Kath is mad at Zoh’s tax math.
Mayor Zohran Mamdani’s “tax the rich” refrain is getting on Gov. Kathy Hochul’s nerves — with sources saying she views his warnings that the city faces a $12 billion budget hole as an underhanded ploy to push his socialist dreams.
Hochul’s circle believes the sky-is-falling fiscal forecast outlined by Mamdani during a Wednesday address — in which he once again called on the governor to hike taxes — underestimates revenues coming into the city from generous Wall Street bonuses, insiders said.
“Especially when it’s framed as budget relief and they say no cuts. It’s like asking your parents for money after you buy a Ferrari,” one state government source said of Mamdani’s push.
One city government insider seethed: “This is fabricated crisis. (Hochul) should be pissed.”
The behind-the-scenes frustrations were unfolding ahead of the February 17 deadline for Mamdani to submit a balanced preliminary budget, the first of his mayoralty.
Revenue estimates being used by the Democratic socialist were effectively an underestimate because doesn’t account for the last pay cycle in 2025, when Wall Street bonuses took effect, sources argued.
State officials have said those bonuses were up about 25% compared to last year, equating to billions of dollars of additional revenue.
State Comptroller Tom DiNapoli even hinted at Mamdani’s budget gap games in a statement Wednesday.
“Despite revenue that my office anticipates will come in above planned collections in the current fiscal year, the city will very likely see spending exceed revenues for the fourth year in a row this year, a troubling trend,” he said.
One City Hall insider said even some staff in the city’s Office of Management and Budget is skeptical of Mamdani’s budget rhetoric.
“Privately, veteran OMB analysts are concerned and feel that City Hall is playing games too early, the numbers don’t add up, and many feel shut out of strategy discussions,” the insider said.
City Hall officials didn’t immediately respond to a request for comment.
Mamdani used his Wednesday press conference to pointedly pin blame on former Mayor Eric Adams, accusing his predecessor of intentionally using financial tricks to balance city budgets.
He argued what he called the “Adams budget crisis” required Albany — and Hochul — a specific fix: taxing the richest New Yorkers and most profitable corporations.
The dramatics from Mamdani came two weeks after newly minted City Comptroller Mark Levine released a damming report, painting a similar fiscal forecast for the Big Apple.
And while Mamdani has also signed an executive order directing city bureaucrats to slash overspending, his speech was a clear attempt to use the bully pulpit to shake Hochul into pushing for tax hikes on the rich.
The governor, who is seeking re-election this year, has held firm that she opposes such increases, reaffirming this week, “I’m not raising taxes for the sake of raising taxes.”
Hochul and Mamdani both had public appearances in New York City on Friday, but notably not together.
