It's still massive, but the city is now anticipating a deficit of $882.4 million for fiscal year 2027.
That's down from an estimated $1.2 billion in the 2026 forecast.
Expenditures are expected to rise by 8 percent, or more than $500 million for 2027.
The city says that's due to what it calls "decisions by the federal government," along with multiple other factors.
The 2026 fiscal year will end with a deficit of just over $85 million.