NYC Extends Budget Deadline to May 12 on $5.4B Shortfall

New York City Mayor Zohran Mamdani and City Council Speaker Julie Menin announced on Tuesday that they are extending the deadline for the mayor's executive budget proposal from this Friday to May 12, as the city grapples with a $5.4 billion shortfall and awaits action from state leaders.

The joint appearance at City Hall marked a rare show of unity between the two leaders, who have clashed in recent weeks over budget strategies. They called on Governor Kathy Hochul and state lawmakers to reduce a tax credit under the state's passthrough entity tax program, or PTET, from 100 percent to 75 percent. City officials estimate the change would generate nearly $1 billion in additional revenue. The PTET allows owners of pass-through businesses, such as partnerships and S corporations, to deduct state and local taxes on their federal returns, bypassing a $10,000 federal cap on such deductions enacted in 2017.

"We cannot close this deficit with savings alone. We need new revenue," Mamdani said. He noted that more than 95 percent of PTET credits benefit individuals earning over $1 million annually, with over 80 percent going to those earning more than $5 million. Menin described the...