FOR IMMEDIATE RELEASE
June 24, 2010
MAYOR BLOOMBERG, SPEAKER QUINN AND THE CITY COUNCIL ANNOUNCE AGREEMENT FOR ON-TIME, BALANCED CITY BUDGET WITH NO TAX INCREASES FOR FISCAL YEAR 2011
On-Time, Balanced Budget by Mayor and Council in Every Year of the Bloomberg Administration
$1 Billion in New Budget Gap Closing Actions; Eight Rounds of Gap Closing Actions Produced Cumulative Savings of Approximately $4 Billion for FY 2011
Prudent Past Budgeting by Mayor and City Council Prevented the Need for More Severe Cuts
Mayor Michael R. Bloomberg, City Council Speaker Christine C. Quinn and the City Council today announced an agreement for an on-time, balanced City budget for Fiscal Year (FY) 2011, which begins on July 1st. The plan balances the budget with no tax increases despite the assumption of a massive and disproportionate reduction in the amount of tax dollars the State returns to the City and the lingering impacts of the national recession. The City Council is expected to vote on the FY 2011 budget plan early next week, marking the ninth consecutive year Mayor Bloomberg and the City Council have enacted an on-time, balanced budget.
"In good times and bad, and in every year of our Administration, we've worked with the Council to produce an on-time, balanced budget, and we have again this year," said Mayor Bloomberg. "Despite very trying circumstances, we're balancing the City's budget without increasing taxes. We've faced up to our responsibilities and to financial realities, which means making some difficult and painful budget cuts that New Yorkers will feel. But because we began preparing well before the national recession began, with prudent budgeting when others were ignoring the economic storm warnings, we will be able to avoid cutbacks that would have been severely harmful to New York. Lately, many people have had questions about the ability of those in government to work together at all. Once again, this Administration and the City Council worked out our differences and came up with a budget that will keep our city moving forward - demonstrating New York City continues to have a government that works."
"New York City's budget is balanced, it is on time, and it is does not raise taxes," said Speaker Quinn. "Without a State budget agreement, the end of federal stimulus funds, and a persistent economic downturn, this year the City had to make exceedingly difficult decisions. Despite these obstacles, the Council and the Bloomberg Administration forged a responsible, thoughtful agreement that will preserve the most critical City services without raising taxes."
The City's budget assumes the State budget will reduce tax revenue returned to the City by $1.3 billion and economically sensitive tax revenues are expected to remain more than $3 billion below FY 2008 levels.
The FY 2011 budget includes responsible new budget gap closing actions of approximately $1 billion and reflects the current fiscal reality. The Mayor began ordering agencies to take budget gap closing actions in early 2007, with a total of eight rounds of actions resulting in cumulative savings of approximately $4 billion in FY 2011.
The FY 2011 budget utilizes $3.7 billion of surplus from FY 2010. Without the surplus dollars - generated through years of prudent budgeting by the Mayor and the City Council - the City would have been forced to make more severe service cuts that would have a severe impact on quality of life throughout New York City.
The FY 2011 budget plan achieves a balanced budget for the coming fiscal year, but with a major reduction in Federal stimulus funding and tax revenues continuing a slow recovery, the budget deficit for FY 2012 is currently estimated at more than $3.7 billion.
Stu Loeser / Marc La Vorgna (Mayor) (212) 788-2958
Jamie McShane (Speaker Quinn) (212) 788-7116
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