Since the heat is on the City Council's budget practices, specifically its use of slush funds and creating fake groups to collect money, Mayor Bloomberg released details about his own, uh, slush fund. Deputy Mayor Ed Skyler issued a memo noting reforms plus details of the Mayor's discretionary funds. Per the Daily Politics, it explained how "the mayor himself controls a pot of cash...for which Council members and borough presidents can apply during budget negotiations......

Mayor Bloomberg presented a $59.1 billion budget for the 2009 fiscal year, with spending essentially remaining flat (the increase is just 0.1%). While he said the faltering economy means we should all "pray Wall Street does well" given the "scary" reality, Bloomberg did say the city could afford a property tax rebate and property tax rate cut. The new budget would, as the NY Times puts it, "virtually halt the growth in city spending for......

The New York State Legislature finally passed a budget two weeks ago, which it balanced by taking on extra debt without the approval of voters to fund a 6% increase in spending as revenues continue to shrink. State Comptroller Thomas DiNapoli says New York is heading for trouble, especially since revenue projections are so uncertain and vulnerable to further economic downturn. The $121.7 billion budget grew 6% despite entreaties from Gov. Paterson to actually cut......

Two former staffers under City Council member Kendall Stewart were "arrested and charged on mail fraud and money laundering charges" from the U.S. Attorney's office, according to WNBC. Asquith Reid, Stewart's former chief of staff, and Joycinth Anderson are accused of misappropriating "hundreds of thousands of dollars of taxpayer funds for their personal gain." According to the indictment, $356,000 was put into the "Donna Reid Memorial Education Fund"--home address at Reid's house--in 2005. And money......

Bigger isn't always better, warned Governor David Paterson. Yesterday, Albany lawmakers passed a $121.7 billion budget, which is 6% bigger than last year. The Times Union calls it a "Budget built on borrowing, fees." Paterson says the slowing economy will require a "change in culture and a change in course of where this state's priorities are...We're running out of time thinking we can tax our way into the future." But State Senate Majority Leader Joseph......

Gov. Paterson publicly addressed the state of New York's budget and described it as "too big and too bloated." Belt tightening is the prescribed solution according to the Governor, with state spending to be cut by 5-10% in the latest fiscal year. That is a pretty dramatic reduction, but Paterson was quick to reassure that it was equally important that the state not raise taxes either, noting that many residents were decamping to lower-tax states......

On the heels of Governor Paterson’s endorsement of Bloomberg’s congestion pricing plan comes a new Quinnipiac poll showing that New York State voters oppose it 50 – 33 percent. Most of the opposition has to do with a pervasive doubt that the revenue from the plan would actually go to improve mass transit, as promised. Echoing the results of a poll in January, voters statewide say they would support the plan 60% to 30% if......

The abrupt elevation of Lieutenant Governor David Paterson to the top seat in NY State government should mix things up a bit in Albany and NYC. First up is the state budget, and with a grim economic outlook and behind-the-scenes transitions, he said yesterday, “We cannot afford to waste another second. We have a budget that is due and a deadline to meet.” Paterson added he would attempt to govern by consensus, rather than take......

In her State of the City address, City Council Speaker Quinn said that the Council would do its own belt-tightening given expectations the economy will slow. Still, she mentioned, per the Sun, "tax cuts, improved transportation, more pay for teachers, and affordable housing," saying, "Getting leaner does not have to mean getting meaner." Some of the proposals: suspending the city sales tax for one week; offering $300 rebate to renters; offering "bonuses of up to......

It's a refrain that already sounds familiar and will no doubt be repeated many times more: Officials expect real estate revenues to fall, causing lots of number crunching in budgets. The NY Sun reports that the city forecasts "a 39% decline in sales volume for all commercial transactions through 2009, and the median price of those transactions is expected to decline by 32%." Since the city charges 2.6% tax of the sale price, while the......

With Mayor Bloomberg up in Albany deriding Gov. Spitzer for bilking the city out of $500 million in promised funding, it's no wonder that the perennial call for secession has arisen. Every time NY State politics gets heated, we get to rehash the economics of NYC declaring itself independent from the state. During his NYC budget speech last week, Bloomberg pointed out (again) how NYC pays more than $11 billion in state taxes it doesn't......

Mayor Bloomberg traveled to Albany yesterday with a delicately phrased but succinct query: Where is our cash you deadbeats? Bloomberg recently explained all city agencies had to undergo belt-tightening in preparation of a downturn of the city's economy. He wasn't prepared to be short-shrifted by Albany, from where the city depends on a certain level of budgetary support. "We are not asking for anything other than our fair share. But our fair share is what......

Mayor Bloomberg presented the preliminary 2008-2009 fiscal year budget which inclued cuts to almost every city agency, saying, "Everyone is going to have to tighten their belts." One big reason is the slowing economy and its effects on the city; for instance, the city had previously thought Wall Street profits would be $16.8 billion last year but they are more likely to be $2.8 billion. The Daily Politics noticed the presentation had three pages......

New York City's Department of Finance is projecting that real estate values in the city will remain nearly flat this fiscal (ending September) year. More precisely, it expects only a 1.4% increase in property values, versus an 18% climb this past year. It will be the slowest increment of growth since Mayor Bloomberg took office in 2002, during a real estate boom that enabled budget surpluses, tax cuts, and astounding growth in city spending. The......

The Independent Budget Office of the City of New York released a five page report [pdf] yesterday projecting that beginning next year, the City will face a serious fiscal crisis when it runs a deficit of $3.1 billion. By 2011, that budget shortfall could more than double, to $6.3 billion. The projections merely take into account current trends in New York City and don't factor in the possibility of a widespread national recession. The title......