Summary
The Fourth Quarter FY23 QCMR, covering the period ending June 30, 2023, provides a final assessment of FY23, showing continued revenue growth, with General Fund revenues reaching $5.93 billion, driven by Wage, Business, and Sales Taxes. While revenues have outperformed expectations, spending has also risen significantly, largely due to increased wages, pensions, and capital contributions. The final year-end fund balance of $682.5 million represents a stronger-than-anticipated fiscal position, though the report cautions that structural expenditure growth remains a risk. Public safety trends showed reductions in homicides and shooting victims, but incarceration rates increased, raising concerns about long-term justice system costs. Overtime spending surged to $247.8 million, a 15.0% increase from FY22, with the largest increases in the Police and Fire Departments. The report emphasizes that despite a strong end to FY23, long-term financial planning is needed to control growing costs and ensure sustainability.