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FOR IMMEDIATE RELEASE
April 17, 2002
PR-083-02
www.nyc.gov


MAYOR MICHAEL R. BLOOMBERG PRESENTS EXECUTIVE
$41.4 BILLION FY 2003 BUDGET


$5 Billion Deficit Closed Without New Taxes Or Lay-Offs


Mayor Michael R. Bloomberg today presented his Executive Fiscal Year (FY) 2003 New York City Budget. A slowing economy and the September 11th attacks opened a projected $5 billion deficit in the FY 2003 budget. The Executive Budget closes the deficit in a fiscally prudent manner and avoids both lay-offs and new taxes. Cost savings, agency reductions, greater efficiencies, new partnerships with the State and Federal Government and municipal labor force along with one-time 9/11 revenue replacement financing will eliminate the budget gap and allow for a balanced and responsible budget.

The Executive Budget closely mirrors the Preliminary Budget presented by the Mayor in February 2002. It now includes a number of recommendations from the City Council's Financial Plan and other modest changes. While projected revenue for FY 2003 has increased by $72 million, projected expenses have increased by over $291 million. These increases are due to overtime costs from the Police Department, changes in Federal Tax law, increased childcare costs and additional pension and debt service costs.

"A wide spectrum of the City responded favorably to our preliminary budget," said Mayor Bloomberg. "The City Council and other elected officials exhibited a deep understanding of the City's current financial difficulty. Budget monitors expressed some concerns, but agreed that we made difficult albeit necessary choices. Credit Rating agencies maintained our credit rating and applauded our reasonable methods to return the City to fiscal stability."

Despite a budget gap of close to $5 billion, police patrol strength will remain at current levels through civilization, cost savings and efficiencies and no fire houses will be closed, demonstrating the Mayor's commitment to maintaining the public's safety. All City agencies including the Police, Fire, Correction Department and the Board of Education will institute cost savings and revenue enhancement programs.

Released with the Executive Budget is a $500 million contingency plan. The plan includes additional cuts to agencies that will be implemented if the City does not receive the necessary assistance from Labor and the State and Federal Governments.

"Implementation of the contingency plan would require abrupt cuts in City services," said Mayor Bloomberg. "Regrettably, this would likely require layoffs The contingency plan can be avoided if we get the necessary assistance from Labor and the State and Federal Government, and I optimistic we will get the help we need."

This year's budget process aims to be more transparent. All of the City's debt obligations, including City lease debt payments will be stated more clearly. New methods of presentation will highlight all of the City employees available to agencies including seasonal, per-diem and part-time workers, as well as those paid for by State and Federal funds.

"We must now meet the challenge of this new fiscal reality," concluded Mayor Bloomberg. "In these tough financial times we must learn to do more with less. Luckily New York has a productive and entrepreneurial workforce; dynamic industries and vibrant cultural organizations; a robust infrastructure to move people, property, and information, as well as a diverse population deeply devoted to our City. We will draw upon these strengths in dealing with the City's serious fiscal problems."

 

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Contact: Edward Skyler / Jordan Barowitz
(212) 788-2958