NYC Budget Gaps Expected to Rise to $7.9B in FY 2027

Due to New York City being able to generate strong positive financial results in Fiscal Year (FY) 2023, despite about $1.45 billion in unanticipated costs for managing an influx of asylum seekers and the settlement costs of collective bargaining agreements exceeding the 1.25% set aside for raises, the FY 2024 budget is balanced using the FY 2023 surplus to prepay expenses of $5.5 billion in FY 2024 according to the latest Review of the Financial Plan of the City of New York by the Office of the New York State Comptroller (OSC). However, budget gaps are expected to rise from $5.1 billion in FY 2025 to $7.9 billion in FY 2027. The OSC further points out that since the FY 2025 through FY 2027 budgets don’t reflect many potential risks, the city will have to remain vigilant in tracking the economy on its effect on revenues, while making sure that required spending is funded and discretionary expenses align with available resources.