New York City Mayor Eric Adams and City Council Speaker Adrienne Adams have agreed on a $112.4 billion budget, concluding a contentious negotiation process that saw the mayor’s approval ratings fall to record lows. The agreement, reached just days before the start of the fiscal year on July 1, includes an additional $800 million in revenue, allowing for the restoration of funding to libraries, cultural institutions, and early childhood education.
The budget must still pass the City Council before Monday. It also allocates an extra $2 billion in capital funding for affordable housing over the next two years.
However, not all proposed cuts were reversed. The City University of New York faced reductions, and early childhood education programs still have a $150 million shortfall compared to the previous year.
Much of Mayor Adams’ proposed spending cuts stemmed from lower-than-expected health care costs for city employees. Despite restoring some funding, Adams faced significant political backlash, with concerns over budget cuts contributing to his record-low approval ratings in a December Quinnipiac University poll.
The initial budget cuts were prompted by cautious revenue projections from the city’s budget office, which anticipated a potential recession and high costs for accommodating migrants. However, revised projections in January allowed for some spending reductions to be reversed.
City Council Speaker Adrienne Adams praised the council’s economists for their accurate revenue forecasts, which ultimately helped avoid many of the proposed cuts.
Mayor Adams acknowledged the importance of fiscal responsibility, highlighting over $7 billion in savings while restoring $349 million in the latest budget agreement. Despite the challenges, the mayor remains focused on delivering for New Yorkers as he gears up for his 2025 reelection campaign.
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