ARCHIVES OF THE MAYOR'S WEEKLY COLUMN Archives of Rudolph W. Giuliani

Years of Fiscal Discipline Produces Strongest Economy Ever

Last week, I put forward our financial plan for Fiscal Years (FY) 2001-2005. This plan is the result of seven years of discipline and accountability in managing our budget, and it reflects the Administration's continued fiscal priorities of cutting taxes to stimulate the City's continued record job growth and economic development; increasing spending in targeted areas while reducing City-funded spending year-to-year by .2%; and reducing the out-year gaps.

The Plan reflects our Administration's success in reducing taxes by $2.5 billion since 1994, and provides for an additional $405 million in tax cuts, which increases to $1.2 billion by 2005. The Plan projects a conservative surplus for FY 2001 of $2.2 billion, and continues the policy of two-year Budget Stabilization Accounts for FY 2002 and FY 2003 in the event that the City is faced with an economic slowdown.

We have transformed New York City from the crime capital of the country into the safest large city in America. We plan to continue making our historic crime reductions by increasing our investment in public safety initiatives such as expanding our Model Blocks program to NYCHA developments; creating task forces in precincts with the highest levels of property crime; and constructing a state-of-the-art DNA laboratory to help convict the guilty and exonerate the innocent.

Our financial plan will also enable the City to continue to meet the educational needs of our children by budgeting $13.4 billion for the Board of Education's largest capital plan ever. We're also providing incentives for one or two community school districts to offer school choice; providing for more private management of failing public schools; and helping to enable charter schools to compete on a level playing field.

To improve school facilities and reduce Board of Education bureaucracy, we're selling 110 Livingston Street and moving the headquarters to a new building in downtown Brooklyn. We're also converting the 114 remaining coal-burning boilers in schools to gas or electric.

To help the City's economy continue to produce new private sector jobs, our financial plan proposes an additional $405 million in tax cuts. Among the suggested cuts are the phase-out of the Commercial Rent Tax; extension of Co-op and Condo Property Tax Relief; elimination of the $110 ceiling for the sales tax exemption on clothing and footwear; repeal of the $2 flat fee tax on hotel rooms; and introduction of a City earned-income tax credit.

The City will be making smart investments in our neighborhoods to help spur economic development throughout the five boroughs. After decades of rhetoric, the new Harlem Renaissance can be measured in results. 125th Street hasn't been as active or prosperous in decades. A Request for Proposals (RFP) is being completed for the development of a portion of a number of city blocks in East Harlem from 125th Street to 128th Street, between Second and Third Avenues.

We want to take the same energy that has led to the development of Harlem's 125th Street and help lead the renaissance of one of Brooklyn's proudest thoroughfares - Fulton Mall. We have dedicated $2 million to begin this process.

In Queens, Downtown Flushing -- which is now the fifth largest commercial district in the City - has made great progress over the last few years. A new $30 million pool and skating rink will help ensure that the gains Flushing has made are only the beginning of a sustained resurgence.

In the Bronx, more than 70,000 cars a day use the Willis Avenue Bridge, but it's in serious need of repair. The Department of Transportation is moving forward on a valuable project to build a new $302 million bridge next to the existing one.

To ensure that revitalization reaches Staten Island, the City will commit $1 million to renovating the St. George Theater into a performing arts center that can draw people from around the Island - and around the City at large - to the area.

As we enter the last year of our Administration, New York City is safer and cleaner, and our City's economy is stronger than it's ever been before. New York now has a proven record of success for future administrations to build upon, so that future generations can experience the renaissance of our city for themselves.