US EditionNYC Faces $12 Billion Budget Gap, Largest Since 2008 Crisis
Comptroller Mark Levine attributes the $12 billion deficit to prior underbudgeting and one-time fixes, marking the largest late-cycle shortfall since the Great Recession.
- On Friday, New York City Comptroller Mark Levine announced a $2.2 billion FY2026 shortfall and a $10.4 billion FY2027 gap at a Lower Manhattan briefing.
- Blaming past budgeting choices, Levine said years of underbudgeting and reliance on one‑time budget solutions under former Mayor Eric Adams led to projected FY26 spending exceeding revenues and unaccounted recurring expenses.
- Levine's analysis found 3.8 billion in unbudgeted FY26 costs, including rental assistance, overtime, homeless shelter expenses, Department of Education due‑process cases and Metropolitan Transportation Authority contributions.
- Mayor Zohran Mamdani must produce a balanced preliminary budget in February, with the state budget due next week and Comptroller Levine meeting State leaders in Albany next month.
- This marks the first time since the Great Recession the city faces a late-cycle shortfall this large, while the Health Insurance Stabilization Fund is insolvent with roughly $3.1 billion in unpaid liabilities.
10 Articles
10 Articles
NYC faces a projected $12B budget shortfall. How does this impact New Yorkers?
New York City is staring down a massive budget shortfall, with Mayor Zohran Mamdani now having to come up with a balanced budget that accounts for a projected shortfall of over $12 billion.
NYC faces $12B budget deficit, drawing comparison to 2008 financial crisis – as Zohran Mamdani uses dire forecast to push taxing the rich
New York City is facing a mammoth $12 billion combined budget deficit, new City Comptroller Mark Levine warned Friday -- grimly comparing the outlook to the 2008 financial crisis.
City faces multibillion-dollar budget gaps – and not because of the economy, Comptroller says – amNewYork
New York City is facing a $2.2 billion budget shortfall in this fiscal year and a projected $10.4 billion gap the following year, according to a new analysis released Friday by new Comptroller Mark Levine, who blamed years of underbudgeting and reliance on one-time fixes. Levine said the gaps, the largest the city has faced this late in the budget cycle since the Great Recession, are not the result of an economic downturn, but of spending decisi…
NYC Stares Down Huge Budget Crisis as Officials Warn of $12B Deficit
New York City is staring down a massive budget crisis as officials warn of a combined $12 billion deficit over the next two fiscal years, a situation now being compared to the 2008 financial meltdown. City Comptroller Mark Levine said the projected gaps are highly unusual, pointing to a $2.2 billion hole this year and...
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