Mayor Zohran Kwame Mamdani today released the November 2026 Financial Plan Update , providing an updated picture of the City's revenues, expenditures and progress towards its savings goal. The plan reflects the Mamdani administration's commitment to fiscal responsibility by investing in essential services that protect the health and safety of New Yorkers, address federal funding cuts and improve government operations.
The November Financial Plan Update is part of the administration's ongoing work to strengthen the City's fiscal health and address structural budget challenges. Upon taking office, Mayor Mamdani confronted one of the largest structural budget crises in modern City history, driven by years of underbudgeting for core services and long-term obligations.
Rather than balance the budget on the backs of working New Yorkers through service cuts, the Mamdani administration stayed focused on savings, established a historic partnership with Albany to achieve new sustainable revenue sources and reverse several longstanding cuts and shifts that had strained the City's budget, and worked with the City Council to reduce the Unincorporated Business Tax credit for high-income New Yorkers.
"New Yorkers deserve a government that works as hard as they do, and that is as careful with their money as they are," said Mayor Mamdani. "Our budget proves that fiscal responsibility and public excellence go hand in hand. We are investing in the essential services New Yorkers rely on to protect their health, safety and wellbeing, while pursuing an aggressive savings plan to put our city on stronger financial footing so that our city can deliver for generations to come."
Strengthening the City's Fiscal Outlook:
As the administration enters its second budget cycle, the November 2026 Financial Plan Update reflects progress in strengthening the City's fiscal position while maintaining investments in essential services.
The Fiscal Year 2027 (FY27) budget totals $129.2 billion. Of the $3.3 billion increase from the adopted budget, approximately $1.15 billion is City funds, $1.48 billion is Federal funds and $635 million is State funds. The increase in non-City funds primarily reflects routine budget adjustments that are typically recognized at this point in the fiscal year. The FY28 gap has fallen to $6.2 billion, a reduction of $257 million since the adoption of the FY27 budget in June. Gaps in FY29 and FY30 stand at $8.7 billion and $9 billion, respectively.
The plan also reflects $965 million in additional tax revenue in FY27, driven by increased collections since the June budget adoption and strong performance on Wall Street.
FY27 reserves total $7.8 billion. The administration is also developing a formal methodology for calculating annual deposits into the City's Rainy Day Fund, consistent with the overwhelming support New Yorkers demonstrated for Proposal 5 from the Mayor's Commission on Government Efficiency (COGE), which passed with almost 73% of the vote.
Within his first month in office, Mayor Mamdani signed an executive order directing every City agency to appoint a Chief Savings Officer (CSO). The initiative is designed to make government more efficient, streamline service delivery and ensure taxpayer dollars are spent responsibly. During the administration's first budget cycle, agency CSOs identified $1.77 billion in savings across FY26 and FY27.
In July 2026, Mayor Mamdani announced an additional round of savings targets, directing City agencies to identify 2.5% in savings in FY27 and FY28, as well as in subsequent fiscal years.
In the November Financial Plan, debt service and agency savings total $683 million across FY27 and FY28. Agency savings include consolidating City office space, reducing reliance on outside consultants and bringing services in-house, improving grant claiming practices and reforecasting contract spending.
The administration will provide an additional update on its savings efforts in the FY28 Preliminary Budget. Through these savings, revenue collections and continued fiscal discipline, the administration was also able to make an $845 million prepayment toward FY28 obligations.
Investing in Essential Services:
While strengthening the City's fiscal outlook, the administration is making targeted investments to protect the health and safety of New Yorkers, address federal funding cuts and improve the delivery of City services across the five boroughs.
Highlights of the November Financial Plan Update include:
Responding to Extreme Weather:
- Strengthen the City's Code Blue response: Deploying additional outreach teams, nurses and vehicles, while expanding warming site capacity to connect homeless New Yorkers with shelter and support as temperatures fall ($25.2 million in FY27, growing to $25.9 million in FY30).
- Bolstering emergency response coordination: Adding 10 full- and five part-time Citywide incident coordinators to serve among the first City representatives deployed to emergency scenes and connect field operations with City Hall, the Emergency Operations Center and agency leadership. The positions will help meet increased operational demands from extreme weather, large-scale incidents and overlapping citywide activations ($600,000 in FY27, increasing to $1.2 million annually beginning in FY28).
Protecting the Health and Safety of New Yorkers:
- Strengthening juvenile justice facilities, enhancing alternatives to detention, and reducing recidivism: Improving operations and conditions at the Crossroad and Horizon juvenile detention facilities ($48.3 million in FY27, growing to $70.2 million in FY30).
- Strengthening Legionella prevention and response: Enhance the City's detection, enforcement and response efforts to Legionella bacteria in cooling towers following the Upper East Side and South Bronx community clusters earlier this summer. The investment will support additional laboratory staff to accelerate testing and build on the NYC Health Department's rapid and aggressive response ($500,000 in FY27, baselined).
- Expanding public health services: Funding the operations at the new Central Harlem Sexual Health Express Clinic, adding community health workers to conduct outreach and help patients maintain insurance compliance, supporting other public health clinic operations ($7.2 million in FY27, decreasing to $6.1 million annually as of FY28).
Addressing Federal Cuts and Improving Government Operations:
- Recognizing SNAP Administrative Costs: Covering increased City costs resulting from H.R. 1, which raises the City's share of SNAP administrative expenses from 50% to 75% ($61.7 million in FY27, growing to $82.6 million annually in FY30).
- Supporting homeless services providers: Recognizing increasing food and insurance per diems for Department of Homeless Services (DHS) shelter providers ($40.3 million in FY27, growing to $43.9 million in FY30).
- Preventing service disruptions for veterans: Covering disruptions caused by the loss of the New York City Department of Homeless Services (DHS) Veterans Affairs Grant due to terms that would be in violation of state and local laws protecting people from discrimination on the basis of gender ($2.7 million in FY27, baselined).
- Reforming NYC Public Schools procurement: Investing in additional staff and resources to improve procurement practices, increase transparency and strengthen oversight of systemwide and school-level contracts and vendor spending. The reforms are expected to generate $100 million in savings across FY27 and FY28 ($9.6 million in FY27, baselined).
Bringing Services In-House and Reducing Reliance on Outside Contractors:
The administration is continuing to identify opportunities to bring work in-house, reduce reliance on outside consultants and contracts and build the City's internal capacity.
- Office of Technology and Innovation: Generating savings of $4.6 million in FY 2028 and more in subsequent years by bringing consulting services in-house.
- New York City Law Department: Saving $2 million in FY28 and annually thereafter by reducing reliance on outside temporary attorney service contracts as agency staffing increases.
- Taxi and Limousine Commission: Saving $180,000 in FY27 and $322,000 in subsequent years by ending subscriptions and reducing reliance on consultants.
