(The Center Square) — New York Gov. Kathy Hochul announced Tuesday that the state will be pumping another $4 billion into New York City to help it plug budget gaps, bringing the pledges of state aid to $8 billion over two years.
“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, Hochul said in a statement. “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.
“This is what a results-driven, responsible partnership looks like and I’m proud to work with Mayor Mamdani to deliver for working New Yorkers,” she added.
In a statement provided by Hochul’s press office, Mamdani praised the governor for the additional pledges of state aid and suggested it was the beginning of a thawing in the relationship between city and state leaders.
“For years, the relationship between City Hall and Albany has been defined by dysfunction and infighting,” Mamdani said. “Governor Hochul and I, however, share a belief that government works best when we work together on behalf of the people we serve. 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,” he said.
The announcement comes just hours before Mamdani is set to release his executive budget for the next year with his plans to plug a $5.4 billion budget gap.
Release of the budget, which was due on May 5, was delayed by the state budget negotiations. Hochul announced last week that her administration had reached a tentative agreement with legislative leaders on a final budget.
Mamdani rolled out his preliminary $127 billion budget in January, calling for fulfilling a campaign pledge to raise taxes by 2% on millionaires and increase the combined corporate tax rate to just over 22% to reduce a budget deficit and foot the bill for his lefty agenda.
He had also threatened to increase property taxes across the board in New York City unless Albany lawmakers approve his controversial plans, which drew sharp criticism from the city’s business leaders.
Hochul, a Democrat who is running for reelection this year, rejected his demands, and instead offered to set a new tax on second homes of wealthy New York City residents to help plug revenue gaps.
Mandani is expected to reveal more details of his budget this afternoon at a press briefing.
