FOR IMMEDIATE RELEASE
June 25, 2012
MAYOR BLOOMBERG, SPEAKER QUINN AND MEMBERS OF THE CITY COUNCIL ANNOUNCE AGREEMENT FOR AN ON-TIME, BALANCED BUDGET
No Tax Increases and Preservation of Essential Services as Result of Prudent Planning, Spending Restraint and an Increasingly Diversified City Economy
Mayor Michael R. Bloomberg, City Council Speaker Christine C. Quinn and members of the City Council today announced an agreement for an on-time, balanced budget for Fiscal Year (FY) 2013 that includes no tax increases and preserves essential services. The budget remains balanced through the use of prudently saved prior-year resources, billions in agency savings actions and increased revenues from strong growth in the tech, film and television, tourism and higher education sectors. The City Council is expected to vote on the FY 2013 budget agreement this week, marking the 11th consecutive year Mayor Bloomberg and the City Council have enacted an on-time, balanced budget.
"Working with our partners in the Council, we've again produced an on-time, balanced budget for our city that doesn't raise taxes on New Yorkers, and that preserves the essential services that keep our city strong," said Mayor Bloomberg. "When times were better, the City set aside surplus revenue - and when the first storm clouds gathered in 2007, we began cutting budgets. These actions - and our work over the past decade to diversify the economy and make it less reliant on Wall Street - have allowed us avoid the severe service cuts that many other cities are facing. We face a significant challenge again next year, but given the effective and fiscally responsible partnership we've had with the Council - and the leadership we know we can rely on from Speaker Christine Quinn - I'm confident we'll meet any challenges that arise."
"Working parents need to have their children protected and cared for while they are at work. Children need to receive a high quality educational experience at an early age. We are creating a program that responds to both of these needs," said Speaker Quinn. "We are saying that child care can and must be part of a lifelong education that continues with pre-K, through Kindergarten and that ultimately leads to every child graduating high school ready for college. That is our ultimate goal, and it begins with academic day care, and it begins with what we have built here today."
"This budget saved jobs, maintained vital public services, and secured a strong financial footing for our city going forward," said Councilman and Finance Chair Domenic M. Recchia Jr. "Most importantly, we made the right investment in our future and put children and families at the forefront of this process. Now, tens of thousands of families throughout New York City can rest assured that the daycare, early childhood education, and afterschool programs they depend on, will be there for them. I want to thank Speaker Christine Quinn for her leadership, as well as Mayor Michael Bloomberg, for working with us to deliver a sound budget. I also want to thank our Finance Division, my colleagues in the City Council, and most importantly, New Yorkers. Members of the public from across all five boroughs told us what was important to them and what needed to be done. This was a team effort and, considering the challenges we faced from a struggling economy and reduced government aid, it was a success."
Balancing the Budget While Maintaining Services - Prudent Budgeting and Economic Growth
The budget is supported by $2.4 billion of prior year resources carried from FY 2012 to FY 2013 and $1 billion from the Retiree Health Benefits Trust - a fund that was created with saved surplus resources in 2006 and 2007.
The budget also relies on nearly $6 billion in savings for FY 2013 generated though 11 rounds of deficit closing actions taken by City agencies since 2007, including $1 billion in savings enacted since last November.
Tax revenues continue to rebound as the city's economy continues a gradual recovery, with economically sensitive tax revenues - personal income, business, sales and real estate taxes - growing again in FY 2013. While revenues from the financial sector have declined, tax revenues have been bolstered by strong growth in the tech, film and television, tourism and higher education sectors, areas where the Administration has focused its economic development initiatives.
New York City has regained more than 200 percent of the private sector jobs lost during the recession, while the rest of the country has gained back only approximately 40 percent. The city has now recovered all jobs lost during the recession and private employment in the city has reached an all-time record high at approximately 3.3 million, surpassing the previous record in 1969 of 3.275 million.
Child Care and Out-of-School Time
In June, the Mayor announced the transformation of the City's child care system through contract awards under the EarlyLearn NYC Request for Proposal, which standardizes the quality of early care and education for the first time and makes significant quality improvements while providing nutrition, health and mental health services; child assessments to track progress; support services to children with special needs; and increased professional development for center staff.
The Mayor's May Executive Budget enhanced the Out-of-School Time program to offer more comprehensive services than ever before, including providing students with full-time, year-round programming - rather than during the school year only for many slots - and with a focus on academic enrichment.
Cultural Institutions and Libraries
The budget agreement adds nearly $90 million in funding to the City's library system, which will allow for, on average, more than five days of service throughout the system. The budget also includes the more than $100 million in capital funding included in the Mayor's May Executive Budget for one of the largest renovation projects in the history of the library system.
Other Changes Since May
Stu Loeser/Marc La Vorgna (212) 788-2958
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