The City Council’s latest tax revenue projection, released Wednesday, predicts the city will net $2.6 billion more in tax revenue than a separate recent budget plan from Mayor Adams’ office.
The new Council projection estimates the city will gain the revenue in property, personal income and business taxes over the current and next fiscal year, which starts July 1, 2025.
The analysis by the Council follows a pattern of consistently higher tax revenue projections than the mayor’s office — which Speaker Adrienne Adams and Finance Committee Chair Justin Brannan say is reason to boost funding to parks and for additional mental health resources.
“With a resilient national and local economy, the City continues to have the necessary resources to support essential services while investing in parks, mental health solutions, and other key needs,” Speaker Adams and Brannan said in a joint statement.
“Now, we just need an Administration that is committed to investing in New Yorkers priorities and fulfilling their pledges to working-class New Yorkers.”
The latest projection comes as city lawmakers kick off the budget negotiation cycle over the Fiscal Year 2026 budget.
Mayor Adams announced restorations to some previously cut programs as part of his own budget update last month. He increased the total fiscal year 2025 budget to $115 billion from its original $112 billion, noting the Mayor’s Office of Management and Budget’s analysis now includes savings of $785 million between fiscal years 2025 and 2026.
Adams said savings on migrant spending, an increase in state and federal grant money and higher-than-expected tax revenue allowed the city to bring back two previously canceled police classes, putting an additional 1,600 officers on the street, and increased spending on the cash assistance program and the CityFHEPS program.
With Chris Sommerfeldt