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Mamdani Unveils $127 Billion Budget, Presses Albany for Tax Hikes to Close $5.4 Billion Gap

With Albany resisting new state taxes, the fate of the gap now hinges on City Hall’s talks with the Council before the July 1 deadline.

Overview

  • Mayor Zohran Mamdani framed two options to balance the budget, urging state approval of higher millionaire and corporate taxes while labeling a 9.5% citywide property‑tax increase a last resort.
  • City Council Speaker Julie Menin rejected the local property‑tax option as “not on the table,” signaling the Council will push for savings instead of broad tax increases.
  • Governor Kathy Hochul has reiterated opposition to new state taxes, even as the mayor seeks a two‑point surcharge on millionaires and a higher corporate rate to generate city revenue.
  • The plan would cancel planned NYPD hiring and leave roughly 5,000 officer positions unfilled next year, a $22 million reduction that has drawn criticism from law‑and‑order advocates.
  • The preliminary budget boosts racial‑equity infrastructure, including about $10.2 million for the Office and Commission on Racial Equity, while real‑estate voices warn tax‑hike talk could cool deals and pressure rents.