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Zohran Mamdani pulls off zero-deficit NYC budget
NY Gov. Kathy Hochul’s additional $4 billion in support was key to balancing what Mamdani described as a $12 billion budget deficit.
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Jeffin T. Kaleekal - Wed, 13, May 2026
- 02:17 EDT
- 25
NYC Mayor Zohran Mamdani / Wikimedia commons
New York City Mayor Zohran Mamdani announced a zero-deficit city budget May 12 after “uncovering a $12 billion budget deficit,” claiming that NYC is now on firm financial footing.
Releasing the $124.7 billion Fiscal Year 2027 Executive Budget, Mamdani highlighted that the budget was balanced through “a combination of aggressive savings, new tax revenue, partnership with Albany and critical new investments in the needs of working-class New Yorkers.”
He also highlighted that his office balanced the budget without raising property taxes, slashing services or drawing down the city’s Rainy Day or Retiree Health Benefit Trust reserves.
Also Read: Obama dubs Mamdani an ‘extraordinary talent’
“For too long, working New Yorkers have been told that austerity was the answer to adversity,” said Mayor Mamdani.
He continued, “This budget rejects that failed politics. We are restoring fiscal stability without slashing the services people depend on, without raising property taxes and without asking working families to pay for a crisis they did not create.”
Mamdani noted that his administration chose to make the government “work for the people” of NYC. He also highlighted support from Albany and his own tax-the-rich efforts to ensure investment in housing, safety, child care, parks, libraries and other public goods.
The Mamdani administration also credited the appointment of a chief savings officer in every agency, saving $1.77 billion in gap-closing savings across fiscal years 2026 and 2027.
Another $1.2 billion was saved by addressing systemic inefficiencies in critical programs, including improving access for special education students, reaching class-size compliance and strengthening CityFHEPS, according to an official statement from Mamdani’s office.
The administration also spotlighted $1.64 billion in expected savings in fiscal year 2027 through a predictable debt payment schedule.
A lion’s share of Mamdani’s budget balancing is owed to Gov. Kathy Hochul, Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie, whose efforts secured an additional $4 billion in state support and actions to help stabilize the budget.
Hochul, who is up for re-election this year, fueled the fulfillment of Mamdani’s campaign promise. This could potentially help Hochul in her upcoming electoral bid and relieve some pressure from the closely contested gubernatorial race.
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