New York City raked in nearly $1 billion in unexpected revenue from a banner year on Wall Street, per new budget projections released Thursday by City Hall.
The cash infusion of $965 million, largely driven by the artificial intelligence boom on Wall Street, is expected to help balance the city’s budget in the upcoming fiscal year: Per the updated projections, the impending budget gap for fiscal year 2028, which starts in July, was lowered to $6.1 million, down from the $6.4 million projected in June.
“New Yorkers deserve a government that works as hard as they do, and that is as careful with their money as they are,” Mayor Mamdani said in a statement. “Our budget proves that fiscal responsibility and public excellence go hand in hand.”
Also driving the next year’s budget gap down is $67 million in savings from a 2.5% savings plan implemented by the mayor.
But budget watchdogs have warned that, while this year has been great for Wall Street profits, these conditions won’t last forever.
State Comptroller Tom DiNapoli called on the city to expand savings efforts and stash away more money in reserves to make its coffers more resilient to the ups and downs of the market.
“This progress comes with a cautionary note,” DiNapoli said in a statement. “Volatility in financial markets fueled by AI has grown in recent months and threatens to slow revenue growth, much of which has already been used to fund new spending added in the current year.”
City Comptroller Mark Levine has previously warned of the fiscal risks if the AI bubble bursts.
“The City has much more work to do to achieve meaningful savings and put its finances on a sustainable path,” Levine said in a statement on the budget update. “My office will closely monitor these trends and update our fiscal projections in the coming weeks.”
Budget gaps for future years have grown in the updated forecast, with the gaps growing to nearly $9 million for fiscal years 2029 and 2030.