Whether you care or not, your day to day is impacted by the city budget. From trash pickup, library hours, after-school programs and housing vouchers, these are just a few examples of what's determined by city dollars.

New York City is staring down a massive budget shortfall, with Mayor Zohran Mamdani now having to come up with a balanced budget that accounts for a projected shortfall of over $12 billion.

In his first two weeks in office, City Comptroller Mark Levine presented the harsh truth that the new administration faces - a projected budget shortfall of $2.2 billion in fiscal year 2026, that is expected to balloon to $10.4 billion by fiscal year 2027.

"The scale of the gap is beyond what we’ve seen in recent memory, far beyond what we’ve seen last year, and I believe any year since the 2008 financial crisis," said Levine.

Bad budget practices are to blame not the economy, according to Levine, who is pointing the finger at the ex-Mayor Eric Adams administration for grossly underestimating the cost of anticipated expenses.

"This wasn't caused by a bad economy—it's the result of budgeting decisions from the previous administration that we must now deal with,” said Levine.

Levine says underbudgeting programs, like rental assistance, overtime, shelter, public assistance, the Department of Education Due Process Cases and contributions to the MTA account for $3.8 billion in underbudgeted dollars in fiscal year 2026.

If the comptroller's projections are correct, the new administration faces a big challenge of finding new revenue streams in order to provide a balanced preliminary budget by mid-February.

At an unrelated press conference on Friday, the mayor was asked about the budget deficit and how he plans to work with Albany but did not specify if there will be cuts or his plan to close the gap.

"What it has left this city with, not only a fiscal hole, but frankly a relationship between city and state where the city contributes 54.5% of tax revenue but only receives 40% in return, this is the beginning of the budget process, we will continue to make the case, what we will always make clear is its the health and well-being of New Yorkers that we are advocating for," said Mamdani.

As for Mayor Mamdani's ambitious affordability agenda, Levine says some ideas may have to be done in multi-phased approaches.

"This is a challenge, we are not going to sugar coat this, this is a challenging budget outlook to have a mid-year budget gap quiet unusual, to have a gap of this year that we are projecting for this year, something we have not seen outside of an economic slow down, not in an environment we have such strong tax receipts,” said Levine, "This is a challenge, but these are overcome-able if we have good budget practices."