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Hochul Announces $127B Budget, Heastie Calls Her Liar

5/7/2026

Summary

Hochul Announces Budget

Governor Kathy Hochul announced a $127 billion New York state budget deal on May 7 2026.
Assembly Speaker Carl Heastie rejected the announcement, called Hochul a liar, and said no agreement existed.
Hochul’s plan proposes a pied-à-terre tax on expensive second homes in New York City expected to raise $320 million.
Mayor Zohran Mamdani is seeking $600 million for class-size relief and up to $1.5 billion for pension-fund adjustments.

Summary

Mayor Judges Landlords

Mayor Zohran Mamdani announced a $31 million judgment against landlords Karan Singh and Rajmattie Persaud for housing conditions.
The settlement earmarks $900,000 for repairs and appoints a chief restructuring officer.
Housing commissioner Dina Levy said the city will prioritize dangerous repairs first.
Tenant Smitty Smith, who spent own money fixing fixtures, faced a 2024 Legal Aid Society lawsuit that froze landlords’ accounts and placed them on Worst Landlords list.

History

Historical Context

In 1975 New York City faced a cash shortage; Governor Hugh Carey advanced state funds and, with Felix Rohatyn’s Municipal Assistance Corporation, secured $2.3 billion of congressional loans and issued bonds to avert bankruptcy. The crisis forced wage freezes, layoffs and fare hikes, showing how coordinated state-federal financing can stabilize municipal finances—a lesson echoed in today’s budget debates.

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Hochul Announces Budget

Governor Kathy Hochul announced a $127 billion New York state budget deal on May 7 2026.
Assembly Speaker Carl Heastie rejected the announcement, called Hochul a liar, and said no agreement existed.
Hochul’s plan proposes a pied-à-terre tax on expensive second homes in New York City expected to raise $320 million.
Mayor Zohran Mamdani is seeking $600 million for class-size relief and up to $1.5 billion for pension-fund adjustments.

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