Overview
- Governor Kathy Hochul is considering higher corporate taxes to address the deficit, according to a source, with no decision announced and no rate specified.
- The state faces a projected $34.3 billion shortfall through fiscal 2029, and the comptroller reports that recent federal actions have worsened the outlook.
- President Donald Trump indicated he will likely provide only the legal minimum of federal funds to New York City following Zohran Mamdani’s election.
- Hochul and Mayor-elect Zohran Mamdani held a 90-minute meeting that covered the fiscal outlook and the possibility of a federal surge of ICE or the National Guard.
- Budget director Blake Washington recently said New York is in a good financial position and called a tax increase the last thing on his mind, underscoring mixed signals.