NYC Budget Under Mayor Mamdani

Data updated May 21, 2026

Budget Overview

NYC under Mayor Mamdani

FY2026 (Current Year)
$112.4B
Adopted Budget
FY2027 (Executive)
$124.7B (FY27 Exec)
Executive Budget (filed May 12)
+11.0% vs FY26
Gap closed: $12B inherited → $0 (declared balanced May 12)
Hochul aid: ~$4B incremental ($8B over 2 years) — pied-à-terre, $1.2B childcare, class-size delay
Property-tax hike SCRAPPED · reserves NOT raided
Resolved
$7B FY28 out-year shortfall (Comptroller) · one-shot reliance flagged

Budget Resolution

FY27 Executive Budget — what passed, what failed

Mayor’s Proposal — Outcome
Pied-à-Terre Tax on $5M+ NYC homes (~$500M/yr)Kept
PTET credit reduction to 75% (~$1B)Broken
Corporate tax hike ($1.75B/yr)Broken
Income tax surcharge on $1M+ earners ($3B)Broken
9.5% property-tax hike (city-only fallback)Scrapped
Reserve drawdowns ($980M RSF + $229M RHBT)Not Used
Agency savings ($1.7B identified)Partial
Headcount reductionsIn Progress
Council Alternative — Outcome
No property tax increaseWon
No reserve drawdownsWon
Re-estimations ($3.5B — unspent salaries, DOB permits)Absorbed
Efficiencies ($2B — DOE audits, debt service)Partial
Fair Fares expansion ($125–155M)TBD
Service/staff cuts: noneNone
What Collapsed
Office of Community Safety ($1.1B pledge)Broken
$65M gender-affirming careBroken
$165M immigrant legal defenseBroken
1% of budget to ParksBroken
Resolved$7B FY28 shortfall

Executive Budget filed May 12, 2026 — $124.7B, no property tax hike, reserves intact. Hochul-Mamdani joint announcement added ~$4B incremental aid (total ~$8B over 2 years). State budget remains in negotiation — 11th extender through Thu May 14, ~50 items unresolved per Heastie. Mamdani’s pied-à-terre tax made the final deal. PTET-75%, corporate, and millionaires-tax pitches did not. Comptroller Levine flagged $7B FY28 out-year shortfall and one-shot reliance.

