Buddhist Catholic Contemplative Evangelical General Christian Hindu Jewish Latter-day Saint Muslim New Visions Progressive Christian

Beliefs

Topics

Columnists

Resource Library

Research Tools

Video

Podcasts

Thought Readers

Faith In Media Tracker

Newsletters

Ad-Free & Subscriber Log-In Subscription Support

Follow Patheos

Home
Catholic
Politics and Religion
The NYC FY27 Budget Shell Game Exposed

The NYC FY27 Budget Shell Game Exposed

Last updated on: May 15, 2026 at 12:15 pm by Dennis McIntyre

0 Comments

The NYC FY27 Budget Shell Game Exposed 2026-05-15T12:15:46-04:00 Dennis McIntyre

LOGO Patheos Explore the world's faith through different perspectives on religion and spirituality! Patheos has the views of the prevalent religions and spiritualities of the world.

Mayor Mamdani claimed the NYC FY27 budget deficit was addressed, but was it? – image courtesy of Vecteezy.com.

City officials described New York City’s Fiscal Year 2027 (FY27) budget as a remarkable turnaround, closing an approximately $12 billion deficit without raising property taxes or cutting major services. While City Hall frames the budget as a model of fiscal responsibility, watchdogs and analysts point to a series of financial maneuvers—often called a “shell game”—that rely on short-term fixes, delayed obligations, and optimistic assumptions. Beneath the headlines lies a more complex, geographically grounded reality: a dense urban economy juggling shifting costs, state dependencies, and uneven effects across the entire state.

How Mamdani “Balanced” the Budget

Mayor Zohran Mamdani “closed” a projected $12 billion deficit to deliver a $124.7 billion budget for FY 2027. He skipped broad service cuts and property tax hikes by employing state intervention, aggressive accounting shifts, and new targeted taxes.

Heavy Reliance on State Aid

New York State provided billions of dollars of support to NYC. Partnerships with Albany delivered roughly $4 billion in gap-closing measures, including policy changes that reduced the city’s immediate financial burden. This includes delayed mandates—such as school class size requirements—and financial adjustments that effectively pushed costs into the future.

In April 2026, State Comptroller Thomas DiNapoli reported that tax collections for the 2025-26 fiscal year were actually $2.3 billion higher than the State’s own Division of the Budget had predicted. Governor Hochul effectively used this “extra” cash to plug the immediate hole in the City’s budget.
The State did not provide about $2.3 billion of that “aid” in direct cash; instead, lawmakers changed the law to allow New York City to restructure and delay its pension payments. The state essentially gave the City permission to stretch out its debt over a longer period (instead of a 2032 deadline to fully fund the pension, it is now 2037). This saves the City $1.6 billion in the 2027 fiscal year alone, but it doesn’t cost the State a dime today. They shifted the tax burden to future taxpayers, while potentially increasing the risk of underfunding the pension. Critics argue this is less a solution than a deferral—tomorrow’s taxpayers balance today’s budget. They are correct.

Use of “One-Time” Revenues

Analysts warn that billions of dollars used to close the gap are nonrecurring. These include funds previously set aside for other purposes and accounting adjustments that free up cash for a single fiscal year. This is exactly the type of “creative accounting” decisions that got the city into this mess in the first place.

~$4.8B in additional tax revenue (the $2.3 mentioned above, and an additional $2.5B from additional business tax collections). Market performance drove the additional revenue. This immediately positions the state for a potential $4.8B budget gap in future years should the market not perform as well.

NYS Takes Over Programs Previously Paid by NYC

A significant portion of the “aid” (roughly $1.2 billion annually) is actually the State taking over programs the City was previously paying for, specifically universal child care. By shifting these costs to the State’s larger $260 billion budget, the City’s ledger looks balanced, even if the State is now carrying the weight. For a New York taxpayer living in the five boroughs, the money is still coming out of your pocket—it’s just being deducted as a State tax instead of a City tax. The burden hasn’t left; it just changed its return address. In my view, adding this to the state budget opens the door for state taxpayers to potentially subsidize this cost in the future.

