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Raises vs. the Reserve

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Visuals in this post: Labor's Share of the Budget Growth by Spending Line Raises vs. the Reserve Overtime Pension Contributions Union Density
data.nycuriosity.com › Public Sector Unions 2026 › Raises vs. the Reserve
Budget September 2026

The plan funds 1.25% raises, and the last round paid 3%

The City Comptroller estimates each 1% raise for the full municipal workforce costs $550 million to $600 million in City funds. The financial plan reserves 1.25% a year. The 2021 to 2026 contracts paid 3% a year or more.

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A 3% pattern would cost about $4 billion a year more than the plan reserves by its fourth year

Annual City-funded cost of raises for the full municipal workforce by contract year, at the 1.25% the financial plan reserves and at the 3% a year the last round paid.

  • Reserved in the plan (1.25% a year)
  • Added cost of a 3% pattern
Source: NYCuriosity arithmetic from the NYC Comptroller, Comments on the FY2027 Adopted Budget (August 2026) Note: Uses $575 million per 1%, the midpoint of the Comptroller's $550 million to $600 million estimate, without compounding. At the low and high estimates the fourth-year added cost is $3.9 billion and $4.2 billion.

The City's labor reserve holds $343 million for fiscal 2027, $1.52 billion for fiscal 2028, $2.14 billion for fiscal 2029 and $2.92 billion for fiscal 2030. Before any raise above 1.25%, the City Comptroller estimates budget gaps of $7.3 billion in fiscal 2028, $7.9 billion in fiscal 2029 and $6.8 billion in fiscal 2030, against the $6.4 billion, $8.2 billion and $8.5 billion in the City's own plan.

Method: This is a scenario. Contracts expire on different dates, so contract years do not line up with fiscal years.

Sources: NYC Comptroller for the cost per 1%, the labor reserve and the 1.25% assumption; NYC Mayor's Office contract announcements of 2023 for the 3% pattern.