“New York City’s budget outlook continues to improve, and it can use this opportunity to build reserves and take other actions to address future uncertainty. Despite challenges, the city’s economy continues to grow and deliver better than expected tax revenue, supporting upward revisions in spending. The Fiscal Year 2025 budget is now expected to exceed $115 billion, up from nearly $111 billion projected at the same time last year. This outcome is evidence of why it is important to remain laser focused on growing the city’s economy and providing basic city services, including public safety and education, and continuing to implement affordability measures.

“The city is also being more transparent about a number of budgetary risks raised by my office, a prudent action that more fully reflects the spending challenges it faces. More realistic projections of the cost of existing rental assistance programs and an update to asylum seeker projections is a move towards greater transparency. The city’s new highlight of budgetary efforts to manage inclement weather and climate change are also welcome additions to its financial plan documents.

“Unfortunately, a number of other budgetary risks my office has raised in the past remain in the financial plan and the city continues to charge water and sewer ratepayers more to balance its budget in the outyears of its plan. Despite the improved revenue outlook, the city also elected not to deposit additional monies into its rainy-day fund, which underlines the lack of a systematic process to buffer against future uncertainty. The city’s reserves remain well below peers on a share of spending basis.

“My office is analyzing the executive budget and will issue a report on our findings in the coming weeks.”