City Comptroller Mark Levine proposed new rules to set limits on dipping into New York’s “rainy day” fund — a move that would block Mayor Zohran Mamdani’s plan to raid the dough to cover a $5.4 billion budget gap.
The comptroller released a report on Thursday recommending several guidelines for the city’s Revenue Stabilization Fund that would require the account stay at a minimum of 10% of the city’s tax revenues. The rules would also set mandatory deposits and prevent the mayor from withdrawing unless there is a “compelling fiscal need.”
Follow The Post’s live updates for the latest on New York politics, from the city to Albany
Mamdani is trying to find the money to cover a $5.4B budget gap. Michael Brochstein/Zuma / SplashNews.com
“New York City can’t take a make-it-up-as-we-go approach to preparing for tough times,” Levin said in a statement. “We need a well-structured rainy-day fund with clear savings goals, consistent rules for deposits and withdrawals, and strong safeguards against political interference.”
Hizzoner has threatened he would sap as much as 50% of the rainy day fund and hiking property taxes by nearly 10% to cover the projected budget shortfall — if Gov. Kathy Hochul and the legislature don’t raise taxes on the wealthy. Hochul said she’d hold the line despite Mamdani’s efforts.
The fund, which was created in 2020, lacks formal guidelines for deposits and withdrawals unlike similar municipal programs.
Previous city Comptroller Brad Lander also pitched reforming the funds rules in 2022, similarly calling for standardization of deposit and withdrawal conditions.
Lev Radin/Shutterstock
The Citizens Budget Commission, which has backed formalizing fund rules in previous years, applauded the effort from the current comptroller.
“We have long supported the critical elements the Comptroller identifies are needed for a well-designed Fund. We welcome the opportunity to work with him, the Mayor, and the City Council to bolster and codify the budgetary safety net New Yorkers need,” Rein stated.
A source familiar with the matter confirmed the council is reviewing the proposal.
“From the start of the budget process, Speaker Menin has been unequivocally opposed to raiding the rainy day fund, which should only be done in true emergencies. The Council released its plan identifying responsible savings and re-estimates that eliminate any potential need for withdrawals from the fund,” Menin spokesman Jack Lobel said in a statement.
The mayor’s office did not respond to a request for comment