City Council Forecasts Nearly $2 Billion More in Tax Revenue, Urges Savings and Targeted Investments

Speaker Julie Menon announced the New York City Council’s June 2026 economic and tax revenue forecast, saying the council projects nearly $2,000,000,000 more in tax revenue for fiscal years 2026 and 2027 than the mayor’s Office of Management and Budget projected.

“With nearly $2,000,000,000 in additional resources over 2 fiscal years, we have the means to keep fighting for top council priorities that will make our city more affordable for working families,” Speaker Julie Menon said, and she urged the administration to earmark a meaningful amount of the gain for the city’s rainy day fund while also investing in targeted priorities.

Finance Chair Council Member Linda Lee said the council’s analysis is driven by stronger-than-expected growth in personal income and business taxes and projects average annual revenue growth of about 4.3% through FY2030. “This improved revenue outlook also means our city will have the resources that is needed for essential services,” Lee said, noting the council’s intent to set aside meaningful reserves to protect against federal reductions in aid.

Leadership highlighted specific funding priorities the council plans to press for during budget negotiations. Menon and others said they will advocate for expanded NYC Kids RISE college savings supports, broader enrollment in the Fair Fares transit discount, more park maintenance and personnel, and a $32,000,000 request to fully support the Department of Consumer and Worker Protection’s existing capacities.

Deputy Speaker Dr. Natasha Williams argued for a $20,000,000 baseline investment in cultural institutions, saying libraries and cultural organizations are neighborhood anchors and workforce partners. Deputy Leader Chris Banks emphasized using resources to shore up public safety, sanitation, public housing, education, senior services and other essential programs while maintaining fiscal prudence.

Council Member Krishnan said the council needs a strong Department of Consumer and Worker Protection to enforce worker protections for app-based drivers and delivery workers and called for funding to protect jobs for parks workers and to support the Department of Investigations’ independent oversight work.

During follow-up questioning, Menon reiterated that she and leadership are not proposing to spend all of the projected increase and that the rainy day fund “already is funded” and should not be raided; she also emphasized the council’s intent to press for pay increases for paraprofessionals (a starting salary cited in the briefing as $32,500). Menon said the council is still reviewing its position on a ballot initiative and that OMB and administration representatives will appear at a later hearing, with public testimony scheduled for the following day.

A council economist provided technical detail on out-year projections, saying adjustments to the council forecast reduce a projected gap from about $7,000,000,000 to roughly $4,000,000,000 and, after accounting for roughly $1.5 billion in reserves, to about $2.5 billion before further accruals and miscellaneous revenues.

Next steps: the council will continue budget negotiations with the administration and hear OMB testimony later the same day, followed by public testimony the next day.