© John Meore/The Journal News / USA TODAY NETWORK
(New York, NY) – Thomas DiNapoli, a committed member of the Democratic party, says not all is well in the firmly-blue city of New York. As the state comptroller, DiNapoli is privy to key data surrounding the state’s finances. And he spoke Wednesday, August 13, 2025 — at the state financial control board’s annual meeting.
There was some good news for New York City, per DiNapoli. He maintains that the Big Apple is in good shape financially, but that challenges lie ahead. For the fifth straight year, city revenues exceeded officials’ expectations. And — in an important post-COVID development — DiNapoli argues the New York City real estate market has stabilized. But the warning signs are apparent, as well. For one, a new class size mandate is coming — and that will boost education costs.
New York City’s class size mandate, enacted in 2022, requires the city to gradually reduce class sizes in public schools — over a five-year period. The law mandates that classes be capped at a maximum of 20 students for kindergarten through third grade, 23 student in grades 4-8, and 25 in high school. This means more teachers and resources for each school.
That wasn’t the only area of concern flagged by DiNapoli. The comptroller warns there are programs — including public assistance and rental assistance — that remain underfunded. Also, the city is not well prepared for future overtime expenses.
DiNapoli recommends the city launch a new savings program, and boost efficiency, to answer future shortcomings in funding. He says potential federal funding cuts are a concern — highlighting the need for New York City to boost its own revenues.
Digging into the city’s finances by the numbers, for the last three fiscal years — city spending exceeded revenue from tax levies. For Fiscal Year 2026, the city budget has added $3.9 billion in new agency spending and council initiatives — outpacing added city-fund revenues. That’s not a mathematical equation New York City wants to find itself on the short end of. And it means drastic steps are needed in terms of cutting city spending.
With more and more people fleeing the city’s high cost of living, moving to spots like Florida, the Carolinas, and Virginia — the concept of taxing your way out of the problem doesn’t wash.
