NYC Comptroller Projects $2.2B Budget Shortfall in FY 2026

NEW YORK—New York City Comptroller Mark Levine announced recently that the city faces a $2.2-billion budget shortfall for FY2026 and a projected $10.4 billion gap for FY2027. Mr. Levine mostly blamed budgeting by the former Adams administration as the key reason for the expected budget deficits.

This is the first time since the Great Recession that the city faces a budget shortfall of this magnitude this late in the fiscal year, presenting serious challenges for the city’s budget, he noted. The analysis expands upon data from December 2025, and as part of the assessment, Comptroller Levine cited the prior Mayoral administration’s budgeting practices as primary contributors to these gaps.

“As the state and city budget cycles begin, we find ourselves confronting a $2-billion deficit for the current fiscal year, and a $10 billion gap for the coming year. This wasn’t caused by a bad economy—it’s the result of budgeting decisions from the previous administration that we must now deal with,” said New York City Comptroller Mark Levine.

He continued, “In February, Mayor Mamdani and his administration will have the difficult responsibility of producing a balanced preliminary budget. I’m committed to working alongside Mayor Mamdani and leadership in Albany to ensure the city can make good on its financial obligations and deliver a balanced budget this year and next.”

The city’s economic outlook, though showing signs of potential weakness particularly in the labor market, does not account for this budget shortfall. The U.S. economy has continued to grow, and in New York City indicators like tourism, Broadway, commercial leasing, and the benefits of a strong stock market are driving continued strong revenues in New York City.

Instead, Comptroller Levine emphasized that the Adams Administration’s FY26 spending levels, which exceed revenue, and failure to properly budget for known, re-occurring expenses, have led to unusually high budget deficit projections for FY26 and FY27.

Examples of this type of chronic underbudgeting include rental assistance, overtime, shelter, public assistance, Department of Education Due Process Cases, and contributions to the MTA that together account for 3.8 billion unbudgeted dollars in FY26 alone and even more in the out years.

Comptroller Levine said he will work with the Mamdani administration to close the funding gaps in the city’s current budget and address the projected gaps in the FY27 budget. Next month, Comptroller Levine will be in Albany to discuss the city’s budget outlook with state leaders in the legislature.