So Mamdami inherits a $5.4 budget deficit which one might expect in a blue run city. So he raises revenues (taxes) right? Nope, the first thing he seems to be doing is making big cuts (they are called "savings" in socialist parlance), mostly from projects he supported: education, homeless housing projects, etc. He is also canceling the hiring of 5,000 new NYPD officers (he was going to do this anyway). That takes care of about $1.7 billion. The other $3.7 billon? Suffice to say the new budget cuts of 2.7% of accross the board speeding don't exactly meet all the grandiose promises made in his campaign.
He also has municipal unions, a major component of his base, demanding huge increases. Mamdami's people are now talking about restructuring the City's workforce (which sounds like job cuts, perhaps somewhat warranted -see the Politico article). The debt markets have taken notice that he also is burning up reserves and that his revenue projections are questionable and the City's credit rating is sinking. With a City so reliant on debt, it means those budget cuts are likely be offset by higher interest costs.
https://www.google.com/url?
sa=t&source=web&rct=j&opi=89978449&url=https://www.nytimes.com/2026/03/25/nyregion/mamdani-budget-cuts.html&ved=2ahUKEwi91pvfzsWTAxUMJUQIHWoiEDMQvOMEKAB6BAgbEAE&usg=AOvVaw0Ym8ht83E4fr5_AjdD6Qd9
https://politi.co/3PJImmC
Part of where Mamdani was expecting funding for his new initiatives was from the State and Federal government. My suspicion is that Congress will be more focused on just trying to have a budget rather than new spending initiatives and the State now reports it has a deficit https://www.osc.ny.gov/files/reports/pdf/sfy-2027-executive-budget-report.pdf, and the Governor is facing an intransigent legislature in getting her budget approved.
Mamdani was pursuing a "tax the rich" strategy to close the budget deficit, primarily by urging state lawmakers in Albany to approve higher income taxes on individuals earning over $1 million and increased corporate taxes, since NYC has no power over that. If these measures are rejected which now seems certain given the State's defecit and declining tax base, Mamdani has (had?) threatened a 9.5% citywide property tax increase. Mamdani appears to be backing away from the threat of a large property tax increase as it faces significant political backlash: https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.nytimes.com/2026/03/25/nyregion/mamdani-property-tax-increase.html&ved=2ahUKEwju87CW1cWTAxUpK0QIHdbLCekQFnoECBkQAQ&usg=AOvVaw3_7PhgClFOgL1tc_j-88J5
Which raises the question as to where the money will come from to just run the City, and any new initiates that he promised seem pie in the sky. He has limited options as the city's credit rating tumbles. But he seems more pragmatist than socialist so far.
Note: NYT articles are behind a pay wall
He also has municipal unions, a major component of his base, demanding huge increases. Mamdami's people are now talking about restructuring the City's workforce (which sounds like job cuts, perhaps somewhat warranted -see the Politico article). The debt markets have taken notice that he also is burning up reserves and that his revenue projections are questionable and the City's credit rating is sinking. With a City so reliant on debt, it means those budget cuts are likely be offset by higher interest costs.
https://www.google.com/url?
sa=t&source=web&rct=j&opi=89978449&url=https://www.nytimes.com/2026/03/25/nyregion/mamdani-budget-cuts.html&ved=2ahUKEwi91pvfzsWTAxUMJUQIHWoiEDMQvOMEKAB6BAgbEAE&usg=AOvVaw0Ym8ht83E4fr5_AjdD6Qd9
https://politi.co/3PJImmC
Part of where Mamdani was expecting funding for his new initiatives was from the State and Federal government. My suspicion is that Congress will be more focused on just trying to have a budget rather than new spending initiatives and the State now reports it has a deficit https://www.osc.ny.gov/files/reports/pdf/sfy-2027-executive-budget-report.pdf, and the Governor is facing an intransigent legislature in getting her budget approved.
Mamdani was pursuing a "tax the rich" strategy to close the budget deficit, primarily by urging state lawmakers in Albany to approve higher income taxes on individuals earning over $1 million and increased corporate taxes, since NYC has no power over that. If these measures are rejected which now seems certain given the State's defecit and declining tax base, Mamdani has (had?) threatened a 9.5% citywide property tax increase. Mamdani appears to be backing away from the threat of a large property tax increase as it faces significant political backlash: https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.nytimes.com/2026/03/25/nyregion/mamdani-property-tax-increase.html&ved=2ahUKEwju87CW1cWTAxUpK0QIHdbLCekQFnoECBkQAQ&usg=AOvVaw3_7PhgClFOgL1tc_j-88J5
Which raises the question as to where the money will come from to just run the City, and any new initiates that he promised seem pie in the sky. He has limited options as the city's credit rating tumbles. But he seems more pragmatist than socialist so far.
Note: NYT articles are behind a pay wall