NYC Comptroller Report: NYC Cash Balance Projection – September 1, 2025

Although the New York City Comptroller’s Office had projected New York City’s cash balance to be $14.782 billion at the June 30th close of Fiscal Year 2025 (FY25), the city’s actual recorded end-of-year cash balance was a lower $12.229 billion. Attributing to the lower balance was the “timing of property tax receipts, lower than expected bond proceeds transfers, and higher than expected GO (general obligation) debt service prepayment, among other factors” according to the report released in early October. The city benefited from revenue gains during FY25, with the total collection of taxes and strong personal income and business tax revenues due to Wall Street’s record-high bonuses in 2024 increasing FY25’s total revenue collection by $81.373 billion year-over-year to $143.607 billion. In addition, $5.146 billion in Covid-19 pandemic relief funds from the federal government and a considerable increase in capital reimbursements, which were up $3.656 billion year-over-year, further benefited cash receipts. The projected cash balance at the end of the first half of FY26 that will fall to a typical low in early December, could measure between $1.796 billion and $2.357 billion based on two underlying key assumptions — “continued, though slower, economic growth and the receipt of federal revenues as budgeted and in accordance with existing fund agreements and schedules.” Advances paid to city-contracted nonprofit organizations are one of the reasons for the lower cash balance at the end of December, with more than $5 billion in advance payments to be made in FY26 according to an announcement by Mayor Adams, which is up from the $2.8 billion issued during FY25. Cash flow projections are similarly projected to rise by $2.148 billion in FY26 due to increasing payroll and health insurance costs, as well as higher public assistance, rental and cash assistance, shelter and special education costs, resulting in estimated overall cash flow balances to average $5.158 billion during the next four months (September through December) compared to $7.744 billion during the same period last year. Although the NYC Comptroller’s projection concludes that the city has “sufficient cash (and sufficient flexibility in managing its cash position) to sustain its operations” with no need to issue short-term debt in FY26 forecast, “cash balances have declined significantly since the start of the fiscal year,” potentially requiring the city to “manage its cash flow more aggressively to maintain positive balances in the future” if expected expenditure trends continue.

Source:    https://comptroller.nyc.gov/reports/new-york-city-cash-balance-projection-september-1-2025/