NYC pushes executive budget deadline back 2 weeks; leaders call on Albany for help
Mayor Zohran Mamdani and City Council Speaker Julie Menin announced the deadline will move from May 1 to May 12. They say the city cannot finish the budget without more clarity from the state's budget.
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New York City is delaying the release of its executive budget while officials wait for the state to finalize its own spending plan. This comes as the city is grappling with closing a multi-billion-dollar budget gap.
Mayor Zohran Mamdani and City Council Speaker Julie Menin announced the deadline will move from May 1 to May 12. They say the city cannot finish the budget without more clarity from the state's budget.
"New York City faces a budget crisis of a historic magnitude," Mamdani said. "We inherited a deficit larger than any since the Great Recession."
The mayor added the city "cannot close this deficit with savings alone," calling for new revenue and what he described as "a structural reset" in the city's financial relationship with the state.
One proposal brought up is reducing the passthrough entity tax credit, which city officials say primarily benefits the wealthiest population.
Mamdani called it "a tax cut for the rich." He's asking the state to lower the credit from 100% to 75% for a limited time, a move he says could generate nearly $1 billion in additional revenue.
City leaders say the temporary reduction could help the city stabilize its finances without cutting essential services. Menin says external pressure is taking a toll.
"New York City's budget is increasingly strained, both by federal decisions that reduce funding and prior state decisions that shift the cost onto localities," Menin said.
The City Council is expected to approve the budget extension this week. The final budget is due June 30.