Budget data last updated: May 21, 2026

Key Fiscal Context

Independent assessments & external factors

Comptroller Levine
Independent fiscal watchdog (not a competing plan)
Gap (Inherited)
$12B
FY2027 pre-Mamdani
Gap (Post-Measures)
$0
FY27 declared balanced
FY28 Out-Year Shortfall
$7B
per Comptroller projection — must close within one year
May 12 Assessment
Net new spending: “Pretty modest” (Levine). Executive Budget filed May 12 — first FY27 filing after city missed May 1 Charter deadline. Revenue assumptions still “aggressively optimistic.” Watch May 22–25 finance hearings.
One-shot reliance flag: Hochul Pre-K-for-3s funded years 1–2 only; $519M CityFHEPS admin tightening.
Key Positions
  • •Praised May 12 transparency vs Adams-era underbudgeting
  • •Called revenue assumptions "aggressively optimistic"
  • •Said savings plan needs to be "more aggressive" — especially out-year
  • •Proposed Rainy Day Fund reform: require RSF balance of 10–16% of tax revenues, withdrawals only during downturns (≤5%)
  • •Praised Mamdani for NOT raiding reserves — FY27 leaves $980M RSF + $229M RHBT intact
  • •Cited CBC "Competitive NYC" report (May 3): $68B income loss, 31% drop in millionaire share since 2010
Governor Hochul / State Budget
11th Extender
11th extender expires Thu May 14. 6th week late. Latest state budget in 16 years. Stewart-Cousins (May 12): “end in sight.”
$268B Framework Deal + May 12 Add-On
~$4B incremental
May 7 framework + May 12 Hochul-Mamdani joint announcement delivers total ~$8B NYC aid over 2 years. NYC asks:
  • •Pied-à-Terre Tax (~$500M/yr) — in deal
  • •$1.5B initial NYC aid → ~$4B incremental
  • •$1.2B childcare expansion (part of $4.5B statewide)
  • •Class-size law DELAY — new addition
Also: climate-mandate rollback, auto-insurance reshape, no tip income tax, NYPD–ICE cooperation limits, utility rebate checks.
Heastie Pushback (within hours of May 7)
“Hochul spoke prematurely — ~50 items remain unresolved.”
No final text; passage requires both chambers.
NYC Aid Package (Not Yet Law)
~$4B incremental
$300M youth programming$150M sales tax$60M public health$500M TBDpied-à-terre revenuestate-authorized savings
Albany-Rejected / Outside Deal
PTET credit reduction to 75% — Hochul: “It’s not happening.”
Progressive income tax on >$1M earners + corporate tax increases; not in framework.
Trump on WABC (May 12–13): “cherish billionaires” / loss “not recoverable” — federalizes the fight.
Why It Matters
  • •~$4B incremental aid locked FY27 gap without property tax or reserve raid
  • •11th extender expires Thu May 14 — 12th expected; Council reconciliation timeline compresses
  • •LIRR strike Saturday adds transit-budget stress test if unresolved
Real-Estate Elite Reaction
Escalating
Capital-flight narrative intensifying even as FY27 balanced. Griffin, Roth, Apollo, Trump amplifying exit signals; Sanders and CNBC counter.
Griffin (Citadel CEO)
Mamdani video “put me in harm’s way” (CBS May 6). Citadel “doubling down on Miami.” Met Hochul privately Apr 30.
Roth (Vornado CEO, May 5)
Called “tax the rich” “as hateful as racial slurs.” $6B 350 Park Avenue super-tall “hanging in the balance.”
Rowan (Apollo CEO, May 11–12)
Plotting FL or TX second HQ — up to 1,000 jobs. Joins Citadel/Vornado publicly signaling exit (Bloomberg / Townhall).
CBC “Competitive NYC” (May 3)
  • •$68B income loss to other US cities (2019–2023)
  • •114K net domestic resident loss in 2025
  • •31% drop in NY's share of US millionaires since 2010
Trump (WABC, May 12–13)
“Cherish billionaires.” Told Mamdani losing people like Griffin “sort of not recoverable.” Federalizes the fight.
CNBC Counter-Narrative (May 12)
Q1 luxury Manhattan held up despite announced pied-à-terre. Second-home buyers absorb surcharge over relocating primary residence.
Operation Boomerang (May 10–13)
Andrew Murstein (Medallion Financial): $1M pledge + NY bagels + Katz’s Deli to lure firms back. Counter-recruitment play.
Sanders (May 13, Common Dreams)
“Stand with working families, not billionaires — there is nothing they cannot accomplish.” First major progressive endorsement of budget approach.
Mamdani’s Response (May 12 Budget Speech)
“We have closed the gap entirely down to zero. We didn’t close it on the backs of working New Yorkers. We funded parks, libraries, safer streets, and historic investments in public housing.”
Most recent 5 — click to expand all
May 13Library funding $31.7M RESTORED — reversal of Feb prelim cut
May 13OCS budget battle LOST — $270M / -75% vs $1.1B pledge (Crain's / Gothamist)
May 13$65M gender-affirming care pledge absent from FY27 (Truthout / Erin in the Morning)
May 13Sanders endorses budget approach: "stand with working families, not billionaires"
May 13LIRR strike talks resume — no deal, next session past Saturday deadline
Last updated: May 21, 2026
Credit Warning
All 4 major rating agencies have issued negative outlooks on NYC's fiscal health, citing concern over reserve drawdowns while revenue is growing. The city is spending more than it takes in.
Moody's(Aa2)Negative outlookS&P(AA)Negative outlookFitch(AA)Negative outlookKBRA(AA+)Negative outlook
If downgraded: ~$360M added cost on $5B in new bond issuances over 30 years|Next triggers: (a) State budget finalization — 11th extender expires Thu May 14; (b) Mid-May rating-agency response to FY27 Exec; (c) Council/Mayor reconciliation by end of June.
Mamdani’s $124.7B FY27 Executive Budget did NOT raid reserves ($980M RSF + $229M RHBT intact) and did NOT raise property taxes. Comptroller Levine called the restraint “the right call.” Primary rating-agency concern (reserve drawdowns + revenue assumptions) materially eased; structural FY28 out-year shortfall ($7B) remains the open question.

