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Ambitious promises to transform the city more affordable for New Yorkers catapulted democratic socialist Zohran Mamdani to his unlikely victory on Tuesday. Among them are free buses, childcare for all, and a large-scale expansion in low-cost housing.

However, making the city cost-effective for inhabitants is an costly government task, and many financial experts and elected officials to Mamdani’s right say he confronts too many hurdles to meaningfully deliver on his signature ideas.

Further complicating matters is the national government, which will likely withhold financial support for the city in an effort to undermine Mamdani and create budget holes that make it more difficult to fund new priorities.

Additionally, New York City must get state legislature approval to modify several income sources. One expert pointed to the state assembly stopping the municipality from raising pet registration costs in 2014 due to a disagreement between the then mayor and a state representative.

“The dramatic way of putting it is the City cannot increase dog licensing fees without state approval, and that held true previously, and it remains the case today,” he noted.

Nonetheless, he and other experts highlight favorable conditions: Mamdani’s proposals are widely supported and would address fundamental issues. The Democratic party now have large majorities in the state government, and some identify economic and viable routes to implementing the plans reality.

How might Mamdani pay for his ambitious program? Here’s a detailed look by revenue source and proposal.

Generating Income

His team estimates it could raise about ten billion dollars by increasing the corporate tax rate, taxes on the affluent, and existing fee and tax collections.

Critics claim companies and the high-earners will move away, but this is contradicted by credible research. Additionally, the corporate tax is on earnings made in the state regardless of where a company is located, making the point at least partially moot.

Business Levy Hike

Mamdani calculates a rise in state taxes from 7.25% and 11.5% on corporate profits would produce around five billion dollars, much of which would be funneled to New York City. State leaders would have to authorize the plan. Legislative leaders have in the past supported similar proposals, but the state executive is against raising taxes.

However, the state leader backs childcare for all, a very popular proposal because childcare is widely viewed as too expensive, said one policy director. It would be difficult for moderate Democrats to “resist passing a landmark initiative”, he continued. “No one says ‘We shouldn’t do anything to make childcare cheaper.’”

What’s been lacking, he explained, has been a leader like Mamdani who declares: “Yeah, it requires funding, and we’re gonna increase revenue to get it done.”

Raising Levies on the Affluent

The proposal aims to generating four billion dollars with a two percent increase on those making more than $1m annually. Although it’s a municipal levy, the state government must approve the rise, and the proposal is typically opposed by centrist Democrats.

But there is a feasible route, the expert noted. Raising revenue on the wealthy is broadly popular and, similar to the corporate tax increase, using the funds to support popular programs helps to promote in Albany.

Halt on Rent Increases

Regarding expense, a pause on rent hikes on regulated housing is the simplest to enforce – it’s minimally costly. However, a halt must be authorized by the rent guidelines board, and there might not exist enough support on it before Mamdani fills it with his own appointments.

Free and Fast Transit

Mamdani estimates fare-free transit will cost at least $700m, which includes an evasion rate of 48%. Observers suggest Mamdani could likely cover the expense by streamlining or cutting other programs in the city’s $116bn city budget.

City-Owned Grocery Stores

A pilot program for five public food markets that would be built in underserved “food deserts” is estimated at $60m and could also be paid for by shifting priorities in the one hundred sixteen billion dollar budget.

Constructing Low-Cost Homes Units

Numerous people to the conservative side of Mamdani have written off the plan to invest approximately $100bn building 200,000 low-income homes over 10 years, mainly because it would necessitate substantial borrowing. The expert said those arguing against this point mostly overlook that the initiative is not to take on $100bn at once – the liability would be accrued and paid down in phases over several government terms.

He emphasized the plan is not for free housing, but cost-effective residences that would produce income to reduce debt. Furthermore, the developments could in part be privately financed.

“This is how the plan is feasible,” the expert concluded.

Universal Childcare

Implementing childcare access for all would cost between two point five billion dollars and $12bn by most estimates, depending on whether it is a municipal or state initiative and additional variables. Financing is the major uncertainty – can the corporate and wealth taxes be approved in the state capital? An expert commented he anticipated some compromise, as often happens with large-scale plans.

“Proposals that Mamdani promised will likely be scaled back,” he said. “Furthermore the state leader’s stated opposition to revenue hikes could confront practical limits – she likely cannot achieve the objectives she desires on the expenditure front without compromise on the tax side.”