New York City faces a $12 billion budget shortfall, Mayor Zohran Mamdani reported, attributing the gap to decisions made under former Mayor Eric Adams and funding reductions during former Governor Andrew Cuomo’s tenure. Mamdani emphasized that addressing the deficit will require a combination of efficiency measures and increased revenue, rather than cuts to essential city services.
The mayor has proposed raising taxes on households earning more than $1 million by 2 percent and increasing the combined corporate tax rate to just over 22 percent, but any changes would need approval from the state legislature and Governor Kathy Hochul. Mamdani is applying pressure on state officials to consider the adjustments as part of a broader effort to close the budget gap.
Mamdani also highlighted historical funding patterns, noting that from 2010 to 2022, the city contributed the majority of state revenue growth yet did not receive a proportional share to cover rising municipal costs. Underfunded city obligations, including shelters, rental assistance, and legal settlements, have further widened the deficit, he added. Housing, child care, and social programs will remain priorities, with no reductions planned.
Adams challenged Mamdani’s characterization of the city’s finances, asserting that “Mayor Mamdani promised New Yorkers the moon with no way to pay for it.” Cuomo’s office criticized Mamdani’s approach as lacking fiscal grounding, emphasizing that the former governor had expanded aid to the city while maintaining budget discipline.
