Mamdani pushes promise of taxing the rich to make up for $12 billion budget deficit
Mayor Mamdani presented a power point on Wednesday from City Hall where he detailed what he called a gross mismanagement of the city budget.
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Mayor Zohran Mamdani is not backing down from his campaign promises of taxing the rich in order to make up for a massive nine-digit loss in the city's budget.
"This crisis has a name and a chief architect. In the words of the Jackson 5, it's as easy as ABC. This is the Adams budget crisis," the mayor said.
Mayor Mamdani presented a PowerPoint on Wednesday from City Hall where he detailed what he called a gross mismanagement of the city budget.
"He systematically underbudgeted services that New Yorkers rely on every day: medical assistance, shelter and special education," the mayor said.
A report from the Comptrollers' Office shows the city faces a $2.2 billion budget short fall in fiscal year 2026, and $10.4 billion in fiscal year 2027.
Former Mayor Eric Adams posted on X to defend himself, writing "I didn't leave a "budget hole." I left over $8 billion in reserves. Only someone who can't read a balance sheet would call that a crisis."
Mamdani says a 2% tax on the wealthiest New Yorkers and corporations could make up for that loss, but Gov. Kathy Hochul doesn't back that plan.
"Well, certainly, he's doing what he has to do, and I'm doing what I have to do. We had $17 billion in unanticipated revenues from Wall Street bonuses, which are quite extraordinary. The city is able to benefit from a similar ratio to what we have. We know what that ratio is. So, I think there's more money out there that, as they're diving deeper into not just their expenses but their revenues, there will be more assistance there," the Governor told reporters at an unrelated event.
Financial experts say it was a collaboration of things that got the city to this point.
"The rising operational costs, the situation with the migrant crisis, the chronic migrant crisis," said Alexander Núñez-Torres, professor and chair of management and business innovation at Lehman College.
The mayor said cuts to the NYPD are not something he is considering, but he did not detail if he plans to make cuts to any city services.
"There are not many options available either cutting spending or increasing the revenue," said Núñez-Torres.
So how will he do it? The mayor says he plans to find savings in the budget, including $500,000 he says the Adams administration spent on a faulty AI chatbot.
"We are going to be honest about these costs, we are going to be direct about it, and we are going to be clear on the way we get out of this crisis," the mayor said.
A balanced preliminary budget is due on Feb. 17.
