A day after announcing $1.6 billion in budget cuts that include thousands of layoffs, Mayor Bloomberg said that there's still going to be a $2.4 billion deficit for the following fiscal year...which means residents (and city employees) should expect to feel the crunch. He said on John Gambling's radio show," Somehow, in January, we've got to come up with $2 billion more in tax revenues, fee revenues, that sort of thing, or cuts, or what's more likely is some combination." Correction officers union head Norman Seabrook told the Post about his idea for raising money: A tax for tourists coming to NYC, "There's only one New York. Where else are they going to go?" more ›

The go-to plan for cash-strapped states—an increase in the tax on cigarettes—has some holes in it. In July, the New York State cigarette tax was increased to $4.35 a pack, which becomes $5.85 when combined with the city's own levy. However, the Post reports that revenue from cigarette sales was only $125 million last month, compared to $119 million from the same month a year before—hardly equivalent to the 58% increase in tax, and barely helpful to the $9.2 billion state budget deficit. more ›

Kabbalah has proven to be the most convenient way to reduce 4,000 years of teachings into a good luck charm against celebrity misfortune, in the form of a trendy, $26 red bracelet. Now the Daily News reports that joining the ranks of hapless public figures such as A-Rod, Paris Hilton, and Britney Spears is our own Governor Paterson. It wouldn't be surprising if he had an arsenal of evil eye amulets to go with the Jewish talisman—forgoing his reelection bid, being under investigation, having his feelings hurt, and being on the front lines of the budget wars are only a few of the problems besetting the lame-duck Governor. more ›

Because Albany is facing a $9.2 billion budget deficit (and is over 80 days on a budget), state leaders are now circling around reinstating the 4% sales tax for retail items under $110. The Times Union reports that two "state officials, speaking on condition of anonymity, said the proposal would indeed increase sales taxes on clothing, but that there would be tax-free periods such as the time before school starts in the fall and around the December holidays. Clothing and footwear that costs less than $110 became exempt from the state's 4 percent sales tax in 2007, although most counties and some cities tax the sales." more ›

On Wednesday, the Empire Center for New York State Policy released payroll data showing over 8,000 MTA employees made over $100,000, including overtime and extra pay, and an overall average pay raise of 2.4%. There's a searchable database of the employees and their salaries, leading to factoids like "Eleven of the 561 employees who earned more than $150,000 in 2009 were Long Island Railroad car repairmen who earned an average of $167,342 - which was $102,477 over their annual base pay rate of $64,865." Yup, overtime is costing a fortune. more ›

A judge may have temporarily blocked 475 station agents from being laid off but the MTA is continuing with ways to close its big budget shortfall. And that includes eliminating 1,000 more workers this year. The Post says this "marks a second wave of layoffs, though this time they'll be accomplished though attrition and unfilled job vacancies." Though there will be $110 million in savings, there will likely be "dirtier subway cars and more graffitied windows, shorter LIRR and Metro-North trains, fewer public-address alerts on platforms and fewer ushers at Grand Central Terminal." more ›

If you think New York State’s deficit is bad, take a look at New Jersey, where a $11 billion budget gap is pushing officials to think creatively. One plan? Sell the naming rights for 12 rest stops on the NJ Turnpike and eight on the Garden State Expressway. "The 'Nike Stop' . . . maybe that would be worth $10 million," suggested DOT Commissioner James Simpson, according to the AP. One highly trafficked hub is named for Green Bay Packers coach Vince Lombardi, while others bear the names of Revolutionary war heroes, poets like Walt Whitman and political figures like Alexander Hamilton. In the future, they could go strictly corporate, however a naming rights expert says $1 million is a more realistic pricetag. more ›

A generous donor has taken big steps to close the Metropolitan Opera’s $4 million budget gap, cutting the operahouse a check for $30 million. The donation—which sets a record as the most generous in the Met’s history—comes from Ann Ziff, widow of publishing exec William Ziff and daughter to soprano Harriet Henders. It couldn’t come a at a better time, since the concert hall was beginning to look a bit desperate—implementing high-tech, though questionably appealing, measures like beaming its performances into movie theaters worldwide. Ziff told the Times she’ll forgive the Met its little experiments. “Whether I like a new production or not, I don’t feel is important,” she said. “To get these new audiences, we need to try new things.” Now if only someone would extend the same generosity towards the MTA. more ›

