The City Council on Tuesday identified nearly $1.7 billion in potential savings and additional revenue for fiscal year 2026, urging Mayor Zohran Mamdani not to dip into the city's rainy day fund to balance the budget.
Speaker Julie Menin and Finance Chair Linda Lee released the New York City Council’s March 2026 Economic and Tax Revenue Forecast, which noted nearly $1.4 billion available from debt service adjustments, reductions in long-standing agency vacancies that remain unfilled, and unrecognized interest earnings from entities such as the Retirees Health Benefits Trust and cash holdings.
New York City Comptroller Mark Levine has previously said the city faces a $2.2 billion shortfall for fiscal year 2026, and the mayor indicated he may tap $1 billion from the rainy day fund, money which is set aside for unforeseen emergencies.
“The Rainy Day Fund was created to help protect New Yorkers during a true fiscal emergency, and has never been tapped,” Menin said in a statement. “Our analysis suggests we are not in such an emergency position today. The Council believes there are additional savings and revenue opportunities that can be identified through the budget hearing process, both for FY 2026 and 2027, and we will continue working with the Administration to ensure the City’s finances remain strong while protecting this critical safeguard.”
The Council’s March economic forecast estimates $386 million more in tax revenue than projected by the Mayor’s Office of Management and Budget for fiscal years 2026 and 2027, reflecting a stronger long-term outlook for the city’s finances. That difference excludes any increase to the city’s overall property tax rate.
The forecast also projects the city’s tax revenues will continue to grow at an average of 4.7% annually from FY 2026 through FY 2030, which is lower than the 5.5% annual average tax revenue growth experienced over the decade of FY 2010 to FY 2019.
The City Council will discuss the mayor's preliminary budget through March 25.
