Overview
- Mayor Zohran Mamdani’s preliminary budget outlines a $5.4 billion shortfall and balances near term by assuming a 9.5% property tax increase and tapping reserves.
- $1.5 billion in state aid over two years is committed, including $300 million for youth programs, $150 million in restored sales tax, $60 million for public health, and roughly $500 million for shared priorities.
- Mamdani continues to press Albany for a 2% income‑tax hike on millionaires and corporate tax increases, but Gov. Kathy Hochul opposes raising income taxes.
- The proposal draws about $980 million from the Rainy Day Fund and $229 million from the Retiree Health Benefits Trust, moves watchdogs warn could weaken fiscal resilience.
- Council leaders and the comptroller criticized both a broad property‑tax hike and reserve drawdowns, and formal hearings and negotiations now proceed toward a July 1 deadline.