AP file photo New York City Mayor Zohran Mamdani with Gov. Kathy Hochul in November.

New York state Gov. Kathy Hochul has again come to the rescue for a fiscally challenged city with its massive debt — and this one is downstate.

On Monday, Hochul and New York City Mayor Zohran Mamdani announced New York state will allocate an additional $1.5 billion in operating expenses over two years to help address New York City’s fiscal challenges.

“A strong New York City means a stronger New York State. This investment protects services and puts the city on stable financial footing,” Hochul said. “New Yorkers expect the state and the city to work together, and I’m proud to partner with the Mayor to deliver for working families.”

This additional funding includes $510 million in recurring funding targeted towards costs that had shifted from the state to New York City under prior administrations, including about $300 million for youth programming, a restoration of $150 million in sales tax receipts that would have otherwise been retained by the state, and $60 million for public health. The remaining $500 million will be targeted to shared priorities to be determined in subsequent discussions.

“Working New Yorkers did not create this budget crisis and they should not be the ones to pay for it. After years of staggering fiscal mismanagement under the previous administration, our city deserves responsible and collaborative leadership,” Mamdani said. “I am heartened by this budgetary progress and Governor Hochul’s partnership at this critical moment. This is what it looks like to begin a new, productive, and fair relationship between City Hall and Albany – focused on delivering for working New Yorkers.”

Last June, Hochul bailed out the city of Dunkirk — that has a nearly $30 million budget — with a $13.7 million loan that is to be paid back with interest.

State Republicans, specifically gubernatorial challenger Bruce Blakeman and comptroller candidate Joseph Hernandez, voiced their disapproval of the funding.

“Kathy Hochul is happily handing billions to New York City while suburban and upstate taxpayers struggle to pay their bills,” Blakeman said. “If Albany truly has a $1.5 billion surplus — or if the Governor simply has that much money just laying around — that money should be used to cut school taxes for hard-working New Yorkers, not parked in a bailout that rewards fiscal mismanagement.”

Hochul’s office noted she has increased support for New York City every year since taking office. This investment builds on her recent commitment to expand universal child care in New York City.

In recent weeks, the mayor reduced New York City’s budget gap to $7 billion by deploying in-year reserves, committing to an agency savings plan, and incorporating higher-than-expected revenues.

“There are no enforceable reforms attached to this money,” Hernandez said. “No permanent spending controls. No structural changes. Just another billion-dollar transfer to protect political allies. This is exactly how one-party rule operates. When government overspends, they do not correct course. They demand more. New York already faces record Medicaid spending, mounting pension obligations, and serious structural deficits. Adding half a billion dollars in recurring commitments without reform only increases the likelihood of future tax hikes.”