NYC extends executive budget deadline to May 12
NEW YORK (WABC) -- Mayor Zohran Mamdani and the New York City Council speaker announced that the executive budget deadline has been extended from Friday to May 12.
The mayor said the city has inherited a deficit that is larger than it has been since the great recession.
He said a crisis of this scale cannot go away with savings alone and the city will need the state to provide additional revenue, a sentiment that Council Speaker Julie Menin agreed with the mayor on.
"New York City has been contributing over 55% of the state's revenues yet only receives 42% of its total expenditures," Council Speaker Julie Menin said. "New York City must get the resources it needs to succeed, and we are aligned on that point."
Mamdani said one way for the state to provide additional revenue is by reducing the New York City pass-through entity tax or PTET.
"The PTET is essentially a loophole that allows high income earners to reduce their federal tax burden," Mamdani said. "More than 95% of PTET tax credits go to those making more than $1 million a year. More than 80% go to those earning more than $5 million a year. The PTET in short is a tax cut for the rich."
Mayor Mamdani wants Albany to reduce PTET by 75% to generate $1 billion in additional revenue.
However. Gov. Kathy Hochul has already pledged billions, like money for childcare and a new tax on luxury second homes. On Tuesday, she ruled out any additional aid.
"I think it's crystal clear that we already have helped them, and we've encouraged the speaker and the mayor to do what every other city has to do: look at your expenses," Hochul said.
But Mamdani, a democratic socialist, has resisted any cuts to city services.
"The onus for resolving this crisis should not be placed on the backs of working and middle-class New Yorkers," Mamdani said back in January.
The mayor wants higher taxes on millionaires and large corporations and seemed to taunt hedge fund billionaire Ken Griffin outside his penthouse apartment.
Yet on Tuesday morning, Mamdani found himself publicly acknowledging Griffin for donating a 9/11 monument honoring fallen NYPD officers.
"I also want to thank Ken Griffin for funding a memorialwall that will open later this year," he said.
Gov. Hochul said she will be meeting with Griffin this week. The mayor told reporters he has no such plans.
"The governor has her own meetings. I have my own," Mamdani said.
Right now, the city is facing a $5.4 billion budget gap.
The mayor and the speaker said that they're postponing their executive budget presentation until May 12 in the hopes that Albany comes through with more money.
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