Optimistic Forecasts and Limited Savings

The administration also leaned on projected savings from agency efficiencies and revenue growth. However, independent experts caution that such projections may be overly optimistic, especially given economic uncertainty and declining federal support. One positive change is that the Mayor has created a new internal structure to manage these savings and efficiencies. Using existing budget staff within each city agency, a new role, Chief Savings Officer (CSO), is appointed to track “Program to Eliminate the Gap (PEG) initiatives.” This new structure should provide accountability to the taxpayers to realize these savings and efficiencies.

Long-Term Impact on NYC and NYS Residents

Impact on NYC

The consequences of this fiscal strategy will affect boroughs, neighborhoods, and income groups differently. City leaders distribute spending on housing, services, schools, and transit unevenly across neighborhoods.

Increased Future Fiscal Pressure: By pushing costs into future years, the city is setting itself up for recurring deficits. Analysts already project large gaps beginning in FY2028, meaning future budgets may require either cuts, tax increases, or both.
Greater Risk in Economic Downturns: Fiscal watchdogs warn that relying on short-term fixes weakens long-term stability. Without stronger reserves or recurring revenue, the city may be less prepared for a recession. This is particularly concerning given broader uncertainties, including potential reductions in federal support and rising state-level costs.
Disproportionate Burden on the Poor: For low-income New Yorkers—especially those living paycheck to paycheck—the long-term risks are potentially devastating:
- Reduced funding for social services in future budgets
- Greater vulnerability to cuts during downturns
- Continued strain from rising costs of housing, food, and transportation

Research shows that a majority of New Yorkers already struggle to meet basic household expenses, making them highly sensitive to shifts in public funding. In neighborhoods across the Bronx, Brooklyn, and parts of Queens, these pressures translate into evictions, food insecurity, and limited access to healthcare and education.

Impact on NYS

Because New York City is economically central to the state, fiscal instability in the city can ripple outward. New York State is already grappling with its own significant financial hurdles. The state does not currently carry a legal deficit—since the constitution requires a balanced budget—but it still faces a massive structural deficit. The state’s Division of the Budget recently projected a cumulative three-year budget gap of $13.9 billion. Despite this, Governor Hochul was able to provide NYC with nearly $8 billion through a combination of “found” money and accounting maneuvers.

The Catholic View

The NYC FY 27 budget was largely an exercise in creative accounting – image courtesy of Vecteezy.com.

The constant budget maneuvering, combined with reckless spending, allows our elected officials to claim budgetary victories while creating victims among NYC and NYS residents. The “kick the can down the road” approach only creates a bigger problem for future officials and the people later on. Inevitably, the poor and the people on the margins of society suffer. We, as Catholics, actively commit to caring for one another and to prioritizing the poor and the marginalized as part of our Catholic faith. Despite what Hochul and Mamdani will tell you, this is not happening here. They are simply mortgaging the future. While adding a layer of oversight and accountability will help, we still need to see whether elected officials will truly be held responsible for their actions.

Jesus consistently emphasized:

Care for the poor (Matthew 25:40)
Honesty and transparency (Luke 16:10)
Stewardship of resources (Luke 12:42–48)

When contrasted with these principles, the budget’s reliance on short-term fixes and deferred costs invites reflection:

While progress has been made in revealing past underbudgeting, the continued use of one-time revenues and deferred obligations creates a system that is difficult for ordinary people to understand fully. Jesus’ teachings emphasize clarity and truthfulness—values that challenge any system that obscures long-term realities.
Although the administration aims to protect working families in the short term, the long-term risks fall heavily on those with the least financial resilience. Delaying fiscal challenges may avoid immediate harm, but it can severely impact later years, raising questions about whether the most vulnerable are truly being prioritized.
From a faith perspective, stewardship is not just about balancing today’s books, but ensuring fairness across time.

Going Forward

For New Yorkers, especially those already struggling, the stakes are high. The “shell game” may keep services running now, but unless structural gaps are addressed, the bill will eventually come due. And when it does, the question will not just be economic—but moral: Who pays, and who is protected?

Please share your thoughts or any questions about this article in the “Comments” section below.

Stay updated on the latest articles and insights from the column. Subscribe to my newsletter to ensure you receive every new post. Click here to subscribe to the newsletter.

