A city's financial strength is measured not only by how much money it brings in, but also by how effectively it manages its spending and prepares for economic uncertainty.
New York City is experiencing revenue growth and strong investment returns, but rising expenditures and limited reserves are raising concerns about its long-term financial stability.
New York City Comptroller Mark Levine released the city's Annual Comprehensive Financial Report (ACFR) for fiscal 2026 on Oct. 30, providing an overview of its financial performance for the year ended June 30, 2026.
The report includes audited financial statements examining revenue, expenditures, economic conditions, pension funds and municipal borrowing.
The findings show that New York City experienced economic growth during the fiscal year, with General Fund tax revenues increasing 7.4%. Overall, General Fund revenues rose by $6.17 billion, or 5.2%, compared with fiscal 2025. However, expenditures increased by $8.32 billion, or 7%, outpacing revenue growth.
The General Fund recorded $123.83 billion in revenues and other financing sources against $124.79 billion in expenditures and other financing uses, resulting in a $963 million deficit before adjustments for restricted-fund activities. After those adjustments, the city recorded an operating surplus of $5.2 million, bringing its Revenue Stabilization Fund, which serves as a rainy-day reserve, to approximately $1.97 billion.
The report also identifies significant increases in recurring expenses. Rental assistance spending rose 40.5%, from $1.34 billion to $1.88 billion, while New York City Department of Education special education due process expenditures more than doubled, increasing from $1.14 billion to $2.36 billion.
Other findings show that the city's pension funds recorded a combined investment return of 13%, exceeding the 7% actuarial target. The five pension systems held a combined portfolio valued at $326.26 billion and were 96.1% funded.
Meanwhile, Fitch and Moody's maintain negative outlooks on the city's general obligation bonds, although the credit ratings remain unchanged.
The full fiscal 2026 ACFR, including audited financial statements and supporting financial data, is available to the public through the Comptroller's Office website at https://comptroller.nyc.gov/reports/annual-comprehensive-financial-reports/.
