Gov. Kathy Hochul chaired the annual New York State Financial Control Board meeting on Aug. 12 in New York City, where she and Mayor Mamdani discussed the city's budget and efforts to strengthen its financial stability.
The meeting marked Mamdani’s first appearance before the Financial Control Board as mayor. State Comptroller Thomas P. DiNapoli, New York City Comptroller Mark Levine and members of the board also participated in the meeting.
Hochul highlighted the state’s role in helping New York City address a significant budget deficit inherited by the new administration. State support helped City Hall close the gap, protect city services and maintain the city’s access to the capital markets.
“When I took office, I intended to change the way that governors worked with local leaders across the state — operate as a true partner, delivering for our shared constituencies," Hochul said.
The governor pointed to the importance of New York City’s economy to the rest of New York and cited cooperation between the state and city on affordability initiatives, including universal child care and efforts to reduce costs for families.
The Financial Control Board raised concerns about the city’s longer-term fiscal position. Spending is expected to grow faster than revenue, while some short-term measures used to close budget gaps do not address the underlying imbalance between city expenditures and revenue, as discussed at the meeting.
The meeting comes as Mamdani’s administration works to manage the city’s finances while funding its policy priorities. The city adopted a $125.1 billion fiscal 2026 budget and a $125.8 billion fiscal 2027 budget, according to the mayor’s office. Mamdani said the budgets accounted for previously underfunded needs while maintaining fiscal balance.
The board will continue to monitor New York City’s financial condition as the city moves forward with its adopted budgets and works to maintain fiscal stability while supporting core services and affordability initiatives.
