Yes, but New York City sends more to Albany in tax revenues than it gets back. NYC arguably does more for the state than the rest of the state does for NYC, so I would imagine he too has some negotiating power.
Hochul does need to be reelected, but at the moment it looks like Stefanik is going to be primaried by someone even more MAGA. Even with significant movement towards Trump in 24, Harris still carried the state by (iirc) something like 56-44%. The trend seems to be away from Republicans at the moment and NY has rarely elected Republican governors - I think George Pataki, who would essentially be a moderate democrat now - was the last one?
So I think Hochul feels the wind is blowing favourably for her, and it's in her interest at the end of the day for Mamdani to be successful, so my guess is that they will end up negotiating to land somewhere in the middle