New York City Mayor Zohran Mamdani’s impact on the New York state budget remains unclear as Gov. Kathy Hochul and state lawmakers clash over policy issues while the Democratic socialist mayor’s agenda faces new challenges from the City Council.
State legislators briefly met in the state Capitol on Tuesday, April 8, to pass their second budget extender and, according to conversations on both the Senate and Assembly floors, the debate is focused on key statewide measures, such as rolling back the state climate protection law and pension reforms, as opposed to several tax and financial proposals tied to Mamdani.
“Right now, what’s holding up the budget…are policy issues having to do with insurance and having to do with SEQRA and other areas,” Assemblymember J. Gary Pretlow, a Westchester County Democrat, said, referring to the governor’s proposed auto insurance reforms and changes to the state’s environmental review process.
What Mamdani wants in part out of Albany and Hochul is approval of his “tax the rich” plan, which aims to allow an additional city income tax of 2% on anyone earning more than $1 million a year and an increase of the state’s top corporate tax rate to 11.5%. The mayor is attempting to fill a multi-billion dollar city budget gap and asserts that this, which requires state consent, will help achieve that goal.
In February, Hochul pledged to provide $1.5 billion of New York state funds for New York City’s operating expenses in an attempt to quash Mamdani’s push to raise taxes.
Here’s the latest.
Is Mamdani’s ‘tax the rich’ push losing traction?
Possibly. Mamdani’s “tax the rich” measures are partially being supported by Democratic lawmakers as both the Senate and Assembly have included proposals to tax the wealthiest New Yorkers in their respective one-house budgets, but the request has been largely ignored by the governor and completely dismissed by New York City Council members.
Both one-house proposals differ slightly from Mamdani’s plan as they call for personal income tax increases for New Yorkers bringing in more than $5 million annually. Mamdani’s also getting pushback from City Council, as they recently revealed their opposition to taxing New York’s wealthiest in their response to the mayor’s preliminary budget.
“Amid a serious affordability crisis impacting New Yorkers across the city, the Council has a responsibility to act as a strong fiscal steward as we face a significant budget shortfall,” City Council Speaker Julie Menin said in a statement. “We cannot in good conscience fund the city’s needs on the backs of homeowners or renters, by digging into emergency reserves, or by cutting essential programs.”
Mamdani condemned the rebuttal, saying City Council’s plan would slash billions from agency budgets and lead to services cuts.
“This $6 billion proposal asks Albany for just one action — class size mandate relief,” Mamdani said. “It refuses to address the deeper structural imbalance between the City and the State, or to increase taxes on the wealthiest New Yorkers and most profitable corporations. It effectively ensures this structural deficit will continue indefinitely.”
City Council instead proposes making up the city’s deficit by relying on re-estimations of city revenues and expenditures, savings through efficiencies and reforms and targeted tax increases, including reducing the Unincorporated Business Tax/Personal Income Tax Credit for New Yorkers making more than $1 million.
What about Mamdani’s other policies?
Another of Mamdani’s campaign promises was making city buses fare-free. However, it seems he’s dialed that push back a bit for now, Politico recently reported. City Council is pushing for the expansion of the city’s Fair Fares program, which provides transit discounts for low-income subway and bus users.
The mayor also recently reaffirmed his support for case-by-case parole release consideration for those older New Yorkers who’ve already served long sentences.
“There are pieces of legislation in Albany that as an Assemblymember, I was proud to support,” Mamdani said during a news conference about public health on April 7. “And I think those are critical to move forward. One of them was Elder Parole.”
Emily Barnes covers state government for the USA TODAY Network-New York with a focus on how policy and laws impact New Yorkers’ taxes, communities and jobs. Follow her on Instagram or X @byemilybarnes. Get in touch at ebarnes@usatodayco.com.
This article originally appeared on Rockland/Westchester Journal News: Is Mamdani still a factor in NY state budget debates? What we know now
Reporting by Emily Barnes, New York State Team / Rockland/Westchester Journal News
USA TODAY Network via Reuters Connect
