TAX HIKE: NYC mayor Mamdani worries residents with plans to fund city budget
New York City Mayor Zohran Mamdani, a Democratic socialist, is set to unveil a $122 billion budget for the 2027 fiscal year on February 18, 2026, marking an increase of more than $6 billion from the current year's spending plan.
The proposal includes a property tax hike on city residents, the first such increase since 9/11, and plans to drain the city's $10 billion rainy day fund down to nearly zero. Mamdani had previously advocated for a 2% personal income tax on New Yorkers earning more than $1 million annually, but Governor Kathy Hochul rejected that idea.
The budget comes amid a $7 billion citywide deficit, down from an earlier $12 billion shortfall, after tax revenues came in 24% higher than the previous year, largely driven by Wall Street bonuses. This announcement follows Hochul's allocation of $1.5 billion in state aid to help stabilize the city's finances. Mamdani has emphasized the need to address the city's financial challenges through higher taxes on wealthier residents.
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An insider familiar with the plan described the property tax hike as "insanity" and the near-depletion of the rainy-day fund as a "major red flag" that could negatively affect the city's bond rating and borrowing capacity.
Mamdani is scheduled to meet with City Council Speaker Julie Menin and other officials to negotiate the budget ahead of its unveiling.