Zohran Mamdani, New York\u2019s democratic socialist mayor, has unveiled two new budget proposals for the city, prompting feedback from those in and out of the state.<\/p>\n
Mamdani\u2019s two proposals include either raising taxes on the city\u2019s wealthiest residents \u2013 which would require approval from New York governor Kathy Hochul \u2013 or a \u201clast resort\u201d measure of a 9.5% property tax increase, which could affect \u201cmore than 3 million single-family homes, co-ops and condos and over 100,000 commercial buildings,\u201d according to the New York Times.<\/a><\/p>\n \u201cThe first path is the most sustainable and fairest: raising taxes on the wealthiest and corporations, and ending the drain by fixing the imbalance between what the City provides the State and what we receive in return,\u201d said Mamdani.<\/p>\n \u201cIf we do not go down the first path, the City will be forced to go down a second, more harmful path of property taxes and raiding our reserves \u2013 weakening our long-term fiscal footing and placing the onus for resolving this crisis on the backs of working and middle-class New Yorkers \u2026 The second path is painful. We will continue to work with Albany to avoid it.\u201d<\/p>\n The threat to raise property taxes puts pressure on Hochul, who is seeking re-election this year, to move toward Mamdani\u2019s campaign promise to make the city\u2019s top earners and corporations pay more to fund an ambitious slate of programs that includes free childcare, free buses and rent freezes for 1m rent stabilized apartments.<\/p>\n Mamdani\u2019s message comes as Hochul, who has ruled out income tax rises, said the state would contribute $1.5bn to help reduce the city\u2019s budget deficit, which is expected to rise to $7bn gap from $5.4bn over the next two years. Mamdani notably inherited a larger deficit than expected from his predecessor, Eric Adams.<\/p>\n The fallback proposal to raise property taxes has, unsurprisingly, provoked a swift response from city lawmakers.<\/p>\n \u201cWe do have a big gap to fill, and he\u2019s put a pretty extreme option on the table, which is a combination of raising property taxes and taking money from reserves and relying on some pretty aggressive revenue projections to boot,\u201d the city\u2019s comptroller Mark Levine told local paper The City.<\/a><\/p>\n Hochul told reporters<\/a> she doesn\u2019t believe a property tax increase is necessary.<\/p>\n Julie Menin, city council speaker and Linda Lee, chair of the finance committee, said in a press release on the proposals that at a time \u201cwhen New Yorkers are already grappling with an affordability crisis, dipping into rainy day reserves and proposing significant property tax increases should not be on the table whatsoever\u201d.<\/p>\n Queens borough president Donovan Richards said<\/a> raising taxes of property would be a setback: \u201cA property tax hike upwards of 9.5 percent is a nonstarter. Under no circumstance should we consider balancing our budget on the backs of working-class New Yorkers, especially seniors on fixed incomes and workers who keep our city running.<\/p>\n