Mayor Mamdani set to unveil city budget, nixing plan to hike property taxes
After months of negotiations and a wide range of proposals on how to close a $5.4 billion deficit, the mayor's first executive budget is not expected to include a property tax hike or draining of the reserve 'rainy day' funds, according to sources.
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The budget battle is over.
Mayor Mamdani is expected to put forth a balanced budget on Tuesday nearly two weeks late due to state budget delays.
After months of negotiations and a wide range of proposals on how to close a $5.4 billion deficit, the mayor's first executive budget is not expected to include a property tax hike or draining of the reserve 'rainy day' funds, according to sources.
Governor Kathy Hochul announced that Albany will be forking over an additionally four billion in state support, bringing the total to nearly eight billion dollars over the next two fiscal years.
“Governor Hochul and I, however, share a belief that government works best when we work together on behalf of the people we serve. We have partnered through every step of this process to protect the fiscal health of our city. I am thankful for her collaboration and deep commitment to securing a future for our city that working people can afford," Mayor Mamdani said in a statement.
Mamdani initially floated a 9.5% property tax increase as a 'last resort' option if Governor Hochul did not agree to a wealth tax on the city's top earners and corporations.
Most recently, Governor Hochul proposed a pied-à-terre tax that would put a surcharge on secondary homes in the city worth over $5 million, expecting to bring in $500 million annually. It was included in the state budget that reached a hand-shake deal last week.
“From day one, I have been committed to ensuring New York City succeeds, because a strong and stable City means an even stronger New York State,” said Governor Hochul, “Today, we are fulfilling the promise to make free universal childcare 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. This is what a results-driven, responsible partnership looks like and I’m proud to work with Mayor Mamdani to deliver for working New Yorkers."
In February, the mayor presented budget crisis with an initial estimated shortfall of $12 billion over the next two fiscal years. That number dropped to $7 billion two weeks later with Mamdani crediting an updated economic forecast including Wall Street bonuses and in-year reserves.
The adopted budget must be reached before the next fiscal year begins on July 1.
