This Election Day, CBC recommends New Yorkers vote NO on Ballot Question 5, which would amend the City Charter's Rainy Day Fund provision. 

As the premier advocate for creating NYC's Rainy Day Fund, CBC has long championed improvements to protect New Yorkers and City employees from service cuts and layoffs during recessions.  

A Charter amendment should only be adopted if it strengthens the Fund. Question 5 doesn't. 

Why Ballot Question 5 Falls Short 

The proposal would allow the City to enshrine the failing status quo in policy, while the illusion of progress saps momentum for needed improvements. It would still not require the City to make deposits when revenues are strong and would still permit withdrawals for nearly any reason. Absent a strong policy, the City has not saved enough, which is why—even after years of strong revenue growth—the Rainy Day fund has only $2 billion when it should have $14 billion.  

And it could essentially cap the Fund at 6 percent of tax revenues—just one third of what is needed—by counting non-Rainy Day Funds toward the target.  

But there’s good news: the City could—and should—develop a robust Rainy Day Fund policy without the Charter change. We stand poised to help.  

What a Strong Policy Should Do 

A strong policy would require deposits when revenues are strong, restrict withdrawals to short-term emergencies or recessions, and allow the Fund to grow to 16 percent of tax revenues to cover two years of recessionary tax revenue losses. 

A strong Rainy Day Fund protects New Yorkers from the worst potential pain of economic shocks and emergencies. It is in every New Yorker’s interest.