Council presses OMB on $5.4 billion remaining gap as administration outlines $1.7 billion in potential savings

The New York City Council’s Finance Committee spent hours questioning the Mayor’s Office of Management and Budget about the administration’s fiscal year 2027 preliminary plan, focusing on a remaining $5.4 billion gap, agency underbudgeting, and OMB’s effort to validate roughly $1.7 billion in proposed savings.

"Raising property taxes is not on the table," Speaker Julie Menon told the committee in opening remarks, restating the Council’s aversion to a tax increase even as the administration included a preliminary proposal that would raise the average property-tax rate. The remark set the political frame for much of the questioning that followed.

OMB Director Sharif Sulleman defended the administration’s approach, telling the panel that a thorough review of agency cost centers found "significant underbudgeting had in fact occurred" across social services, education, shelter and other program areas. Sulleman said the preliminary financial plan reflects roughly $14 billion in agency expense adjustments over two years to bring budgets in line with known costs.

Council leaders…