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FOR IMMEDIATE RELEASE
PR-
437-08
November 5, 2008
MAYOR MICHAEL R. BLOOMBERG PRESENTS NOVEMBER FINANCIAL PLAN UPDATE
Proposes Aggressive Actions to Address $4 Billion Budget Gap through FY 2010
Details Specifics of 2.5 Percent and 5 Percent Spending Cuts for FY 2009 and FY 2010
Mayor Michael R.
Bloomberg today presented a November Financial Plan update. As part of the
budget presentation, the Mayor announced that the City faces a cumulative $4
billion budget gap for FY 2009 and FY 2010 and detailed a series of difficult
measures to reduce the deficit: $1.5 billion in savings achieved through
spending reductions and other measures, rescinding the 7 percent property tax
reduction immediately, and not issuing the $400 property tax rebate. The
Mayor’s proposals will substantially reduce the budget deficit, but will not
eliminate the budget gap for FY 2010, which will still have a $1.3 billion
shortfall. In January, the Mayor will present the preliminary FY 2010
budget and financial plan.
“When we proposed the budget for this
fiscal year, we offered strong warnings about the potential hazards ahead of
us,” said Mayor Bloomberg. “Our concern for future vulnerability prompted
significant budget cuts over the past 18 months. Our earlier forecasts called
for sharp decreases in revenue, but as we all know economic conditions have
since deteriorated dramatically, forcing us to lower our projections even
further. The gravity of the budget situation requires us to make hard
choices that will not be popular with everyone. But they’re the right ones
to see us through these very difficult economic times and they will help speed
our recovery, while continuing to keep our streets safe and clean and keep
improving our schools. We will not let our city return to the dark days of
the 1970’s when the fiscal crisis all but destroyed our quality of
life.”
Agency Spending
Reduction
- Reducing the size of the City workforce
by over 3,000 employees, approximately 600 through layoffs and the remainder
through attrition.
- Reducing peak
headcount at the New York City Police Department by 1,000. Two police
academy classes were planned for 2009. The peak headcount reduction will
be achieved by canceling the January 2009 academy class. The July 2009
police academy class will add 2,000 new officers to the force as will
subsequent classes.
- Eliminating
nighttime shifts at five engine companies in firehouses where ladder companies
will remain fully staffed. Additionally, the firefighting training
academy for probationary firefighters will be reduced from 23 weeks to 18
weeks.
- Reducing city funds to the
Department of Education’s by $181 million this year and $385 million next
year, focusing largely on administrative costs and minimizing impact on
schools. This will include elimination of 475 positions producing a 6.55
percent reduction in centrally managed funds. These actions will allow
schools-based-budgets to only be reduced by 1.3 percent through non-personnel
reductions.
- Cutting authorized
headcount in the Mayor’s Office by 10 percent, through not filling vacancies
and attrition. The authorized headcount will be reduced by 52
positions.
- Saving $20 million
through fleet reduction,
maintenance efficiencies, inventory review, lifecycle management, joint fuel
purchasing agreements, and “right sizing” of the City’s
vehicle fleet. Reductions
in vehicle miles traveled by city vehicles will not only save money, but will
also further reduce the city's carbon
footprint.
- Reducing 127 Child
Protective Supervisor Positions that are currently vacant and increasing child
care co-pays. ACS will preserve its core mission of protecting children
and will preserve the essential safety reforms enacted during the past three
years. The reductions are focused on administrative areas in order to
preserve manageable caseloads, continue investigations, and provide the
services and necessary oversight for children in foster care.
- Cutting subsidies
to libraries and cultural institutions by 2.5 percent this year and 5 percent
next year. The reduction of funding will amount to an $11 million
reduction in city funds for cultural institutions and the reduction of average
library hours from 6 days to 5.5 days per week.
Revenue
Increases
- Rescinding the 7%
property tax reduction immediately, this will generate $576 million in
additional revenue.
- Not issuing the
$400 property tax rebate, this will generate $256 million in additional
revenue.
- Increasing certain
fees and fines, this will generate $123 million in additional
revenue.
Prudent Actions Which Prevented
Larger Deficits
Previous budget surpluses
were used to stabilize the City’s budget in future years.
Surplus funds generated in FY 2007 totaling $4.6 billion
were used to help close budget gaps in FY 2008, FY 2009 and FY 2010. The
City also paid down early over $1 billion of debt which was due in FY 2009 and
FY 2010.
Out Year
Gaps
The Mayor also announced today that if his
budget modifications are adopted, New York City is still facing budget gaps of
approximately $1.3 billion in FY 2010, $5.0 billion in FY 2011 and $4.9 billion
FY 2012.
MEDIA CONTACT:
Stu Loeser / Marc La Vorgna
(212) 788-2958
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