NEW YORK CITY — Socialist Mayor Zohran Mamdani’s efforts to cut city spending while advocating for massive new social welfare programs have fallen short of his ambitious budget targets, with reported savings amounting to just $200 million against a goal of $1.7 billion.
The mayor asked all city departments to identify spending cuts totaling $1.7 billion by March 20, but the administration delivered only a fraction of that amount for the city’s annual budget of approximately $127 billion. In response to questions about the shortfall, Mamdani posted a video on Wednesday showcasing what he described as savings found “under cushions and behind paintings” in his mansion.
City officials have declined to provide specific details on the cuts but asserted they are meeting their targets. During a preliminary budget hearing with the city council, Sherif Soliman, Mamdani’s budget director, defended the administration’s decision to divert funds from rainy day accounts and retiree health benefit trusts to balance the budget.
“We want to replenish reserves, and we want to grow reserves,” Soliman said. “This was out of necessity for what was an inherited significant budget challenge that stems from under-budgeting.”
Soliman added that the administration would continue identifying savings as it progresses. Mamdani also shifted blame for a $5.4 billion deficit mandated by law onto former Mayor Eric Adams, stating the crisis “has been entirely created within city government” rather than stemming from external factors.
The mayor has since demanded state legislation to impose new taxes on wealthy residents to fund his proposed social welfare programs, but even other state Democrats have signaled opposition. Additionally, Mamdani threatened to raise property taxes, though this move faced immediate resistance from the city council and is unlikely to pass.
It has been 84 days since Mamdani took office as New York City’s mayor.
