Bloomberg's Budget Plan Includes Higher Sales Tax, Layoffs

Mayor Bloomberg discussing the budget earlier this year

Mayor Bloomberg is set to reveal details of his budget for the new fiscal year (which begins July 1), and like recent budgets, the economy's downturn means it'll be rough with the city's projected $4 billion deficit. WCBS 2 reports that, according to sources, "The mayor intends to raise $900 million to close the budget gap by raising the sales tax half a percent," and explains, "The sales tax in New York City will now be 8.875 percent; of which only 4.5 percent is a city tax. The rest goes to the state and the Metropolitan Transportation Authority."

There will also be 3,750 layoffs, which is less than expected, and the city hopes to get rid of another 9,750 through attrition. The NY Times reports that Bloomberg is dropping his plan of asking city employees to contribute to their health care: "Many employees now pay nothing, so a 10 percent contribution could save the city $350 million. But negotiations between the city and the unions have proved difficult. So with two months before the city must fill a $4 billion deficit to balance its budget, administration officials concluded that they did not have the time, or the momentum."

Another proposal, which would save $400 million, is to create a new pension tier for city employees. The Staten Island Advance has the details: "A fifth pension tier would require workers to remain 25 years in their state or local agency in order to receive full retirement benefits, rather than the 20 years the current rules mandate. The plan also would force employees to contribute 3 percent of their salary to the pension fund beyond the 10 years mandated for Tier-Four employees, and wait until age 62, instead of 55, to be eligible for full retirement benefits. Uniformed city employees, such as police and firefighters, would be eligible for full benefits at age 50." However, this would need to be approved by Albany.

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By Jen Chung in News on May 1, 2009 10:14 AM

Comments [rss]

JacqueMehoff

we know he's scared of threats from little old ladies.

babyfishmouth

I wish Bloomberg would take his ads off of TV - he yammers on about creating jobs yet wants to lay off thousands of city employees. I'm fearful that no one electable will run against him this fall and we'll be stuck with him.

pal

people in the private sector have lowered their standards as far as benefits and health coverage goes. they've been taken advantage of and settled for less and less as the years went by. so does this mean city workers have to settle for less too? even though they make less anyway?

don't vote for bloomberg if you earn an honest living.

walleye

Oh, quit the rhetoric already. Salaries of lower level municipal employees is nothing great. That's made up by the health and retirement benefits.

Wza

I'll just go to Jersey to shop.

starrygordon

Sales taxes tax the poor, whereas income and property taxes tax the rich. Guess which Bloomie favors. And yet he'll be reelected by the very people he's robbing.

OTC

When are people going to start getting mad about the outrageous benefits and pensions being handed out to government workers?

Paying 10% of your health insurance would be considered a great deal by most private sector employees and having to work 25 years (oh the horror) before getting an excessive pension should be no-brainers.

Really, the rape of the taxpayer by goverment employees needs to end, we're not getting free health insurance, we're not getting lavish pensions after working for 20 years, why should we foot the bill. It's time to stand up and be heard.

BREAK UNIONS NOT BUDGETS!!!

babyfishmouth

Why not work for the city rather than complain about other people who choose to work for the city? Yes, they have affordable health care, but they sacrifice annual pay raises and bonuses in return.

nyorker555

Er, how is that an insightful comment exactly? I'm not complaining about state workers if you read more carefully.

Ed

If not being lazy, many civil workers spend much of their time finding ways to get onto disability. I know a city worker who has worked 2 weeks in the past year blaming a pre-existing condition on a work incident. He said another guy in his building is on disability and I see him walking his huge dog, seemingly fine.

As for the raise of state taxes, this is why I buy almost everything online now.

non_sequitur

How many? Is it statistically different from the private sector?

Splicer

The difference is that in the private sector, it's the upper management who are the cheats. The anger comes when us lowly proles try to get our fingers in the pie as well. Can't have that now can we?

nyorker555

splicer, "proles" as you call them, pay those taxes increases so that public workers get their free health benefits. And everything I have read asserts that union mangement makes super-high salaries just like "private sector upper management." Your logic doesnt wash, sorry.