Mamdani and Menin ask for budget help as fiscal strain deepens
Mamdani and speaker unite to push Albany for budget help
Mayor Mamdani and Council Speaker Julie Menin are now publicly joining forces to push Albany for help closing a multi-billion-dollar budget gap, signaling growing urgency over the city’s financial outlook.
NEW YORK - New York City Mayor Zohran Mamdani and Council Speaker Julie Menin are now publicly joining forces to push Albany for help closing a multi-billion-dollar budget gap, signaling growing urgency over the city’s financial outlook.
What we know:
Standing together at City Hall, the two leaders called on state lawmakers to deliver more funding and approve changes that could bring in nearly $1 billion in new revenue.
The joint appearance marks the first time in recent history a mayor and speaker have united to demand additional support from Albany.
What they're saying:
"New York City is facing a generational fiscal deficit, and it’s going to require serious, good-faith partnership across every level of government to meet this moment," Mamdani said. "If we’re serious about putting our city back on firm financial footing, we cannot rely on short term fixes. A structural crisis demands a structural solution."
At the center of their proposal is a change to the New York City Pass-Through Entity Tax, or PTET, credit.
What is the PTET?
The PTET allows certain businesses, including partnerships and S corporations, to pay a city-level tax that is currently fully rebated to owners, helping offset federal limits on state and local tax deductions.
Mamdani and Menin are urging the state to allow the city to reduce that rebate from 100% to 75%, a move they say would generate about $1 billion annually while still preserving a tax benefit.
"Today it serves as a tax cut for the rich; a reduction would ensure the wealthiest pay their fair share," Mamdani said.
Menin emphasized the need to close the gap without cutting essential services.
"Mayor Mamdani and I are partners in delivering a responsible budget for New Yorkers, and we’re committed to closing the gap," she said. "We are aligned on identifying real savings, maintaining the services New Yorkers rely on, and making clear that New York City deserves its fair share from Albany."
Budget deadline remains unfinished
Julie Menin, speaker of the New York City Council, during an announcement in the Brooklyn borough of New York, US, on Monday, Jan. 12, 2026. New York Mayor Zohran Mamdani on Monday announced the appointment of Rafael Espinal as commissioner of the Ne
Timeline:
The announcement comes as the state budget remains unfinished weeks after its April 1 deadline.
City leaders say they will pass a budget extender through May 12 to give Albany more time to finalize its spending plan, which will shape the city’s own budget.
By law, the mayor must release an executive budget by May 1, though it remains unclear whether that deadline will be met.
Closing NYC's budget gap
NEW YORK, UNITED STATES - 2026/03/31: Mayor Zohran Mamdani during the meeting with Secretary-General Antonio Guterres at UN Headquarters. (Photo by Lev Radin/Pacific Press/LightRocket via Getty Images)
The city’s budget strain reflects deeper structural issues, according to a March 2026 report from the Fiscal Policy Institute.
The analysis found that under the previous administration, actual city spending exceeded projections by about 10% on average due to consistent underbudgeting. It also found the city’s revenue has not kept pace with its economic growth, in part because state law limits New York City’s control over its own tax system.
As a result, the city’s revenue has declined relative to the size of its economy in recent years, even as New York City has remained the engine of growth for the state.
Hochul's pied-à-terre tax
Hochul pushing for yearly tax on NYC second homes worth $5M or more
New York Gov. Kathy Hochul is pushing for a yearly tax on New York City residents who own second homes worth $5 million or more,
As city leaders push for changes to the PTET credit and more state support, Gov. Kathy Hochul is advancing a different approach: a pied-à-terre tax on luxury second homes.
The proposal would apply to properties worth $5 million or more that are not primary residences, targeting wealthy, part-time residents whose units often sit vacant.
A spokesperson for Hochul pushed back on criticism, saying the state is already providing significant support.
TROY, NY - APRIL 14: Gov. Kathy Hochul holds a news conference during a tour of the new Sol Apartments building on Tuesday, April 14, 2026, on 5th Ave. in Troy, N.Y. Sol Apartments is a mixed-income housing project that the governor highlighted as pa
"Governor Hochul and her team have been in ongoing conversations with the Mayor and City Council since January about state funding and potential solutions to their budget gap. The state is delivering unprecedented resources for New York City, including $1.5 billion in direct assistance, $1.2 billion for child care, in addition to school aid and new revenue from a pied-à-terre surcharge. Delays in the city budget are a choice. The Mayor and City Council need to work together, identify savings, and close the remaining gap," the press secretary said.
What's next:
The competing proposals highlight a broader debate over how to close New York City’s budget gap, as leaders weigh whether to shift more of the burden onto wealthy taxpayers, luxury property owners or the state itself.
The Source: This report is based on information from Mayor Mamdani, Speaker Menin, Gov. Hochul and previous coverage of the NYC budget.