"The update that Mayor Eric Adams released on Nov. 17 raises the city's fiscal year 2026 budget by more than $2 billion to $118.2 billion, up from $115.9 billion adopted in June, and includes $419 million in additional revenue, largely from higher-than-expected personal income taxes. Adams said the increase allows for targeted investments in public safety, housing, and social programs while maintaining fiscal stability through ongoing savings in pensions and debt service."
"The CBC, however, indicated that the outgoing Adams administration's revised budget will leave the incoming Mamdani administration holding a costly bag a budget deficit of between $5 billion and $8 billion. Such a large deficit could put a serious dent in Mamdani's own vision for City Hall, specifically his campaign promises for programs like free universal childcare and fare-free bus service. As mayor, Mamdani would need to find the revenue to close the budget gap and then raise additional billions of dollars to fulfill his agenda."
"He campaigned on seeking tax increases on the wealthiest New Yorkers to fund his campaign promises, but the city cannot raise taxes on its own accord. The state legislature and governor can only approve tax increases, and Gov. Kathy Hochul has previously ruled out any new hikes as she begins her re-election campaign. amNewYork reached out to Mamdani's transition team multiple times for comment on the budget update, but received no response prior to publication."
The city's November 2025 Financial Plan Update raises the FY2026 budget by over $2 billion to $118.2 billion, adding $419 million mainly from stronger personal income tax receipts. The Adams administration plans targeted investments in public safety, housing, and social programs while citing savings in pensions and debt service to sustain fiscal stability. The Citizens Budget Commission projects the revised plan leaves a $5 billion to $8 billion structural gap for the incoming mayor. The gap imperils proposals such as free universal childcare and fare-free buses and faces legal constraints because only the state can approve tax increases, and the governor has ruled out new hikes.
Read at www.amny.com
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