Statement From New York State Comptroller DiNapoli on New York City's Fiscal Year 2027 Preliminary Budget

New York State Comptroller Thomas P. DiNapoli released a statement today on Mayor Zohran Mamdani's Fiscal Year 2027 preliminary budget:

"The $127 billion Fiscal Year (FY) 2027 preliminary budget marks a substantial shift in the city's approach to budgeting, incorporating chronically underbudgeted expenses and new spending risks. I commend Mayor Mamdani for recognizing the fiscal risks ahead and I urge caution in tracking revenue and making swift adjustments if needed.

"The plan includes an increase in the city's property tax rate and lays bare the considerable obstacles it faces to achieve budget balance next year. It also assumes more volatile revenue sources will remain strong. The city made an upward revision of $8.6 billion to tax revenue in FY 2027, over 10% higher than in November, fueled by stronger personal income tax revenues and a more than 9% increase in the property tax rate. Non-property tax revenue projections assume the strength of recent collections will continue, leaving little room for weakness in the city's finance sector or an economic downturn. This is a shift from a more conservative stance on revenues in recent years.

"Despite its assumption of continued economic growth and a significant rise in anticipated revenue, the city is relying on the use of reserves to achieve balance in FY 2027, including the rainy day fund and retiree health benefits trust, a deeply concerning choice that reflects the need to manage spending growth and highlights the lack of existing guidelines in the use of these funds. In addition, the city's plan for budget balance next year relies on actions where the city lacks direct control or faces implementation risk, including additional grants from the state and $1.8 billion in as-yet unidentified savings through FY 2027, effectively creating new risks to achieve budget balance.

"The choice to shift to a more transparent budgeting approach also elevates the importance of actively monitoring revenue and spending projections for changes, and the city's recently announced savings efforts, to ensure that funds are spent efficiently. It also provides some justification for proposals to reconsider the city's share of certain mandated costs. These items should continue to be discussed in case more speculative budget gap closers do not come to fruition.

"I look forward to reviewing the cost savings plans from city agencies next month, when my office will provide an update on Wall Street bonuses and their alignment with the city's revenue projections, and analyzing the financial plan released today in the coming weeks."

Prior Analysis and Statements on the New York City Budget
Review of the Financial Plan of the City of New York (December 2025)
New York State Comptroller DiNapoli Statement on New York City's Preliminary Budget (Jan. 28, 2026)
State Comptroller DiNapoli Statement on New York City Budget (Jan. 16, 2026)