Peace

If you like this article, you might also enjoy:

Unity and Prayer: Strength in Community Faith
Ascension Thursday: The Meaning and the Mission
The Global Rise of Antisemitism: Causes and Faith Response

General Christian

Relationships and Religion

About Dennis McIntyre

In my early years, I was a member of the Methodist church, where I was baptized as a child and eventually became a lector. I always felt very faith-filled, but something was missing. My wife is Catholic, and my children were baptized as Catholics, which helped me find what I was looking for. I wanted to be part of something bigger than myself, walking with Jesus. I was welcomed into the Catholic faith and received the sacraments as a full member of the Catholic Church in 2004. I am a Spiritual Director and commissioned to lead directees through the 19th Annotation. I am very active in ministry, serving as a Lector and Eucharistic Minister and providing spiritual direction. I have spent time working with the sick and terminally ill in local hospitals and hospice care centers, and I have found these ministries challenging and extremely rewarding. You can read more about the author here.

Previous Post

May 14, 2026

The Global Rise of Antisemitism: Causes and Faith Response

Next Post

May 19, 2026 Forced Organ Harvesting in China: A Disturbing Reality

Recent Comments

0 | Leave a Comment

"This is far from settled science. I raised questions that are already out there. You ..."

Dennis McIntyre

Are Vaccines Harming Our Children? Facts, ..."

"Your claims are false. The only evidence you present is a single non peer reviewed ..."

FOOM

Are Vaccines Harming Our Children? Facts, ..."

"The doubts were already there. You just don't want to believe them. Your passionate, although ..."

Dennis McIntyre

Are Vaccines Harming Our Children? Facts, ..."

"The question, “Are vaccines harming our children?” does not have a simple answer.Sure it does: ..."

FOOM

Are Vaccines Harming Our Children? Facts, ..."

