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.

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.

Due to ongoing economic growth, SFY 2023-24 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.

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 State of New York for the fiscal year ended March 31, 2025.

This report provides a summary analysis of the financial state of the local governments outside of New York City for local fiscal years ending in 2023. In FYE 2023, local governments and school districts were generally able to maintain fund balance levels and cash on hand due to pandemic-related federal funding and large increases in state aid, while lower inflation compared to FYE 2022 tempered growth in expenditures on equipment and materials. | NYS Local Government Interactive Data

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.