Overview
- The mayor unveiled a $127 billion preliminary FY27 budget that now projects roughly a $5.0–$5.4 billion shortfall over two years after earlier, larger estimates were revised down.
- He is asking Albany to authorize a roughly two‑percentage‑point income‑tax increase on millionaires and a higher corporate tax rate, reported at about 11.5%, to boost revenue.
- If the state refuses, City Hall warns it could raise the city property‑tax rate by about 9.5%, a move the mayor says would hit around three million homes and over 100,000 commercial properties.
- Governor Kathy Hochul has signaled opposition to new state income or corporate taxes, and City Council leaders are pushing back on the property‑tax option while calling for additional spending cuts.
- The administration also outlined non‑tax measures, including drawing on rainy‑day reserves, borrowing from pension funds, and modest agency savings through newly appointed chief savings officers.