FY-2027 - NYCERS Admin Budget - Details

Intro

On May 12, 2026, with the chaos of the Legacy Replacement Project hanging over their heads, the NYCERS trustees adopted the regular administrative budget for FY-2027. The total budget was a -4.22% decrease from the FY-2026 budget.

The PS amount went from $55.9 million to $54.9 million.

• The payroll was cut by $1.0 million by reducing overtime from $3.6 million to $2.6 million.
  
• Of course, that is a sham because NYCERS doesn't need $2.6 million for overtime, never mind $3.6 million.

The OTPS (non payroll) expenses were reduced by approximately $5.7 million from $92.3 million to $86.6 million mostly from the Tech - Modernization and Implemetation code.

• Contract Services cut from $33.3 million to $29.0 million
• Contigency Reserve cut from $5.5 million to $4.0 million

What was actually spent in FY-2025

NYCERS has a persistent habit of underspending its budgeted appropriations.

In FY-2025 NYCERS spent:

• $66.0 million on PS and fringe expenses but was appropriated $70.0 million, and
• $62.9 million on OTPS expenses but was appropriated $95.9 million.

This is a clear sign of sloppy budgeting and poor execution of plans. Of course, we already know that

Details on the OTPS Cuts

In response to whatever has been decided about the LRP project,
the Accenture LRP contract for FY-2027 was increased from $10.8 million to $17.7 million, and
the QA Vendor contract was kept steady at $1.4 million.
NYCERS is still looking at a publically unresolved project running out to FY-2030 without any published implementation plan.
You will notice below that NYCERS has cut the LRP Risk Consultant from the budget. What was that person doing all these years since 2021.

The following Items were cut completely from the FY-2027 budget

1. LRP Risk Consultant: $700K
2. Accountatnt: $417K
3. Server Consultant: $940K
4. Salesforce Developer: $762K
5. Java Developer: $500K
6. Tech Architect: $250K
7. Commo Consultant $500K

The following items were cut back in the FY-2027 budget

1. Gartner: $840K
2. Data Analysts: $250
3. Project Manager: $500K
4. Cobol Programmers: $2.5 million
5. Procurement Support: $187K
6. Server Engineer: $250K

History of NYCERS Admin Budget 1980-2027

Fiscal Year	F/T Count	P/T Count	College Aides / Hourly	PS Budget	OTPS Budget	Fringe	Total	% Increase
2027	506	26	10	$54,860,521	$86,623,375	$17,347,446	$158,831,342	-4.22%
2026	501	30	16	$55,860,520	$92,309,697	$17,663,655	$165,833,872	-0.13%
2025	485	30	16	$53,679,194	$95,900,865	$16,461,953	$166,042,012	0.05%
2024	485	30	16	$54,290,508	$98,040,138	$13,633,903	$165,964,549	13.37%
2023	485	30	16	$43,016,089	$90,436,500	$12,942,144	$146,394,733	7.92%
2022	474	27	16	$38,397,943	$85,531,063	$11,719,465	$135,648,471	37.94%
2021	438	27	16	$36,842,549	$50,210,145	$11,283,945	$98,336,639	7.10%
2020	438	27	16	$35,262,139	$45,862,557	$10,689,350	$91,814,046	4.97%
2019	428	35	0	$33,592,612	$43,532,302	$10,344,565	$87,469,479	39.44%
2018	411	35	0	$31,704,410	$21,832,718	$9,194,015	$62,731,143	3.55%
2017	401	35	0	$31,056,080	$20,916,796	$8,605,288	$60,578,164	4.81%
2016	392	35	0	$30,233,989	$19,407,619	$8,155,517	$57,797,125	4.70%
2015	392	5	30	$29,131,972	$18,154,572	$7,915,476	$55,202,020	3.68%
2014	383	5	30	$26,813,635	$18,761,240	$7,669,819	$53,244,694	2.18%
2013	380	5	20	$26,623,635	$17,951,822	$7,532,499	$52,107,956	1.93%
2012	372	12	0	$25,756,827	$18,781,428	$6,603,649	$51,122,139	1.14%
2011	372	12	0	$26,046,827	$18,492,228	$6,006,573	$50,545,628	2.76%
2010	372	12	0	$26,046,827	$17,777,228	$5,362,640	$49,186,695	1.88%
2009	371	13	0	$25,189,842	$18,208,861	$4,879,903	$48,278,606	6.22%
2008	371	13	0	$23,597,857	$17,259,313	$4,799,066	$45,656,236	10.80%
2007	364	13	0	$22,616,783	$14,258,471	4,375,788	$41,251,042	5.73%
2006	342	13	30	$20,255,911	$14,683,855	$ 4,076,823	$39,016,589	1.01%
2005	342	13	30	$19,737,687	$14,851,355	$3,887,624	$38,476,666	295.25%
****
1980	219	0	0	$3,558,977	$1,079,851	na	$4,638,828	na
1981	222	0	0	$3,507,806	$1,020,374	na	$4,528,180	-2.39%
1982	220	0	0	$3,970,212	$1,177, 748	na	$5,147,960	13.69%
1983	224	0	0	$4,429,362	$1,230,672	na	$5,660,034	9.95%
1984	231	0	0	$5,026,847	$1,194,237	na	$6,221,084	9.91%
1985	239	0	0	$5,446,600	$1,241,976	na	$6,688,576	7.5%
1986	247	0	30	$5,916,793	$1,423,743	na	$7,340,536	9.76%
1987	245	0	30	$6,621,803	$1,881,300	na	$8,167,220	11.26%
1988	265	0	30	$6,621,803	$1,881,300	na	$8,503,103	4.11%
1989	285	0	30	$7,849,731	$1,932,351	na	$9,782,082	15.4%
1990	280	0	30	$8,284,883	$2,578,693	na	$10,863,576	11.06%
1991	229	0	30	$6,826,473	$2,475,205	na	$9,301,678	-14.38%
1992	225	0	30	$6,646,549	$2,216,262	na	$8,862,811	-4.72
1993	223	0	30	$6,858,991	$2,198,882	na	$9,057,873	2.20%
1994	194	0	30	$6,778,541	$2,183,101	na	$8,961,642	-1.06%
1995	167	0	30	$6,202,062	$2,080,504	na	$8,282,566	-7.58%
1996	154	0	30	$6,199,709	$2,573,715	na	$8,773,424	5.93%
1997	200	0	30
1998	230	0	30
1999	270	0	30
2000	290	0	30
2001	320	13	30
2002	320	13	30
2003	334	13	30
2004	334	13	30

