New York City Mayor Zohran Mamdani and City Council Speaker Julie Menin have agreed to extend the city’s budget deadline as negotiations continue over how to close a multibillion-dollar fiscal gap and secure additional state aid from Albany.
“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 in a Tuesday press release, adding that the city cannot rely on “short-term fixes” to resolve its structural budget challenges. He called for changes to the fiscal relationship with the state, including revisions to the Passthrough Entity Tax Credit, which he argued “currently serves as a tax cut for the rich.”
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Menin said she and Mamdani are aligned in seeking a responsible path forward.
“We 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.”
Under the city charter, the mayor is required to release a budget by Friday, May 1, but uncertainty over state funding has complicated the process, prompting the delay.
“New 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’s budget,” Menin said.
The move comes as the state continues to struggle with its own budget process, which was due April 1. On Monday, Gov. Kathy Hochul (D-NY) signed another budget extension through Friday, further delaying a final agreement in Albany.
A spokeswoman for Hochul said the governor has already provided significant support to the city, including $1.5 billion in direct aid, expanded childcare funding, and a planned pied-a-terre tax on luxury second homes valued at $5 million or more.
“Delays in the city budget are a choice,” the spokeswoman said in a statement to Politico. “The mayor and City Council need to work together, identify savings, and close the remaining gap.”
Democratic state lawmakers signaled that additional revenue options are still being discussed.
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Deputy Senate Majority Leader Mike Gianaris (D-NY) said the pied-a-terre tax is under consideration but may not be enough on its own.
“Hopefully, we’ll be able to find some additional funding for them,” Gianaris said.
The agreement between Mamdani and Menin marks the first delay in an executive city budget release since 2015, when then-Mayor Bill de Blasio and the City Council pushed back the May 1 deadline amid fiscal negotiations.