Browse Our Archives

Select a Category $375M penalty 1 in 9.2 quintillion 1954 1964 Civil Rights Act 3M and Dupont 764 Network 9/11 988 A Tale of Two Horses A&E Real Estate abortion Abortion abortion Abortion Pill Reversal abundant abundant life abundant life academic excellence accountability accountable active listening addiction addiction Adoption Adultery Advent Advocate Affordable Care Act Agape Agent Orange AI Alabama Supreme Court All Saints Day almsgiving American History AML anointed anti-ICE raids antisemitism antisemitism anxiety Apostles Armistice Day artificial intelligence Ascension Thursday Ash Wednesday assassination Assassinations assimilation assisted dying assisted suicide attacks attitude Australia Australia Autism Therapy Billing Fraud banned books baptism Baptism of the Lord Barnard College BBC Beatitudes Beatitudes bias Bible Reflection Bible Study Biblical Reflection Biden DOJ big beautiful bill Bioethics birthright citizenship Birthright Citizenship Blind Man BLM riots blockade Bloody Sunday Bodhi Bondi brackets breaking bread Brian Thompson Brown University bubble teams Budget management buffer zones California AB 1955 Calvary Cancer Capitol riot carry your cross cashless bail Catholic Catholic Catholic Books Catholic Education Catholic Faith Catholic Faith Formation Catholic Family Life Catholic Living Catholic Perspective Catholic Reflections census census charitable donations charity Charity Charlie Kirk Charlie Kirk Charlotte murder ChatGPT Chicago child abuse child abuse child safety online Childhood Cancer children china dependency Christian christian genocide Christian Living Christian Nation Christian Nationalism Christian Reflection Christian Reflections Christianity Christianity Christmas Christmas Church Teaching Civic Engagement civic integration Civil Commitment Climate change closed border clothing college campuses college campuses College of Cardinals Colonists Colorado Columbia University coming of the Lord commandments Commentary common good common good communication Communion Community commute sentences compact compassion compassion compassion compassion compensation concealed evidence confession Confession Congress Conservation contaminated water contention controversy Controversy conversion Corpus Christi court challenges COVID-19 COVID-19 crime Crime crime victims' rights criminalize crisis Critical Race Theory crucifixion Culture culture of death Current Events Cybersecurity D-Day Invasion David dazzling white de-escalate Dead Hand death Death Penalty democrats denuclearization destruction deterrent Devil DHS dignity of human life Discipleship discipline Discipline discipline divide Divine Mercy Sunday division Doha DOJ Donald Trump double-digit inflation doubting Thomas drug prevention drug trafficking Easter Easter Easter Monday Economic Policies Economics economy Education Education News Education Technology election Election Day electoral college Elijah Emmanuel Emmaus Energy Environment equality Establishment Clause eternal life eternal life eternal reward Ethics Ethics & Society Eucharist Eucharist Eucharistic Procession Euthanasia Evangelists Evergreen High School exalts Executive Orders expiring FACE Act FACE Act faith Faith Faith & Culture Faith & Spiritual Growth Faith & Spirituality Faith and Society Faith Reflection faithfulness Family Right and Responsibilities Act family separation fasting FDA approvals Feast of Christ the King Feast of the Holy Family federal funding Feeding Our Future Fifth Sunday of Easter Fifth Sunday of Lent Fig tree Finance financial mismanagement fire First Amendment First Amendment foreign nationals forgive Forgiveness founding fathers Fourteenth Amendment Fourth Sunday in Advent Fourth Sunday of Easter Fourth Sunday of Lent Fraud free speech freedom freedom of conscience gardener Gaudete Sunday Gay community Gaza War GDP Gen Z gender confusion gender ideology gender ideology general assembly generosity GEO Politics Geopolitics Gerrymandering gerrymandering Giving Machines Global Affairs global impact glory God God's glory God's grace God's presence God's presence God's presence God's voice Good Friday Good Shepherd Good Shepherd gospel Gospel Reflections Government Government Policy government shutdown government shutdown Government Weaponization graces Gratitude gun control Gun violence Hamas Hamas Israel War Hanukkah harvest Hate Crimes hate speech hate speech Health health Health Policy Healthcare Crisis healthcare crisis hearts heaven Hezbollah Higher Education higher prices higher revenue History History of Christianity Holiday Holidays Holiness Holy Days Holy Spirit Holy Spirit Holy Spirit Holy Thursday homeless Homeless honor victims Hope hope hospitality hospitality Human Rights human trafficking Humanitarian Crisis humanitarian crisis humble humble humility Humility humility Hyde Act ICE ICE ICE Facility ICE Raids illegal immigrants illegal immigrants illegal immigration immigrants immigration immigration Immigration Policy Immigration Reform Independence Day inhumane integrity Interfaith International Day of Charity International Day of Tolerance International Relations intolerance involuntary Iran Iran Iran War Iran War IRS Isaiah Israel Israel Iran War January 6 January 6th Jerusalem Jesus Jesus Jesus Jesus Jesus Jesus Jesus Jesus Christ Jesus' divinity Jesus' humanity Jesus' identity Jesus' Identity Rooted in God Jesus' Passion John Paul II John the Baptist Johnson Amendment joint session of Congress Joseph's dream judgment July 4 Just War justice justice keyboard warriors kids under 16 kindness kingship Kwanzaa Labor Market laborers Laetare Sunday Lamb of God last charge Last Supper Last Supper Last Supper Law Law & Governance Lazarus Lazarus leave no one behind