Wednesday, March 11, 2026, 11 a.m. (New York City time), Council Chambers - City Hall
Committee: Committee on Finance
The Committee on Finance held its first preliminary budget hearing for fiscal year 2027, examining the Mayor's proposed $127 billion preliminary budget. The hearing featured testimony from the Independent Budget Office (Director Louisa Chafee and colleagues), New York City Comptroller, and the Department of Finance Acting Commissioner Jeffrey Sheer. Key themes included the administration's move to correct years of under-budgeting, the proposal to raise the property tax rate by nearly 9.5%, the drawdown of the rainy day fund and other reserves, large projected out-year budget gaps, CityFHEPS rental assistance growth, special education due process (Carter cases) costs, unfunded state mandates, and opportunities for operational savings. Council members across the hearing repeatedly opposed the property tax increase and reserve drawdowns, while pressing witnesses on revenue projections, vacancies, debt service, NYCHA, pensions, and bond rating outlooks. No votes were taken; the hearing concluded after Department of Finance questioning.
0:01 Thank you. So home you guys
0:01 .good morning. Welcome cities
0:13 New York City Council
0:14 ncell electronic devices movin
0:19 gforward. No one is to approach
0:22 today is cheers! We've readies
0:25 . Begin. All right
0:27 , good morning, everyone. I
0:28 hope you're all super excited
0:29 to talk numbers and budget. Uh
0:33 oh, yes. Um so I am the chair
0:35 of the committee on finance
0:37 and welcome to the fiscal year
0:40 20 27 preliminary budget
0:41 hearings and we're so happy t
0:42 okick it off with who is going
0:43 to be starting off after we
0:47 give our opening statements,
0:49 so we have a full agenda today
0:51 as we kick off the budget
0:53 season, and we will hear from
0:56 the comptroer allnd department
0:56 of finance today at this time
0:59 I'd like to introduce my
1:00 colleagues who are present
1:01 this morning, of course we
1:02 have our speaker, speaker
1:05 mennen, our deputy speaker
1:07 Williams, majority leader of
1:09 brad whip, hank's council
1:11 members Council Member council
1:13 member murano council, Hudson
1:15 Council Member of the ball
1:17 Council Member and we've also
1:19 been joined by our public
1:19 advocate as well, and I think
1:22 I have did it cover everyone,
1:23 I think I did
1:25 . Okay, perfect. Um, I would
1:27 also like to extend my sincere
1:29 gratitude to the dedicated
1:31 staff of the City Council
1:32 finance division for their
1:33 tireless efforts, and I mean,
1:37 tireless and preparing for
1:37 today's hearing and this wor
1:38 kdoesn't happen on its own and
1:40 I want to acknowledge the
1:42 amazing team of dedicated
1:43 professionals who make it all
1:45 possible finance director
1:47 richard league give a little
1:50 wave managing director
1:51 jonathan rosenberg, deputy
1:53 director's I'm
1:53 . Wrote em. Rod. I'm sorry I
1:57 did, cheema overture paul
1:59 simone and isha, right? Are
2:01 chief economist at large naku
2:05 directors aaliya ali julia
2:07 haram ous of florentine kabor
2:08 e, daniel cruise reyes jack's
2:10 story, paul sturm and andrew
2:14 wilbur, our finance council,
2:15 nicolas connelly, my committee
2:17 counsel brian scarfo, my
2:18 senior adviser at the and many
2:22 finances, analysts, economists
2:23 and support staff who work
2:24 behind the scenes to bring
2:27 everything together. We are
2:28 here today to examine the
2:30 mayor's proposed $127 billion
2:33 preliminary plan for fiscal
2:34 year 20 27, which while
2:36 balanced as per the charter
2:38 requirements. It includes
2:40 proposals from some extremely
2:41 concerning actions and before
2:42 I go any further. I'd like t
2:44 oinvite our leader, speaker
2:45 Julie Menin share her opening
2:49 remarks.
