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11m ago

Mamdani Shrinks NYC Deficit to $7 Billion, Presses Albany for Millionaire Surtax

He says the city needs dedicated revenue, with the governor resisting tax increases despite initial childcare funding.

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New York City Mayor Zohran Mamdani holds a press conference at the New York City Office of Emergency Management, as a major winter storm spreads across a large swath of the United States, in Brooklyn, New York City, U.S., January 25, 2026. REUTERS/Bing Guan
Mayor Zohran Mamdani attends a press conference in Red Hook, Brooklyn, New York City on Monday, January 12, 2026. (Gardiner Anderson / New York Daily News)
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Overview

  • At Tin Cup Day hearings, Mayor Zohran Mamdani formally asked state lawmakers for a 2% personal income surtax on earners over $1 million and reiterated his push to raise the corporate rate to 11.5%.
  • City Hall revised the projected two‑year gap from roughly $12–$12.6 billion to about $7 billion after stronger revenue and bonus estimates, use of reserves, and new savings measures.
  • Budget director Sherif Soliman said agencies have appointed chief savings officers and are targeting more than $1 billion in efficiencies without across‑the‑board cuts.
  • Gov. Kathy Hochul maintains she will not raise state personal income taxes, pointing to $1.7 billion in state support for child care, including a $75 million first‑year NYC program, as talks continue.
  • Legislative leaders signaled more openness to tax changes than the governor as lawmakers grilled the mayor for hours on his proposals and spending plans ahead of the Feb. 17 preliminary budget and the March 31 state deadline.