Mayor Mamdani Releases Balanced Fiscal Year 2027 Preliminary Budget

New York City faces fiscal crisis, mayor proposes raising taxes on wealthy and corporations

Published on Feb. 20, 2026

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New York City Mayor Zohran Kwame Mamdani has released the Fiscal Year 2027 Preliminary Budget, outlining a $12 billion budget gap inherited from the previous administration. To address this, Mamdani proposes raising taxes on the wealthiest New Yorkers and most profitable corporations, as well as ending the drain of city resources to the state. If these revenue-raising measures are not approved, the city will be forced to raise property taxes and dip into reserve funds, placing the burden on working and middle-class residents.

Why it matters

New York City is facing a significant fiscal crisis, and the decisions made in this budget will have major implications for the city's long-term financial stability and the distribution of the tax burden across different income groups. The mayor's proposals to raise taxes on the wealthy and corporations represent an attempt to address the crisis in a progressive manner, rather than simply cutting services or raising taxes on lower-income residents.

The details

The $127 billion FY 2027 Preliminary Budget includes $1.77 billion in savings initiatives, $7.3 billion in upward revisions to tax revenue, and $1.6 billion in state support. However, the city still faces a remaining $5.4 billion gap. The mayor's preferred solution is to raise personal income taxes on those earning over $1 million annually and increase taxes on the most profitable corporations, while also recalibrating the city's fiscal relationship with the state. If these revenue-raising measures are not approved, the city will be forced to raise property taxes by 9.5% and dip into reserve funds to balance the budget.

  • The Fiscal Year 2027 Preliminary Budget was released on February 18, 2026.
  • The budget gap of $12 billion was identified upon the Mamdani administration taking office.

The players

Mayor Zohran Kwame Mamdani

The current mayor of New York City who released the Fiscal Year 2027 Preliminary Budget.

Governor Kathy Hochul

The governor of New York state who provided $1.5 billion in state support to help address New York City's budget gap.

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What they’re saying

“There are two paths to bridge the city's inherited budget gap. The first path is the most sustainable and fairest: raising taxes on the wealthiest and corporations, and ending the drain by fixing the imbalance between what the City provides the State and what we receive in return,”

— Mayor Zohran Kwame Mamdani (Mirage News)

What’s next

The New York City Council will need to approve the mayor's proposed tax increases and other revenue-raising measures in order for the city to avoid having to raise property taxes and dip into reserve funds to balance the budget.

The takeaway

New York City's fiscal crisis presents a critical test for the new mayor, who is seeking to address the budget gap in a progressive manner by raising taxes on the wealthy and corporations rather than cutting services or raising taxes on lower-income residents. The outcome of this budget battle will have significant implications for the city's long-term financial stability and the distribution of the tax burden.