State Comptroller DiNapoli Statement on New York City Preliminary Budget

New York State Comptroller Thomas P. DiNapoli released the following statement on New York City's Fiscal Year (FY) 2026 Preliminary Budget:

New York City's Fiscal Year (FY) 2025 $116.9 billion preliminary budget confirms the city's finances are improving. Over $3 billion in better than projected revenue and $2.4 billion allocated but not spent on asylum seekers through June 30, 2026 will be used to fund additional spending in FY 2025 and balance the budget in FY 2026. More resources will also be used to fund relatively small additions to the city's workforce in areas of need or for expanded services.

The city chose not to take this opportunity to add to its reserves but should do so if revenues continue to exceed projections or spending is lower than expected. With the potential for significant policy changes at the federal level in the coming year that could affect city finances, this should be imperative.

The city also elected to add funds for charter schools, overtime, special education, school nurses and rental assistance in the current fiscal year only, a continuation of a budgeting practice that habitually underestimates the need in these areas and creates a risk to balanced budgets in the coming years.

My team is analyzing the budget and will issue an analysis next month.