New York City Mayor Zohran Mamdani on Wednesday (March 25) outlined an aggressive cost-cutting strategy aimed at closing New York’s widening fiscal gap, stressing that government spending must directly benefit working people.
“Government must work for working people — and every dollar in our budget must work as hard as they do,” Mamdani said in the video. “This is just the beginning of our work to improve service delivery and make city government as efficient as possible.”
Savings of $27 million due to reductions in essential supplies
The mayor emphasized immediate savings through cutting back on day-to-day administrative expenses.
“Just by reducing how much we spend on paper, pens, office and supplies, we’ll save over $27 million,” he said.
Reducing dependence on suppliers, strengthening internal work
Mamdani pointed to overspending on external contractors as a key area of reform.
“The city was paying a lot for outside contractors, which cost us too much,” he said. “So we’re bringing a lot of that work in-house and saving millions from our budget on things like IT services and software.”
Revised Health Care and Consulting Contracts
The administration is also renegotiating contracts and eliminating costly agreements.
“We also discovered that sometimes we were overcharged for life-saving drugs like Naloxone, so we’re renegotiating that contract and saving another million dollars,” Mamdani said.
He added: “A contract with McKinsey and the Department of Human Services – nothing more. That’s $9 million that we’re not going to spend next year.”
Reducing the city’s footprint, tightening controls on tax benefits
The mayor said the city would reduce unused properties and improve oversight of tax benefits.
“The city is spending a lot on property it doesn’t really need, so we’re going to reduce our physical footprint and save millions in rent,” he said.
“We’re going to strengthen verification to make sure homeowners who get tax credits actually live in that house. That brings in an additional $13 million a year.”
Tax the Rich, Fix the Bonds: A Bigger Fiscal Strategy
In addition to spending cuts, Mamdani reiterated the need for structural fiscal changes.
“To fight a $5.4 billion fiscal deficit, we need to tax the rich and end the drain that has been associated with the state for too long,” he said.
‘No savings too small’: More action expected
The mayor emphasized that both large-scale reforms and small efficiencies will be key to restoring fiscal stability.
“No savings is too small as we strive to get our city back on a solid financial footing,” Mamdani said. “We will keep you informed every step of the way, because to provide public goods you must first ensure public excellence.”
