Albany budget battle has big implications for NYC Mayor Mamdani's property tax proposal
The Albany budget battle that could test whether New York City Mayor Zohran Mamdani has to raise property taxes began Tuesday with the state Senate and Assembly unveiling their initial wish lists.
There's good news and bad news for Mamdani, but the best news may be for transit riders. That's because the mayor's dream of free buses in New York City inched closer to reality when both houses of the legislature proposed pilot programs to test the feasibility of one of the mayor's biggest campaign promises.
Mamdani praises "incredibly encouraging" proposal
"We have the return of free buses. The Assembly included the return of the pilot of one free bus per borough. The Senate's language calls for an expansion of that program, so hopefully we'll be able to see that come back to make mass transit more affordable," State Sen. Michael Gianaris said.
Mamdani was thrilled with the proposals even though they still have to be agreed to by the governor and, by extension, the MTA.
"This is a time when one in five New Yorkers are struggling to afford the cost of a MetroCard, and their commitment in addressing that in partnership with the city is one that is not only incredibly encouraging, but also deeply appreciated," Mamdani said.
What Mamdani did not get was a commitment to tax people making $1 million or more, which would have raised $4 billion.
Knowing Gov. Kathy Hochul is against raising income taxes in an election year, lawmakers said they were willing to hit the 14,000 New Yorkers making over $5 million with higher taxes. Even that is generating a lot of heat for Hochul.
"Raising New York's nation-leading taxes to support unaffordable spending is simply bad fiscal mismanagement," said Andrew Rein, president of the Citizens Budget Commission.
"Raising taxes is a bad idea"
Nassau County Executive Bruce Blakeman, Hochul's Republican gubernatorial opponent, put himself squarely in the no new taxes camp, saying it will drive people and corporations out of New York.
"Florida has more people, and their budget is half of New York. Raising taxes is a bad idea," Blakeman said.
So the big question is whether the mayor will have to go ahead with his threat to raise property taxes. Senate finance chair Liz Kroeger said she was dead set against the city raising property taxes 9.5%, so it will clearly be part of the negotiations with City Hall about their budget.
As for other ways to raise revenue, the Assembly is proposing a so-called mansion tax on the sale of properties valued at over $5 million and something called a "crypto mining facility tax." The Senate wants to end the sales tax exemption on the sale of gold bullion valued at $1,000 or more. That proposal would bring in over $600 million annually.
