NEWYORK: New York City Comptroller Mark Levine submitted testimony to the Commission of Government Efficiency (COGE) outlining a charter amendment to strengthen the Rainy Day Fund (formally known as the Revenue Stabilization Fund), through clear targets, deposit and withdrawal rules.
The Comptroller first advanced the proposal in an April report, citing mounting economic uncertainty driven by global events, the rise of AI, and a decade-long bull run on Wall Street.
“This reform is not about locking away money for its own sake. It is about protecting New Yorkers when the economy turns. A strong Rainy Day Fund is what allows the City to preserve essential services, avoid sudden layoffs, maintain market confidence, and respond to families and communities in moments of disruption,” Comptroller Levine says in his testimony.
The Rainy Day Fund was established through a City Charter amendment in 2019 and enabling State legislation in 2020, and provided the City for the first time with a dedicated mechanism to set aside resources for future economic downturns.
However, the fund was created with few parameters in place — a major departure from most major cities. Without a mandate to make regular deposits, the Rainy Day Fund’s balance currently sits at $2 billion – or around 2% of tax revenues, effectively negligible in a budget as large as New York City’s.
