New York's Democratic Mayor-elect Zohran Mamdani, facing a deficit of as much as $10 billion in the next fiscal year, named a veteran of three mayoral administrations as New York City's budget director.
Sherif Soliman, who served as chief policy officer for Mayor Eric Adams and commissioner of the Department of Finance under Mayor Bill de Blasio, will oversee a $120 billion budget. The Staten Island native also worked in Mayor Michael Bloomberg's administration as a legislative representative.
Mamdani, a 34-year-old democratic socialist and former state assemblyman representing Queens, is leaning heavily on government insiders as he crafts his administration. The incoming mayor has appointed Dean Fuleihan, who served in government for more than 40 years, as first deputy mayor.
Police Commissioner Jessica Tisch, who will remain in her post, served in the Adams and de Blasio administrations.
While Mamdani campaigned on raising taxes on the rich to provide free buses and childcare, he and Soliman will have one month to figure out how to pay for existing services. Mamdani is required to propose a balanced budget in February, one month after taking office.
Comptroller Brad Lander said Tuesday the city is already facing a $2.2 billion gap in the current year budget, which ends June 30. He estimates Mamdani will have to close a $10.4 billion gap in the next fiscal year, even before accounting for looming federal cuts to food stamps and healthcare for the poor.
New York has historically under-budgeted the cost of recurring expenses like public assistance, rent aid, police and fire overtime, and special education, according to the city and state comptrollers. The Adams administration projects a budget gap next fiscal year of about $5 billion.
Mamdani campaigned on raising New York City's income tax on earnings above $1 million a year by 2 percentage points and backs lifting the state corporate tax to 11.5% — matching New Jersey and tied for highest in the US — from 7.25%. Any new taxes need the backing of the state government.
Critics say the tax hikes, which would raise $9 billion, according to Mamdani's campaign, risk driving top earners and businesses to lower-tax states.
Any new taxes to fund Mamdani's agenda and pay to maintain existing services would need the backing of the state legislature and Governor Kathy Hochul.
Hochul is considering raising corporate taxes as part of broader efforts to close a potential budget shortfall and help fund some of Mamdani's agenda, according to a person with knowledge of the matter.
