As noted in the spreadsheet attached to this post, direct expenditures by the City of New York fell from $210.97 per $1,000 of city residents’ personal income in FY 1972 to $164.77 per $1,000 of income in FY 1987, a decrease explained by having the Medicaid program shifted to the state’s books and the end of massive public school expenditures on the Baby Boom generation. A similar decrease was recorded for local governments in the rest of New York State. Since then, total direct expenditures by the City of New York have been essentially unchanged as a share of residents’ personal income in peak economic years, based on FY2000 and FY 2007 data, while local government expenditures increased in the rest of New York State, the United States and New Jersey.
The total salaries and wages paid to employees of the City of New York, however, fell as a share of the income of all New York City residents from FY1987 to FY 2000 and from FY 2000 to FY 2007. So did the city’s direct expenditures on Libraries, Corrections, the Fire Department, the Department of Sanitation, and Judicial and Legal. Police Department expenditures increased as a share of city residents’ income from FY 1987 to FY 2000 and fell from that year to FY 2007, while Parks, Recreation and Culture and Housing and Community Development expenditures fell and then rose, but all were lower as a share of city residents’ income in FY 2007 than they had been 20 years earlier in FY 1987. Mass transit operating expenditures plunged as a share of city residents’ personal income over the period. Where is all the money going? Download the spreadsheet attached to the post linked above, print out the worksheet marked “output,” and read on.