Budget Trends

Historical data & projections

NYC Total Budget — 10-Year Trend
NYC Total Budget — 10-Year Trend
Fiscal YearTotal Spending ($B)
FY2018$89.2B
FY2019$92.8B
FY2020$92B
FY2021$98.7B
FY2022$101.1B
FY2023$107B
FY2024$112B
FY2025$120.8B
FY2026$122.4B
FY2027$124.7B
Sources: NYC OMB, NYC IBO, Comptroller reports (all-funds basis — differs from city-funds hero card)
Surplus vs. Deficit
Last surplus: FY2022 ($6.1B)
NYC Fiscal Balance — Surplus vs. Deficit
Fiscal YearBalance ($B)
FY2018+1.2B
FY2019+0.8B
FY2020-3.5B
FY2021+2B
FY2022+6.1B
FY2023-0.6B
FY2024-1.1B
FY2025-4.7B
FY2026-2.2B
FY2027+0.2B
Sources: NYC Comptroller, IBO, OMB — *FY27 as filed (Executive Budget declared balanced); FY28 projected −$7B per Comptroller
Where the Money Goes
FY2027 NYC Executive Budget by Category
CategoryAmount ($B)Percentage
Education (DOE + CUNY)$39.8B31.9%
Fringe Benefits & Pensions$24.8B19.9%
Social Services (DSS/HRA/DHS)$23.7B19%
Public Safety (NYPD + FDNY + DOC)$10.2B8.2%
Health (DOHMH + H+H)$10.4B8.3%
Debt Service$9.5B7.6%
All Other Agencies$6.3B5.1%
Source: NYC OMB FY2027 Executive Budget Summary (nyc.gov/assets/omb/downloads/pdf/exec26/sum5-26.pdf)

Budget Alerts

Latest fiscal developments

Mayor Zohran Mamdani Announces Balanced $124.7 Billion Executive Budget for Fiscal Year 2027
Mamdani closed a projected $12 billion deficit without raising property taxes, cutting services, or using reserve funds, relying instead on state aid, agency savings, and pension payment restructuring.
Budget Scan6d agopositive
Mamdani Pulls Budget 'Rabbit From Hat' But Watchdogs Warn of One-Shot Fixes and Future Deficits
The mayor avoided fiscal crisis by closing a $12 billion gap, but critics warn the budget relies heavily on temporary funding solutions and projects a $7 billion deficit for fiscal year 2028.
Budget Scan6d agonegative
Mamdani Budget Increases Worker Protection Agency Funding While Cutting Human Rights Commission
The Department of Consumer and Worker Protection received a $4.3 million increase to $78.4 million, while the NYC Commission on Human Rights budget was reduced to $13.4 million from $15.7 million.
Budget Scan6d agoneutral
Mamdani's Budget Relies Heavily on State Aid and Delayed Pension Payments, Raising Questions About Long-term Sustainability
<cite index="1-1,1-2">The budget closes a projected $12 billion deficit over the next two years without drawing from reserves or raising property taxes, but relies heavily on state aid and delayed pension payments. Critics question whether the city has solved its fiscal problems or merely postponed them.</cite>
Budget Scan6d agonegative
NYPD Budget Holds at $6.4 Billion as Mamdani Cancels Adams' Plan for 5,000 Additional Officers
<cite index="13-6,13-8">Mayor Mamdani's budget keeps the NYPD's roughly $6.4 billion budget essentially flat and cancels his predecessor's plan to hire 5,000 additional police officers. The department's uniform head count is projected to remain just under 35,000 officers, effectively scrapping the 40,000-officer force envisioned under previous Mayor Eric Adams.</cite>
Budget Scan6d agoneutral
Mayor Mamdani Unveils $124.7 Billion Budget, Claims to Close $12 Billion Deficit Without Tax Hikes or Service Cuts
Mayor Zohran Mamdani released a $124.7 billion FY2027 executive budget in May 2026 that he claims closes a projected $12 billion deficit through state aid, savings measures, and a new pied-à-terre tax on luxury properties. The budget avoids property tax increases and major service cuts while making the largest capital commitment to NYCHA in recent history.
Budget Scan6d agopositive
Mamdani Releases $124.7 Billion Executive Budget, Closes $12 Billion Deficit Without Property Tax Increases
Mayor Zohran Mamdani unveiled a $124.7 billion budget that eliminates a projected $12 billion deficit through state aid, agency savings, and limited new taxes on the wealthy. The plan avoids property tax increases and major service cuts while relying heavily on $7.6 billion in state assistance from Governor Hochul.
Budget Scan17d agopositive
State Provides $8 Billion in Aid to Help NYC Close Budget Gap as Mamdani-Hochul Partnership Deepens
Governor Hochul and Mayor Mamdani announced an additional $4 billion in state support, bringing total new state assistance to nearly $8 billion over two years. The partnership includes funding for universal childcare, education investments, and infrastructure while avoiding the dysfunction that previously characterized city-state relations.
Budget Scan17d agopositive
View all budget news →

