopey Mayor mamdani has also
5:28 appointed edwin raymond as a
5:28 New sheriff of New York City,
5:30 the sheriff's office carries
5:33 our critical civil and
5:34 judicial enforcement
5:35 responsibilities and we're
5:36 grateful for sherif raymond as
5:38 he assumes leadership of the
5:40 . Office. Looking ahead, we
5:41 have several priorities for
5:42 the coming year. The first as
5:44 always, is the efficiency of
5:45 our own operations 2
5:50 7executive budget this is a
5:52 slight change from the
5:54 preliminary budget and
5:55 reflects the savings that are
5:59 referenced earlier. We are I
5:59 nthe process of on boarding 50
6:01 auditors to strengthen tasks
6:03 for text enforcement and
6:04 ensure that the city's laws
6:06 are administered with fairness
6:09 and accountability an
6:09 effective tax audit and
6:10 enforcement division is
6:11 central to our mission and
6:13 this investment underscores
6:14 the administration's
6:14 commitment to efficient
6:18 revenue collection.
6:18 As a result of this
6:19 initiative as well as better
6:20 retention of existing auditor
6:22 s. The projection for the auto
6:23 revenue has been increased by
6:25 $50 million for fiscal year 2
6:28 7, will continue to work with
6:29 the council on the creation of
6:30 the land bank and a New shared
6:32 vision for a property tax
6:33 enforcement as the council
6:35 knows the Mayor paused the tax
6:36 code 420 26 to allow for a
6:41 comprehensive review of next
6:41 steps there pause gives us an
6:43 opportunity to think about, I
6:44 think carefully about the
6:46 tools the City should have to
6:48 resolve delinquency, protect
6:50 homeowners and support
6:54 neighborhoods. Stability will
6:54 also take the lead
6:55 implementing the proposed
6:56 surcharge, which was included
6:57 in the recently passed New
6:59 York state budget close the
7:00 city's budget gap while
7:01 protecting core services.
7:05 And finally we'll continue
7:05 to improve how we communicate
7:07 with and serve New yorkers
7:10 whether someone's applying for
7:10 a property tax exemption,
7:11 making a payment contesting a
7:14 parking ticket recording a
7:15 deed or trying to resolve debt
7:17 they deserve a process that is
7:19 clear, accurate, accessible
7:23 and respectful.
7:23 In closing. I want to thank
7:24 the council for your partner
7:25 and oversight. I know you
7:26 share a commitment t
7:28 oadministering the city's tax
7:30 laws and revenues laws fairly
7:32 collecting what is owed,
7:33 connecting New yorkers to help
7:34 when they need it and
7:35 improving the experience of
7:37 every New yorker who comes t
7:38 otheir City government for
7:41 assistance. Oh, thank you very
7:42 much and I'm having to answer
7:43 any questions that you might.
7:45 Have.
7:45 Great, great forgot to make
7:46 you been joined by deputy
7:48 speaker Williams, a whip.
7:52 Hank's councilmember Brewer
7:52 Council Member melanie and
7:55 Council Member um, and sorry I
7:57 was getting a little teary
7:58 eyed hearing you testify? I'm
8:01 sorry, because I'm very proud
8:01 of you. I just want to say
8:02 that again. So I'm getting a
8:03 little emotional. Sorry about
8:06 that, but, yes, very proud of.
8:09 You ha ha. Okay, property
8:11 tax reform.
8:11 With that, we'll get into
8:16 questions. Do.
8:17 Hmm. Oh, boy. Okay. Um, so
8:19 property tax reform and
8:20 something we've all talked
8:22 about before has been promised
8:23 by Mayor after Mayor, but
8:25 nothing has happened and
8:26 fundamentally, everyone
8:30 believes that it needs to be
8:32 reformed, and this obviously
8:33 lies with your agency and you
8:35 have a lot of the key data and
8:37 expertise that will be
8:38 required to develop a workable
8:41 solution a months ago, this
8:42 administration said it would
8:43 form a plan that would be
8:45 released within weeks and s
8:46 ojust wanted to know when we
8:48 tell us a what it or not look.
8:56 Like, um so Mayor rahm donny
8:57 has been long clear about the
9:01 importance of property tax
9:02 reform and fixing the
9:03 inequities in our system
9:06 .that's why we're busy at work
9:06 right now to craft their
9:09 proposal is going to largely
9:10 built off of their
9:12 recommendations from the
9:13 adviser commission on property
9:15 tax.
