Mayor Zohran Mamdani is set to unveil a record $127 billion budget Tuesday — fueled by a proposed property tax hike on New Yorkers, The Post has learned.
The eye-popping preliminary budget — up around $11 billion from the current year — will also call for the city to drain its $10 billion rainy day fund down to next to nothing, sources said.
“This is insanity,” one insider told The Post. “Property taxes haven’t been raised since 9/11.”
The insider, who had knowledge of the budget plan for the 2027 fiscal year, also pointed to drawing down the Big Apple’s savings as a “major red flag” that could hit its bond rating, which would affect the borrowing power of the city.
Hizzoner will officially reveal his first spending proposal Tuesday afternoon, after meeting with top local officials, including City Council Speaker Julie Menin, with whom he’ll have to negotiate the budget.
It comes the day after Gov. Kathy Hochul sent another $1.5 billion to help bail out the city, in the face of Mamdani’s repeated calls to boost taxes on wealthy New Yorkers.
The Democratic socialist mayor has sounded the alarm about the city’s financial health, saying the budget is $7 billion underwater.
Mamdani had put the deficit at $12 billion just three weeks ago, before the administration counted massive tax revenues, mostly from Wall Street bonuses, which came in 24% higher than last year.
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He used the gap to call on Hochul and the state Legislature to add another 2% tax on New Yorkers making more than $1 million.
Hochul has shot down the idea of boosting the personal income tax.
The governor also slapped down the notion of raising property taxes to fill any supposed gap.
“I don’t think a property tax increase is necessary,” Hochul told reporters Tuesday during an unrelated event.
— Additional reporting by Vaughn Golden
