First Deputy Mayor Dean Fuleihan said Thursday he’s optimistic the state will fork over more money to the city, as the city wrangles with a possible $5.4 billion budget gap. The mayor has been pushing Gov. Hochul to pass tax hikes on the wealthiest New Yorkers and corporations, as well as arguing more generally that the city doesn’t get an equitable share of the pie and that the state should give the Big Apple more funding. “That’s part of the effort that we’re right now, I believe, successfully discussing in Albany,” Fuleihan said at a New York Law School breakfast. State grants make up 16% of the upcoming budget, while federal grants make up 6%, Fuleihan said, adding, “We hope the state will be much higher than 16%.” Mayor Mamdani has said the city is facing a more than $5 billion budget gap after fiscal mismanagement under former Mayor Adams State lawmakers are expected next week to formally unveil their nonbinding budget resolutions — which are expected to include tax hikes, Politico first reported. Mamdani has threatened to raise city property tax rates — the only tax hike he can approve as mayor — if the governor does not step in to help the city balance its budget and fund his affordability-centric agenda items like universal childcare. “This is not a frustrated face. I’m not frustrated. I know how to do this,” Hochul said in response to a question on whether she was ticked off by Mamdani’s ultimatum. Hochul has stood firm against tax hikes on the wealthy, though she’s signaled some openness to raising the corporate tax rate. Gov. Kathy Hochul and Mayor Zohran Mamdani are pictured in New York City on Thursday, March 5, 2026. (Susan Watts / Office of Governor Kathy Hochul) Speaking at an East Harlem press conference with Mamdani, the governor pointed out that the state Legislature has every year put forward tax increases on the rich. She also emphasized that she’s committed to sending the city billions for child care and to help the city close its budget gap. “I think the moral of the story, and the lesson to take away is that there’s never been this level of cooperation, because I am also invested in the success of the city,” Hochul said. “I don’t think governors usually speak like that.” State Senate Majority Leader Andrea Stewart-Cousins said Wednesday that the upper chamber would be including the hikes on the wealthiest New Yorkers and top corporate tax rate. “We are certainly trying to meet the moment,” she said, “and revenue raisers would certainly be part of our package.” “We will make our case and I’m sure the governor will make her case, as will the mayor and everyone else,” Stewart-Cousins told reporters. “That’s what this is about.” ...read more read less