New York City’s newly appointed comptroller, Mark Levine, has issued a stark warning about the city facing severe financial challenges. According to his latest assessment, the city is projected to have a budget deficit of $21.8 billion in the current fiscal year, with the gap soaring to $10.4 billion in the next fiscal year, totaling a staggering $12.6 billion deficit over two years.
Levine stated that this evaluation aligns with the predictions put forward by his predecessor, Brad Lander, highlighting long-term fiscal concerns within the city government. Speaking to the media on January 16th, he emphasized the urgency of sounding the alarm regarding such a substantial financial shortfall.
One of the key reasons contributing to the deficit, as identified by Levine, is the sluggish economic growth. He also pointed fingers at the fiscal management under former Mayor Adams, criticizing the city government’s overreliance on one-time budget measures that failed to address structural spending issues adequately.
This warning comes as the new Mayor, Mamdani, has just taken office. The Mayor is set on implementing a series of ambitious policies that require significant financial support, including free bus services and free childcare. Mamdani plans to increase revenue by imposing taxes on high-income individuals and large corporations.
However, any tax adjustments must receive approval from the New York Governor and the State Legislature. Governor Hochu, who is currently seeking reelection in November, although supporting some of Mamdani’s policies, made it clear in her State of the State address on January 13th that she would not raise taxes during her term.
Levine emphasized that the current deficit forecast is based on the assumption of “moderate to slow economic growth.” If the New York economy performs better than expected, the fiscal pressure may ease slightly. “We are required to make some tough decisions and face trade-offs,” he said, “Promoting economic growth would help avoid painful choices.”
As the newly appointed comptroller, Levine has been overseeing the city government’s financial situation since taking office on January 1st. His responsibilities include auditing city agencies, managing New York City’s five major public pension funds, and ensuring scrutiny of the city’s budget. Auditing units of both the city and state governments have repeatedly pointed out New York City’s long-standing underestimation of various recurring expenses, such as public assistance, rental subsidies, special education, and overtime pay for police and firefighters.
The Mamdani administration is required to submit a comprehensive annual budget proposal to the City Council by February 1st.