The Big Apple’s budget will swell to a record-breaking $106.7 billion in 2024 because of the surging migrant crisis, inflation, and a string of new labor deals, Mayor Eric Adams announced Wednesday.

The budget deal is a $4 billion increase on what the mayor had pitched in his preliminary fiscal plan in January – a hike he pinned largely on the influx of migrants flowing into the city.

“The challenges we face are real — including the costs of the asylum seeker crisis, the need to fund labor deals, and slowing tax revenue growth — and we must budget wisely,” Adams said.

Hizzoner insisted the increase in spending will be offset by the promised $1 billion in state grants that will go towards covering the $1.4 billion the city has already forked out on shelter and social services for 57,000 migrants within the last year.

The $4 billion rise in city spending will also partially be funded by higher-than-expected tax receipts, Adams said. Tax revenues increased by $2.3 billion for 2024.

“[We] applied better than expected tax revenues from business, personal income tax sales and hotel tax,” the mayor said.

Still, Adams warned the financial burden of sheltering migrants loomed large over the Big Apple with the city’s new three-year cost estimate projected to be $5.3 billion by 2025.

“Our continued progress is threatened by something beyond our control — the asylum seeker crisis,” he said. “We expect to spend $1.4 billion this fiscal year on the asylum seeker crisis and $2.9 billion the next. That is $4.3 billion by July 2024 — just 15 months from now.”

Adams said the city is currently caring for more than 35,000 migrants in hotels and shelters across the five boroughs – including 500 who arrived on Tuesday.

“That’s an entire hotel, an entire shelter,” he said.

In addition to the $1 billion in promised migrant funding from the state, the city is projecting it will receive roughly $600 million in federal aid to deal with the crisis.

“Even if our optimistic projections are met, state and federal aid will cover just under 40% of our costs — leaving New Yorkers to pay the rest,” Adams said.

Hizzoner, who last week blasted the White House for turning its back on NYC, warned that if migrants do keep flowing into the city they’ll have to reassess and “redo the numbers.”

“The issue is not the asylum seeker. The issue is the fact that the national government is not doing its job,” he said.

Adams also warned Gov. Kathy Hochul’s already-weeks-late state budget could have an impact if city budget experts are forced to re-estimate costs once deals are finalized.

One possible risk is city taxpayers being forced to shell out a $150 million contribution to the cash-strapped Metropolitan Transport Authority via a payroll tax.

“[W]e will still prepare for New York to bear some extra costs and the final budget that could open a budget gap we have to address at adoption,” Adams said.  

The biggest financial challenge Adams faces is how to pay for the new labor contracts due to the city government’s nearly 328,000 person-strong workforce, most of whom are working without contracts.

His administration already struck deals with two major labor unions — District Council 37 and the Police Benevolent Association — that both include raises under the current rate of inflation, but will still add approximately $17 billion in cumulative new costs to City Hall’s books between 2023 and 2027.

In a bid to deal with the financial woes, the mayor had ordered city agencies earlier this month to slash 4% — or roughly $1 billion — annually for the next four years as part of his belt-tightening Program to Eliminate the Gap (PEG).

Despite the $4 billion rise, Adams on Wednesday declared the program a “success”, saying it resulted in $1.6 billion in savings over the next two fiscal years – without any layoffs or service reductions.

Still, Adams acknowledged that the 4% targets for some major agencies – including the Fire Department, Department of Sanitation and Human Services Administration – had to be re-adjusted during the budgeting process “to avoid cutting critical needs.”

The NYPD’s budget came in at $5.3 billion for fiscal 2024, which is a cut of roughly $200 million from the year prior. But City Hall expects the final figure to be the same as last yaer because of yet-to-be-awarded federal grants, which totaled $180 million in 2023 alone.

The NYPD budget also only sets aside $372 million for overtime, a figure that budget writers acknowledge the police are likely to exceed. Overtime in 2023 is expected to hit $698 million. Most of that — $517 million — will be picked up by city taxpayers while Gov. Hochul has promised to cover much of the rest, which was run-up by extra shifts patrolling the subways.

Meanwhile, the Parks Department’s budget was cut by $14 million for fiscal 2024 and the Department of Education by $400,000 compared to the year prior. 

The nonpartisan Citizens Budget Committee warned the city’s budget laid bare the “stark and potentially dark fiscal reality” facing the Big Apple.

“With budget gaps widening despite billions of dollars of additional revenues, the City should immediately start to prioritize essential programs, increase its operational efficiency, speed up critical hiring, and shrink lower impact programs,” CBS said in a statement.

“Absent these actions, the likely alternative is to substantially cut services in the next year or two.”

Budget documents released by City Hall show that the Adams administration expects to blow past last year’s approved budget — which was pegged at $101 billion —  by nearly $8 billion, with spending for the 2023 fiscal year projected to hit nearly $109 billion.