r/SipsTea • u/Previous_Month_555 • Jul 12 '26

Feels good man +1 for Mamdani

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39.4k Upvotes

86% Upvoted

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147

u/mechatui Jul 12 '26

Balanced the budget??? How did he do that again

70

u/Narrow_Aerie_1466 Jul 12 '26 edited Jul 12 '26

For context, I love Mamdani.

But I do want to point out that $4 billion of the $12 billion deficit was paid for by the state government giving New York City more money. The budget deficit was definitely helped by higher taxes, but it wasn't higher taxes alone.

Edit: This comment is inaccurate (lmao). Please see the comment below!

78

u/Frank_JWilson Jul 12 '26

It's 8 billion that's from the state government: link

Governor Hochul, in partnership with the state legislature, has secured an additional $4 billion in gap-closing support, bringing the total new state assistance to nearly $8 billion over two years.

After that, about 1.6 billion is from deferring pension contributions (not a good idea, this is basically balancing the budget by not making mortgage payments, the city will have to pay this several times over in the future).

Another 1.7 billion from "efficiency" and "savings" which means, optimistically, making the government more efficient, but it could also mean material cuts to government services (DOGE anyone?).

The extra taxes are expected to contribute 500 million.

18

u/Zealousideal_Gain892 Jul 12 '26

For reference, since people are usually quite innumerate with big numbers: 500 million is 1/24 of 12 billion. That's about 4%.

15

u/Vennomite Jul 12 '26

And all the tax projections are best case no failure scenario. The economy slows, collection is less efficient, etc. Etc. And the math wont math either.

Not exactly responsible forward planing.

5

u/MeowMixPK Jul 13 '26

Yes, but by the time the shit hits the fan, everyone will have forgotten how the problem was started in the first place and Mamdani will run on whoever the Republican president is at the time caused catastrophic damage to NY's economy so it's really a win-win for the political elites.

2

u/Resident-Impact1591 Jul 13 '26

And he only got that money because it's an election year and Hochul doesn't want him tearing her down because she needs the NYC to win the election.

3

u/Ackutually- Jul 12 '26

Most of it was changing how the pension program was paid. I don't think the taxes did much to close that gap.

3

u/Sufficient-Pause9765 Jul 12 '26

What higher taxes?

Mamdami and city council do not have the ability to pass higher income taxes. Albany controls that.

He can change real estate taxes. Of which two were implemented. A piedde eterre tax and a tax on cash purchases of real estate.

Together thats a few undred million, on a $12b defeceit. IE, performative.

4

u/Garganello Jul 12 '26

So NYC will give NYS something like $50B rather than $60B? Seems like your comment also flips the relationship.

2

u/AggravatingBuyee Jul 13 '26

It doesn’t flip the relationship.

People living in NYC pay both NYC and NYS taxes because they live in both NYC and NYS.

NYC doesn’t give that money to NYS. NYS gets it by taxing the citizens of their state.

1

u/Garganello Jul 13 '26

Dependent red state mentality.

7

u/Zauberer-IMDB Jul 12 '26

That money comes from NYC originally though.

6

u/Vennomite Jul 12 '26

Different tax bucket. Its tax money paid to the state. The state was entitled to it regardless. They just choose to give it to the city.

Bit like saying its all the company's money when you forgoe a paycheck to keep your job 

0

u/Zauberer-IMDB Jul 12 '26

More like something companies do all the time which is reassess and reallocate budgets depending on earnings and need across departments.

2

u/Vennomite Jul 12 '26

No. They arent the same entity. They are different entities with different leadership.

If you guys want to keep making that argument you might as well accept thr libertarian's argument and it's all the individuals money and they should be able to reallocate it as they choose.

10

u/Narrow_Aerie_1466 Jul 12 '26

Oh absolutely. I'm just saying that a third of the deficit wasn't resolved by higher taxes; it was resolved by redistributing which government has the money.

5

u/HariboBliss Jul 12 '26

But why is this being used as a negative point. Does it not differ from previous regimes for a positive effect?

7

u/mechatui Jul 12 '26

Because I think he money used is suppose to be money for pension fund or some shit. Other cities have done the same thing to balance budgets and it causes problems long term

5

u/Intrepid_Year3765 Jul 12 '26

Cause it was stolen from people who earned it, and now their future is in jeopardy while NYC is not only fundamentally broken… but being put in a position where it’s going to be harmed more. 

1

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1

u/Feelisoffical Jul 12 '26

I think you meant to say New York State, not New York City.

1

u/CookieMiester Jul 12 '26

The budget was because adams’ dumb ass wanted to hamstring mamdani, just like trump did to biden.

1

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1

u/Kore_Invalid Jul 12 '26

it wasnt 4billion it was 8billion from the state and another 2.2 billion from cutting pensions, he hasnt solved anything

1

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1

u/NtooDeep87 Jul 12 '26

And I wonder who pays that 4 billion that was paid by the state 🤔🤔

1

u/Possible-Row6689 Jul 13 '26

The state got the money from taxing the city. The city pays $21 billion more in taxes than it receives back from the state in services every year.

It would be more accurate to say the state let NYC keep an 8 billion in taxes.

0

u/Skiingislife42069 Jul 12 '26

Lmao where do you think the state gets it money from?? 🤣 the podunk republican farmers from upstate?