City Will Pay Down Debt With New Budget

The Mayor announced a $52.5 billion preliminary budget for the 2007 fiscal year, plus an "updated" financial plan for the city, yesterday. The biggest initiative Mayor Bloomberg introduced was to spend $3.5 billion to pay off debt to ease some of the city's longterm budget issues. He also specifically mentioned how pension costs are rising and how it's hard to keep up - he wants pension reforms. It's the budget of a self-made billionaire who has been reelected - belt-tightening and hard truth time. The NY Times calls the budget more "Spinach and Few Sweets", though the mayor is increasing funding to charter schools and to the Administration for Children's Services, plus will keep the $400 property tax rebate. The Daily News says that while the budget may be unpopular with, say, constituents, it's "prudent" for the city's longterm fiscal health. The City Council will have to approve the Mayor's budget by June 30, so those discussions and negotiations will be very interesting, with the new City Council Speaker Christine Quinn at the helm.

You can access PDFS of all the fiscal plan here. With this budget, the city is also looking to make some money via With more parking tickets issued and bigger cigarette taxes. Oh, and the city made $3 million after paying off various bills for the 2004 Republican National Convention - it will go to nonprofits such as "mayor's anti-graffitti initiative, public-health programs, parks and after-school programs," according to the Post.

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By Jen Chung in News on February 1, 2006 9:05 AM

Comments [rss]

jen

Larry,

Its called economic reality. When Bloomberg came in he was left with no spare cash from the prior administration, 9/11, a recession, increased security costs, etc. He had to keep the city moving at that point and did what needed to be done. He is again showing he is a prudent mayor. It would have been great if Guiliani had left a rainy day fund. Good job, Bloomberg.

Larry Littlefield

During Bloomberg's first term, $5.5 billion was borrowed to cover operating costs, and $billions more in pension obligations were deferred.

He also offset rising pension payments to those leaving with lower wages for new hires, which will reduce the quality of public services for years to come.

This made him popular.

Now he promises to give the kids back $2 billion, and people make him out a hero. There are no heroes in politics. Someday, future generations may conclude that those debts and pensions -- federal, state, and local -- are not theirs to pay. And I for one will not blame them.

S.D.

And think Goodness he's going after those Eeeeevil Critical Mass Commies...

(ahem)

I am glad he's addressing the Deficit.

MT

I, for one, think we are lucky that we have a mayor that is thinking of the city's health beyond his own term limitations. We are a stronger and better city for having elected Mike Bloomberg.