Mayor Mamdani Outlines Plan to Address NYC Budget Crisis

Calls for ending state revenue drain and raising taxes on the wealthy to close $7 billion deficit

Published on Feb. 12, 2026

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In his remarks at the 2026 Joint Legislative Budget Hearing, New York City Mayor Zohran Mamdani outlined a plan to address the city's multi-billion dollar budget deficit. Mamdani called for ending the state's practice of draining revenue from the city and raising taxes on the wealthiest New Yorkers to generate nearly half the needed funds. He also praised Governor Hochul's executive budget and expressed optimism about their partnership, while emphasizing the need for transparency and a new era of cooperation between City Hall and Albany.

Why it matters

New York City is facing a major budget crisis, with a projected $7 billion deficit, the result of years of fiscal mismanagement under the previous administration. Mamdani's plan aims to restore the city's fiscal health while also addressing the longstanding imbalance in the financial relationship between the city and state, which has seen New York City contribute far more in revenue than it receives back in services and aid.

The details

Mamdani outlined two key components of his plan to address the budget crisis. First, he called for ending the state's practice of draining revenue from the city, noting that New York City contributes 54.5% of state revenue but only receives 40.5% back. This imbalance has cost the city billions over the years. Second, Mamdani proposed raising the personal income tax by 2% on the wealthiest New Yorkers, those earning over $1 million per year, which he said could resolve nearly half of the budget deficit. Mamdani also praised elements of Governor Hochul's executive budget, including increased funding for education and public safety.

  • Mayor Mamdani delivered his remarks at the 2026 Joint Legislative Budget Hearing on February 12, 2026.
  • Mamdani plans to release the city's preliminary budget on February 17, 2026.

The players

Zohran Mamdani

The current mayor of New York City, who took office in January 2026.

Kathy Hochul

The current governor of New York, who has partnered with Mayor Mamdani on several initiatives.

Eric Adams

The former mayor of New York City, whose fiscal mismanagement contributed to the current budget crisis.

Andrew Cuomo

The former governor of New York, who Mamdani criticized for draining resources from New York City.

Dean Fuleihan

The first deputy mayor serving under Mayor Mamdani.

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What they’re saying

“I look forward to something different: a productive relationship with Governor Hochul, and a collaborative relationship with the legislature.”

— Zohran Mamdani, Mayor of New York City (Mirage News)

“For too long, the relationship between City Hall and the State has been defined by pettiness instead of partnership, power struggles instead of problem-solving.”

— Zohran Mamdani, Mayor of New York City (Mirage News)

“We want to solve this crisis by turning to a politics of ambition, not a politics of austerity.”

— Zohran Mamdani, Mayor of New York City (Mirage News)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.