New York City Mayor Zohran Mamdani attends a press conference at NYPD headquarters in New York City, U.S., January 6, 2026. REUTERS/Angelina Katsanis
(New York, New York) –
New York City Mayor Zohran Mamdani is set to roll out a record-breaking $122 billion preliminary budget Tuesday — a more than $6 billion increase from the current fiscal year — with a proposed property tax hike on New Yorkers at its core.
Today, I’m releasing the City’s preliminary budget. After years of fiscal mismanagement, we’re staring at a $5.4 billion budget gap — and two paths.
One: Albany can raise taxes on the ultra-wealthy and the most profitable corporations and address the fiscal imbalance between…
— Mayor Zohran Kwame Mamdani (@NYCMayor) February 17, 2026
Sources familiar with the fiscal year 2027 plan say the spending blueprint would also drain the city’s $10 billion rainy day fund down to near zero, a move critics are calling reckless.
“This is insanity,” one insider said. “Property taxes haven’t been raised since 9/11.”
The proposal marks Mamdani’s first full spending plan since taking office. He is expected to present the budget after meetings with top city officials, including City Council Speaker Julie Menin, whose approval will be critical in negotiations.
Bond Rating Concerns
Insiders warn that tapping heavily into city reserves could send troubling signals to credit agencies and potentially impact New York City’s bond rating — affecting future borrowing costs.
The mayor has repeatedly sounded alarms about the city’s fiscal health, previously claiming the budget faced a $12 billion deficit. That figure was later revised to roughly $7 billion after stronger-than-expected tax revenues — fueled largely by Wall Street bonuses that reportedly came in 24% higher than last year.
State Tensions Over Taxes
Just one day before the budget reveal, Governor Kathy Hochul approved an additional $1.5 billion in state aid to help stabilize the city’s finances.
Mamdani has also pushed for a new 2% income tax increase on New Yorkers earning more than $1 million annually, though Hochul has publicly rejected the idea.
The proposed property tax hike now sets up what could become a heated budget battle in the weeks ahead — with taxpayers, lawmakers, and financial watchdogs closely watching how City Hall moves forward.
