On January 28, 2026, New York City Mayor Mamdani delivers a blunt warning: NYC is facing a serious fiscal crisis, with a budget deficit of at least $12 billion. He calls it the “Adams budget crisis,” alleging the prior administration systematically underbudgeted essential services—including rental assistance, shelters, and special education—creating what he describes as massive hidden gaps.
Mamdani also argues NYC’s finances were strained over years by a state–city imbalance, claiming New Yorkers contribute a larger share of state revenue than the city receives back. He cites independent projections (including city and state controllers) and says the true budget gaps are far higher than previously presented, framing the moment as more severe than the Great Recession-era gaps and over 300% above the pre-pandemic 10-year average in some years.
He promises a balanced budget within two fiscal years, rejects balancing it “on the backs of working people,” and signals bold solutions: resetting the fiscal relationship with Albany and taxing the richest New Yorkers and most profitable corporations—while pledging honesty, transparency, and clear communication about decisions ahead.
Watch the full remarks and Q&A opening here.
Soutces: NYC.gov , Midtown Tribune news
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