Mayor Mamdani plans to postpone budget release and requests an extension from the council, according to sources.

Mayor Seeks Budget Extension

Mayor Zoran Mamdani is urging the City Council to approve a budget extension. He’s pushing for additional funds from Albany, focusing on a list of new taxes for the Department of Administration.

Speaker Julie Menin, who has been monitoring the mayor’s increased spending, is open to the extension, but only if Mamdani can identify savings to address a nearly $6 billion deficit, according to sources familiar with the matter.

Mamdani has asked the Legislature for more time, hoping that Governor Kathy Hochul and state lawmakers can alleviate New York City’s financial pressures by suspending requirements for maximum class sizes and reallocating some state funds.

Menin has found some common ground with Mamdani and has been advocating for added funds to help meet the city’s needs and lessen the weight of state demands.

Additionally, both Mamdani and Menin support a tax credit for pass-through entities, which could potentially generate $1 billion annually. They plan to push for legislative backing on this front.

The City Council president and Governor Hochul have been mostly aligned during this budget process, insisting that City Hall needs to trim down a hefty $127 billion without agreeing to increases in income and corporate taxes.

Officials mentioned that Hochul’s proposal for a pied-à-terre tax—targeted at luxury second homes—could yield between $300 million and $500 million a year, framed as part of her initiative to tax the wealthy and offered as a compromise.

Moreover, Hochul has already provided Mamdani with $1.5 billion to initiate pilot programs for early childhood education and care.

The City Council had put forth its own tax-free budget last month; however, a vote is still needed to formalize Mamdani’s inability to meet the May 1 deadline.

This vote is scheduled for Thursday.

In Albany, lawmakers granted another extension to the state’s budget, which is already 27 days overdue.

When Mamdani first presented his budget, he attempted to advocate for higher taxes on the state’s wealthiest citizens. He even threatened residents with nearly a 10% increase in property taxes to close a $5.4 billion gap unless Hochul took action. However, his proposal faced continuous pushback.

This approach mirrors the negotiations from 2014, when then-Mayor Bill de Blasio also tried to impose taxes on the wealthy during Governor Andrew Cuomo’s administration.

De Blasio had similarly threatened property owners with tax hikes but ultimately balanced his budget without resorting to tax increases or extra state revenue.

At that time, Mamdani’s first deputy mayor, Dean Freihan, was de Blasio’s budget director.

Currently, City Hall is deliberating on withdrawing savings, using funds from other accounts, and potentially postponing pension payments. This strategy has raised alarms among major credit institutions, with three warning of possible downgrades to the city’s bond ratings.