2:49 Good morning and thank you
2:50 so much charlie. It's a
2:51 pleasure to welcome everyone
2:53 to the first preliminary
2:54 budget hearing of the fiscal
2:56 year 20 27 budget cycle today
2:59 marks the beginning of one of
3:00 the council's most important
3:03 responsibilities carefully
3:04 examining the mayor's proposed
3:08 127 billion fiscal 20 27
3:10 preliminary budget, ensuring
3:11 that it meets the needs of New
3:13 yorkers and safeguarding the
3:15 city's fiscal future. The
3:16 fiscal 20 27 preliminary
3:19 budget is $5.4 billion higher
3:21 than what was projected in the
3:25 financial plan. That
3:26 difference is largely driven
3:27 by steps to address chronic
3:29 under budgeting that the
3:30 council and many other fiscal
3:33 monitors had long called out
3:35 while we appreciate these
3:36 first steps towards a more
3:38 honest budgeting practice
3:40 elements of the
3:41 administration's approach t
3:42 obalance the budget with these
3:45 costs raised questions that
3:47 weren't close scrutiny by this
3:50 council just yesterday. The
3:50 analysis we released on the
3:51 remainder of fiscal year 20 26
3:53 in fiscal year 20 27 estimates
3:58 380 86 million more in tax
3:59 revenue than was projected by
4:01 reflecting a stronrge long
4:03 term outlook for the city's
4:05 finances are roll over the
4:06 coming weeks is not only to
4:07 look carefully at the numbers
4:11 but to ask the hard questions
4:11 and also to work
4:13 collaboratively to ensure that
4:15 the final budget reflects both
4:18 fiscal responsibility and the
4:19 priorities of our City, our
4:22 priorities are focused on
4:23 making New York, affordable
4:25 for the families who live her
4:26 e. Stay here and want to thrive
4:29 here and that means investing
4:30 in the services that they rely
4:32 on each and every single day,
4:35 it means making child care,
4:35 universal and strengthening
4:38 opportunities for highe
4:40 reducation, it means upgrading
4:42 parks with modern facilities
4:44 and providing libraries with
4:45 book line shelves and flexible
4:48 hours, not cutting funding for
4:49 libraries or for our cultural
4:51 institutions, and it means
4:53 supporting our small
4:55 businesses building affordable
4:56 housing that people can truly
4:58 afford and protecting the
5:00 public safety of every
5:01 resident across the five
5:04 boroughs. These are
5:05 foundational investments that
5:05 help develop healthier, safer
5:09 and more prosperous
5:10 communities, communities where
5:11 New yorkers can start,
5:13 families start businesses and
5:14 stay in for generations. We
5:17 also recognize that the City
5:19 face economic headwinds,
5:21 including the threat of
5:23 draconian federal cuts that
5:25 could affect funding streams
5:25 that we rely on in a moment
5:29 like this answer cannot be to
5:31 pull back from investments
5:32 that we know help New yorkers
5:35 survived and succeed at the
5:36 same time the council is clear
5:37 that why New yorkers are
5:39 already grappling with a
5:42 severe affordability crisis,
5:45 significant property tax
5:45 increase should not be on the
5:48 table that is non negotiable
5:51 before placing additional
5:52 burdens on small property
5:54 owners and small businesses.
