Reports

New York City’s $127 billion fiscal year 2027 preliminary budget (February Plan) provides more transparency for spending, addressing years of chronic underbudgeting and exposing an emerging structural budget gap that may require choices that threaten the city’s fiscal stability, competitiveness and affordability.

Seven villages were designated in fiscal stress under the Fiscal Stress Monitoring System (FSMS) for their fiscal year ending in 2025. One village was designated in “significant fiscal stress,” four in “moderate fiscal stress,” and two as “susceptible to fiscal stress.”

This analysis of the proposed Executive Budget warns that the trajectory of projected State spending is estimated to increase at a rate faster than expected revenues, creating cumulative outyear budget gaps estimated by the Division of Budget to total $27.5 billion through SFY 2030 while reserves remain stagnant. Actions taken in Washington, including federal reductions in aid, create increased fiscal strains that are likely to affect the State’s economy, finances and safety net, necessitating increased caution when developing a spending plan. The proposed Budget also limits government accountability by eroding current contract oversight requirements.

This report highlights Fiscal Stress Monitoring System (FSMS) results for school districts that reported financial data for school fiscal year (SY) 2024-25, which ended on June 30, 2025. Of the 669 districts scored, 4.6 percent (31 districts) received a fiscal stress designation. This was nine districts more than in SY 2023-24. The report also analyzes the several indicator categories (e.g., low fund balance, operating deficit, etc.) that measure fiscal stress, the number of districts that have been in chronic stress since FSMS began in SY 2012-13, and the environmental indicators (e.g., high teacher turnover, high poverty, etc.) that can provide context for understanding why a district may be designated in stress.

New York City’s budget gaps may reach as high as $10 billion in FY 2027 and grow to $13.6 billion by FY 2029, based on risks including slowing economic growth, rising costs and the restructuring of the funding relationship between the federal government, states and their localities. Mindful of the current economic trajectory and what is transpiring in Washington, the City must make balanced and sustainable fiscal choices this year to manage its substantial operational needs and encourage employment and business growth.

New York City Health + Hospitals will see pressure on key sources of revenue as Medicaid and low-income patients that rely on federal support lose health insurance, while reimbursement rates for health care programs are cut by Washington, making it harder for the largest public health system in the country to reach its financial goals.

New York City has cut fuel use and emissions across its municipal vehicle fleet of about 30,100 vehicles, but the average vehicle age is now the highest since 2012, and aging emergency and service vehicles are increasingly sidelined for repairs. In fiscal year 2025, the city spent $415 million on fuel and fleet repair, and over $400 million in capital funding for new vehicle acquisitions.

The Office of the State Comptroller prepares this report as part of the "Quick Start" process established in the State Finance Law. The report includes revenue and spending projections through SFY 2027-28.

The stability of the MTA's finances is increasingly reliant on its ability to find significant savings, grow ridership, and efficiently execute capital improvements. By prioritizing and delivering capital investments and continuing efforts to find ways to provide more cost-efficient service that remains safe, frequent and reliable, the MTA will ultimately improve the ridership experience. This will further strengthen farebox operating revenues and better prepare the MTA for uncertainty in the coming years.

This report highlights the results for counties, cities, towns and villages that reported annual financial data in time with the Office of the New York State Comptroller for local fiscal years ending (FYE) in 2024. Overall, the number of local governments designated in fiscal stress increased in FYE 2024 but remained near all-time lows. Included in this report is an analysis of both fiscal stress and environmental stress indicators and trends for non-filing local governments for fiscal stress purposes. | Fiscal Stress Monitoring System Statistics

New York City’s revenues from water and sewer charges, fines and forfeitures, licenses and permits, interest income, rental income and other “miscellaneous revenues” reached an estimated $6.7 billion in fiscal year (FY) 2025, just 11% higher than in FY 2019. The weaker growth was due, in part, to the COVID-19 pandemic. The City should assess the many fines, fees, and charges for services it collects and whether these revenue sources are permanently affected by the changes that occurred during the pandemic and what that means for anticipated revenues.

The Annual Comprehensive Financial Report for the State of New York for the fiscal year ended March 31, 2025.

Due to ongoing economic growth, SFY 2024-25 closed in a stronger-than-expected position, with revenues that were greater than anticipated by the Division of the Budget.

The Annual Comprehensive Financial Report for the New York State and Local Retirement System (the System or NYSLRS) for the fiscal year ended March 31, 2025.

New York City’s adopted $119.7 billion fiscal year 2026 budget is currently balanced (including pre-payments) but there are significant concerns over funding from Washington and slowing economic growth that could jeopardize its financial position and discretionary programs if greater preparation is not taken. The City must make balanced and prudent fiscal choices in the coming year while managing its substantial operational needs and encouraging employment and business growth to enhance its economic and tax revenue base.

New York State’s Financial Plan shows a growing structural budget deficit with a cumulative three-year budget gap of $34.3 billion, as forecasted by the Division of the Budget. The gap is up $7 billion since the January release of the Fiscal Year 2026 Executive Budget Financial Plan, and is attributable to downward revisions to the economic forecast and projected revenues, as well as increases in projected spending. When the projected costs of the federal reconciliation bill are added, the gaps as a share of spending are comparable to gap levels last seen in April 2009 during the Global Financial Crisis.

New York State agency overtime costs increased 10.2% in 2024 for a total of $1.3 billion, while the number of overtime hours increased by 7.8%, or 1.8 million hours higher than the previous year. This was the second year in a row the workforce increased to an average annual total of 151,309, but headcount is still below where it was in 2019 and markedly lower than 15 years ago when it was over 177,000.

The MTA has made substantial progress funding its capital programs and has tried to limit the strain on its operating budget from debt service costs, but potential federal actions threaten its financial future and debt profile.

Stronger than anticipated revenues and lower costs for asylum seekers will help New York City balance its $118 billion fiscal year 2026 budget. However, potential fiscal challenges are emerging, including continued uncertainty regarding federal policy and economic conditions, and fiscal risks from anticipated federal budget cuts. These challenges could limit the City’s potential revenue upside and make it harder to continue to fund recent spending additions for discretionary programs and maintain services.

The Enacted Budget for State Fiscal Year 2025-26 is projected to total $254 billion, a 5.2% increase in spending at a time when new federal actions on funding and policy may change the relationship between the federal government and states. Federal funding represents more than 1 in 3 dollars in the State’s budget. Federal reductions will have real impacts on the people in the State, whether it is the food or medical care they can afford or even the level of care that hospitals provide.