{"id":212835,"date":"2026-04-28T17:24:11","date_gmt":"2026-04-28T17:24:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/212835\/"},"modified":"2026-04-28T17:24:11","modified_gmt":"2026-04-28T17:24:11","slug":"mamdani-menin-delay-nyc-budget-deadline-as-they-seek-more-funding-from-albany-but-hochul-nixes-key-tax-credit-tweak","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/212835\/","title":{"rendered":"Mamdani, Menin delay NYC budget deadline as they seek more funding from Albany, but Hochul nixes key tax credit tweak"},"content":{"rendered":"

After weeks of discord over how to close New York City\u2019s multibillion-dollar budget gap, Mayor Zohran Mamdani<\/a> and City Council Speaker Julie Menin<\/a> were singing from the same hymn sheet Tuesday, praying for more revenue from Albany and agreeing to delay the city\u2019s executive budget deadline until May 12.<\/p>\n

The announcement, made at a joint press conference in the City Hall rotunda on April 28, comes as the state budget is almost a month late. The city\u2019s executive budget was due this Friday, May 1.\n<\/p>\n

\u201cWe are extending the executive budget deadline from this coming Friday until May 12, because a crisis of this scale cannot be solved without state action,\u201d Mamdani said.<\/a><\/p>\n

Gov. Kathy Hochul, however, was quick to reject a central piece of the joint Menin-Mamdani ask: reducing New York City\u2019s passthrough entity tax credit (PTET) to 75%, a change the speaker and mayor said would generate nearly $1 billion in additional revenue. The PTET credit allows members and shareholders of partnerships or S corporations to pay state income tax at the entity level, and making it possible for those seeking the credit to avoid the $10,000 federal deduction limit for state and local taxes (SALT).\u00a0<\/p>\n

The mayor described the PTET credit as \u201ca tax cut for the rich,\u201d saying more than 95% of the credits go to people making more than $1 million a year, and more than 80% go to those earning more than $5 million.<\/p>\n

But Hochul was hearing none of it.\n<\/p>\n

\u201cIt\u2019s not happening,\u201d Hochul said at an unrelated press conference upstate when asked whether reducing the PTET credit amounted to a personal income tax increase. \u201cWe\u2019re not changing PTET.\u201d\u00a0<\/p>\n

Hochul also pushed back on the city\u2019s framing, saying New York City officials were free to extend their budget process but should not blame Albany for the delayed budget.\n<\/p>\n

\u201cWe don\u2019t have to be done in order for you to do yours,\u201d Hochul told reporters in Colonie. \u201cWe\u2019re on different timetables.\u201d\n<\/p>\n

Mamdani and Menin seek more balance from Albany
\n\"\"Governor Kathy Hochul speaks to reporters in Colonie, April 28Photo by Mike Groll\/Office of Governor Kathy Hochul<\/p>\n

Mamdani and Menin earlier urged Albany to address what they described as a long-standing imbalance between the revenue the city sends to the state and the amount it receives in return. Their offices said New York City contributes 55.6% of state revenue but receives 41.7% of state expenditures.<\/p>\n

\u201cWe are not calling to eliminate the credit,\u201d Mamdani said. \u201cWe are rather asking the state for a modest reduction from 100% to 75%.\u201d\n<\/p>\n

Menin said the unfinished state budget made it difficult for the city to complete its own spending plan.\n<\/p>\n

\u201cNew York State has not yet finalized its budget, and until they do so, we do not have the necessary clarity to responsibly complete the city\u2019s budget,\u201d Menin said.\n<\/p>\n

She said it was \u201cfar more prudent\u201d to wait for the state budget than \u201crush one based on incomplete information.\u201d\n<\/p>\n

The mayor and speaker also said they support restructuring the city\u2019s pension unfunded liability and providing relief tied to the state\u2019s class-size mandate, measures their offices said would save the city more than $1 billion. Mamdani said the pension proposal would not reduce retiree benefits.<\/p>\n

