1 week ago
To close New York City's $5.4 billion budget gap over the next two fiscal years, newly elected Mayor Zohran Mamdani has proposed raising property taxes and tapping into reserves.
Budget Plan Hinges On State Support
Mamdani presented two options to balance the city’s $127 billion 2027 preliminary budget during a Tuesday press conference. His preferred solution involves increasing taxes on the wealthy and corporations, a key element of his campaign. However, this requires cooperation from New York Gov. Kathy Hochul, who has shown little enthusiasm for the idea.
If the state does not agree to tax the rich, Mamdani may resort to raising property taxes by 9.5% for the city’s residents. This move could affect middle and working-class citizens as much as Wall Street. The Mayor described this option as “painful” and “a tool of very last resort,” hoping to work with Albany to prevent it.
He is proposing to tap $980 million from the city's Rainy Day Reserve in FY 2026 and $229 million from the Retiree Health Benefit Trust in FY ...