5:55 We must fully examine other
5:57 opportunities for both revenue
5:59 and savings. We cannot allow
6:01 precious public resources t
6:02 obe squandered and we will look
6:04 for savings in every project
6:06 and program to eliminate
6:08 spending, that is wasteful or
6:11 unnecessary. Ultimately, our
6:12 goal is straightforward. We
6:13 plan to deliver a balanced
6:14 budget that protects essential
6:18 services, the affordability
6:19 crisis facing New yorkers and
6:21 reflects a shared commitment
6:24 to fiscal discipline. We look
6:25 forward to working
6:26 collaboratively with the
6:27 administration throughout this
6:28 process so that the City
6:30 remains financially strong by
6:31 continuing to invest in the
6:32 people and communities we
6:35 serve. Thank you. And I look
6:36 forward to today's discussion
6:37 and testimony from thank you,
6:42 speaker in the Mayor released
6:45 this preliminary plan giving
6:46 us our first look at balanced
6:48 fiscal year budget 20 27. The
6:51 preliminary plan serves as the
6:53 initial blueprint for how the
6:55 administration intends to
6:56 safeguard and strengthen the
6:57 fiscal future of New York cit
6:58 y, not only for this fiscal
6:59 year, but for years to com
7:01 eand it is important that we
7:03 get this right? A key focal
7:04 point of the mayor's budget
7:05 proposal was the fact that his
7:07 administration inherited an
7:10 under reported budget deficit
7:10 from his predecessor
7:13 , at that time the speaker and
7:14 my and I acknowledge the
7:16 administration's efforts t
7:17 about the proposal to draw
7:21 down billions from our limited
7:23 reserves and raise the overall
7:24 property tax rate by nearly
7:27 10%, the largest increase in
7:28 over 20 years, so today we are
7:30 here on behalf of the New
7:33 yorkers who are feeling the
7:34 fiscal impact of higher prices
7:37 continued rising costs federal
7:38 funding reductions and too
7:39 little relief to address these
7:43 challenges while we appreciate
7:43 that the proposed budget has
7:44 made one step forward t
7:45 oaddress the chronic under
7:46 budgeting for critical safety
7:48 net programs.
7:49 And unfortunately takes one
7:50 step back towards backwards by
7:52 drawing down our reserves
7:54 leaving those with very same
7:55 programs more exposed if we
7:56 are hit by a recession or
7:58 other economic shock. It takes
8:01 another step backwards by
8:02 proposing a nearly 10%
8:03 increase on the property tax
8:05 rate we again find ourselves
8:07 confronted with the budget
8:08 dance, but this time with a
8:09 different kind of music. While
8:11 we appreciate the steps to
8:12 address the chronic under
8:14 budgeting, the council has
8:14 made it very clear that even
8:16 in the face of this deficit
8:19 raising property taxes or
8:19 relying on the city's rainy
8:20 day reserves is not a viable
8:22 solution.
8:23 What is a viable solution is
8:24 to continue with the work of
8:26 right sizing the budget t
8:28 omeet actual costs and finding
8:30 efficiencies in how the City
8:31 delivers these critical
8:34 services. In this vein, the
8:35 Mayor has directed agencies to
8:37 identify savings in order t
8:38 ohelp reduce the deficit. This
8:40 is a good for step forward,
8:42 though we think the
8:43 administration can and should
8:44 go further and ensuring the
8:46 city's operations are as
8:48 efficient as possible. We
8:49 believe there are more krul's
8:51 and efficiency is available.
8:52 Balance the budget before
8:53 resorting to raiding our
8:54 savings and raising the
8:57 property taxes and while
8:58 looking to albany for help is
8:59 worthwhile. We must do more to
9:01 find immediate solutions
9:02 within our control to address
9:05 these shortfalls under
9:06 budgeting is not a New
9:07 phenomenon and year after yea
9:07 r, we have figured out a way to
9:10 resolve such shortfalls
9:11 without taking drastic actions
9:12 while we appreciate the more
9:14 realistic spending figures I
9:15 sshared by the administration.
