Albany, New York - New York Governor Kathy Hochul on Tuesday unveiled her executive budget proposal for the 2027 fiscal year which includes no tax increases – prompting a response from New York City Mayor Zohran Mamdani.

"We laid out a very ambitious agenda for 2026. Our vision was for a stronger, safer, more affordable New York, and today, I'm here to show you exactly how we'll do that responsibly in our Fiscal Year 2027 Executive Budget," Hochul said in a Tuesday press conference.

The $260-billion proposed budget includes, among other investments:

• $4.5 billion to expand access to child care

• $39.3 billion in school aid

• $38.2 billion in Medicaid funding
• $250 million for affordable housing
• $352 million for gun violence prevention
• $77 million to increase the police presence in New York City subways
  
• $3.75 billion over five years to enhance clean water infrastructure
• $425 million for the Environmental Protection Fund
• $30 million for tariff relief for farmers
  

• $14.6 billion in reserves

The budget marks a 0.7% increase from last year intended to make up for federal funding cuts under the second administration of President Donald Trump, Hochul said.

Notably, the governor's plan does not call for any increase in income taxes, though it would extend the top corporate tax rate of 7.25% for another three years.

"A budget is much more than figures on a page," Hochul explained. "It's a statement of priorities, a test of discipline, and this year, with so much uncertainty coming out of Washington, it also must be a plan that can hold up to pressure."

Mamdani, who was elected last November on a core message of affordability, praised Hochul's new budget proposal while echoing calls for increased taxes on the wealthiest New Yorkers.

"Governor Hochul's budget makes meaningful investments that move us closer to an affordable and livable New York – especially through critical advancements in early childhood education," the mayor said in a statement.

"Thanks to the Governor’s fiscal stewardship and the strength of New York City’s tax base, the State is on solid financial footing. The City, however, is not – and that is the direct result of Eric Adams' gross fiscal mismanagement," he continued.

The newly inaugurated mayor said everyday New Yorkers "should not have to pay the price for the failures of the Adams administration," and reiterated his support for increased taxes on large corporations and the ultra-wealthy.

During his mayoral campaign, Mamdani proposed introducing a 2% higher tax on those New Yorkers who make more than $1 million annually as well as raising the state's top corporate tax rate to 11.5%. Hochul repeatedly insisted she would not back the hikes.

"We are just beginning our full review of the Governor’s budget and will have more to say as we dig into the details," Mamdani said. "Our guiding principle, however, is clear: fiscal responsibility must go hand in hand with protecting working families, preserving our social safety net, and building a city that works for the many – not just the few."