ZOHRAN’S CITY: Mamdani Budget Plan Criticized for Fee Hikes and “Fake Savings”
Mayor Zohran Mamdani unveiled his $124.7 billion budget proposal Tuesday, presenting it as a solution to a multibillion-dollar shortfall, but critics say the plan leans heavily on temporary fixes and a range of quiet fee increases.
While the mayor highlighted closing the gap and described the budget as a turning point, watchdog groups quickly challenged that claim, pointing to what they say are questionable savings and new ways the city intends to bring in $1.7 billion over the next two years.
Opponents dismissed the approach as relying on accounting maneuvers, even after Mamdani backed away from a proposed 9.5% property tax increase that had drawn widespread opposition.
“Banking on yet to be determined revenue-raising gimmicks and identifying fake savings are not wins,” a Democratic operative said. “This budget plan is as real as Kim Kardashian’s lips.”
Mamdani, who ran on lowering costs for residents, said his administration spent months identifying efficiencies through newly appointed “Chief Savings Officers,” though some of the projected gains involve higher charges on residents and businesses.
Among the proposals, City Hall intends to increase ambulance transport fees to bring in nearly $25 million annually and begin charging for EMS responses even when patients are not transported, which is expected to generate an additional $10 million, according to budget documents.
Other projected revenue sources include stepping up enforcement of bus lane violations, increasing oversight of the trade waste sector and wholesale markets, and raising fees related to tree replacement, according to city records.
The plan also calls for stricter enforcement of the STAR property tax credit and increased audits tied to abatement compliance, with an expectation of collecting roughly $24 million more each year.
One insider expressed skepticism about the overall impact of the measures.
“There’s not enough savings at all.”
“The only good thing is he gave on property tax and the rainy day fund,” the politico said. “Otherwise, the budget is not where it needs to be at all.”
Several departments are also implementing relatively small cuts, including the Department of Veterans’ Services, which is set to reduce certain events to save $60,000, and the Sanitation Department, which plans to eliminate a battery disposal program to save $353,000.
Some of the projected savings come from revised revenue estimates, including higher expected income from handgun permits, Landmark Preservation Commission applications and Taxi and Limousine Commission license renewals.
A large portion of the projected savings is tied to the Department of Education, with officials relying heavily on broadly defined cost-containment efforts.
The budget anticipates $149.5 million in savings this fiscal year through “improved financial controls,” with a projected $922 million in savings next year tied to similar measures, including $30.3 million from procurement “reform.”
Speaking at a press conference Tuesday, Mamdani said his administration worked to identify every possible efficiency.
“It is evidence of a new era of government in our city, one that can balance both ambition and fiscal responsibility, one that can invest in housing, child care, libraries, parks, schools and climate resiliency, while also cutting waste and finding efficiencies,” he said.
“One that does not accept austerity as the only answer to adversity, one that refuses to kick structural challenges down the road for someone else to have to solve.”
During his remarks, Mamdani outlined $94 million in savings from renegotiating or canceling contracts and another $28 million from updating city technology and software licenses.
He also pointed to $368 million in savings from improving service efficiency and reducing overtime and outdated programs, along with $947 million from what he described as better financial management and more accurate revenue and expense projections.
Additional savings are expected through consolidating city operations, reducing unused space, combining leases and leaving some positions unfilled.
City officials also said the budget gap would be narrowed by restructuring pension payments, saving $2.3 billion over two years, and introducing a tax on high-end second homes expected to generate $500 million, though that estimate has faced scrutiny.
The administration further projected hundreds of millions in savings by slowing the growth of spending on special education reimbursements and housing vouchers, though it offered few concrete details on how those reductions would be achieved.
Mamdani’s proposed Office of Community Safety is allocated $270 million, significantly less than the $1.1 billion he had pledged during his campaign for a new department focused on responding to mental health crises.
City Comptroller Mark Levine cautioned that the budget still depends heavily on short-term measures.
“relies on $2.8 billion in one-time measures and $2.3 billion in short-term pension savings, without solving for the fact that City government continues to spend more than we take in, even in a year of record revenues.”
Andrew Rein, president of the Citizens Budget Commission, acknowledged some progress but said deeper changes are needed.
“Holistic transformation is the best path for the excellence in government the Mayor rightly promotes and New Yorkers need,” he said in a statement.
“Unfortunately, we get the types of maneuvers we’ve seen in the past.”
The proposal now heads to the City Council, where negotiations will take place ahead of the July 1 start of the new fiscal year.
{Matzav.com}