This article was largely written prior to the release of Mayor Mamdani’s Executive Budget

Every year, at some point before June 30, the City Council of New York City enacts arguably the most important piece of legislation of the entire year. This legislation affects all aspects of the city government and shapes policy and practices in an unparalleled manner. I’m talking, of course, about the New York City budget. The passage of this document is often a contentious affair. It’s bound to be with representatives of so many competing interests and ideologies cajoling the City Council for their priorities. The story of this year’s budget, however, is a particularly dramatic one, involving practices of the Adams administration coming back to bite the city, causing trade offs, as well as debates over what the city can truly afford to fund. So, what is actually happening in the ongoing fight for our city’s wallet, and more importantly, what does it mean for our schools?
The complications in this year’s budget negotiation began with a report from New York City Comptroller Mark Levine. The comptroller is the chief financial officer of New York City, responsible for conducting important financial oversight. In late January, Levine’s office reported that thanks to shoddy accounting techniques employed by the Eric Adams Administration, the city’s budget deficit was actually around $12 billion dollars, about three times what Adam’s office projected. Mamdani’s office soon released similar findings. Unlike the federal government, New York City is legally required to balance its budget, meaning it can’t simply borrow the difference. For a mayor who came into office promising ambitious and expensive programs, this was a major issue. In February, thanks to aid from the state, usage of in-year reserves, and cost cutting measures, Mamdani claimed to have lowered this deficit to $5.4 billion. More manageable, but still an extremely large gap.

Amid all this turbulence, the budget process began as it must. The New York City budget is formed via the Mayor’s release of a preliminary budget, followed by a response from city council in the form of a new budget. The City Council is led by Speaker Julie Menin, who is widely seen as more moderate than Mamdani. Typically, the mayor releases an executive budget in April, responding to the city council; however, Menin and Mamdani have agreed to delay this step until mid-May, as they advocate for further aid from the state. Finally, the City Council and mayor negotiate an official budget to be passed. Mamdani’s preliminary budget was released on February 17 to mixed reactions. He received praise from watchdogs like State Comptroller Tom DiNapoli for more accurate deficit projections than Eric Adams included in his budget, but both the comptroller and Independent Budget Office criticized him for including far rosier predictions of Wall Street profits in his expected tax revenue, pointing out that the war in Iran has resulted in extreme volatility in the markets. Mamdani also suggested two paths to closing the deficit, both of which involve raising taxes, and cutting programs.

The proposed budget also contains important implications about New York City schools. It increases funding for reducing class sizes, as required by a recent state law (although Mamdani has also requested a delay on this requirement in the face of the budget crisis). It also provides guaranteed funding for a summer school program and more support for students with disabilities. Additionally, it includes support for 3-K and 2-K programs, and transportation for students. However, it did not fund several other programs, including one that provides intensive mental health support at dozens of schools in the Bronx and Brooklyn; one that promotes restorative justice, a form of conflict resolution that focuses on letting students discuss their emotions rather than resorting to punitive measures; one that provides support for students at risk of dropping out, and one that provides outreach to immigrant families in their native languages. It also cut $31.7 million dollars from the city’s libraries.

Tensions only rose when the City Council released their official response on April 1. They claimed to be able to close the deficit without raising taxes or cutting any services, via cost cutting measures, like reconsidering how the city calculates salaries and auditing the Department of Education. Importantly, the City Council plan provided full funding to all educational programs that Mamdani’s plan cut. Organizations like the progressive Fiscal Policy Institute responded with accusations of “fuzzy math.” Mamdani was also unconvinced, releasing a video calling out Julie Menin by name and claiming that the proposal would significantly reduce city services. The New York City chapter of the Democratic Socialists of America, of which Mamdani is a member, pointed out that Menin herself was a millionaire, implying that she opposed the tax because she didn’t want to pay it.

It’s unclear to many where the city goes from here, but one possibility is that Governor Hochul steps up efforts to help the city close the gap. While she remains opposed to a tax on New York City millionaires as proposed by Zohran Mamdani, she has recently shown a willingness to compromise, proposing a tax on second homes in New York City that she expects will raise $500 million. The state legislature has also supported raising taxes, providing important leverage for Mamdani during the state’s own budget negotiations. The final budget will likely be a compromise that funds some programs that the city council wants, and cuts others for the sake of balancing the budget, so if there is anything you want funded, now is the time to contact your city councilmember. Still, there is a long way to go before we reach a settled budget, and New Yorkers across the city are waiting to see how these negotiations will affect the city services on which they rely.