Max Politics: “Mayor Mamdani’s Budget Challenge” with Andrew Rein
January 30, 2026
Host: Ben Max
Guest: Andrew Rein, President of Citizens Budget Commission (CBC)

Overview of Episode

This episode dives deep into the fiscal crisis facing New York City as new Mayor Zoram Mamdani, less than a month into his term, confronts substantial budget gaps he attributes to mismanagement by former Mayor Eric Adams. Ben Max and policy expert Andrew Rein of the Citizens Budget Commission unravel the specifics of the city’s multi-billion dollar budget challenges, dissect the roots of the crisis, and debate possible paths forward—including the mayor’s push for new state-authorized taxes, priorities for spending cuts, potential efficiencies, and the fraught city-state negotiations under Governor Hochul’s leadership.

Key Discussion Points & Insights

1. Context: Timeline and Budget Process

• City Budget Calendar:
  • Mayor Mamdani’s preliminary budget due Feb 17, 2026 (delayed extension by City Council).
  • Annual “tin cup day” (when localities plead for state funding) scheduled for Feb 11, 2026.
  • Final city budget to be adopted by end of June; state budget ideally done by April 1.

“He [Mayor Mamdani] is making his case during the state budget process because he wants that help.” — Andrew Rein [04:42]

2. The “Adams Budget Crisis” Press Conference [07:01–12:38]

• Mamdani’s Move: Declared an “Adams Budget Crisis,” blaming predecessor Adams (and, to some extent, Andrew Cuomo) for hidden fiscal holes and underbudgeting services.
• Political Strategy: Standard for a new executive to use the early window to set expectations, shift blame, and reset political narratives before public patience wears thin.

“There is substance and strategy—as always.”—Andrew Rein [07:58]

3. The Nature and Causes of the Fiscal Crisis

• Magnitude:
  • Fiscal Year 2027 gap estimated at $8 billion or more; Controller’s office puts it closer to $10B.
  • Multiple chronic underbudgeting issues: NYC housing vouchers, overtime (esp. NYPD), homeless shelter costs, underfunded new programs, etc.

“The prior administration radically underbudgeted for ongoing programs…It’s really incredible.”—Andrew Rein [12:38]

• Why Was This Allowed?
  • Strong tax revenues, pandemic-era federal aid ($13B+), and conservative revenue estimates papered over underlying issues.
  • Both City Hall and Council complicit in underbudgeting, and oversight bodies raised alarms but were largely drowned out by good fiscal times.

“Problems kind of fixed themselves with great revenue... but the problem with problems ignored is, when they come home to roost, it’s a lot bigger and a lot harder to solve.” — Andrew Rein [26:06]

4. Transparency Versus Budget Reality

• Push for Honest Budgets:
  • Mamdani and new Speaker Menon seek more transparency and realism—no more “BS budgeting.”
  • The challenge: realistic accounting for required spending exposes the full scale of the deficit, pushing political leaders to face hard choices.

“If you don’t show the truth, you don’t know the problem you’re trying to solve.” — Andrew Rein [15:09]

5. Solutions: Where to Go From Here

A. Gap-Closing Strategies

• Efficiency & Savings:
  • Identify, prioritize, and implement agency savings—target inefficiencies and low-performing programs, not core services.
  • Focus on systemic fixes (e.g., procurement reform, especially at the Department of Education).

“The first thing you do is say: ‘We spend $120 billion, let’s make sure it’s directed at the right programs and we manage those programs efficiently.’”—Andrew Rein [29:25]

• Concrete Ideas:
  • End “hold harmless” school budgeting despite declining enrollment—could save $500M+ annually.
  • Press Albany for mandate relief (notably on class size reduction, which could cost NYC $1B+).

“If you needed 50 teachers and you’ve lost 200 students, you probably don’t need the same number of teachers as before.”—Andrew Rein [33:07]

• New Administration Initiatives:
  • Mamdani’s executive order (Jan. 29): Each agency must appoint a Chief Savings Officer within 45 days, tasking them to locate efficiencies and recommend cuts or process improvements.
  • Plan sounds like a new iteration of the city’s classic “PEGs” (programs to eliminate the gap).

B. Tax Increases

• Mamdani’s Platform: Wants Albany to approve higher taxes on high earners and corporations to both close the gap and fund expanded social programs (free childcare, free buses).
• State Context: Governor Hochul is firmly opposed to new taxes; state-city negotiations are tense.

C. Headcount & Staffing

• Thousands of agency vacancies exist. Should budget for these be cut? Max and Rein debate whether to reduce or keep vacancies as a cushion for future expansions.
• Prior efficiency attempts have been limited; agencies could likely survive on fewer budgeted headcount if managed flexibly.

D. Reserves

• Debate over the city’s reserves and their role; consensus that these should not be used to patch recurring underbudgeted expenses.

“We do not have the money in reserve for a recession now. We certainly shouldn’t drain it when we have federal cuts that might be recurring.” — Andrew Rein [52:53]

E. Other Revenue & Enforcement

• Possible efforts to increase revenue by cracking down on unpaid fines, fees, or violations—though not a silver bullet and politically sensitive if it affects small business or low-income residents.

Notable Quotes & Memorable Moments

• On Transparency:

  “We don’t need any more BS budgeting. We need to show the truth.” — Andrew Rein [15:09]

• On School Budgeting:

  “We have reduced our enrollment…by a hundred thousand students…and we’ve been holding shrinking schools harmless from any budget reductions.” — Andrew Rein [33:07]

• On Political Courage:

  “No one should pretend they’re not hard, right? These are hard choices.” — Andrew Rein [36:15]

• On Tax Increases:

  “The combined New York City, New York State and locality taxes are the highest in the nation…” — Andrew Rein [46:45] “Our share of the nation’s millionaires has shrunk because we’re growing slower than the nation…If we’d kept our share, we would have $3 billion more in taxes today.” — Andrew Rein [49:01]

• On Mamdani’s Potential as a Reformer:

  “He [Mamdani] has extraordinary skills in communicating. I think he’s got the ability to communicate to people why these choices will actually deliver better education and sustainable services because we have a stable budget.” — Andrew Rein [36:51]

Important Timestamps

• [04:42] — Andrew Rein explains state and city budget timelines.
• [07:58] — Analysis of Mamdani’s “Adams Budget Crisis” strategy.
• [12:38] — Breakdown of the real fiscal gap and chronic underbudgeting.
• [20:35] — Discussion of Council’s complicity in underbudgeting, new mandates.
• [29:25] — Outline of principles for gap-closing: prioritizing savings and efficiency.
• [33:07] — Concrete savings ideas: school funding, mandate relief.
• [39:07] — Reaction to Mamdani's "Chief Savings Officer" executive order.
• [46:45] — Deep dive into the consequences of raising taxes in NYC.
• [52:53] — On the use and misuse of city reserves.

Conclusion

Ben Max and Andrew Rein provide a rigorous tour of New York City’s budget predicament at the dawn of the Mamdani administration. The episode exposes how years of obfuscated budgets—enabled by strong revenues and underexamined by key actors—have led to a real and urgent crisis requiring both transparency and difficult choices. The hosts ground their analysis in political and managerial realities, openly questioning the appetite for tough reforms. Rein is skeptical that new taxes are the answer, instead pressing for genuine, targeted efficiencies, accountability, and smarter state-city cooperation—while conceding that substantial political capital will be needed to deliver real fiscal reform.

“If you believe in government like he [Mamdani] does… I hope he runs it the best we’ve ever seen.” — Andrew Rein [55:40]