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Specifically, it foresees withdrawing approximately $980 million from the rainy day fund in fiscal year 2026 and $229 million from the Retiree Health Benefit Trust in fiscal year 2027. These measures are drastic and have historically been used only during times of extraordinary crises, such as after the 2008 financial collapse under Mayor Bloomberg or amid the COVID-19 pandemic during Mayor De Blasio’s administration.
The city officials express a strong desire to avoid these painful measures. "We do not want to have to turn to such drastic measures," they state, underscoring a preference for negotiation and reform over austerity.