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A Good News Budget for All New Yorkers
By Mayor Rudy Giuliani

Last week, I was very pleased to announce at City Hall that my administration and the City Council have agreed to adopt a $37.6 billion Fiscal Year 2001 (FY01) budget that reflects our commitment to improving the quality of life for all New Yorkers.

The budget cuts taxes by $418 million to continue our record private sector job growth and economic development; increases spending in targeted areas while reducing spending year-to-year by 3.1%; and provides funds to reduce the City's out-year gaps.

I want to thank Speaker Vallone and the City Council for working with me to achieve this budget accord. The Speaker's leadership during budget negotiations has allowed the City to adopt yet another fiscally disciplined budget in keeping with the principles that have, over the last six years, turned New York City around.

As I proposed in the Executive Budget, this adopted budget will invest additional revenues to reduce out-year gaps and increase spending for education, public safety, and quality of life initiatives, while keeping City spending increases under the rate of inflation.

Since 1994, my administration has reduced taxes by $2.4 billion - more than any administration in the history of the City. This budget proposes a substantial new tax reduction program valued at $418 million in FY01, which will bring the administration's total tax reductions to more than $3.6 billion by 2004.

The budget's tax package will include a reduction in the 14% Personal Income Tax Surcharge that will eliminate it for single filers with net incomes less than $50,000, and for joint filers with net incomes less than $90,000. It also includes a reduction and elimination of the Commercial Rent Tax; and a repeal of the $2 flat fee tax on hotel rooms over $40.

This budget reinforces the City's commitment to our children by providing the Board of Education with $11 billion in funding -- its largest level ever. Capital funds have been set aside for the construction of new schools, and $160 million is provided for the summer school program. And a $12 million program to study school innovations includes funding for the expansion of charter schools to create more alternatives for parents and children.

We're also hiring 500 more school safety officers; and will use federal money to hire 1,230 new police officers for the city's precincts. A new, state-of-the-art DNA laboratory will be established to expand the genetic testing of suspects so that we can protect the innocent and convict the guilty to a greater extent than ever before. We're also funding a new citywide office of health care access to provide health insurance for more New Yorkers who now lack coverage.

There are also a number of capital expenditures in each of the boroughs, such as the new Willis Avenue Bridge, the modernization of Bellevue Hospital, the Kings County Hospital redevelopment, the Hudson River Park, the East River Park, the Staten Island Criminal and Family Court complex, and the Flushing Meadows pool. Other budget highlights include funding for our cultural institutions, particularly for Lincoln Center and for Jazz at Lincoln Center, for Carnegie Hall, and for the Botanical Garden.

We have also agreed on funding a very exciting initiative to attract business - particularly high-tech business - to areas outside of Manhattan. The program builds on the successful incentive plan for Lower Manhattan by increasing tax credits and other incentives and targets Brooklyn's downtown and Fulton Ferry areas, Long Island City and the Fordham Road area of the Bronx, as well as the City's recently named High-Tech Districts in each of the five boroughs.

This budget demonstrates our administration's commitment to continuing to improve the quality of life in the city. It's a wise investment in the City's fiscal health that will benefit all New Yorkers.