Overview
- Comptroller Mark Levine projects a $2.2 billion mid‑year deficit in FY26 and a $10.4 billion gap in FY27, the city’s largest late‑cycle shortfall since 2008.
- Levine attributes the shortfalls to years of underbudgeting and one‑time fixes under the previous administration rather than to a weak economy.
- His office identified $3.8 billion in unbudgeted FY26 costs, including rental assistance, overtime, shelter operations, public assistance, special‑education cases and MTA contributions.
- The forecast sharpens a policy divide, with Mamdani advocating higher taxes on wealthy New Yorkers and corporations while Gov. Kathy Hochul has ruled out tax increases this year.
- Levine also flags additional risks, including an insolvent health insurance stabilization fund and a potential CityFHEPS expansion that could add billions over five years.