NYC May Face Annual Budget Gaps of $13 Billion, DiNapoli Says

New York City may be headed for annual deficits of as much as $13 billion because it under-budgets costs for social services and overtime, according to state Comptroller Thomas DiNapoli.

The largest US city could face a potential budget gap of $10.6 billion in fiscal 2027 — which begins on July 1, 2026 — and the shortfall may swell to $13 billion in fiscal 2028 and be around that level in 2029, DiNapoli said in a review of the city’s five-year financial plan. New York has historically under-budgeted the cost of recurring expenses like public assistance, rent aid, police ...