CITYWIDE — WHILE NEW YORK CITY’S ADOPTED $119.7 BILLION FISCAL YEAR (FY) 2026 BUDGET IS CURRENTLY BALANCED (including pre-payments), the city missed the opportunity to boost reserves and should identify efficiency savings to mitigate federal cuts, according to a new report from NY State Comptroller Thomas P. DiNapoli. His report expresses significant concerns over funding from Washington and slowing economic growth that could jeopardize its financial position and discretionary programs if the city fails to make greater preparation.
DiNapoli’s report observes that during each of the last three fiscal years, New York City has spent more than it has collected in revenue such as tax levies. For the fifth consecutive year, the city collected over $3.5 billion more in city tax levies during the fiscal year than anticipated when the budget was adopted. However, during Fiscal Year 2025, the city added nearly $3.9 billion in new agency spending and council initiatives for FY 2026, outpacing city-fund revenues added over the same period.
Given the recent volatility of federal fiscal and economic policy choices, DiNapoli says the city should be preparing for scenarios where its federal, state and locally derived resources may be impacted, and curtail new discretionary spending unless a funding source is identified.
✰✰✰
