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NYC Faces $5.4B Deficit, Considers Tax Hikes

3/27/2026

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Story summary
  • New York City's budget director testified about a $5.4 billion deficit and withdrawing $980 million from the rainy day fund.
  • Speaker Julie Menin warned that this move could harm the city's credit rating.
  • The budget director attributed the deficit to years of underbudgeting by former Mayor Eric Adams, with health insurance costs and school mandates.
  • Mayor Mamdani's administration is exploring tax increases on wealthy residents and corporations to address the crisis.