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FOR IMMEDIATE RELEASE
PR- 174-03
June 25, 2003

MAYOR MICHAEL R. BLOOMBERG AND COUNCIL SPEAKER GIFFORD MILLER ANNOUNCE AGREEMENT ON NEW YORK CITY BUDGET

$6 Billion Budget Gap Closed Through Efficiencies, Cuts and New Revenues While Services Will Preserve Quality of Life for New Yorkers

Mayor Michael R. Bloomberg and City Council Speaker Gifford A. Miller today announced an agreement of the $44 billion Fiscal Year (FY) 2004 New York City Budget.  The agreement closes a $6.4 billion budget gap in a fiscally prudent manner while keeping New York’s streets safe and clean, educating our children, and protecting the City’s most vulnerable.  These protections were achieved while cutting the City’s budget by over $3 billion and maintaining the City’s ‘A’ bond rating.

“This year’s budget preserves what is most vital to our City,” said Mayor Bloomberg. “We met difficult challenges head on and have been able to maintain our quality of life while maintaining the City’s fiscal integrity.  I wish to thank Speaker Miller, Finance Chair Weprin and the entire City Council for their courage, hard work and commitment on behalf of the people of New York City.  This budget wasn’t easy, but when difficult decisions had to be made the Council stood up and did what was right.”

“I’m very pleased to announce that we have reached an agreement with the Mayor that addresses the fiscal crisis in a responsible way and protects the services that the city needs in order to sustain a decent quality of life,” said Speaker Miller. “With this agreement, the City will have a balanced budget next year.  But we will also continue to address the crisis of infant mortality, provide quality health and child care, and make it possible for the elderly to grow old with dignity.”

Beginning in July 2002, the Mayor aggressively addressed the largest budget gap in the City’s history by ordering the first of four agency reduction programs for the fiscal year that resulted in an overall reduction of more than $3 billion in City spending.  In November, the Mayor presented his first fiscal plan for FY ’04 that relied on a balance of spending reductions, tax increases and substantial assistance from the State government.  In December, the City Council passed a property tax increase that reduced the FY ’04 budget gap.  In May, the Mayor won $2.7 billion worth of assistance from Albany allowing the City to navigate the most severe aspects of the fiscal crisis and allowing the Mayor and the City Council to work together on a restoration program.

Mayor Bloomberg won $2.7 billion in assistance from Albany including:

  • $474 million in education aid and grants;
  • $530 million in MAC debt relief;
  • $763 million in taxing authority, and;
  • $73 million in revenue sharing.

In addition, the City secured considerable Federal assistance including $290 million in Medicaid aid and last winter, $650 million in additional funding for the City budget through the Federal Emergency Management Agency (FEMA).

Earlier this month the Mayor announced that as a result of the unprecedented amount of aid the City had received from Albany a series of restorations was feasible.  These included funds for the following:

  • Educating Our Children - $8 million for the Department of Education so teachers will get up to $100 each to purchase instructional materials of their choice. 
  • Keeping New York Clean -  $11 million for the Department of Sanitation to maintain twice-weekly garbage pick-up citywide.
  • Keeping New York Green - $12.5 million for the Parks Department for park maintenance, hiring seasonal aides and playground associates.
  • Engaging our Children - $12.5 million for the Department of Youth and Community Development for summer youth jobs.

Today’s agreement with City Council included the following components:

  • $90 million in additional City Council restorations;
  • $25 million in restorations made possible by off-setting reductions in cost;
  • $100 million in pay as you go capital funds for schools, libraries, roads and bridges;
  • And an agreement on Tort Reform and a Coordinated Street Furniture Authorizing Resolution.




CONTACT:

Edward Skyler / Jordan Barowitz   (212) 788-2958

Chris Policano (City Council)   (212) 788-7113


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