Mayor Zohran Mamdani on Tuesday released a $124.7 billion Fiscal Year (FY) 2027 Executive Budget that includes a $4 billion injection from Albany, wiping out the projected $5.4 billion deficit.
State assistance will total $8 billion over two years, Mamdani and Governor Kathy Hochul announced. This includes $352 million in direct aid, $3.2 billion in state authorizations, including pension liability restructuring and class size flexibility, $500 million in new revenue through a city-run pied-à-terre tax on second homes valued above $5 million.
In addition, the mayor said he will work with the City Council on their proposal to reduce the city's Unincorporated Business Tax credit, a tax on the net income of unincorporated businesses (sole proprietorships, partnerships, LLCs) operating within the city. It applies if gross income exceeds $95,000 and is paid on income allocated to the city.
Reducing the UBT tax credit will raise an additional $68 million, the mayor said. About 24,000 payers of the tax also get a personal income tax credit, according to Sherif Soliman, the director of the New York City Mayor’s Office of Management. This proposal will begin to phase out that credit, and lower the rate to 15% from the current 23%, to impact primarily those who have more than a million dollars in income, he added.
Mamdani said City Hall identified an additi
The majority of the budget, or 40%, will be allocated toward the Department of Education, followed by social services, and uniformed agencies (Police, Fire and Sanitation Departments). The mayor said he will be hiring 1,000 new teachers, as well as overhauling the special education program so families don't have to sue the city to obtain private school education when there's nothing suitable available in the public school system.
"We are speaking about students who have been left behind by our city's education policies and thought of purely in the context of legal settlements," the mayor said. "It is time to actually deliver them the kind of education that would mean their families don't have to consider going to a private school system to receive them."
New investments include $4 billion in capital funding for the Department of Housing Preservation and Development to create affordable housing; an additional $500 million in FY28 for comprehensive New York City Housing Authority renovations; and $256 million over FY26 through FY28 to restore vacant NYCHA apartments and return them to tenants.
"We are restoring fiscal stability without slashing the services people depend on, without raising property taxes and without asking working families to pay for a crisis they did not create," Mamdani said in a statement.
The mayor added that the balanced budget was a win for his administration and city.
"A win to ensure that the city is back on firm financial footing, and it's doing so by taxing the rich, by creating a fair relationship with Albany, by finally making accounting for the mismanagement we've seen in prior years and embarking on a new chapter of an approach to budgeting that is honest and that is actually building for long-term stability," he said at a press conference on Tuesday.
Budget highlights include:
Baseline Annual Investments
- Libraries: $31.7 million
- Fair Fares: $25 million
- NYC Department of Parks and Recreation: $15 million
- City University of New York: $15 million
- Department of Cultural Affairs: $10 million
Child Care for All and Supporting K-12
- Increasing Provider Rates: $40 million in FY27
- Expanding NYC Reads and Solves: $17.3 million in FY27
- Launching the Little Apple, the City’s first Municipal day care system: $2.3 million in FY27 and $2 million annually beginning in FY28
Investing in a Safer New York
- Office of Community Safety: $40.9 million in FY27 and $40.2 million annually beginning in FY28
- Office of Hate Crime Prevention: $26 million annually beginning in FY27
- Counsel for Vulnerable New Yorkers: $22 million in FY26
- Right to Counsel: $14.3 million in FY27 and $40 million annually beginning in FY28
- Supervised Release Intensive Case Management Pilot: $7.7 million in FY27, $5.7 million in FY28 and $1.2 million in FY29
- 20 Civilian Complaint Review Board Staff: $3.2 million annually beginning in FY27
- 84 New FDNY Civilian Staff: $0.8 million in FY26, $9 million annually beginning in FY27
Safer Streets
- Safer Streets and Sammy’s Law: $34.9 million in FY27, growing to $65.1 million in FY30
- DCAS Pedestrian Alerts: $900,000 annually between FY27 and FY29
Keeping our City Clean
- Waste Containerization: $14.8 million in FY27, growing to $162.2 million by FY30
Economic Justice and Worker Protections
- Supporting Street Vendors: $20.5 million in FY27
- Medallion Loan Guarantee Program's Reserve Fund: $12.6 million in FY27
- Expanded Capacity for DCWP: $4.3 million in FY27, growing to $18M annually by FY29
- Commercial Lease Legal Assistance: $4 million in FY27 and FY28
Improving New Yorkers’ Health & Wellbeing
- Access to Mental Health Care: $47.3 million annually beginning in FY27
- Supporting Survivors: $16.7 million in FY27
- Disease Testing and Surveillance Capacity: $11.3 million annually beginning in FY27
- Supporting Seniors: $3.4 million in FY27
