Mamdani asks for help in dealing with New York's 'historic budget crisis'
"We need new revenue. And we need a structural reset in our relationship with the state. That is the only way to meet our legal obligation to pass a balanced budget, and to do so without imposing a financial burden onto the backs of working people," the mayor said.
Mayor Mamdani(Photo by Leonardo MUNOZ)
New York Mayor Zohran Mamdani on Tuesday called on state officials for help in dealing with what he described as a "historic budget crisis" in the city. Moreover, the Democrat argued that he cannot cover the deficit with cuts alone.
"We need new revenue. And we need a structural reset in our relationship with the state. That is the only way to meet our legal obligation to pass a balanced budget, and to do so without imposing a financial burden onto the backs of working people," Mamdani said during a meeting with media.
In that vein, the mayor insisted on demanding that New York Gov. Kathy Hochul, also a Democrat, significantly increase the city's revenues in the state budget, including by reducing the New York City tax credit for pass-through entities (PTET) to generate nearly $1 billion.
"A structural crisis demands a structural solution"
"At the same time, the city remains the engine of economic growth for the entire state. Between 2010 and 2024, the city’s economy more than doubled, growing 110%, compared with 68% growth in the rest of the state."
The mayor noted that "If we’re serious about putting our city back on firm financial footing, we cannot rely on short term fixes. A structural crisis demands a structural solution."
"New York City is facing a generational fiscal deficit, and it’s going to require serious, good-faith partnership across every level of government to meet this moment," Mamdani added.
A crisis announced in January
Back in January, the mayor had claimed that the crisis stemmed from a pattern of under-budgeting essential services that New Yorkers rely on every day, such as rental assistance, shelters and special education.
The mayor's office detailed that in some programs, the actual shortfall is nearly double what was made public. Mamdani also pointed to a prolonged pattern of state-driven disinvestment:
"During more than a decade under former Gov. Andrew Cuomo, New York City sent far more revenue to Albany than it received in return. In 2022 alone, New York City sent $68.8 billion in revenue to Albany – and received just $47.6 billion back," the Mamdani administration's page specified.
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