legacy Legal Issues Legal News legal settlement Lent Lent Lent and Easter lepers LGBTQ+ Light Breaks Into the Darkness litigation Liturgy living water love Love low-income families lowly Luke Luke Luke 15 Lulumon Maduro Mainstream Media March Madness Martha and Mary Mary and Martha mask mandate mass deportations Mass Deportations mass executions mass shootings Mayor Mamdani Mayor Mamdani Medicaid Housing Fraud Medical Aid in Dying Medical Aid in Dying Medicare Meditation mental health mental health Mental Health mental health providers mental illness mercy Mercy Merry Christmas Messiah Meta Verdict Mexico City Policy Middle East mineral stockpile Minneapolis Minnesota tragedy mission mixed-status families MLB morally just Moses Moses mourning muslim extremists mustard seed Naaman narrow gate National Crime Victims Rights Week National Crime Victims' Rights Week National Day of Prayer National Events National Popular Vote Pact National Suicide Prevention Week National Vietnam War Veterans Day nativity NBA NCAA Mens Basketball Championship neglect New York New York New York City New York City News Nigeria No King but King Jesus novemdiales nuclear nuclear Nuclear Arms nuclear conflict Obamacare subsidies obedience oil prices Olympic Opening Ceremonies Online Sports Betting open borders open borders Operation Epic Fury oppression Ordinary Time Our Father Palestine Palm Sunday pandemic papabili papal conclave parable Parable of the Lost Son parental monitoring parental notification parental rights parental rights Parenting passion patience Patriot Day peace Peace peace through strength Pentecost Pentecost persecuted Perseverance Persistence Personal Growth pet care PFAS Pharisee Philosophy physician-assisted suicide Pilgrim's Prayer political allegiance political discourse political divide political division political endorsements political leverage political rhetoric Politics poor Pope Francis Pope Francis' Death popular vote Pornography poverty poverty Poverty power prayer Prayer prayer prayer prayer Prayer Prayer Prayer and Devotion pre-existing conditions preiest Presidential Pardon pride Pro-Hamas Protests Pro-Life pro-life supporters Project Vault protests protests protests PTSD Public discourse Public Lands Public Policy public witness punitive tariffs Quads Racism raised from the dead readiness reciprocal tariffs Reconciliation redemptive suffering Redistricting redistricting reflection rejoice relationship Relationship relationship relationship relationship relax and recharge Religion religion Religion & Ethics Religion & Faith Religion and Culture Religion and Society religious extremism religious freedom Religious Freedom Reparations reporting resolve resurrection resurrection retreat rich man righteousness rising Roblox Sabbath safety safety risks Saint Paul Saint Peter Salmon River School District Samaritan woman SAVE Act SB 5375 School Choice school shooting School shooting School systems SCOTUS Scripture Scripture Commentary Scripture Reflections Scripture Study Seal of Confession Second Amendment Second Sunday in Advent Second Sunday in Lent Second Sunday of Easter secure elections sede vacante Self-Care self-giving love self-harm Selma Separation of church and state servant leadership Seventh Sunday of Easter sexual exploitation Sexually explicit content sheep shelters Siloam simple sin sin Sixth Sunday of easter SNAP Social Issues Social Justice social media Social Media Ban social reform Society Solemnity of Saints Peter and Paul Solemnity of the Most Holy Trinity speech spiritual spiritual blindness Spiritual Companion Spiritual Direction spiritual direction Spiritual Growth spiritual liberty Spiritual Priorities Spiritual Unity spiritual unity spiritual urgency Spirituality spirituality Sports State Stewards Submarines suffering Suicide suicide suicide pod Sunday Mass Readings Sunday Readings Surrender Sydney Tariffs tariffs tax taxes Technology teen suicide Teens Temple Temptations in the Desert Ten Commandments Tennessee bills term limits terminally ill Terror Attacks Terrorism Texas SB 2972 Thanksgiving The Advocate The Day of the Lord Theology Third Sunday in Advent Third Sunday of Lent Timeout boxes Tolerance total commitment toxic training Transfiguration Transfiguration transformation Transformed Life Transgender Treasures in Heaven trial Triduum trinity Trinity Trump Trump Trump Trust trust Truth two disciples U.S. Foreign Policy U.S. Growth U.S. History U.S. News U.S. Supreme Court Ukraine War Ukraine War unaccompanied minors Uncategorized unconditional understanding United Nations United States unity Unity unity unity unity with God universal health care unjust judge unselfish Urban Affairs Vaccinations vending machines Venezuela Veterans Day Vietnam War Vigilant violent protests visas revoked voter suppression waiting War on Drugs Washington State well widow wooden beam Word made flesh World Affairs World Community Sunday World Day Against Trafficking in Persons World News World Trade Center World War II World War III worldly tasks worship

Select a Month October 2026 September 2026 August 2026 July 2026 June 2026 May 2026 April 2026 March 2026 February 2026 January 2026 December 2025 November 2025 October 2025 September 2025 August 2025 July 2025 June 2025 May 2025 April 2025 March 2025 February 2025 January 2025 December 2024 November 2024 October 2024 September 2024 August 2024 July 2024 June 2024 May 2024 April 2024 March 2024 February 2024 January 2024 December 2023 November 2023 October 2023 September 2023 August 2023 July 2023 June 2023 May 2023 April 2023

TAKE THE

Religious Wisdom Quiz

Which Christian tradition uses the rosary for prayer?

Select your answer to see how you score.

Catholicism Presbyterian Anglican Baptist