9:15 Reform, which clearly lays
9:16 out a lot of these structural
9:17 reforms that are needed to
9:18 make the system more equitable
9:20 , less aggressive and more
9:23 transparent, and this is
9:24 looking at it from a holistic
9:24 view how the impacts of one
9:26 class and changes to one class
9:27 of one type of property are
9:29 going to impact, um, building
9:31 types and the property types
9:32 and other classes. How if we
9:34 move the class to collapse and
9:36 condos to a different system.
9:38 How that our impact. The small
9:39 rental, large rentals,
9:42 commercial properties. So
9:43 we're looking at this very
9:44 holistically and we're
9:44 hopefully be able to do this
9:45 in the next star state session
9:47 . In an eight next state
9:47 session. Okay? We're just
9:49 consistent with awe and b had
9:50 mentioned as well
9:52 . And as we know it definitely
9:54 impacts the outer boroughs in
9:56 certain parts like I don't
9:57 count deputy speaker Williams
9:58 talks about this a lot in
9:59 southeast queens. So.
10:03 Et me, do you believe that
10:04 real tax reform can be done on
10:06 the local level or I'm
10:07 assuming I know the answer,
10:08 but or does it need state
10:13 action, though, because you
10:14 have to wait till the next
10:14 state, so yeah, we believe
10:17 that the reform they're
10:19 necessary steps to get to
10:21 final and the best status of
10:23 reform will be a state
10:24 legislative changes. Okay
10:28 ,we're holding you to that.
10:29 Okay, so for savings that are
10:30 a number of savings that were
10:31 taken as part of the directed
10:33 savings plan from executive
10:36 order 12 and this includes a
10:38 compliance ot savings savings
10:40 start credit changes in a
10:43 vacancy reduction. These all
10:44 provide savings of 22 million
10:45 in f y in f 27. There is a in
10:52 savings for f y 26. Can you
10:54 please explain where the
10:55 savings are coming
10:57 . From short so that reflects
10:59 the department of 1.5 savings
11:03 target related soon to the Chi
11:04 savings officers targets for
11:07 hundred 26 a lot of it
11:08 reflects the timing
11:08 adjustments for when we wer
11:09 eable to bring on New hires and
11:10 implement some of the pro
11:11 grams that were previously
11:15 added map or to have our chief
11:17 financial officer director
11:18 James maybe add a little.
11:19 Bit it. It had to do with
11:21 some programs that we've got
11:21 funded for early and begin of
11:23 the year and it did not get
11:24 implemented until like six
11:25 months later. So those were
11:26 statements we were able t
11:27 ooffer up to lumbee.
11:30 Okay. Um, okay. And there is
11:31 a baseline reduction of 12
11:33 positions from doha for
11:34 savings of starting an f way
11:37 26. What are these physicians
11:38 and we'll deal with the publi
11:43 c
11:44 . So we work closely with one
11:45 b to identify the vacancies
11:47 that were reduced without
11:49 impacting any operations on
11:51 customer service or revenue
11:54 collections. These are all non
11:55 revenue generating manageria
11:56 lpositions and we're working
11:58 internally to absorb the the
12:01 workload. Okay. Um
12:02 . And we're also going to see
12:04 13 million per year in
12:05 additional revenue from coop
12:08 condo mailings, can you please
12:09 explain the source of the
12:10 revenue and how it will impact
12:11 cop condo residents.
12:12 Yeah. So the co op and condo
12:14 bateman is limited to primary
12:16 resident union holders and
12:20 using the latest available
12:21 income tax information deal
12:24 with tax policy identified a
12:26 certain subset of the
12:27 population of recipients that
12:28 not actually qualify as
12:31 primary residence and so d'oh!
12:32 I've sent out notices
12:33 requesting proof of residency.
12:35 The estimate that you
12:36 mentioned the 13 million I
12:38 sthe projected result of that
12:40 notification, including
12:42 anticipate owners who would
12:42 work with us to re establish
12:44 or prove residency status as a
12:47 result of those mailings, um,
12:49 through this initiative. We
12:50 are that the part of the
12:53 program is targeting the
12:54 owners as intended to assist
12:57 . Okay and then moving on t
13:00 oviolations we discussed
13:02 violations and outstanding
13:03 debt at length and we were
13:04 happy to see one of the first
13:05 one of your first action does
13:07 commissioner was to announce a
13:08 30 day review to increase
13:09 collections of outstanding
13:12 debt a me. And this has been
13:13 an important issue for the
13:14 council, as you know, in