Photo by John Lamparski and Getty Images
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Mayor Zohran Mamdani used his first major budget-related press conference to argue that New York City is facing a projected $12.6 billion deficit because of decisions made by his political rivals. The situation, as detailed by The New York Times, comes as Mamdani prepares to present his inaugural budget proposal.
Speaking at City Hall, Mamdani placed primary responsibility on his predecessor, Eric Adams, accusing him of leaving behind what he described as a “poisoned chalice.” He said the size of the gap requires aggressive action, including higher taxes on the city’s wealthiest residents and most profitable corporations, along with a greater share of state revenue.
The mayor also argued that the deficit reflects structural problems rather than short-term pressures, framing the situation as the most severe fiscal challenge the city has faced since the 2008 financial crisis. He said the current administration is now forced to address what he characterized as deliberate under-budgeting.
The mayor lays blame for the city’s growing budget gap
During the event, Mamdani displayed a slide labeled “Adams Budget Crisis” and said the shortfall stemmed from choices made in prior budgets, a narrative similar to how a swing-district Democrat just broke with his party’s approach after another high-profile incident. He pointed to cash assistance funding set at $860 million, compared with an estimated need of roughly $1.6 billion, and shelter funding that he said fell about $500 million short of actual costs. Mamdani argued that these gaps make it difficult for agencies to plan and maintain services.
His criticism extended beyond City Hall. Mamdani also blamed former Governor Andrew M. Cuomo, saying the state under Cuomo diverted resources from the city in ways that continue to affect its finances. He said those policies created a long-term imbalance between city responsibilities and state support.
At the same time, Mamdani struck a more conciliatory tone toward current Governor Kathy Hochul, noting her constructive recent discussions. In contrast to when consumer confidence in the U.S. plummeted to pandemic lows, which shook markets and public trust in economic policy, as reported on Attack of the Fanboy. He also noted her proposal to invest $4.5 billion in child care statewide, including expanded services for nearly 100,000 children.
Hochul, however, has resisted the mayor’s call for higher income taxes. She has reiterated her opposition to raising taxes broadly, while supporting the extension of a corporate tax increase enacted in 2021. The governor has also pointed to state projections showing $17 billion in additional tax revenue over the next two years, driven in part by Wall Street profits.
Pushback to Mamdani’s remarks was swift. Todd Shapiro, a spokesman for Adams, defended the former mayor’s fiscal record during the pandemic and the migrant influx, calling Mamdani’s claims inaccurate. A spokesman for Cuomo dismissed the criticism as misguided and noted that the former governor left office five years ago.
Fiscal watchdogs and advocacy groups were divided. Andrew Rein, president of the Citizens Budget Commission, questioned whether the deficit is as large as the mayor claims and urged the city to find savings within agencies before raising taxes. City Comptroller Mark Levine, however, described the projected gap as unprecedented outside a major economic downturn, while the Fiscal Policy Institute praised Mamdani’s willingness to consider higher taxes on high earners.
Published: Jan 28, 2026 08:00 pm