Graphic designers hoping to score a gig making MTA pictograms are out of luck. Because of the administration's extreme budget crunch it's decided to recycle old instructional images rather than creating new ones. Among the pictograms planned as part of a citywide overhaul were icons telling commuters to keep their feet off the seats and graphic instructions to silence their cell phone chats, reports the Post. But with a $750 million deficit on its hands, the MTA will instead spend a considerably smaller sum refreshing the classics. more ›

The MTA agreed last night to save 11 previously-condemned bus lines, but the orange V train (est. 2001) was not so lucky. In January the authority hinted that it would create an M/V “mash-up”; now that’s coming into focus with the older M taking over the V train’s orange branding and its stops to Forest Hills-71st Avenue in Queens (the V's lower Manhattan and South Brooklyn service will be eliminated). Look at a map here. Sounds confusing, but the MTA says it's how commuters feel that’s important. Indeed, last year Brooklyn Borough President Marty Markowitz held a mock funeral for the beloved brown train. “People were more comfortable with the M designation, being an older and more historic train designation than the V,” said Charles Seaton, a spokesman for New York City Transit. more ›

The State Senate and Assembly have reportedly come up with $2.9 billion in cuts to the state budget, but the Times Union reports, Governor "Paterson, however, immediately claimed that wouldn't go far enough, and said he would move to unilaterally cut aid to localities." As in not pay social service agencies and public schools—Paterson said, "Unfortunately, the Legislature’s last best offer does not take sufficient action to restore New York State’s long-term fiscal stability." more ›

Reiterating worries about the NY State budget—and the lack of agreement from the State Legislature— State Comptroller Thomas DiNapoli produced a YouTube video to beg state lawmakers and Governor Paterson to "close a budget deficit that he warned could reach $4 billion by the end of the fiscal year in March." In fact, DiNapoli said Paterson's projection of the state only have $36 million by the end of the year was "optimistic... We think if no action is taken, the state will end December with a negative balance, about minus $3 million." DiNapoli says in the video (see it after the jump), "It is time for state government to make those same tough choices and to be more responsible about our spending." more ›

As he suggested—and as everyone expected—Governor Paterson's deficit reduction plan was indeed grim: He proposed cutting a total of $5 billion from the budget over two years, $3 billion for this fiscal year and $2 billion from next. Paterson pleaded for the State Legislature to work with him, "During a time of uncommon difficulty, we need to work together for the common good and enact a consensus plan that helps us avoid the severe consequences faced by other states that failed to swiftly address their budget problems. This will mean hard and painful choices, but that is exactly the type of leadership New Yorkers deserve from their public officials." more ›

Yesterday, Mayor Bloomberg and the City Council agreed on a $59.4 billion budget for the 2010 fiscal year. Besides agreeing on a 0.5% sales tax increase, the city will trim 2,000 (or 1,000) jobs, allow 16 firehouses to remain open, keep libraries open 6 days a week, and "spare 100 animals from being shipped out of the Bronx Zoo." The NY Times reports that Mayor Bloomberg and City Council Speaker hoped that the economy would perk up so next year's budget won't be as severe, but the Mayor added, "If our economy continues to stall, this may not be the last word on this year’s budget." more ›

The MTA, which already has a $1.2 billion budget deficit (hence the doomsday fare hikes and service cuts), now says it's been hit with another $621 million shortfall. Why? Because of "the continuing decline in the real estate and dedicated taxes that support the MTA, all of which are economically sensitive." Oh, and also the "increasing unemployment and higher fares led the MTA to predict a 7.2% drop in usage of its facilities in 2009." All told, the re-forecast for 2008 says real estate taxes are down $336 million, fare/toll revenue is down $221 million and state dedicated taxes are down $113 million (there was a $49 million budget surplus). The MTA will have to find a way to make up this new shortfall as well, but MTA Chairman Dale Hemmerdinger said, "This is terrible news for the MTA, our customers and the regional economy, and the MTA Board will do everything in our power to protect the transit network. Without assistance from Albany, however, it will be extremely painful for everyone who relies on MTA services." more ›

