Results tagged “citybudget”

With Mayor Bloomberg asking for $1.750 billion in budget cuts from agencies for this year and next, Deputy Mayor Ed Skyler tells the Post, "It is serious, and it's serious for every agency," and didn't rule layoffs out, "So whether it's attrition or layoffs, some sort of personnel savings is going to be necessary in order to close the $5 billion deficit. It is hard to balance a budget of that size without dealing with the size of the city." The Citizens Budget Commission's Charles Brecher said, "In some ways, it's reassuring that they're at least, at the city level, facing up to the magnitude of the problem we have. We didn't have this discussion during the [mayoral] campaign."

Last week, Public Advocate Betsy Gotbaum criticized the Public Advocate's budget being cut from $2.8 million to $1.7 million. She even claimed the reduction was "political payback" from City Council Speaker Christine Quinn, because Gotbaum opposed extending term limits. Yesterday, the five candidates who wish to succeed Gotbaum—and one of whom will have to deal with a 40% smaller budget—appeared together to protest the cut which goes into effect on July 1. The NY Times reports, "The issue was not food stamps, or reproductive rights for women, or child abuse, or any of the other topics the public advocate’s office is generally involved in...The cut, [the candidates] concurred, was so draconian that it threatened the existence of the office, which functions, as mandated by the City Charter, as a government ombudsman and watchdog." Former Public Advocate Mark Green, who is running again, asked, “Why has only the watchdog over City Hall been cut 40 percent?"

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."

With the city facing a huge deficit and much less Wall Street revenue, the Mayor's office and City Council have agreed on tax measures that will bring in $887 million in revenues. The NY Times reports there will not be a 5-cent plastic bag tax or sales tax on all clothing; Bloomberg and the Council "instead proposed increasing the city’s sales tax by half a percentage point, to 8.875 percent. In addition, the city would begin charging sales tax on clothing over $110. All clothing was previously exempt from such taxes." These, plus other measures, like "applying the full City Sales Tax to electric and natural gas customers that purchase energy from non-utility companies and a tax conformity package" must be approved in Albany. According to the Times, the Independent Budget Office estimates a household making $35,000/year will need to pay an additional $74 in sale taxes, while a household making $125,000/year "would pay an additional $237 a year, and one making $500,000 would pay $687 more."

Overtime costs for cops and firefighters are on the rise and City Controller William Thompson doesn't think that the mayor's budget is sufficiently accounting for it. Today Thompson is presenting his report on the budget to City Council and beforehand told reporters, "The city routinely and severely underestimates how much annual overtime will accumulate, and inevitably this widens the budget gap that will need to be closed." Thompson said that the mayor's office is undershooting the OT spending by more than $140 million in a year that saw the city pay out more in overtime than recent ones that saw the blackout, the RNC Convention and sending troops to assist Hurricane Katrina damage respectively. A spokesman for the mayor said that no matter the estimates, the city's budget will be balanced just like any other. Over the weekend, Thompson also compared Mayor Bloomberg's recent comments about the futility of taxing the rich to former President Bush's "trickle-down philosophy."

that in exchange for the checks, the Council agreed to raise both the property tax (by 7%) and hotel room tax. The Staten Island Advance says, "If the city's Department of Finance begins printing them immediately, homeowners should receive their rebate checks shortly after the new year, around the same time they will get their new property tax bills." The NY Times also adds that Bloomberg will not cut $20 million from the budget and some Council members expect to vote on the agreement today (though they warned that the deal could collapse). Some numbers: The property rebate checks cost the city $256 million; raising the property taxes to 7% in January (instead of June, as previously planned) means an additional $600 million for the fiscal year; and the hotel room tax hike brings an additional $100 million between March 2009 and June 2010.

'Tis the season for depressing news: The Bloomberg administration wants to cut another $1.4 billion from the city's upcoming budget (he announced the first round last month). Each city agency face the same percentage of cuts, either 5% (or 7% if the city needs to spend less). The Daily News reports, "The Fire Department has been told to postpone a scheduled academy class of 110 new Bravest next month. The NYPD lost one class in the first round of cuts." And today, Mayor Bloomberg said this second round of cuts might not be enough: “The next cut is firehouses." The FDNY recently announced cutbacks for night tours at four units.

The City Council really wants its homeowning constituents to get their $400 property rebate checks, though Mayor Bloomberg prefers to cancel them, given the city's impending budget crisis. According to the Daily News, "City council leaders say they can save taxpayers money and preserve homeowners' $400 rebate by cutting spending on police recruiting and standardized test prep in schools, and eliminating grass clippings from city garbage pickups." City Council Speaker Christine Quinn said that the suggested cuts would save $170 million, which still doesn't cover the $256 million the property rebate checks cost. Still, Quinn said, "No one in [City Hall] sadly believes that this is the last round of cuts, so let's get ahead of the game and make as many cuts as we can that don't erode core services."

Yet another reason to feel some gloom and doom about the city's budget: $804 million in business tax refunds! The NY Times reports that since companies overpaid their taxes (they estimate based on the previous year's earnings, which were much more flush than now), the city refunded a big chunk of money that's "three times the amount typically returned." The article also mentions: "The surge in refunds is already contributing to a new $285 million shortfall in the current year’s budget, thus making it imperative, city officials say, to cut programs and raise taxes even earlier than anticipated." Better buckle up.

Is it shocking that Mayor Bloomberg may ignore the City Council by refusing to issue the $400 property rebate checks to homeowners? The NY Times calls him "defiant," as he said yesterday "that he had no plans to release the money." And the Post quotes him as saying, "We have no money. I think that's what you have to understand. This is not a legal issue; this is a fiscal issue."

Mayor Bloomberg voiced his thoughts on the souring economy and the steps the city and federal government are taking to address it.

Mayor Bloomberg isn't kidding when he says, "This is not going to be a feel-good time." He asked city agencies to trim their budgets. WNBC reports the request is to "cut $500 million from their budgets this year and $1 billion next year," as Bloomberg prepares the city for less revenue, due to Wall Street's dwindling fortunes (he's been on this train of thought for a while). Apparently these cuts are equivalent to 2.5% of budgets this year and 5% next year. Last year around this time, Bloomberg wanted agencies to be careful with spending.

Last night, Mayor Bloomberg and City Council Speaker Christine Quinn announced that the new $59 billion budget (for the 2009 fiscal year, which starts on July 1) will keep the $400 property tax rebate program for homeowners for a fifth year and increases funding to the Department of Education by $129 million. Still, other sacrifices were made as Bloomberg said, "The news about the economy, and its effects on the City's finances, continues to be very sobering, and this budget reflects the uncertain economic outlook we face."

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 to direct to the nonprofit of their choice."

With the City Council's budget practices coming under fire as the slush fund scandal continues to simmer, Speaker Christine Quinn introduced new, tougher rules to reign in discretionary funds.

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.

Though there's a "tentative deal" for President Bush's proposed economic stimulus plan in D.C., Mayor Bloomberg thinks it's a bad idea. During a speech last night (accepting an award from the U.S. Conference of Mayors), he outlined why the package was a problem. From the NY Sun:

The $145 billion proposal being negotiated centers around the idea of providing several hundred dollars in tax rebates to individuals and families in a bid to spur the economy — a plan that Mr. Bloomberg said could "modestly benefit Americans" but would not "make a huge difference" overall because of the enormous deficits the government has already run up.

Continue reading "Bloomberg: Don't Base U.S.'s Economic Decisions on Election Calendar"