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Source: Cable News Network
Publisher: https://edition.cnn.com
Published: September 20, 2022 at 9:51 PM
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New York (CNN Business) The New York State Comptroller said Tuesday that several of New York City’s fiscal challenges could result in a budget gap nearing $10 billion by 2026 — potentially affecting essential services in the future.
Total revenue is expected to decline by $10.5 billion in fiscal year 2023, according to a new report titled “Review of the Financial Plan of the City of New York.”
The city’s fiscal position “significantly improved” last year, the report added, but that was due to several one-time factors, including higher than expected tax revenue, extraordinary federal COVID relief aid, and record pension returns due to the stock market’s gains. Many of those factors have begun to reverse, the comptroller said.
“While the City’s published gaps are manageable by historical standards…these factors may create risks that worsen the City’s budgetary volatility substantially and could put the City on a path to structural budgetary imbalance if left unaddressed,” the report said.
New York City Mayor Eric Adams said during a press conference on Monday that the city is getting ready to “enter a financial typhoon.”
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