Overview
- Presenting his first preliminary plan, the mayor outlined a $127 billion budget that closes a $5.4 billion two‑year gap through either state-approved taxes on high earners and corporations or, as a last resort, a broad property‑tax increase.
- Gov. Kathy Hochul announced $1.5 billion in additional state aid but reiterated opposition to raising income or corporate taxes and said she does not believe a city property‑tax hike is necessary.
- The proposed 9.5% property‑tax increase would raise roughly $3.7 billion next year, affecting more than 3 million residential units and over 100,000 commercial properties, with watchdog estimates of about $650–$700 more annually for a typical homeowner.
- Any rate increase requires City Council approval, and Speaker Julie Menin and Finance Chair Linda Lee rejected the property‑tax option as negotiations begin ahead of the June 30 budget deadline.
- The plan also contemplates drawing about $980 million from the Rainy Day Fund and $229 million from the Retiree Health Benefits Trust, while ordering agencies to identify roughly 2.5% in savings by March 20, steps critics warn rely on one‑time fixes with out‑year risks.