Mamdani’s $200M Savings Fall Far Short of $1.7B Goal Amid Budget Crisis
Mayor Zohran Mamdani Faces Scrutiny Over Proposed Budget Cuts
Mayor Zohran Mamdani’s administration recently unveiled a proposed budget that included only $200 million in savings, far below the $1.7 billion he had promised to help close a significant budget gap. This discrepancy has sparked criticism and raised questions about the city’s financial planning.
Despite the shortfall, Mamdani released a social media video highlighting his efforts to cut waste, using exaggerated examples such as finding excess government money in couch cushions and bookshelves. While this approach was well-received on social media, it did little to address the real-world concerns of city officials and residents.
Mamdani claimed that the $1.7 billion in cuts had been achieved, but he provided no concrete evidence to support this assertion. He also indicated that New Yorkers might have to wait until the end of April, when the mayor’s executive budget is due, to see all the proposed savings.
The need for savings comes as Mamdani’s team projects a $5.4 billion budget deficit. The mayor’s proposed budget totals $127 billion, and he has framed the shortfall as a crisis requiring action from Governor Kathy Hochul and state lawmakers. In February, Mamdani issued an ultimatum to the governor, stating that if taxes on the wealthy are not raised, New York City homeowners could face a 9.5% property tax increase.
Efforts to Reining in Spending
Mamdani has taken steps to rein in spending, though critics argue these measures are more symbolic than substantive. He signed an executive order directing each city agency to appoint a “Chief Savings Officer” to identify $1.7 billion in savings. These officers were expected to provide a public report by March 20, but the deadline passed without any updates.
Instead, the administration released a list of minor cuts totaling $200 million, which the mayor summarized in his social media posts. Some of the proposed cuts include:
- TLC cancelling its $20,000 Slack messaging subscription next fiscal year
- DOE saving $30.3 million in 2027 by implementing spending caps and canceling “underutilized” contracts, but offering no specifics
- DOE saving $27.5 million by creating “controls” to curb spending on supplies, equipment, professional development, and travel
- NYC Emergency Management switching up software to save $133,000
- Health and Hospitals cutting overtime and ramping up collections to save $14.1 million this year and $25.7 million next year
- Economic Development Corporation saving $626,000 by bringing marketing in-house
- Department of Health and Mental Hygiene saving $1.15 million next year by renegotiating naloxone contract
- DOC saving $4.3 million by bringing some contracts in-house as well
City Hall officials refused to release the reports or any additional information on the cuts, telling The Post to trust that they have met their targets. Hizzoner’s budget director, Sherif Soliman, took a similar approach during his delayed budget hearing with skeptical City Council members, declining to give any more information.
Council Speaker Julie Menin (D-Manhattan) and finance chair Linda Lee (D-Queens) pressed Soliman for the full list of savings, only to be met with vague half-promises. Soliman did tease that he “may opt” to share more information about the cuts, stating, “We are evaluating. As soon as we have additional updates that are ready to share we may opt to share them.”
Calls for Transparency and More Action
Soliman, like the mayor, said the cuts would be identified in the mayor’s executive budget set to be sent to the City Council by April 26. “They’ve put forward $1.7 billion in savings, and we are going through all of the different recommendations from the agencies and the departments to approve the number of those recommendations,” Mamdani told reporters during a news conference.
“We’ve shared some of those approvals, but… at the time when we release this budget, it will all be public.”
Councilman Phil Wong (D-Queens) argued that Mamdani needed to find much more than $1.7 billion in cuts, noting that city officials only provided information on roughly 15% of that. “Some of the items highlighted, including cuts as small as a $20,000 software subscription, raise real questions about the scale of this effort,” he said in a statement.
Budget watchdogs gave Mamdani credit for working to find savings, but argued he needed to go further. “The list is a good start, but it’s just that, a start,” said Andrew Rein, the president of the Citizens Budget Commission. “The administration will have to go much further than the $1.7 billion target — and there’s plenty of opportunity. This administration must be as ambitious about government efficiency as it is about affordability. That means real transformation on how we run government, and not spending money that doesn’t help New Yorkers. An efficient government is an affordable one.”
