New York State Comptroller Thomas P. DiNapoli has issued a statement in response to Mayor Zohran Mamdani’s Fiscal Year 2027 preliminary budget for New York City, which totals $127 billion. DiNapoli noted that the new budget marks a significant change in how the city manages its finances, as it includes previously underbudgeted expenses and accounts for new financial risks.
“I commend Mayor Mamdani for recognizing the fiscal risks ahead and I urge caution in tracking revenue and making swift adjustments if needed,” DiNapoli said.
The preliminary plan proposes an increase in property tax rates and anticipates strong performance from more unpredictable revenue sources. According to DiNapoli, “The city made an upward revision of $8.6 billion to tax revenue in FY 2027, over 10% higher than in November, fueled by stronger personal income tax revenues and a more than 9% increase in the property tax rate.” He also pointed out that non-property tax revenue projections are based on continued strength from recent collections, leaving little margin should there be any downturns in the finance sector or broader economy.
DiNapoli expressed concern about the city’s reliance on reserves such as the rainy day fund and retiree health benefits trust to balance next year’s budget. He described this approach as “a deeply concerning choice that reflects the need to manage spending growth and highlights the lack of existing guidelines in the use of these funds.” The comptroller also highlighted that some elements of achieving balance depend on factors outside direct city control, including anticipated grants from New York State and $1.8 billion in savings yet to be identified through Fiscal Year 2027.
He added: “The choice to shift to a more transparent budgeting approach also elevates the importance of actively monitoring revenue and spending projections for changes, and the city’s recently announced savings efforts, to ensure that funds are spent efficiently.”
DiNapoli stated he would review cost-saving plans from city agencies next month when his office will provide updates on Wall Street bonuses and their impact on projected revenues. He intends to analyze further details of today’s released financial plan over coming weeks.
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