Facing a $12 billion budget shortfall over the next two fiscal years, Mayor Zohran Mamdani on Wednesday reiterated his call for the top 1% of New York earners to pay an additional 2% in income taxes.
Mamdani blamed the previous administration for the budget crisis, which stemmed from underbudgeting essential services including rental assistance, shelter operations and special education services. The budget gap the city is facing is higher than they were at the height of the Great Recession, the mayor said.
Mamdani said former Mayor Eric Adams budgeted $860 million for cash assistance in fiscal year 2026, even though current
"I think what we're seeing right now is that the city is in a difficult position," he said. "We are also seeing a moment where the gross fiscal mismanagement has left New Yorkers with a bill the likes of which we have not seen in many, many years."
Despite Governor Kathy Hochul previously noting her opposition, the mayor said the city would be fiscally stronger if the top 1% of New Yorkers pay an additional 2% in income taxes.
"This is not business as usual. This is a historic challenge and it demands an honest response," he added.
He placed blame on former Governor Andrew Cuomo and Albany lawmakers, arguing they have shortchanged the city by sending back just 40.5% of state revenue despite New York City generating 54.5%.
As the city's preliminary fiscal budget is being prepared for Feb. 17, the administration is looking into where agencies can run more efficiently without affecting the everyday lives of New Yorkers, and will push to change the way the state allocates money to the city, said Mamdani, who is a former state assemblyman.
"And so right now, we are going through every single dollar that the city spends and ensuring that every single one of us on this stage would be able to defend that dollar," he said. "Because if it cannot be defended, then it's not a dollar that should be spent."
