The city’s projected budget gap is now estimated to be about $7 billion — down from the $12.6 billion Mayor Mamdani warned of last month — though the mayor said the state still needs to step up to help balance the city’s budget and pay for affordability measures for New Yorkers, he testified in Albany on Tuesday.
The significantly lower number comes after the city incorporated updated revenue and bonus estimates, used in-year reserves and took an “aggressive posture” on savings, the mayor said in his opening remarks at a budget hearing in the state capitol.
On the annual trip up to Albany, known as “Tin Cup Day, ” Mamdani spoke about what he believes are inequities between what the city pays out in state taxes as opposed to what it gets back. Mamdan has blamed the budget gap on former Mayor Adams’ fiscal mismanagement, arguing that the state needs to pitch in to help balance the budget.
“New York City is still placed on a ledge. The most responsible way off is with dedicated recurring revenue that can provide the services New Yorkers deserve. First, the imbalance in our relationship with the state is draining the city’s resources. We are calling to end the drain. This is not just a crucial first step, it is a key part of the problem.”
“Without solving this inequity, we will only postpone this crisis. No longer can New York sustain giving so much and receiving so little in return.”
He pointed out that the city contributes 54.5% of the state’s taxes but gets 40.5% in return.
The mayor is also pushing the governor to raise taxes on New Yorkers making a million dollars a year or more by 2%, which he pitched on the campaign trail as a way to fund his ambitious affordability agenda items such as universal childcare and free buses.
“That 2% tax alone would resolve nearly half of our deficit,” Mamdani said. “I will continue to advocate for these policies, not only because they offer the most direct route out of this budget crisis, but because they will also transform what is possible in our state.”
Those measures are also in the hands of Albany lawmakers. While some state legislators have been supportive of Mamdani’s plans, Hochul, who’s facing re-election, has made it clear she’s against raising taxes on the wealthy.
