Although New York City's budget is balanced in the current fiscal year and Mayor Michael Bloomberg has presented a balanced preliminary budget for fiscal 2014, significant risks lie ahead, according to a report by New York State Comptroller Thomas DiNapoli on Tuesday.

"New York City has successfully navigated through the great recession, but it still faces a number of fiscal challenges, including the loss of federal aid," said DiNapoli. "In recent years, the city has relied heavily on reserves built up during the last economic expansion to help balance its budget, but those reserves are mostly depleted, leaving a smaller cushion to address new budgetary setbacks."

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