A Billion Dollar Deficit (Update)
May 20th, 2009

The Independent Budget Office released its executive budget analysis today and in it it found a looming $1.1 billion deficit.

That’s because Much of the mayor’s proposal relies on legislative uncertainties floating in Albany, including a sales tax increase and the creation of a new pension tier, which both need approval from the State Legislature. (See update below)

In response, Council Speaker Christine Quinn said this afternoon that she wouldn’t negotiate the budget in the press. But, rest assured, the gap would be closed (it has to be by law).

“We are in budget negotiations, and we will have a balanced budget by the end of the fiscal year with a revenue package that is fair and appropriate,” said Council Speaker Christine Quinn. “I think it’s a little odd to count actions that haven’t happened when you know (they) will happen.”

Quinn was also asked about proposed cuts to the city’s civilian police force, which could in turn affect the amount of officers assigned to the street beat. The police commissioner has said the department will have to assign uniformed officers to the posts that have been vacated by civilian officers. This year’s budget calls for the reduction of the civilian force by 989, including 345 layoffs.

Quinn said these issues remain a concern to the council.

Update: Doug Turetsky of the IBO just phoned in, and the IBO’s latest analysis does indeed factor in the mayor’s gap closing measures, including the sales tax, the labor concessions and a new pension tier. Turetsky said they project a larger budget gap because of lower revenues and higher expenses, mostly due to the implementation of the Metropolitan Transportation Authority’s payroll tax.

By on May 20, 2009, 1:17 pm
In category: Albany,Economy,Electoral Politics,Gotham City,nextNY,Public Finance,Transportation | 1 Comment »

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One Response to “A Billion Dollar Deficit (Update)”

  1. Larry Littlefield Says:
    May 20th, 2009 at 2:55 pm

    “Much of the mayors proposal relies on legislative uncertainties floating in Albany, including a sales tax increase and the creation of a new pension tier, which both need approval from the State Legislature.”

    Even if the new pension tier is approved, it would only affect new employees. The city actuary (in a rare case of guts by the breed) says there would be zero savings for years.

    Bloomberg wants him to agree that because the city will be hiring less well compensated workers in the future, that’s a savings that can be spent right now. Deperation as Generation Greed continues to sell the future even as the future continues to arrive.

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