\u201cThis does not affect any New Yorker\u2019s pension,\u201d Mamdani said. \u201cThis is something that simply would determine the timeline by which we would reach the full funding of these pensions.\u201d<\/p>\n

Mamdani also acknowledged that the city has not yet sent Albany final language on the pension and class-size proposals, saying those discussions are ongoing with organized labor groups.\n<\/p>\n

The joint appearance marked a public show of alignment after weeks of tension between City Hall and the Council over how to close the budget gap. The mayor\u00a0said they are \u201cnot simply asking others to act,\u201d and that he and Menin have \u201calready identified meaningful savings.\u201d<\/p>\n

No shift in Council\u2019s push to find savings in budget
\n\"\"Photo by Lloyd Mitchell<\/p>\n

Less than a month ago, Menin said lawmakers had identified roughly $6 billion in resources to close the gap without raising property taxes, cutting services, or dipping into reserves.<\/p>\n

Mamdani sharply rejected that approach at the time, saying the Council was double-counting savings, overestimating revenues, and failing to address the city\u2019s structural deficit.\n<\/p>\n

Menin maintained Tuesday that the Council\u2019s position had not changed, pointing to the PTET proposal, savings ideas, and other revenue raisers included in its April 1 response.\n<\/p>\n

\u201cNo, it\u2019s not a shift,\u201d Menin said when asked whether her position had changed. \u201cWe included billions of dollars of savings.\u201d\n<\/p>\n

Menin pointed to proposed savings from areas such as Department of Education consulting contracts, debt service, and airport revenue, as well as revenue proposals including speed camera enforcement. She defended PTET as temporary and regional, comparing it to Connecticut and Massachusetts, rather than embracing Mamdani\u2019s broader tax-the-rich agenda.<\/p>\n

\u201cWe\u2019re not talking about doing it long term,\u201d Menin said. \u201cWe\u2019re talking about a short-term solution to this problem.\u201d\u00a0\n<\/p>\n

Mamdani said he spoke with Hochul on Monday before moving forward with the announcement. He praised state leaders for aid already provided, including support for child care funding, restored city funds, and a proposed pied-\u00e0-terre tax, but said the city still needs additional help.<\/p>\n

\u201cThere is no amount of savings that will absolve Albany from the partnership that\u2019s required to get all of us to a balanced budget by the end of this process,\u201d Mamdani said.\n<\/p>\n

Hochul to NYC: You\u2019ve got enough<\/p>\n

Hochul said the state has already provided the city with \u201cover $4 billion in assistance,\u201d citing the recently proposed pied-\u00e0-terre tax<\/a>, $1.2 billion in child care funding<\/a>, and $1.5 billion in other aid<\/a>.<\/p>\n

She also said she has repeatedly urged city leaders to look for spending reductions, saying she had raised the issue in \u201cJanuary, February, March, and April.\u201d She pushed back on calls to restore AIM (aid and incentives for municipalities) funding to the city, arguing that the program supports localities constrained by the state\u2019s 2% property tax cap.<\/p>\n

\u201cThe city has no such restrictions,\u201d Hochul said.\n<\/p>\n

The City Council must approve the budget extender and is expected to do so on Thursday.<\/p>\n","protected":false},"excerpt":{"rendered":"After weeks of discord over how to close New York City\u2019s multibillion-dollar budget gap, Mayor Zohran Mamdani and…\n","protected":false},"author":2,"featured_media":212836,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[84019,14927,426,36610,84020,9,56,63,65,64,84021],"class_list":["post-212835","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-york-city","tag-budget-delay","tag-city-budget","tag-kathy-hochul","tag-mayor-mamdani","tag-mayors-executive-budget","tag-new-york","tag-ny","tag-nyc","tag-nyc-headlines","tag-nyc-news","tag-speaker-menin"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/212835","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=212835"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/212835\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/212836"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=212835"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=212835"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=212835"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}