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The 2001 Budget: An Investment in the City's Fiscal Health
By Mayor Rudy Giuliani

When I first became mayor six years ago, New York City was saddled with a $2 billion budget deficit due to shortsighted economic policies. Today, as a result of the difficult decisions we made in controlling the growth of government spending, we have turned that $2 billion deficit into a $2 billion surplus. New York has set an example for cities throughout the nation that an adherence to the basic principles of fiscal responsibility and tax reduction can put a city firmly in control of its economic destiny.

The cornerstone of this success has been our ability to control the growth of spending. Since 1994, the City has lowered projected spending by $15.2 billion. And as a result of our creation of a Budget Stabilization Account three years ago, the City is prepared for any downturns or slowdowns in the economy.

Last week, I submitted the Executive Budget for Fiscal Year 2001, which builds upon past successes while providing a sound fiscal structure for the future. Seventy-one percent of this money will be used to reduce the out-year gaps; 21 percent will fund targeted educational, public safety and other initiatives, and an additional eight percent will be used to reduce taxes even further. This budget reflects our administration's commitment to improving the quality of life for all New Yorkers. It's an investment in the City's long-term fiscal health.

Despite the presence of a vibrant economy which has helped create the largest surplus in the City's history, we're decreasing City spending for FY 2001 by two percent, and we're maintaining the budget stabilization account. This is a time to strengthen our City's fiscal position, not to return to the undisciplined, high-spending policies of the past.

We're making targeted tax reductions to continue the stimulation of record private sector job growth and economic development. This Executive Budget reflects our success in reducing taxes by more than $2.4 billion since 1994, by proposing to cut taxes by an additional $364 million. That will bring the total value of our tax reduction program to $3.6 billion by 2004 - much more than any administration in the history of the City.

Of course, we need to increase spending in certain specific areas to help cement the progress of the last six years and improve the quality of life of our city even more.

Crime reduction has been the foundation of our city's resurgence. New York has been the safest large city in America for four years and counting. But to ensure that New York remains the safest large city well into the future requires a commitment to constant improvement.

To that end, the administration has proposed investments to enhance the enforcement and prosecution of hate crimes; the funding of a state-of-the-art DNA testing facility; increasing the number of police officers from 40,210 to 41,440 through federal crime bill funds, and hiring more school safety officers to ensure a safe learning, teaching and working environment.

To continue to meet the educational needs of our city's children, the Executive Budget provides the Board of Education with a record $11.4 billion in funding. As a result of the policy to end social promotion, failing students are expected to attend summer school this July. This budget provides an increase in summer school funding, as well as for air conditioning in the classrooms.

Additional investments in education include expansion of the truancy reduction program TRACK (Truancy Reduction Alliance to Contact Kids), increased funding for school sports, and the proceeds from the sale of the Board of Education building. Merit pay for principals is already being funded as a result of an historic agreement, and we hope to be able to achieve merit pay for teachers as well.

Those are just a few of the many initiatives in this budget that I believe will improve the quality of life for all New Yorkers. I look forward to working with all the people of the city to secure these important changes as we work to build on our successes in the new millennium.