$2B budget shortfall leaves Mamdani’s freebie-filled agenda with uphill battle: ‘There’s no good news’
Mayor‑elect Zohran Mamdani is already looking at a stiff hurdle: a projected budget shortfall of $2.18 billion, with future gaps that could become even larger, a new analysis shows.
According to the report from outgoing comptroller Brad Lander, the deficit might swell to more than $13 billion by 2029 because of cost overruns and a sluggish economy.
Lander says Mamdani will inherit “a challenging fiscal situation” and will also have to deal with looming federal cuts and contract talks with the Police Benevolent Association and DC 37, the city’s biggest municipal union.
While the mayor‑elect has pledged over $10 billion in new spending—primarily to be funded by higher taxes on corporations and the wealthy—the report notes that city expenses have outpaced revenues in recent years, in part due to federal pandemic aid and an influx of asylum seekers.
The shortfall also builds on the $5.4 billion gap that came to Adams from former mayor Bill de Blasio, which forced early budget cuts.
“On Day One, Mayor Mamdani will be confronted with nothing but fiscal problems to deal with before even trying to get additional funds,” warned longtime Democratic strategist Bill Cunningham. A representative for Mamdani did not reply to requests for comment.
Mamdani’s ally Brad Lander, now running for Congress against incumbent Democrat Rep. Dan Goldman, echoed that the budget reality gives the new administration a “report card” on the challenges they’ll face.
The report also highlights that the city’s economy is currently thriving and that strong fiscal management has stabilized the budget, according to an Adams spokesperson who cited recent bond ratings from Moody’s, S&P Global, Fitch, and KBRA—ratings often seen as indicators of a municipality’s financial health and borrowing power.
“It’s clear that we are leaving the next administration with a strong foundation for success,” the spokesperson said.
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