New York City Mayor Zohran Mamdani unveiled a $124.7 billion executive budget that is reportedly balanced without drawing down reserves, increasing property taxes or cutting into service delivery.
Mamdani mentioned the budget in an X post. “When we came into office, we uncovered a $12 billion budget deficit. Today, I’m proud to say we brought it down to zero.”
“We closed it while funding parks, libraries, safer streets and making historic investments in public housing. Call it Pothole Politics. Call it Democratic Socialism. […] That’s what New Yorkers deserve. And that’s what we will keep fighting for every single day,” he said.
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According to a report by Politico, a $5.4 billion budget gap projected in February is no more, having been filled with several new revenue streams and savings programs, most of which came from Albany, including a new tax on wealthy homeowners.
“Through new revenues, savings and a renewed partnership with the state, we pulled New York City back from an existential fiscal brink,” Mamdani said at a City Hall budget presentation.
New York Governor Kathy Hochul agreed to provide $1.4 billion in fresh funding for city programs over this fiscal year and the one beginning July 1, including $600 million for youth initiatives and $202 million for reimbursing families of public safety officers who die in the line of duty, according to Mamdani’s plan. While this funding used to be covered by the state, it was shifted over to the city’s tab, mostly under former Governor Andrew Cuomo’s administration.
Mamdani’s executive budget also mentions a $500 million in annual revenue from a yet-to-be-finalized pied-à-terre tax on pricey properties in the city. However, this is subject to state permission.
The report said that when another $150 million in yet-to-be-finalized school aid from the state is added to a previous $1.5 billion allocation of direct state aid and $1.2 billion in child care funding, Hochul will have played a major role in rightsizing the city spending plan.
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“Today, we are fulfilling the promise to make free universal child care a reality, making significant investments in education, public safety, and infrastructure while providing the city the resources they need to continue to fund critical services for New Yorkers,” Hochul said in a statement.
“I think there’s a logic to smoothing out payments,” NYC Comptroller Mark Levine said Tuesday morning after a budget briefing with the mayor and his team. “I think it’s easier to plan for the long term when you have a smooth payment schedule.”