The bad news from the MTA doesn't stop: This time, MTA officials say that lower tax revenues—an "alarming sharp decline" as the NY Times puts it—may mean the MTA has to consider cutting service and raising fares . more ›

Mayor Bloomberg will be giving his budget address later today and it won't be fun: Because of the economic climate, he's proposing to increase sales tax to 8.75% (and putting tax back on clothing under $110; the sales tax is currently 8.375%) in order to raise $900 million. Bloomberg is also proposing to cut 23,000 city jobs, cuts to capital projects and requiring employees to pay for some health care, according to the Daily News. These measures would fill the $4 billion gap and come on top of previously announced cuts. more ›

Last night, hundreds people crowded a ballroom at the Hilton for the MTA's first public hearing on the proposed fare hikes and service cuts. Leona Adams, an 86-year-old, spoke out against raising Access-a-Ride fares 250% (or higher): "The medical field has extended our lives to whatever age we are...yet if we are not able to continue our active lives that Access-A-Ride allows, then we will become burdens to our family, the city, the state and the nation." more ›

Governor Paterson introduced a budget, full of tax hikes and fees for things like regular soda, beer, movie tickets and online music downloads in addition to big cuts to education spending, to combat a $15.4 billion budget deficit this year and next. Many critics have argued that these taxes—aiming to raise $4 billion—are hitting regular people, and now Governor Paterson tells the NY Times the rich may be taxed. more ›

Governor Paterson continued his series of bad news about state economy by predicting the deficit to grow to $47 billion by 2012, thanks to the falling financial markets and NY State's own overspending. And for next year alone, it will grow to $12.5 billion--the current deficit is $1.2 billion--and that number is basically double what his administration previously projected. Paterson hasn't made any decisions about how the state will deal with these escalating costs, but he did say yesterday, "When you're in that amount of trouble, everything is on the table, not because you want it to be, but because it's the only way to manage. It is a crisis, and a crisis means that everyone has to be accountable and everyone has to sacrifice." more ›

A pilot program to keep subway stations cleaner on the No. 7 and L lines was a success, but transit officials are balking at the cost of implementing it citywide, which would be approximately $100 million. The test run increased the number of cleaners at all stations on two subway lines, providing round the clock service; an MTA analysis found that those stations had heavy litter just 10% of the time, down from 33% before the pilot program. But NYC Transit would have to hire an additional 1,575 cleaners and spend nearly $230,000 per hub to meet those standards, the Daily News reports. And $100 million is no small potatoes in a time when the MTA is facing a nearly $1 billion budget deficit and considering service cuts. [Photo cred.] more ›

Get ready for primal screams across the region, if the MTA decides to cut subway, bus, and rail service as it faces its nearly $1 billion-deficit next year. The Daily News reports that MTA CFO Gary Dellaverson said the agency "recently told its divisions to detail ways to cut spending by about 4.5% in the event the economy deteriorates beyond the MTA's latest budget projections - or if city and state funding isn't increased to levels sought by the MTA." more ›

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Governor David Paterson's unusual televised Tuesday afternoon speech detailing the state budget's deficit and imploring lawmakers to head back to work* has been followed up with some specifics today. He says a 7% cut to state agency spending would save $630 million. Paterson also suggests an "immediate hard hiring freeze," and wants the Legislature to help find $1.2 billion in savings. more ›

If you actually believed the recent fare hike would go toward service improvements on city subways and buses, the MTA has a bridge to sell you. Due to a slowdown in real estate tax revenues, the agency said yesterday that it would have to postpone any planned service improvements promised to come with the fare hike. Despite already projecting a decrease in tax revenue, the MTA fell $21 million short of its projections for the year, with the MTA's CFO Gary J. Dellaverson saying, "We took these tax projections down quite dramatically from last year, and they are quite dramatically underperforming." more ›