US Income Inequality - IRS 2023 Tax Data - Publication 1304

In April this year the IRS released the tax data for 2023, a year late. It should have been released in the Spring of 2025.

You can make your own guess about why it was late.

2023 IRS Tax Data

Individuala and families filed 160,602,107 returns in 2023.

The total US adjusyed gross income (AGI) in 2023 was $15.286 trillion.

Over 2 million filers had no income (AGI).

Total income tax collected in 2023 was $2.109 trillion.

2023 IRS Tax Data

Range of Earnings	Number of filers	% of Fiers	Amount of AGI	% of AGI	Avg. Annual Income (AGI)	Taxable Income	Amountof tax	% tax of Taxable	% tax of AGI
			(in trillions)			(in trillions)	(in billions)	Income
No AGI income	2.180,146	1.4%	-$0.144	0%		$0.0	$0.0	0%	0%
$1 to $50,000	77.373,223	48.1%	$1.867	12.10%	$24,137	$0.594	$59.4	10.01%	3.18%
$0 to $50,000	79,553,369	49.5%	$1.723	11.16%	$21,863	$0.595	$59.5	10,03%	3.45%
$50,000 to $100,000	39,911,352	24.8%	$2.852	18.5%	$71,462	$1.880	$211.0	11.22%	7.40%
$100,000 to $200,000	27,602,745	17.2%	$3.818	24.8%	$138,330	$3.024	$409.5	13,54%	10.72%
$200,000 tp $500,000	10,966,828	6.8%	$3.153	20.4%	$287,872	$2.756	$507.6	18.42%	16.10%
$500,000 to $1,000,000	1,779,729	1.1%	$1.194	7.8%	$671,417	$1.091	$267.5	24.52%	22.28%
$1,000,000 to $1,500,000	368,931	0.2%	$0.443	2.9%	$1,202,551	$0.405	$112.5	27.77%	25.35%
$1,500,000 to $2,000,000	147,290	0.1%	$0.252	1.7%	$1,717,044	$0.230	$66.8	29.10%	26.45%
$2,000,000 to $5,000,000	203,229	0.1%	$0.602	3.9%	$2,965,389	$0.544	$162.8	29.90%	27.02%
5,000,000 to $10,000,000	49,252	0.00031%	$0.336	2.2%	$6,827,469	$0.302	$90.5	22.91%	26.89%
$10,000,000 or more	30,392	0.00019%	$0.907	5.9%	$29,882,856	$0.799	$220.8	27.64%	24.32%
$500,000 or more	2,578,814	1.5%	$3,738	24.23%	$1,449,653	$3.371	$920.9	27.32%	24.63%
$1 or more Totals	158,421,962		$15.430		$97,399	$11.625	$2,108.6	18.14%	13.79%
Grand Totals	160,602,107		$15.286		$95,179	$11.625	$2,108.6	18.14%	13.79%

Runaway Capitalism

Capitalism is driven by greed. It has no moral core. A democratic society needs to protect itself from the inequalities and the damage documented in the chart above.

The botton 49.5% of filers earned only 11.16% of the total of the US adjusted gross income in 2023.
That translates into an annual earnings of $21,663 per filer.

The top 1.5% of the filers earned 24.93% of the total of the US adjusted gross income in 2023.
That translates into an annual earnings of $1,449,653 per filer.

This disparaty is politically and economically dangerous. Just ask the French peasants and nobility of 1789.

The US government can not directly balance the incomes of its populace but it can construct a tax structure that does restore some balance to this inequality.

Congressional Budget Office - FY-2023 Deficit

Along with this income inequality, the Congressional Budget Office (CBO) published data that showed that the federal budget had a $1.7 trillion deficit in FY-2023. The details are as follows:

Expenses = $6.1 trillion

1. Social Security = $1.3 trillion
2. Medicare = $839 billion
3. Medicaid = $616 billion
4. Other = $520 billion
5. Non-Defence = $917 billion
6. Defense = $1.253 trillion
7. Interest = $659 billion

Revenue = $4.4 trillion

1. Income Tax = $2.2 trillion
2. Payroll Taxes (FICA) = $1.6 trillion
3. Corporate Taxed = $420 billion
4. Custom Duties = $0
5. Other = $229 billion

First Cut to Close the Deficit

1. Increase corportate tax to $1.0 trillion (21% to 45%)
2. Increase payroll taxes to $1.9 trillion (collect Social Security tax on all income above the cap like what is done for the Medicare tax)
3. Increase income taxes to $3.0 trillion. (raise the marginal tax rates on income over $500,000 to produce an added $1.1 trillion) The AGI for filers above $500k was $3,738 trillion. These filers paid $921 billion in income taxes, They need to pay $2.0 trillion. That still leaves them with $1.738 trillion ($1.738/2,576,814 = $674,476 avg annual earnings).

Of course, we all know it is unacceptable to increase taxes on the very rich. This is the fundamental political problem in the United States. Everything flows from this obstacle.