The Adopted Budget no doubt will please many New Yorkers in the short run, with funds added to start, expand, and preserve programs. In fact, the All Funds adopted budget is $1.3 billion larger than the Mayor’s Executive proposal.¹ Unfortunately, our City’s leaders again did little to ensure priority programs are sustainable by making government more efficient and shrinking lower impact activities. Nor did they use strong revenues to save for a rainy day or improve the waning integrity of the budget process by fully increasing the accuracy of budget estimates and funding ongoing programs.

CBC’s analysis continues, but the preliminary review of information released to date demonstrates three points.

Fiscal Integrity and Stability Checklist Score: 0 for 3

Few actions taken to increase budget transparency, sustainability, and reserves.

Adopt a Transparent, Accurate Budget—that Fully Funds Planned Services and Identifies those that Will Shrink

While some programs were baselined and some supported by expiring federal COVID aid switched to City funds, by and large, the budget fails to include the full recurring costs of overtime, special education, and other recurring programs funded one year at a time, such as prevailing wages for shelter security and school nurses. Not loading spending for expected service levels in the budget risks fiscal year 2025 balance and again provides the illusion that future gaps are not so large, a picture more rosy than real.

Ensure that Spending Added During Budget Adoption Is Offset by Savings Elsewhere

The budget expanded programs—including Fair Fares, funding for food pantries, and litter basket collection—without identifying offsetting future savings. This avoided the hard choices needed to ensure these programs are sustainable over the long term. Despite baselining some of the programs, most of the new spending was added to just fiscal year 2025.

Deposit at Least $1 Billion into the Rainy Day Fund over This and Next Year

Despite strong revenues in fiscal years 2024 and 2025, the budget did not make any deposits into the Rainy Day Fund. The fund’s balance of $2.0 billion is wholly insufficient to protect New Yorkers from massive cuts during a recession.

Spending Increases Significantly

• The fiscal year 2025 adopted budget increases City-funded spending 7.5 percent, or $6.1 billion, over fiscal year 2024;
  • Even absent spending on services for asylum seekers, the budget grows 6.4 percent, or $5.0 billion;
• From fiscal year 2020 to fiscal year 2025, City-funded spending is slated to grow $17.8 billion, or 25.5 percent. That’s an average of 4.6 percent a year; and
  • Excluding spending on services for asylum seekers, growth would still be 20.6 percent, or $14.4 billion;
• All Funds fiscal year 2025 spending totals $116.1 billion, once adjusted for prepayments and to exclude interfund agreements.
  • Fiscal year 2025 All Funds spending grows 0.6 percent from fiscal year 2024, due to the significant increase in City-funded spending offset by a $5.0 billion year-to-year drop in federal aid, primarily expiring COVID funding.

Fiscal Year 2024 Spending Obligations Exceed Revenue by $1.1 Billion

While technically not a deficit due to the ability to prepay expenses, fiscal year 2024 spending obligations exceed that year’s revenues.  The City used $1.1 billion earned in prior years to balance fiscal year 2024—while $5.5 billion of fiscal year 2024 obligations were paid in fiscal year 2023, the City paid only $4.4 billion of fiscal year 2025 obligations in fiscal year 2024.