Extra $2 Billion Could Pay For NYC Transit Discounts And Cleaner Parks

NEW YORK, NY — New York City could collect nearly $2 billion more in tax revenue over the next two fiscal years than the Adams administration projected, according to a new City Council forecast.

The forecast includes an additional $1.5 billion in projected revenue for fiscal year 2027 alone.

The revised outlook, released during the final days of Executive Budget hearings, expects tax revenue to grow at an average annual rate of 4.3 percent through fiscal year 2030.

Officials cited robust wage growth, higher Wall Street bonuses, increased capital gains realizations and recent tax collection data.

Council leaders said the additional revenue could fund priorities including expanded college savings accounts through NYC Kids RISE, additional staffing for city parks, increased support for cultural institutions, expansion of the Fair Fares transit discount program and additional funding for services for older adults and homeowners.

The Council also called for a portion of the projected revenue to be deposited into the city's Rainy Day Fund, marking what would be the first contribution since 2021.

“We can invest in New Yorkers today while planning responsibly for tomorrow," Council Speaker Julie Menin said.

Real gross domestic product increased 1.6 percent during the first quarter of 2026, supported by consumer spending and business investments in artificial intelligence and technology, according to the Council's report.

Within New York City, employment growth reached an annual rate of 0.8 percent in April, and average wages paid in the city increased 6.6 percent in 2025.

The Council projects city employment growth will strengthen beginning in 2027 as business services and other sectors benefit from continued national economic expansion. Even so, officials expect job growth to remain modest through 2030.

The City's commercial real estate market also showed signs of improvement.

The Council forecast expects Manhattan office vacancies to continue declining, with Class A office vacancy rates approaching pre-pandemic levels as artificial intelligence firms increase leasing activity.

What NYC Could Fund With Its Revenue Increase

The City Council said the nearly $2 billion in additional projected tax revenue across fiscal years 2026 and 2027 could help fund a mix of new investments and financial safeguards, including:

Expanded Fair Fares Program

• Increase access to discounted public transit for low-income New Yorkers.
• Some council members have proposed making the program free for all eligible participants.

More Funding For NYC Kids RISE

• Expand college and career savings opportunities for public school students and their families.

Additional Parks Staff

• Hire more workers to clean, maintain and improve city parks and public spaces.

Fifth Firefighter On Engine Companies

• Add a fifth firefighter to dozens of engine companies, a long-standing priority of firefighters and labor advocates.

Department Of Consumer And Worker Protection

• Increase staffing and resources as the agency takes on expanded enforcement and worker protection responsibilities.

Support For Cultural Institutions

• Provide additional funding for museums, theaters, arts organizations and other cultural groups.

Services For Older Adults

• Expand programs through the Department for the Aging, including services that help older residents remain independent.

Homeowner Assistance Programs

• Increase financial support and counseling programs designed to help homeowners remain in their homes.

Rainy Day Fund Deposits

• Set aside a portion of the additional revenue in reserves to prepare for economic downturns or unexpected fiscal challenges.

By The Numbers

• $1.5 billion: Additional tax revenue projected for fiscal year 2027.
• Nearly $2 billion: Additional revenue projected across fiscal years 2026 and 2027.
• 4.3 percent: Average annual tax revenue growth projected through fiscal year 2030.
• First reserve deposit since 2021: The Council is urging a new contribution to the city's Rainy Day Fund.