{"id":174925,"date":"2026-03-25T17:47:22","date_gmt":"2026-03-25T17:47:22","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/174925\/"},"modified":"2026-03-25T17:47:22","modified_gmt":"2026-03-25T17:47:22","slug":"chief-savings-officers-found-1-7-billion-in-savings-for-nyc-mayor-mamdani","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/174925\/","title":{"rendered":"Chief savings officers found $1.7 billion in savings for NYC: Mayor Mamdani"},"content":{"rendered":"

NEW YORK CITY (PIX11) \u2013 New York City agencies proposed $1.7 billion in savings to help fill the city\u2019s massive budget gap<\/a>, reaching Mayor Zohran Mamdani\u2019s target, officials said Wednesday.<\/p>\n

The administration approved just over $200 million of those savings<\/a>, and must review and approve the rest, according to Sherif Soliman, director of the Mayor\u2019s Office of Management and Budget.<\/p>\n

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Approved savings include canceling a Department of Social Services contract with McKinsey worth $9 million, reducing overtime at Health + Hospitals, and canceling the Taxi and Limousine Commission\u2019s $20,000 Slack subscription.<\/p>\n

The mayor in January said the city was facing a financial crisis worse than the Great Recession.<\/a> Mamdani initially estimated the gap was around $12 billion between 2026 and 2027, a number that has since dropped to $5.4 billion, assuming large agency savings and additional state relief.<\/a><\/p>\n

Every department was required to appoint a chief savings officer<\/a>, tasked with finding 1.5% savings in the current fiscal year and 2.5% savings in the next. These savings are already included in the mayor\u2019s budget proposal, meaning the $5.4 billion gap remains.<\/p>\n

At Wednesday\u2019s much-anticipated budget hearing, the City Council reiterated key questions about the city\u2019s fiscal stability. But finding the savings will not affect the possibility of raising property taxes or tapping into the city\u2019s emergency reserves, something the City Council is strongly against.<\/p>\n

\u201cThe story of this budget leaves us with some fundamental questions that must be answered,\u201d Speaker Julie Menin said on Wednesday morning.\u00a0\u201cThis idea of a property tax increase of 9.5% is also a nonstarter for us. \u2026 We strongly believe there is no reason to draw down excessive reserves; it will then really jeopardize our city\u2019s budget rating.\u201d<\/p>\n

Soliman said the administration still does not want to raise property taxes or draw down reserves, but it was necessary to deliver a balanced budget. Mamdani has instead lobbied for Gov. Kathy Hochul to increase taxes on wealthy New Yorkers and corporations.<\/p>\n

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Here\u2019s a look at some of the savings announced by Mayor Mamdani:<\/p>\n

Cancel Taxi and Limousine Commission\u2019s Slack subscription to save $20,000 in FY2027<\/p>\n

Remove ineligible dependents from the Office of Labor Relations\u2019 employee health plans. This will save $100 million, officials say<\/p>\n

New York City Public Schools will rein in spending on supplies, professional development, and travel worth $27.5 million<\/p>\n

Cancel a Department of Social Services contract with McKinsey worth $9 million in FY2026<\/p>\n

New York City Public Schools will terminate some contracts and cap others, saving $30.3 million<\/p>\n

Move $626,000 worth of marketing work in-house at the Economic Development Corporation<\/p>\n

Cancel and reduce consultant contracts at the Department of Correction, Mayor\u2019s Office of Nonprofit Services, NYC Aging, and Office of Technology and Innovation<\/p>\n

Emily Rahhal is a digital reporter who has covered New York City since 2023 after reporting in Los Angeles for years. She joined PIX11 in 2024. See more of her work here <\/a>and follow her on Twitter here<\/a>. <\/p>\n

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