NEWYORK: New York City Comptroller Mark Levine today released his analysis of the FY 2027 Executive Budget, including updated revenue estimates, ahead of his testimony before the City Council on the City’s spending plan.
In his testimony summarizing the report’s key findings, the Comptroller commends the administration for balancing a budget without raising property taxes or drawing down the rainy-day fund — outcomes made possible thanks to strong revenue from Wall Street, support from Albany, and efficiencies and savings proposed by the Mayor.
However, the Comptroller warns that the budget also relies on one-shot measures, and serious underlying fiscal challenges remain.
His analysis projects an $8.8 billion budget gap in FY 2028, exceeding the $7.1 billion forecast in the May Financial Plan, even absent an economic downturn.
“When we plug in our tax forecast and our estimates of underbudgeted costs and unmet program needs, including overtime and childcare vouchers, the FY 2028 gap widens to a daunting $8.8 billion. We will face that gap without the option of the many one-shot measures that we used up this year,” Comptroller Levine said.
In his testimony, the Comptroller calls for a Charter amendment establishing formal rules for the Rainy Day Fund: a 16% target of tax revenues with a 10% floor, a deposit formula when revenues exceed trend, and clear, narrow criteria for withdrawals. New York City’s Rainy Day Fund currently has few parameters for making regular deposits or when reserves can be withdrawn, a departure from other major cities.
