The Residents Finances Fee, a nonpartisan fiscal watchdog, mentioned Monday that whereas New York Metropolis’s November 2025 Monetary Plan Replace reveals stronger-than-expected income, important spending gaps stay that Mayor-elect Zohran Mamdani will inherit in January.
The replace that Mayor Eric Adams launched on Nov. 17 raises the town’s fiscal 12 months 2026 funds by greater than $2 billion to $118.2 billion, up from $115.9 billion adopted in June, and contains $419 million in extra income, largely from higher-than-expected private earnings taxes.
Adams mentioned the rise permits for focused investments in public security, housing, and social applications whereas sustaining fiscal stability by ongoing financial savings in pensions and debt service.
The CBC, nonetheless, indicated that the outgoing Adams administration’s revised funds will go away the incoming Mamdani administration holding a pricey bag — a funds deficit of between $5 billion and $8 billion. Such a big deficit might put a severe dent in Mamdani’s personal imaginative and prescient for Metropolis Corridor, particularly his marketing campaign guarantees for applications like free common childcare and fare-free bus service.
As mayor, Mamdani would want to search out the income to shut the funds hole after which elevate extra billions of {dollars} to satisfy his agenda. He campaigned on in search of tax will increase on the wealthiest New Yorkers to fund his marketing campaign guarantees, however the metropolis can not elevate taxes by itself accord.
The state legislature and governor can solely approve tax will increase, and Gov. Kathy Hochul has beforehand dominated out any new hikes as she begins her re-election marketing campaign.
New York News reached out to Mamdani’s transition crew a number of instances for touch upon the funds replace, however obtained no response previous to publication.
What’s modified within the funds?
Mayor Adams’ amended funds plan marks the start of the primary part of a multi-year effort to broaden the NYPD by 5,000 officers, a program that the outgoing mayor had beforehand introduced.
It additionally funds NYPD automobile alternative, expanded automated site visitors enforcement, extra staffing in Bronx and Brooklyn District Attorneys’ places of work, and consolidates the B-HEARD psychological well being response program beneath NYC Well being + Hospitals. Different public security measures embody youth re-entry applications, emergency constructing inspections, and extra positions for Legionnaires’ illness monitoring.
Housing and affordability initiatives embody $400 million for CityFHEPS rental help and $150 million for the town’s homeless shelter system. The plan additionally expands NYC Growing older’s Caregiver program by 3,000 contributors, funds pupil mortgage counseling for metropolis residents, and helps foster and adoptive households. Instructional priorities embody distributing 350,000 Chromebooks to public college college students and increasing citywide after-school applications.
“Over the course of four on-time, annual budgets, our administration has delivered for working-class New Yorkers time and again, and this November Financial Plan Update is another example of how our strong fiscal management is making New York City safer, more affordable, and improving New Yorkers’ quality of life,” mentioned Mayor Adams.
Massive multi-billion-dollar funds gaps loom
CBC President Andrew Rein mentioned the replace improves near-term income however famous that structural gaps stay, which might pose a problem to the incoming administration.
“While steep, these challenges are not insurmountable,” Rein mentioned. “The key is to tackle budget and service problems together, not in silos.”
In an announcement, Rein mentioned Adams’ plan would require Mamdani to shut a $5 billion to $8 billion funds hole whereas making ready for federal funding cuts and advancing his priorities.
The CBC had beforehand criticized the town funds as being “unprepared for federal cuts” when it was agreed upon in June.
The fee famous that a lot of Adams’ replace focuses on pension and debt-service financial savings, in addition to minor program expansions, except deliberate future will increase within the police pressure.
CBC additionally highlighted that a minimum of $4 billion in annual deliberate spending stays underfunded within the coming years, together with roughly $1 billion for rental help by CityFHEPS and $600 million for homeless shelters.
Rein urged the following administration to curb low-impact spending, enhance effectivity, and put aside reserves to melt the consequences of federal cuts and defend weak residents from financial downturns.
The CBC praised the stronger-than-expected private earnings tax income mirrored within the replace however warned that lower-than-projected enterprise taxes will mood the constructive outlook.
‘Not reflective of responsible budgeting’
In the meantime, Metropolis Council Speaker Adrienne Adams and Finance Committee Chair Justin Brannan expressed issues concerning the NYPD growth, specifically.
In a joint assertion, they mentioned putting tens of tens of millions of {dollars} into future budgets for extra officers with out a clear plan to handle present workforce challenges might contribute to rising out-year funds gaps and go away funds unused.
“For the past several years, the NYPD has experienced hiring and attrition issues, caused by and producing management challenges, excessive forced overtime, and strains on officers’ quality of work life,” they mentioned. “An outgoing mayor putting tens of tens of millions of {dollars} into out-year expense budgets for headcount, with none significant plan to handle present workforce challenges, just isn’t reflective of accountable budgeting.
They emphasised that they may assessment the plan to make sure sources are directed to satisfy the town’s speedy wants, together with steady college funding for college kids.
The council’s issues come because the NYPD continues to lose personnel. As beforehand reported by New York News, the division has misplaced a mean of 316 officers per thirty days this 12 months resulting from retirements and resignations, and its present headcount of roughly 33,832 is under budgeted ranges.
Though the town’s improved funds present Mamdani some extra respiratory room, he should decide whether or not he maintains Adams’ spending agenda, together with the multi-phase growth of the NYPD headcount.
In his election marketing campaign, Mamdani proposed making a separate “Department of Community Safety” to deal with psychological well being crises and sufferer providers with out growing the NYPD’s headcount past the present budgeted 35,000 officers.
