New York City To Suffer Nearly $10-B Deficit By 2026

The New York State Comptroller said Tuesday (Wednesday, Sept. 21, 2022, in Manila) that several of New York City's fiscal challenges could result in a budget gap nearing $10 billion by 2026 — potentially affecting essential services in the future, Alison Kosik and Kate Trafecante reported for CNN Business.

Photo Insert: The projections are a nightmare for the city that never sleeps.

Total revenue is expected to decline by $10.5 billion in fiscal year 2023, according to a new report titled "Review of the Financial Plan of the City of New York."

The city's fiscal position "significantly improved" last year, the report added, but that was due to several one-time factors, including higher than expected tax revenue, extraordinary federal COVID relief aid, and record pension returns due to the stock market's gains. Many of those factors have begun to reverse, the comptroller said.

"While the City's published gaps are manageable by historical standards...these factors may create risks that worsen the City's budgetary volatility substantially and could put the City on a path to structural budgetary imbalance if left unaddressed," the report said, Mark Morales also reported for CNN Business.

New York City Mayor Eric Adams said during a press conference on Monday that the city is getting ready to enter a financial typhoon. "If I don't make the smart decisions now, am I going to wait until we're at the cliff or prevent the cliff?" Adams said.

Last week, Adams asked city agencies to reduce spending by 3%, but to do so without cutting services. However, going forward, further spending reductions while also prioritizing critical programs will be part of balancing the city's budget, according to Citizens Budget Commission, a non-partisan watchdog organization.

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