Department Spending

Promised vs. actual allocations

Key Budget Actions
ACS (Children's Services)
Unchanged
Actual
$1.6B
DHS (Homeless Services)
Increased
Actual
$4.63B
+25.1%
DOC (Correction)
Unchanged
Actual
$1.2B
DOE (Education)
Increased
Actual
$38B
+10%
DOHMH (Health & Mental Hygiene)
Increased
Actual
$2.4B
+4%
DOT (Transportation)
Unchanged
Actual
$8.6B
DSNY (Sanitation)
Unchanged
Actual
$1.8B
FDNY (Fire)
Unchanged
Actual
$2.6B
Health + Hospitals
Warning
Actual
$8B
NYPD
Intentional Cut
Actual
$6.38B
-0.3%
Campaign Promise vs. Budget
CCHR (Human Rights Commission)
Decreased
Promised
$21M
Actual
$14.3M
-7.1%
Childcare Expansion
Unchanged
Promised
$1.7B
Actual
$1.7B
City-Owned Grocery Stores
Unchanged
Actual
$70M
DCWP (Consumer & Worker Protection)
Decreased
Promised
$135M
Actual
$74.7M
-8.6%
Fare-Free Buses
Warning
Promised
$700M/yr
Actual
Not funded
Hate Crime Prevention (OCPHC)
Increased
Promised
$3M baseline
Actual
$26M FY27 Exec
+9× / +$23M
Libraries (3 systems: Queens, Brooklyn, NYPL)
Increased
Promised
0.5% of budget (~$623M)
Actual
$31.7M restoration FY27
+$31.7M reversal
Office of Community Safety
Decreased
Promised
$1.1B
Actual
~$270M umbrella ($40.9M new OCS)
-75% / promise broken
Parks & Recreation
Warning
Promised
1% of budget
Actual
~0.5% of budget (+$15M FY27)
+$15M (gap ~$767M)
Pied-à-Terre Tax (state-enabled)
Increased
Promised
New revenue source for NYC
Actual
$500M/yr projected (340M-380M Comptroller realistic)
Confirmed in FY27 Exec
State Aid Package (NYC)
Increased
Promised
~$8B total over two years (May 20 deal)
Actual
Pending — ELFA passed Assembly 110-34 Wed May 20; 8 of 10 budget bills remaining
Hochul + Mamdani jointly confirmed additional $4B Wed May 20, on top of the $4B in the May 12 framework — total ~$8B over 2 years
Other Departments
FY2026
Unchanged
Actual
$112.4B
FY2027
Increased
Actual
$124.7B (FY27 Exec)
+11.0% vs FY26