Hochul budget chief swats down tax hike push from Mamdani’s DSA allies

New York has an estimated $8 billion revenue surplus, but Governor Kathy Hochul’s budget director, Blake Washington, says the state is not proposing new taxes at this stage. His comments come as allies of New York City Mayor Zohran Mamdani and Democratic lawmakers urge higher taxes on wealthy residents to fund programmes including universal childcare.

Hochul called the surplus a one-off windfall and said the state should use it to reduce debt and strengthen reserves, rather than rely on it for future spending. About $4 billion is expected to go into the rainy day fund; the revenue gains are partly linked to strong Wall Street performance. Washington said the childcare expansion will take years and could require a dedicated funding source, while warning that state and local governments may also face costs from federal social-service cuts.