Mayor Zohran Mamdani Releases $124.7 Billion Executive Budget for Fiscal Year 2027

 

After inheriting a historic $12 billion budget gap, Mayor restores New York City’s fiscal health through aggressive savings, taxing the rich, partnership with Albany and critical new investments  

  

Mayor balances budget without slashing services, raising property taxes or draining long-term reserves  

  

Mayor refuses to let working New Yorkers foot the bill — secures historic tax on the rich

TODAY, Mayor Zohran Kwame Mamdani released the $124.7 billion Fiscal Year (FY) 2027 Executive Budget, putting New York City on firm financial footing while protecting the services working people rely on. Through strong fiscal management, Mayor Mamdani balanced the budget through a combination of aggressive savings, new tax revenue, partnership with Albany and critical new investments in the needs of working class New Yorkers. 

  

The budget is balanced without raising property taxes, slashing services or drawing down the City’s Rainy Day or Retiree Health Benefit Trust reserves and makes the largest City capital commitment to NYCHA in recent history.  

  

“For too long, working New Yorkers have been told that austerity was the answer to adversity,” said Mayor Mamdani. “This budget rejects that failed politics. We are restoring fiscal stability without slashing the services people depend on, without raising property taxes and without asking working families to pay for a crisis they did not create. Instead, we are making government work for the people of this city: securing support from Albany and taxing the rich so we can invest in housing, safety, child care, parks, libraries and the public goods that make New York the greatest city in the world.”  

  

Mayor Mamdani inherited budget gaps larger than those seen during the Great Recession. Both the City and State Comptrollers agreed the prior administration had substantially underbudgeted core City services and obligations, increasing budget gaps to more than $12 billion.   

  

As part of the administration’s efforts to restore fiscal transparency and public excellence to City government, the Mayor ordered every agency to appoint a Chief Savings Officer. Through this effort, the administration achieved $1.77 billion in gap-closing savings across Fiscal Years 2026 and 2027.   

  

The Mayor identified an additional $1.2 billion in savings by addressing systemic inefficiencies in critical programs, including improving access for special education students, reaching class size compliance and strengthening CityFHEPS. The City will also create a more predictable debt payment schedule, resulting in $1.64 billion in savings in Fiscal Year 2027 alone without impacting retirees, their benefits or current and future employee benefits.  

  

Thanks to Governor Kathy Hochul, Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie, the City secured an additional $4 billion in state support and actions to help stabilize the budget. That includes $352 million in direct aid, $3.2 billion in state authorizations — including pension liability restructuring and class size flexibility mentioned above — and $500 million in new revenue through a pied-à-terre tax on second homes valued above $5 million.  

  

In addition to the pied-à-terre-tax, the Mayor will work with Speaker Julie Menin and the City Council on their proposal to reduce the UBT tax credit, which overwhelmingly benefits millionaires. Reducing the UBT tax credit will raise an additional $68 million.

 

The Mayor also made critical investments to reduce the cost of living, strengthen public services, improve public safety, expand worker protections and support the health and well-being of New Yorkers across all five boroughs.  

  

Investment highlights include:  

  

Baselined Annual Investments

•    Libraries: $31.7 million  

•    Fair Fares: $25 million  

•    NYC Department of Parks and Recreation: $15 million  

•    City University of New York: $15 million  

•    Department of Cultural Affairs: $10 million  

  

Child Care for All and Supporting K-12

•    Increasing Provider Rates: $40 million in FY27   

•    Expanding NYC Reads and Solves: $17.3 million in FY27   

•   Launching the Little Apple, the City’s first Municipal day care system: $2.3 million in FY27 and $2 million annually beginning in FY28  

  

Investing in a Safer New York

•    Office of Community Safety: $40.9 million in FY27 and $40.2 million annually beginning in FY28   

•    Office of Hate Crime Prevention: $26 million annually beginning in FY27  

•    Counsel for Vulnerable New Yorkers: $22 million in FY26   

•    Right to Counsel: $14.3 million in FY27 and $40 million annually beginning in FY28  

•   Supervised Release Intensive Case Management Pilot: $7.7 million in FY27, $5.7 million in FY28 and $1.2 million in FY29   

•    20 Civilian Complaint Review Board Staff: $3.2 million annually beginning in FY27  

•   84 New FDNY Civilian Staff: $0.8 million in FY26, $9 million annually beginning in FY27  

  

Safer Streets

•    Safer Streets and Sammy’s Law: $34.9 million in FY27, growing to $65.1 million in FY30  

•    DCAS Pedestrian Alerts: $900,000 annually between FY27 and FY29  

  

Keeping our City Clean

•   Waste Containerization: $14.8 million in FY27, growing to $162.2 million by FY30  

  

Economic Justice and Worker Protections

•    Supporting Street Vendors: $20.5 million in FY27  

•    Medallion Loan Guarantee Program's Reserve Fund: $12.6 million in FY27 

•    Expanded Capacity for DCWP: $4.3 million in FY27, growing to $18M annually by FY29  

•    Commercial Lease Legal Assistance: $4 million in FY27 and FY28  

  

Improving New Yorkers’ Health & Wellbeing

•    Access to Mental Health Care: $47.3 million annually beginning in FY27  

•    Supporting Survivors: $16.7 million in FY27  

•    Disease Testing and Surveillance Capacity: $11.3 million annually beginning in FY27  

•    Supporting Seniors: $3.4 million in FY27  

  

Under the Mamdani administration, the City’s Executive Five-Year Capital Plan has also grown to $117.1 billion, including $8.2 billion in new investments from this administration alone.   

  

New investments include:  

  

Building the Affordable Housing New Yorkers Need

•    The Executive Budget invests $4 billion in capital funding for the Department of Housing Preservation and Development across the five-year plan, plus an additional $500 million in FY31 — one of the largest capital additions in the entire budget and a reflection of the administration’s commitment to addressing the housing crisis. These investments will create deeply affordable housing for low-income New Yorkers.  

  

Investing in Livable Housing for NYCHA Residents

•   The budget includes an additional $500 million in FY28 for comprehensive NYCHA renovations. Combined with existing commitments and investments made in the FY27 Preliminary Plan, these funds will allow NYCHA to rehabilitate and modernize thousands of homes across FY27 and FY28.    

•    The City is also investing $256 million over FY26 through FY28 — in addition to expense budget funding — to restore vacant NYCHA apartments and return them to tenants. This represents the largest capital commitment to vacant unit turnover in the City’s history.