New York City Mayor Zohran Mamdani speaks during a press conference at Grand Army Plaza in the Brooklyn borough of New York City, U.S., January 2, 2026. REUTERS/Jeenah Moon
(New York, NY) – Moody’s financial Magic 8-Ball is saying “outlook not so good”. The credit analysis firm just dealt another blow to City Hall’s amid a budget crisis. The financial challenge of balancing the staggering costs across city departments marks the first real test of the young socialist Mayor Zohran Mamdani.
The rating firm gave the city a negative financial outlook this week. While the negative outlook will not impact the city’s ability to borrow, or to take out bonds. Hank Sheinkopf, a Democratic consultant, was on 77WABC’s Cats Roundtable, where he said the party is facing a takeover by the far-left
“New York City is, quite simply, spending more than it takes in”. Those were the words of the City Comptroller Mark Levine when testifying on the mayor’s proposed budget in front of City Council. Levine countered with cuts totaling over $6 billion – largely focused on the Mayor’s new and increased social services.
Mamdani is calling on Hochul to raise taxes on the wealthiest New Yorkers in order to fund his progressive agenda. Mamdani’s Budget Director, Sherif Soliman, was not at the city council meeting.
