NYC Council claims a path to savings; mayor warns of service cuts instead
Menin says the council's plan relies on updated revenue estimates, unspent agency funds, efficiencies and contract reforms and new revenue sources.
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The New York City Council says they have a realistic plan to close the multi-billion-dollar budget gap, one that avoids property tax hikes and cuts to essential services.
Speaker Julie Menin argues that smarter budgeting could unlock roughly $6 billion in savings over the next two years.
"We can find the savings in the way that we did without cutting services. So, our position has been clear. We have been a hard 'No' on the property tax. We also are hard 'No' on rating the rainy-day fund," said Menin.
Mayor Zohran Mamdani floated these options as a last resort back in February when he presented his $127 billion preliminary budget proposal, if Albany does not approve a 2% tax on the city's millionaires and biggest corporations. The estimated budget gap sits around $5.4 billion.
“Amid a serious affordability crisis impacting New Yorkers across the city, the Council has a responsibility to act as a strong fiscal steward as we face a significant budget shortfall,” said Menin. “We cannot in good conscience fund the city’s needs on the backs of homeowners or renters, by digging into emergency reserves, or by cutting essential programs. Our response offers a clear alternative to taking those steps, puts the city back on stable footing and invests directly in New Yorkers.”
Menin says the council's plan relies on updated revenue estimates, unspent agency funds, efficiencies and contract reforms and new revenue sources.
She also highlighted three major priorities up for negotiations: an expansion to the fair fares program, which would make subways and buses fully free for households earning at least 150% under the federal poverty line, an expansion to the college savings program NYC Kids RISE, and increased wages for paraprofessionals.
The mayor says the council's plan relies on unrealistic math and ignores long-term budget problems.
"Speaker Julie Menin’s preliminary budget proposal would result in slashing billions of dollars from agency budgets, which would force the city to cut services. Double-counting previously identified savings, overestimating revenues, and exaggerating debt service savings does nothing to close a deficit," the mayor wrote in a statement.
As Albany extended their deadline to submit their budget to April 7, Menin says the Capitol should be considering all options.
"This $6 billion proposal asks Albany for just one action – class size mandate relief. It refuses to address the deeper structural imbalance between the City and the State, or to increase taxes on the wealthiest New Yorkers and most profitable corporations. It effectively ensures this structural deficit will continue indefinitely," the mayor continued.
