Now, the governor's budget office says the deficit has nearly doubled to $9 billion, rising to over $13 billion the following year. The budget office released its revised numbers earlier this month.

As of early 2026, New York City is facing a significant fiscal crisis with a projected budget gap of approximately $5.4 billion to $7 billion for the upcoming fiscal year. Mayor Zohran Mamdani has described this as a "staggering fiscal mismanagement" inherited from the previous administration, with the total shortfall over 2026 and 2027 estimated to reach $12 billion. By law, the city must pass a balanced budget, which has led to intense political battles over how to close the gap. Proposed solutions include raising corporate and individual income taxes for high earners (those making over $1 million) and a potential 9.5% increase in property taxes. While New York State has pledged some assistance (roughly $1.5 billion over two years), the city remains under heavy pressure to make deep spending cuts to departments ranging from sanitation to libraries to prevent the deficit from ballooning further into the 2030s.