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Mamdani Presses Tax Hikes to Close NYC’s $12B Gap, Warns of Cuts if Albany Won’t Help

The mayor ordered a 45-day savings review, with any tax plan hinging on state approval.

Overview

  • Gov. Kathy Hochul rejected supporting city income and corporate tax hikes, saying the state is not raising taxes and suggesting the gap could narrow with updated revenues.
  • Mamdani directed every agency to appoint a “chief savings officer” within 45 days to identify efficiencies and possible program reductions.
  • He left most specifics for his Feb. 17 preliminary budget and said even property tax increases could be considered if Albany declines to act.
  • City Comptroller Mark Levine estimates a roughly $12–$12.6 billion two-year shortfall, driven by underbudgeted costs for shelters, rental assistance, overtime and special education.
  • Former Mayor Eric Adams and allies of Andrew Cuomo disputed blame as fiscal watchdogs, including the state comptroller and Citizens Budget Commission, cited prior underbudgeting practices.