Additional revenues—including $834 million in tax revenues above projection for the first quarter of FY 2021—reduce risks to balance in FY 2021
New York City Comptroller Scott M. Stringer released a first quarter revenue update for fiscal year (FY) 2021 showing that tax revenues are running $834 million ahead of the City’s projections. While potential State budget cuts continue to present a sizable risk to the City’s budget condition and a robust Federal stimulus package is essential to the City’s recovery, Comptroller Stringer said that the higher-than-expected tax revenues provide a path to closing the City’s budget gap next year. Existing resources include debt service savings from refinancing of outstanding City bonds, a Revenue Stabilization Fund that would allow access to nearly $500 million in General Fund balances, surplus revenues from fiscal year 2020, and tapping into reserves. Comptroller Stringer said that New York City Mayor Bill de Blasio is now in a position to present an updated Financial Plan in November that provides a clear path to a balanced budget for FY 2022 without cuts to essential services, layoffs of city workers, or borrowing to support operating expenses.