Mayor Zoran Mamdani’s administration proposed a budget cut of only $200 million on Wednesday, a significant gap from the $1.7 billion they initially promised. This left budget leaders frustrated over the shortfall.
Despite the lack of substantial cuts, Mamdani tried to present his cost-saving efforts through a clever social media video. In it, he humorously suggested that savings could be found as if they were coins hiding in couch cushions.
However, when pressed about the promised $1.7 billion in cuts to bridge a major budget gap, the mayor maintained that the agency had fulfilled this goal, though he provided no solid evidence to back his claims. He mentioned that New Yorkers would need to wait until the end of April, when the executive budget is due, to fully understand the proposed savings.
As the city faces a projected $5.4 billion budget deficit in the years ahead, Mamdani has introduced a massive $127 billion budget. This has prompted Gov. Kathy Hochul and state lawmakers to label it a crisis, advocating for higher taxes on the wealthy. Interestingly, Mamdani even threatened in February that homeowners might face a 9.5% property tax increase if wealthy residents weren’t taxed more.
While claiming to cut expenses, Mamdani has also issued an executive order requiring city agencies to appoint “chief savings officers.” These officers were tasked with finding $1.7 billion in savings, but their public report due by March 20 never materialized.
On Wednesday, Mamdani’s team rolled out a list of smaller budget cuts totaling $200 million, which the mayor summarized on social media. Some examples of these cuts include:
– The TLC canceling a $20,000 Slack subscription.
– The Department of Education planning to save $30.3 million by implementing spending caps and cutting “underutilized” contracts, though specifics were lacking.
– The DOE aiming to save $27.5 million by imposing regulations to limit spending on various supplies and services.
– The city’s Emergency Management switching software to save $133,000.
– Health and Hospitals planning to cut overtime and boost collections to save $14.1 million this year and another $25.7 million next year.
– The Economic Development Corporation saving $626,000 by handling marketing internally.
– The Department of Health and Mental Hygiene intending to save $1.15 million next year by renegotiating contracts.
– The Department of Correction planning to save $4.3 million by bringing some contracts in-house.
City Hall representatives did not disclose the anticipated report or additional details regarding the cuts, suggesting they wanted the public to believe they had met their savings targets. Budget Secretary Sherif Soliman informed city councilors that they “may choose” to reveal more about the cuts later.
During a budget hearing, Soliman’s responses were similarly vague, leaving City Council members wanting more concrete information. Both City Council President Julie Menin and Finance Chairwoman Linda Lee sought a complete list of savings but were met with unclear promises.
Soliman hinted that he might share more details in due time. He reiterated that specifics would be included in the mayor’s upcoming executive budget, expected for submission to the City Council by April 26.
Councilman Phil Wong pointed out that Mamdani needs to identify savings much greater than the proposed $1.7 billion, as officials had only provided details on about 15% of that target. He expressed skepticism regarding the significance of the recently highlighted savings, such as a measly $20,000 software cut, noting that even achieving the full $1.7 billion wouldn’t adequately address the looming multi-billion dollar deficit.
“We need transparency,” Wong asserted. “People deserve to know what real savings are taking place.”
While a budget watchdog acknowledged Mamdani’s initial efforts to save money, they emphasized that much more work is necessary. Andrew Lane, chairman of the Citizens’ Budget Committee, remarked, “This list is just a start. The administration will need to target far beyond the $1.7 billion goal.” He stressed the importance of efficiency in government spending, stating that an efficiently run government can ultimately lead to more affordability for New Yorkers.
