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Mayor's five-year financial plan: Budget office warns of $876 million two-year shortfall, orders 15% reductions and hiring freeze

Budget and Finance Committee · February 5, 2025
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Summary

The Mayor's Budget Office presented a five-year financial plan showing a projected $876 million deficit over the next two fiscal years, prompting instructions to departments to propose ongoing 15% general-fund reductions beginning in FY25-26 and a citywide hiring freeze announced Jan. 9, 2025.

The Mayor's Budget Office told the Budget & Finance Committee on Feb. 5 that the city faces a widening fiscal gap driven by expenditure growth that outpaces projected revenue increases. Benjamin McCloskey, interim director of the Mayor's Budget Office, said the office projects a two-year general-fund deficit of $876,000,000 (approximately $253,000,000 in the first year and $623,000,000 in the second year) and $1.7 billion in expenditure growth versus $520 million in projected revenue growth over the next five years.

McCloskey and the Budget Office outlined key assumptions informing the forecast: modest…

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