9:17 We're not convinced that the
9:18 proposed actions to balance
9:19 the budget are necessary
9:20 .faced with these budgetary
9:22 challenges. The preliminary
9:23 budget makes an effort to
9:24 address some of the many needs
9:25 that New yorkers continued t
9:26 oface amid the rising cost of
9:28 living in our City, for
9:30 instance, the preliminary
9:31 budget makes further
9:32 commitments to expanding
9:33 chdcarile and early childhood
9:35 programs, advancing the
9:36 universal child care agend
9:39 achampioned by the council t
9:39 ohelp working families remain
9:41 in the workforce while using
9:43 affordability pressures. It
9:45 also continues to safeguard
9:46 and strengthen the city's
9:47 social safety net programs,
9:50 reinforcing longstanding
9:51 council budget commitments and
9:54 initiatives beginning, and it
9:55 also begins exploring avenues
9:56 for implementing a more
9:57 progressive revenue structure
9:59 while also identifying savings
10:01 across City agencies to
10:02 promote more efficient
10:05 spending. However, despite
10:05 these proposals, the budge
10:06 tstill falls short of ensuring
10:08 that New York City remains
10:10 fiscally stable. Not only thi
10:12 syear, but in the years ahead
10:14 ,specifically the budget plan
10:15 does not adequately account
10:16 for how the City will be
10:18 building reserves in the event
10:19 of further federal funding
10:20 cuts or potential revenue
10:24 declines, it does not present
10:25 clear proposals to ensure that
10:26 any efforts to generate
10:27 additional revenue, fairly
10:29 address geographic equity and
10:31 exemptions and that the burden
10:32 of filling these fiscal gaps
10:33 does not fall solely on
10:34 everyday working New yorkers
10:37 and as we know we are not here
10:39 simply to debate the numbers
10:40 on the spreadsheet we are here
10:42 to champion the needs of New
10:43 yorkers and ensure that this
10:45 administration has held
10:46 accountable for its budget
10:47 decisions and for the
10:49 implications those decisions
10:50 have for our City today and
10:53 tomorrow and as a City we must
10:54 be more disciplined in how we
10:56 spend and manage resources,
10:57 but in doing so we must ensure
10:59 that these actions do not come
11:00 at the expense of working
11:02 families. We must also
11:04 eliminate wasteful or
11:05 mismanaged spending wherever
11:07 it exists and this includes.
11:09 Bringing greater oversight
11:10 into agencies over budgets,
11:13 establishing a reliable system
11:14 to ensure the timely
11:15 collection of fines and fee
11:15 sowed to the City continuing to
11:19 reform the city's deeply
11:20 flawed procurement process, I
11:20 can attest to
11:22 . That which has too often
11:24 resulted in unnecessary
11:26 overspending despite the
11:26 challenging outlook for the
11:28 city's budget and broader
11:30 economy we remain confident
11:31 that through collaboration
11:33 with this administration, we
11:34 can ensure that New York City
11:35 is prepared for both the best
11:36 and the worst of what lies
11:40 ahead and our responsibility
11:40 is to develop a budget that is
11:43 realistic, fair and that
11:44 protects the safety and
11:45 economic stability of our cit
11:47 y, that is why the City Council
11:49 will continue prioritizing the
11:50 needs of all New yorkers and
11:52 we will remain committed t
11:53 ofunding early childhood
11:56 education, effective public
11:57 safety measures and
11:58 investments that make life
12:00 more affordable, we will
12:01 continue to work with the
12:03 administration to ensure
12:05 transparency, particularly in
12:07 how federal funding City
12:09 reserves and projected
12:09 deficits are accounted for
12:10 . And when we make it clear
12:12 that balancing the budget
12:13 cannot come at the expense of
12:15 our children, seniors, working
12:16 class families or the
12:17 essential services they rely
12:21 on our goal remains unchanged.
12:21 Work to be done and delivering
12:23 a budget that is both
12:25 transparent and honest will
12:26 allow us to protect essential
12:28 services confront the
12:30 affordability crisis and
12:31 uphold the city's government's
12:34 responsibility as stewards of
12:35 fiscal account for
12:35 accountability for the City of
12:38 New York. So before we hear
12:39 from I wanted to hand it over
12:41 to our New York City public
12:44 advocate jimani Williams for
12:45 his opening remarks. Thank you
12:48 so much, madame chair morning
12:49 as mentioned. My name is
12:50 jumaane Williams, advocate of
12:51 the City of New York. I want
12:53 to thank speaker men in
12:54 charlie and the members of the
12:55 committee on finance for