'Why is our budget so out of whack?' NYC comptroller testifies on multibillion-dollar budget gap
The city's financial watchdog Mark Levine says the budget gap is actually bigger than Mayor Mamdani initially estimated.
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The budget dance continues in City Hall, as Mayor Mamdani must balance his $127B budget for fiscal year 2027.
"If the economy is strong, why is our budget so out of whack," City Comptroller Mark Levine questioned during an oversight hearing about the city's preliminary budget proposal on Wednesday.
The mayor must deliver his final budget in June, but major questions still remain unanswered, including if his proposal on a wealth tax will prevail, if any additional money will be coming from Albany and how city agencies will come up with a savings plan.
"We find ourselves with a budget dance this time with different music," said City Council Finance Chair Linda Lee.
In his preliminary budget, the mayor revealed a $5.4B gap, blaming his predecesor for chronic under budgeting and gross fiscal mismanagement. Mamdani suggested two options to close the gap, option A: a 2% tax on millionaires and big corporations or option B: a 9.5% property tax hike and emptying the rainy day funds.
"While looking to Albany for help is worthwhile, we must do more to find immediate solutions within our control to address these short falls," said Lee.
Levine says the mayor underestimated the gap, releasing an updated report showing a revenue estimate of $1.8B lower over FY 2026 and FY 2027. He also warned global turmoil could have an impact on the city's economic health.
"If the economy performs exactly as the mayor has projected, the plan will hold. But if revenues fall short, the City could face sudden budget gaps at a time when our reserves and fiscal flexibility have already been reduced," said Levine.
The mayor's budget direct, Sherif Soliman was not present at the hearing. He will be testifying later this month during another hearing. A final balanced budget is due in June.
