Overview
- The City Council, which unveiled a $127 billion counter-budget Wednesday, says it can close a roughly $6 billion gap without property-tax hikes, service cuts, or tapping reserves.
- Mayor Zohran Mamdani rejected the plan as unrealistic and said it double counts savings and overestimates revenues, arguing the city needs new recurring taxes on top earners and corporations.
- The Council details $6.033 billion over two years from re-estimates, efficiencies, and revenue ideas, including $860 million from unspent salaries tied to vacant jobs, $80 million from higher building permit and late-fee revenue, $175 million from tighter audits of education contracts, and a push to trim a state tax credit that could raise about $1.02 billion.
- Council leaders say their approach protects services and restores funding for libraries, cultural groups, CUNY programs, and legal aid, while expanding discounted transit for low‑income riders, as the mayor’s backup plan includes a 9.5% property‑tax increase and reserve draws if Albany refuses new tax tools.
- The Council warns the mayor’s fallback would drop reserves to about 5.3% of spending, below Fitch’s 7.5% guidance and potentially boosting borrowing costs by more than $3 billion, and the clash has turned personal with left and right-leaning outlets highlighting different villains as talks move toward an executive budget and a June deal.