Archives of the Mayor's Press Office

Date: Friday April 24, 1998

Release #178-98

Contact: Colleen Roche (212) 788-2958


See details of the Executive Budget FY '99.

Surplus to Fund More Tax Reductions & Gap Reduction; Disciplined Spending to Enhance Education, Public Safety & Quality of Life Initiatives

Proposes Creation of New York City Sport Facilities Corporation to Fund City Portion of New Stadia
Mayor Rudolph W. Giuliani said today that the disciplined fiscal strategy of the past five years has resulted in the largest revenue surplus in the City's history. In releasing New York City's 1999 Executive Budget, the Mayor said that the $2 billion surplus will help reduce the out-year gaps to keep the City fiscally sound, cut taxes in order to increase private sector job growth, and increase spending in strategic areas to improve the quality of life for all New Yorkers.

"Today, New York City is in a position of financial stability and strength because, over the past five years, we have made difficult decisions that will preserve and protect the long-term future of our great City," the Mayor said.

"We have changed the direction of the City by significantly reducing the rate of growth of City spending and the size of City government. While we have made tax reductions the focus of budget debate, we have also made commissioners accountable for the delivery of services and management of their budgets.

"And while the City's financial condition has been significantly improved, out-year gaps still must be reduced. With submission of this Executive Budget, we reaffirm our commitment to disciplined financial management," the Mayor concluded.


City Spending:

Private Sector Employment:

Financial Plan:

FY 1998 Budget Stabilization Account $1,961,000,000
FY 1999 Revenue Forecast 752,000,000
Debt Service Savings 417,000,000
Agency Programs 595,000,000
State & Federal Aid 100,000,000
Total Additional Sources of Funds $3,825,000,000

1999 Gap Reduction ($2,080,000,000)
Fund FY99 Budget Stabilization Acct ( 416,000,000)
Targeted Spending ( 1,092,000,000)
Add'l Tax Reduction Program ( 237,000,000)
Total Uses of Add'l Funds ($3,825,000,000)

Public Safety Initiatives ($285,000,000)
Education ( 273,000,000)
State & Federal Aid Losses ( 157,000,000)
Year 2000 Computer Planning ( 70,000,000)
One City One Fare ( 58,000,000)
Social Services ( 58,000,000)
Fresh Kills Landfill Closure ( 52,000,000)
Judgements & Claims ( 35,000,000)
Emerging Industries Fund ( 30,000,000)
Children's Services ( 26,000,000)
All Other Spending ( 48,000,000)
Total Targeted Spending Increases ($1,092,000,000)

Gap Reduction:

Tax Reduction Program - Enacted & Proposed:

Education Initiatives:

Project Read $125 million
Partners in Reading (NYCHA) $ 3.5 million
Ending Social Promotion $ 25 million
Summer School Enhancement $ 39 million
Project Arts $ 50 million
Young Adult Centers $ 7 million
Project Smart Schools $150 million
Communic./Network Upgrade $ 34 million
2nd Opportunity Schools $ 7 million
Seating Capacity $717 million


Beginning in FY99 no City tax levy funds will be expended unless CUNY:

Public Assistance:

New York City Sports Facilities Corporation:

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