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Rarely has New York City’s budget loomed so large in the public’s eye. With stakes high and scrutiny intense, people in the City and beyond are asking the same questions: What was actually done to balance the budget? Does it get New York out of the hot water it’s in?
While credit is due for positive actions—especially to correct years of underbudgeting and present a more realistic picture of the City’s spending obligations—the short answer is that the City still faces the same fiscal bind.
Even with revenues pouring in, the City is heading toward massive budget gaps unless it doubles down on programs that deliver, eliminates those that do not, and runs government far more efficiently.
In a new report, How Did He Do It?, CBC breaks down the FY 2027 Executive Budget. Here's what it finds:
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The City closes the budget gap largely with one-time resources, short-term savings, and costs shifted to future New Yorkers; recurring savings are limited.
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Projected budget gaps grow from $7.1 billion in fiscal year 2028 to $9.8 billion in fiscal year 2030, even before funding employee raises and new programs like universal childcare that could add billions of dollars in annual spending.
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Sixty-one percent of the budget-balancing actions do nothing to stabilize the budget long term—including $5.0 billion in one-shots and $2.8 billion from a pension gimmick and stretching out class size reduction, which will cost more in the long run and require New Yorkers in the 2030s to pay for services delivered today.
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The savings program is a good start, but insufficiently ambitious: It provides only $1.7 billion in recurring savings, and under half of the $963 million of recurring Executive Order 12 initiatives increase efficiency.
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The budget actually increases headcount by 869 full-time City-funded positions, with the elimination of 2,268 vacancies offset by 3,137 new positions.
CBC recommends that the City:
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Double Executive Order 12 saving initiatives to $2 billion in fiscal year 2027 and increase by $1 billion annually thereafter;
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Implement additional actions to reduce the spending increase for CityFHEPS, due process (Carter) cases, and other fast-growing areas;
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Fund additional new spending and City Council initiatives with offsetting recurring savings;
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Increase the fiscal year 2027 General Reserve to $500 million to protect against economic volatility and unexpected spending shocks.
Mayor Mamdani deserves credit for improving budget transparency and starting to reduce costs—but realism alone won't create fiscal sustainability. Acting now to dramatically reduce spending growth, increase service quality, and bolster reserves can avoid painful choices in the future.
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