City faces multibillion-dollar budget gaps and not because of the economy, Comptroller says amNewYork

"New York City is facing a $2.2 billion budget shortfall in this fiscal year and a projected $10.4 billion gap the following year, according to a new analysis released Friday by new Comptroller Mark Levine, who blamed years of underbudgeting and reliance on one-time fixes. Levine said the gaps, the largest the city has faced this late in the budget cycle since the Great Recession,"

"The analysis expands on financial data released in December and comes as the city enters budget season, with the state budget due next week and Mayor Zohran Mamdani's preliminary city budget expected in February. Levine said the scale of the projected gaps presents serious challenges for the city's finances. Despite some signs of potential weakness in the labor market, Levine said the city's broader economic outlook remains relatively strong."

"Tourism, Broadway attendance, commercial leasing, and a strong stock market have continued to drive revenue growth, undercutting claims that the looming budget gaps are tied to an economic slowdown. Instead, Levine pointed to projected spending levels in FY26 that exceed expected revenues and a failure to fully account for known, recurring expenses. His office identified $3.8 billion in unbudgeted costs in FY26 alone, with even larger gaps projected in subsequent years."

New York City faces a $2.2 billion budget shortfall this fiscal year and a projected $10.4 billion gap next year. The shortfalls stem from years of underbudgeting, reliance on one-time fixes, and spending decisions under the previous mayoral administration of Eric Adams rather than from an economic downturn. Tourism, Broadway attendance, commercial leasing, and a strong stock market continue to drive revenue growth. Projected FY26 spending exceeds expected revenues, and known recurring expenses were not fully budgeted. The office identified $3.8 billion in unbudgeted FY26 costs, including rental assistance, overtime, homeless shelter expenses, public assistance, special education due process cases, and MTA contributions, with larger gaps projected later.

Read at www.amny.com