Gov. Hochul may not be ready to tax the rich, but more money for NYC schools is on the table

Cayla Bamberger, New York Daily News on May 5, 2026

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NEW YORK — Gov. Kathy Hochul on Tuesday signaled she was open to “do more” to help New York City straighten out its finances through support for local public schools.

Mayor Zohran Mamdani has asked state lawmakers, who are currently hashing out the next budget, for assistance in closing the city’s multibillion-dollar budget gap, which he’s blamed on his predecessor, former Mayor Adams. Mamdani and Hochul have spoken as recently as Monday, according to the governor.

“New York City has some particularly concerning financial problems right now,” Hochul said during an unrelated press conference outside of Albany.

The governor said the state has already “stepped up” by allocating funds toward child care and other local programs, as well as proposing a pied-à-terre tax on second homes in the city.

“But also, yes, I think we can do more on the education front,” she added.

The state’s next budget is already more than a month late. In the meantime, Mamdani and City Council Speaker Julie Menin agreed to delay the mayor’s upcoming city financial plan as he waits to see what he can squeeze out of Albany. Hochul has repeatedly shut down the mayor’s preferred solution to the budget crisis: Raising taxes on the wealthy.

It’s not clear what form the support for school could take. Hochul and the Legislature are currently negotiating more funding through New York’s primary school aid formula, known as Foundation Aid, and relief from the class size law. The governor acknowledged both discussions, but did not commit to the inclusion of either in the final state budget.

“These are two conversations: One, is there an opportunity for more education dollars? And also, what does deferring the class size mandate look like for the city’s finances this year and the next?” Hochul said.

Asked if that money for education could help make progress on the city’s budget gap, the governor added: “Any additional dollar certainly would.”

The 2022 class size law ordered the city phase in new limits between 20 and 25 students, depending on grade level. The Mamdani administration is asking Albany to push back the deadline to comply with the new caps.

The administration is also pushing for updates to Foundation Aid that would benefit the city financially. State lawmakers so far have appeared most open to a change that would send more per-pupil funding to school districts with large populations of homeless students.

The Daily News has reached out to the mayor’s office and city’s public schools for comment.

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