"Mamdani presented two options to balance the city's $127 billion 2027 preliminary budget during a Tuesday press conference. His preferred solution involves increasing taxes on the wealthy and corporations, a key element of his campaign. However, this requires cooperation from New York Gov. Kathy Hochul, who has shown little enthusiasm for the idea. If the state does not agree to tax the rich, Mamdani may resort to raising property taxes by 9.5% for the city's residents."
"The Mayor described this option as "painful" and "a tool of very last resort," hoping to work with Albany to prevent it. He is proposing to tap $980 million from the city's Rainy Day Reserve in FY 2026 and $229 million from the Retiree Health Benefit Trust in FY 2027 to meet the legally required balanced budget. "This is something that we do not want to do," Mamdani told the reporters. Notably, the Mayor can hike the property tax without state approval."
Zohran Mamdani proposes raising taxes on wealthy individuals and corporations, tapping reserve funds, or increasing property taxes to close a $5.4 billion budget gap over two fiscal years. The preferred option requires state cooperation to tax the rich; without state approval, a 9.5% property tax increase could be implemented and would affect middle- and working-class residents. The plan calls for tapping $980 million from the Rainy Day Reserve in FY2026 and $229 million from the Retiree Health Benefit Trust in FY2027. Officials warned that heavy reserve draws and property tax reliance could leave the city vulnerable and urged more state assistance.
Read at Benzinga
Unable to calculate read time
Collection
[
|
...
]