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FOR IMMEDIATE RELEASE
PR- 222-03
August 7, 2003

STATEMENT BY MAYOR MICHAEL R. BLOOMBERG ON RESOLUTION BY LOCAL GOVERNMENT ASSISTANCE CORPORATION

“Last week I testified before the Financial Control Board that the clouds that have been hanging over the city were beginning to part.  We had faced our fiscal challenges directly and achieved balanced budgets-- mainly because New Yorkers were willing to make sacrifices so that we could preserve our quality of life-- and recent indications are that the City’s economy is rebounding.

“Part of our budget solution called for State aid in the form of relief from bonds the City issued during the fiscal crisis of the 1970’s.  City taxpayers send over $3 billion annually to Albany more than we get back. The decision by the State Legislature to provide this relief uses but a small portion of this surplus.  The State Legislature agreed to pay for the remaining debt, which would save us $500 million a year over the next five years.  Both houses passed legislation obligating the Local Government Assistance Corporation to pay for the debt and the Legislature choose the time frame during which LGAC would pay it off.  Both houses of the Legislature then overrode a veto attempting to stop this crucial aid package.

“LGAC was created ten years ago to finance outstanding state obligations. If it was good enough to deal with the State’s “Spring Borrowing” problems, it is clearly appropriate for the State to use it to pay for the remaining MAC obligation.

“Unfortunately, last night, LGAC, an un-elected state board, decided it would attempt to overrule the will of the Legislature, the elected representatives of the people of New York, and deprive the City of this critical aid package. This board is clearly trying to undermine the people of this State through their illegal actions.

“The State of New York made a promise to the people of this City. We will take all necessary legal actions to enforce that promise.”







MEDIA CONTACT:


Edward Skyler / Jordan Barowitz   (212) 788-2958




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