OMB Director Solomon: Addressing inherited $12 billion budget gap

Thank you.

Thank you, Chair.

And good morning.

Good morning, Speaker Menon, Chair Lee, Leader Carr, members of the Finance Committee, and all members here with us today.

Thank you for the opportunity to testify today about the executive budget for fiscal year 2027.

I am joined today by First Deputy Director Tara Berard, Senior Deputy Director Latonya McKinney, and Deputy Director

Directors Josh Goldstein, Nathan Gustorf, Liz Hoffman, and Patrick DiStefano.

When I testified in the preliminary budget in March 1st, in March, I spoke about significant and chronic under budgeting across many areas in the approach that our administration took to introduce transparency,

predictability, and less risk in the city's budget.

Addressing billions of dollars in known expenses in the preliminary budget was a prudent, fiscally responsible, and necessary step to take,

but it meant that we needed to confront a staggering $12 billion gap over fiscal years 2026 and 2027.

We immediately went to work and applied a variety of strategies to address this inherited challenge.

Through a combination of savings plans led by newly appointed chief savings officers, additional tax revenue, and significant financial support from our partners in state government, we eliminated the gap and presented a balanced

executive budget.

One that puts the city back on a strong financial footing, one that invests in an affordable, safe, and vibrant city, and one that continues core government operations that New Yorkers depend on.

And we balance the $124.7 billion

fiscal year 2027 budget without raising property taxes, without

out drawing down the rainy day fund of the Retiree Health Benefit Trust Fund, and without slashing services.