Mayor Zohran Mamdani
Michael Appleton/Mayoral Photography Office
Staring a huge NYC budget gap in the face, Mayor Zohran Mamdani‘s administration said Wednesday it had found a number of money-saving moves after ordering city agencies to tighten their belts – from canceling the Taxi and Limousine Commission’s Slack subscription, to renegotiating shelter Wi-Fi contracts and auditing city workers’ health-plan dependents.
City Hall announced Wednesday morning that agencies submitted proposals by the March 20 deadline identifying more than $1.7 billion in savings, but the administration disclosed only an initial list of items it has signed off on so far. On Tuesday, the city’s Independent Budget Office, in analyzing Mamdani’s preliminary budget, estimated that the city must close budget gaps of $535 million in the current fiscal year, and $5.9 billion in the next, by July 1.
Mamdani created a chief savings officer role at every city agency in January under Executive Order 12 and directed agencies to identify savings equal to 1.5% in fiscal year 2026 and 2.5% in fiscal year 2027. City Hall said that the mayor’s office and the Office of Management and Budget have begun reviewing them for inclusion in the executive budget.
The approved items in the first batch fall into five categories: public service efficiencies, contracting efficiencies, technology modernization, space consolidation and lease management, and financial adjustments and new revenue.
City Hall described the items in a press release as an initial list of approved savings.
“This is just the beginning of our work to improve service delivery and make city government the most efficient it can be,” Mamdani said in a statement.
Mamdani admin outlines itemized NYC budget cut list
Among the largest items in the release, the Office of Labor Relations is expected to save about $100 million in fiscal year 2027 through an audit of dependent eligibility in employee health plans.
New York City Public Schools is projected to save $57.8 million across fiscal years 2026 and 2027 through contract cuts, spending caps and controls on central office spending. Health + Hospitals is expected to save $39.8 million through contract rebates, reduced use of temporary staffing agencies, lower overtime and improved revenue collection.
Other agencies reported smaller savings.
The Department of Finance is expected to save $13 million in fiscal year 2027 by tightening verification for a primary residence co-op abatement.
The Fire Department said it will save $700,000 in fiscal year 2026 and $2.2 million in fiscal year 2027 through lower telecommunications rates, along with another $10.1 million in fiscal year 2027 by billing Medicaid for “Treat No Transport” services after state and federal approvals.
The Department of Social Services said it will save $597,000 in fiscal year 2027 by bringing nearly two dozen IT contracts in-house. The agency also said renegotiated shelter Wi-Fi contracts will save $1.3 million in fiscal year 2026 and $1.8 million in fiscal year 2027, and that it is ending its McKinsey contract, on which the release said nearly $9 million was spent in fiscal year 2026.
The TLC, meanwhile, is canceling Slack, a move City Hall said will save nearly $20,000 in fiscal year 2027.
Andrew Rein, president of independent government watchdog Citizens Budget Commission, said Mamdani deserves credit for starting to find savings to plug the over $5 billion fiscal hole facing the city “but it’s just that, a start.”
“The administration will have to go much further than the $1.7 billion target—and there’s plenty of opportunity,” Rein said. “This administration must be as ambitious about government efficiency as it is about affordability. That means real transformation on how we run government, and not spending money that doesn’t help New Yorkers. An efficient government is an affordable one.”