Hochul Bails Out Mamdani: $4 Billion Bailout Might Close Budget Gap, Halts Property Tax Hike

By FrumNews.com

New York City Mayor Zohran Mamdani is set to finally unveil a record $124.7 billion executive budget for New York City, and Governor Kathy Hochul is plugging the city’s deficit.

The new budget drops the 10% property tax hike he warned could be “necessary” to pass the budget. The New York Post reports that the Mayor backed away from his threats to raise property taxes and drain the city’s reserves to help close a reputed $5.4 billion budget gap.

Instead, Governor Hochul is coming to Mamdani’s aid with a whopping $4 billion in state aid to close the gap, bringing the total new state assistance to nearly $8 billion over two years.

With this latest agreement, the Mamdani Administration will officially close the more than $12 billion deficit they claim was caused by the Adams administration, stabilizing the City’s finances “while advancing investments that make New York more affordable for working people,” (meaning making new progressive agendas when the city has insufficient finances).

Per the Post, the new budget will include:

• $2.2 billion in pension restructuring
• $500 million in anticipated revenue from a pied-à-terre tax on luxury second homes
• $508 million from delaying a class-size reduction mandate for public schools
• $202 million in measures to offset recurring spending obligations
• $150 million in extra state aid
• $361 million in other, undefined actions

“From day one, I have been committed to ensuring New York City succeeds, because a strong and stable City means an even stronger New York State,” Governor Hochul said. “Today, we are fulfilling the promise to make free universal childcare a reality, making significant investments in education, public safety and infrastructure while providing the city the resources they need to continue to fund critical services for New Yorkers.”

Neither the Governor, nor the Mayor explains how they will right the ship in the long term, as the mayor wants to introduce millions in new socialist programs.

The mayor is trying to push the idea that the relationship between City Hall and Albany has been fixed, saying it has been “defined by dysfunction and infighting.” However, Mamdani’s recent push to raise taxes shows its limitations with Hochul.

It shows that Hochul, who is up for reelection, is willing to collaborate with the Mayor if it benefits her politically, with the uneasy political left.

“Governor Hochul and I, however, share a belief that government works best when we work together on behalf of the people we serve,” Mayor Mamdani said. “We have partnered through every step of this process to protect the fiscal health of our city. I am thankful for her collaboration and deep commitment to securing a future for our city that working people can afford.”