General Election
New York CityProposal 5
Rainy-day reserves
Adds a reserve target, a process for calculating deposits and a city-law withdrawal limit aligned with state law.
The official question
Official sourceSet Contribution Targets for Rainy Day Fund to Promote Sufficient Budgetary Reserves
Set target amount of money to hold in reserve funds, including rainy day fund, to address unexpected financial hardships in future years, and require development of methodology to calculate contributions.
Official YES and NO descriptions
“Yes” requires Mayor to develop methodology for calculating deposits to rainy day fund, with deposits subject to approval in the City budget.
“No” leaves laws unchanged, with no reserves target.
What your vote means
Set a reserves target of at least 12% of the previous fiscal year’s tax revenue and require a published deposit methodology. Deposits remain subject to budget appropriations.
Keep the existing reserve framework without this target or required deposit methodology. The rainy-day fund continues to exist.
Before you decide
Your ballot · Proposal 5
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Undecided
Inside this proposal
See every changeReserve target
Set a target of at least 12% of the preceding fiscal year’s tax revenue, counting the rainy-day fund and other reserve funds identified in the methodology.
Deposit methodology
Require a published calculation method considering revenue trends, operating surplus and other relevant factors; update it by May 1, 2030 and at least every four years thereafter.
Withdrawal limit
Add the corresponding 50% annual withdrawal limit to the charter.
Who’s weighing in
All statements
NYC Mayor’s Office
July 23, 2026
“The fifth ballot proposal would set a target amount of funds held in reserve –– 12% percent of the City’s total tax revenues. The proposal would also require the Mayor’s Office of Management and Budget (OMB), in consultation with the Comptroller, to establish a deposit formula that would govern mandatory contributions to the rainy day fund.”
— NYC Mayor’s Office, written announcement
Citizens Budget Commission
July 23, 2026
“While we appreciate COGE prioritizing the rainy day fund, it is deeply disappointing that the Commission missed the critical opportunity to establish a strong framework ensuring the City’s policy protects New Yorkers and City employees from devastating service cuts and layoffs during a recession or severe emergency. As written, City policy could allow withdrawals for practically any reason and avoid deposits even when revenues are strong. Still, the proposed amendment would not prevent the administration from adopting a strong rainy day fund policy -- one that requires adequate deposits during good economic times and permits withdrawals only during a recession or severe emergency. CBC looks forward to working with the administration to craft the robust rainy day fund policy New Yorkers deserve.”
— Andrew S. Rein, President of Citizens Budget Commission