The City Council released a $127 billion alternative budget plan Wednesday, closing gaps without raising property taxes, dipping into reserves or cutting services by finding savings —calling foul over Mayor Zohran Mamdani’s financial plan.
The Council’s response to the mayor’s Fiscal Year 2027 budget outlines a mix of re-estimated revenues, savings and new funding sources to resolve what the Council identified as a $6 billion shortfall.
“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,” Speaker Julie Menin said.
The New York City Council has released an alternative $127 billion budget plan — that aims to close gaps without Mayor Mamdani’s threatened tax hikes. Stephen Yang for NY Post The gap estimated by the Council stems from $1.1 billion in Council-backed programs left out of the mayor’s plan, alongside the Mamdani administration’s reliance on roughly $3.7 billion from a proposed property tax increase and $1.2 billion in reserve drawdowns to balance the books.
Menin and finance leaders framed the Council’s approach as a more stable alternative at a time when budget negotiations are increasingly shaped by pressure to maintain city services amid an affordability crisis.
“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,” Menin said. “Our response offers a clear alternative to taking those steps, puts the City back on stable footing and invests directly in New Yorkers.”
Instead of tax hikes or reserve use, the Council proposes $3.5 billion in revised revenue and spending estimates — such as recognizing higher-than-expected construction permit income and underspending on vacant city positions — along with $2 billion in agency efficiencies and $462 million in “revenue enhancements” like going after “harder-to-collect” tax liens.
Mamdani threatened to hike property taxes and draw from the city’s emergency reserves unless Albany raises taxes on wealthy New Yorkers to fund his city budget New York Post The Council’s plan would also restore funding for programs Mamdani stiffed in his preliminary budgeting, including libraries, cultural institutions, CUNY initiatives and legal services for housing and domestic violence victims.
“New Yorkers grappling with an affordability crisis should not see a decline in the quality of the services they receive due to a budget dance, and the City Council is committed to fighting to ensure residents receive the investments they deserve,” the Council’s finance chair, Linda Lee, said.
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The Council’s budget response also pushes new investments like expanding Fair Fares to fully subsidize transit for low-income New Yorkers and boosting college savings accounts for public school students.
New York City’s budget negotiations will intensify after Gov. Kathy Hochul and state lawmakers finalize the state’s spending plan — whenever that is. State lawmakers passed a deadline extension Tuesday to give them until April 7 to release a plan.
