Major allocations across city government
Comprehensive Fiscal Plan Outlined
The preliminary budget allocates $127 billion for fiscal year 2027, representing a $9 billion increase from the current fiscal year. While significant, much of this increase addresses previously underfunded essential services rather than new programs. The budget reflects the administration’s priorities and values across multiple policy areas and city agencies.
Education and Youth Services
Education receives substantial budget attention with $543 million allocated for class size reduction to meet state mandate requirements. Summer Rising programming receives $106 million in fiscal year 2027 with multi-year funding commitment. The budget includes $70 million for preschool special education services and nearly $50 million annually for new District 75 classes supporting students with complex disabilities.
Housing and Homelessness Services
The budget includes $662 million in fiscal year 2027 for modernization and preservation of more than 3,200 affordable housing units. Rental assistance receives substantial funding, representing one of the major service areas the administration identified as underfunded. Shelter operations, warming centers, and supportive services for homeless New Yorkers receive targeted increases.
Transportation and Infrastructure
Transportation receives $5 million in annual funding specifically for bus and bike projects over four years. DOT staffing increases by 20 positions focused on bus and bike lane expansion. The capital plan includes $113 billion across all-funds with resources dedicated to street redesign projects and transportation infrastructure maintenance.
Health Services and Mental Health
Mental health services receive targeted increases including $11.9 million for new Street Health Outreach and Wellness units and a new Bridge to Home site for people living with severe mental illness. Bellevue Hospital receives $48.2 million to renovate and expand its Adult Comprehensive Psychiatric Emergency Program.
Law Department and Tort Liability
The budget includes $5.3 million in fiscal year 2026 and $38 million in fiscal year 2027 for 200 new attorneys and 100 support staff. This allocation reflects the administration’s goal to reduce tort liability and advance affordability efforts through improved city legal representation and policy work.
Food Security
The budget more than triples baseline funding for HRA’s Community Food Connection program with $54 million in fiscal year 2027. This reflects the administration’s commitment to food security and addressing nutrition gaps among food-insecure New Yorkers.
Across-the-Board Efficiencies
Beyond specific program allocations, the mayor directed city agencies to achieve efficiency targets of 1.5 percent in the current fiscal year and 2.5 percent in fiscal year 2027. Chief Savings Officers were designated in each agency to identify recurring efficiencies and potential cost reductions.
Looking at Next Steps
The preliminary budget serves as the opening position for budget negotiations. The City Council will review these allocations and suggest modifications during the negotiation process. Final budget adoption occurs by June 30 each year, typically after intensive late-stage negotiations.
For detailed budget information and analyses, see NYC Office of Management and Budget website, Citizens Budget Commission analysis, and Empire Center for Public Policy budget commentary and reports.
