Recent Posts
NYC Blogs
Click here for a list of NYC blogs
Newsfeeds
Search This Blog

More Budget Cuts, More Budget Blame
May 5th, 2011

In his budget presentation set for Friday morning, Mayor Michael Bloomberg will announce his 10th round of budget cuts but will try to keep New Yorkers from blaming him or Wall Street — for the layoffs and reductions in services. Instead the mayor intends to tell anyone listening that the federal and state governments are responsible for any fiscal pain they may feel next fiscal year, which begins July 1.

A budget preview released by the mayors office Thursday said cuts would not have been needed if the state and federal governments had increased their funding to the city to keep up with rising costs. Without providing any details those, no doubt, will come Friday morning — the statement also blames Washington and Albany for much of the rise in costs.

Overall, Bloombergs office said he has cut $5.4 billion in city spending since 2008 including some $400 million expected to be set out tomorrow. But by the administrations calculation if the state and federal governments were to provide the city with the same share of its budget as they had in 2002 (no explanation as to why they chose that year), the city would get an additional $6.1 billion in fiscal year 2012, eliminating the need for cuts.

While the state and federal governments may not be doing their fair share, Wall Street apparently has, according to Bloomberg. The administration projects the city will collect $5.75 billion in business tax revenues in the coming fiscal year up from $5.41 billion in 2008.

This aims to rebut claims from labor and other groups that the city has suffered because of mismanagement - and worse on Wall Street but is making working people pay the price. It does not, of course, address arguments that the richest New Yorkers — many of whom work on Wall Street — are getting even richer and paying lower taxes in a time of budget cuts.

As to whether Bloombergs criticism of the state and federal governments and exoneration of Wall Street — will stave off any public outrage or City Council opposition to the likely cuts remains unclear. Advocates and unions already are preparing to oppose some of the reductions in jobs and services. And one group already has been successful. In the material released Thursday, the mayors office said he would not cut the 16,000 child care slots Bloomberg called for eliminating in his preliminary budget.

It remains, unclear, whether Bloomberg will follow through on his threat to lay off thousands of teachers.

By on May 5, 2011, 11:06 pm
In category: City Hall,Economy,Public Finance | Comments Off

| More

RSS Feed RSS Feed


Comments are closed.

Gotham Gazette the Place for Politics and Policy

Gotham Gazette is published by Citizens Union Foundation and is made possible by support from the Robert Sterling Clark Foundation, the John S. and James L. Knight Foundation, the Altman Foundation,the Fund for the City of New York and donors to Citizens Union Foundation. Please consider supporting Citizens Union Foundation's public education programs. Critical early support to Gotham Gazette was provided by the Charles H. Revson Foundation, Rockefeller Brothers Fund and the Alfred P. Sloan Foundation.

RSS Feed