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The Public Speaks on Budget Cuts


For David De Porte, the Department for the Aging's intergenerational program doesn't just provide him with companionship. It gives him a set of eyes.

De Porte, a blind lifelong resident of the West Village, meets with teenage volunteers who help him shop for groceries, fill out paperwork and check prescriptions at the drug store.

"Guide dogs are great, but they can't read labels, and people in stores are not always willing to help," De Porte, a freelance writer, said. Xia, his German Shepherd guide dog, lay quietly by his side during his two minute testimony in front of the City Council yesterday.

The intergenerational program costs more than $1 million. Mayor Michael Bloomberg's budget proposal, released earlier this month, would eliminate that funding.

De Porte was one of many members of the public who got their first opportunity to opine on the mayor's budget proposal Monday. The proposal cuts -- by both increasing taxes and slashing spending -- $2.2 billion from this year's budget. The funding decreases would shrink next year's anticipated deficit to $1.3 billion.

For more on this year's budget cuts, check out "Budget Cuts: Round 1" and our breakdown of each department's cuts.

Cuts to Culture

Among City Council members, the elimination of a $400 property tax rebate has caused the most alarm, but the scores of residents who came to City Hall were far more concerned over the cuts to cultural, health and aging programs.

From doing away with the city's century-old dental program to cutting day care programs for debilitated seniors, the city, residents said, is eliminating the programs that are needed most when times get tough.

As she wound up small chattering teeth toys, Judy Wessler, the director of the Commission on the Public's Health System, asked: "We're talking about children losing their teeth right?" -- referring to the axing of the city's dental program. She let the teeth loose, and they danced off the testimony table.

The heads of the city's most prominent cultural institutions, like the American Museum of Natural History, urged the City Council to revise the mayor's budget proposal to soften the cut's impact. While all of the city's agencies saw an approximately 2.5 percent cut in this year's budget, cultural institutions argue their funding has been cut far more drastically.

According to figures provided by the Cultural Institutions Group, groups have seen cuts as high as 42 percent in city subsidies. The American Museum of Natural History's city funding has been cut by 22 percent -- a total reduction of $2.8 million -- in this fiscal year, while Lincoln Center's has been slashed by 42 percent. The entire cultural consortium has seen a total loss of 18 percent, according to figures provided by the group.

A reduction in programs for the city's most vulnerable, including residents of public housing and senior citizens, drew extensive criticism. The mayor slashes funding for local nonprofit groups that, critics say, will drastically reduce the local services they can provide. Many wondered what would happen to the care programs for seniors with Alzheimer's or the arts and education classes at their local community center.

"Is the city of New York so impoverished that it must rob these seniors of a last modicum of dignity?" asked Patricia Dolan, executive vice president of the Queens Civic Congress.

The mayor's plan will reallocate community services at the New York City Housing Authority saving the city $18.6 million. The cuts, though, will result in the closing of 18 community centers, one in Karen Anglero's Flushing project.

"New York City Housing Authority residents are the city within the city, and we vote, and we'll remember in November 2009," said Anglero.

 

Where the Cuts Come From


 

The "old" budget figures were in the city's 2009 fiscal budget, approved by the City Council in June. The "new" figures are from the budget modification the mayor proposed in November, which is still awaiting City Council approval. For more on the specific items being cut and the debate over taxes and spending see Bugdet Battle: Round 1.

>
DEPARTMENT NEW BUDGET OLD BUDGET % CHANGE $ CHANGE
Brooklyn Public Library*
$22,351,000
$24,566,000
-9%
-$2,215,000
New York Public Library*
$31,410,000
$34,389,000
-8.70%
-$2,979,000
Queens Public Library*
$22,922,000
$25,093,000
-8.70%
-$2,171,000
NY Research Libraries*
$10,064,000
$10,685,000
-5.80%
-$621,000
District Attorney Queens
$38,868,000
$40,184,000
-3.30%
-$1,316,000
Civilian Complaint Review Board
$11,143,000
$11,428,000
-2.50%
-$285,000
Dept. of Cultural Affairs
$148,787,000
$152,573,000
-2.50%
-$3,786,000
Dept. of Homeless Services
$304,049,000
$311,914,000
-2.50%
-$7,865,000
Office of the Actuary
$5,191,000
$5,324,000
-2.50%
-$133,000
Dept. of Education
$7,237,116,000
$7,415,129,000
-2.40%
-$178,013,000
Dept. of Emergency Management
$22,577,000
$23,142,000
-2.40%
-$565,000
Dept. of Records and Info. Services
$5,834,000
$5,979,000
-2.40%
-$145,000
Financial Info Services Agency
$45,908,000
$47,006,000
-2.30%
-$1,098,000
Commission on Human Rights
$2,608,000
$2,667,000
-2.20%
-$59,000
Dept. of Youth Services
$244,183,000
$249,624,000
-2.20%
-$5,441,000
Office of Adminsitrative Tax Appeals
$3,999,000
$4,086,000
-2.10%
-$87,000
Community Boards
$14,249,000
$14,544,000
-2%
-$295,000
Manhattan Borough President
$4,452,000
$4,542,000
-2%
-$90,000
Staten Island Borough President
$3,948,000
$4,027,000
-2%
$79,000
Bronx Borough President
$5,565,000
$5,674,000
-1.90%
-$109,000
Brooklyn Borough President
$5,535,000
$5,644,000
-1.90%
-$109,000
Public Advocate
$2,834,000
$2,890,000
-1.90%
-$56,000
Queens Borough President
$4,597,000
$4,684,000
-1.90%
-$87,000
Administration for Children's Services
$782,777,000
$796,925,000
-1.80%
-$14,148,000
Dept. of Buildings
$105,364,000
$107,293,000
-1.80%
-$1,929,000
Dept. of Transportation
$470,212,000
$477,687,000
-1.60%
-$7,475,000
Conflicts of Interest Board
$1,959,000
$1,989,000
-1.50%
-$30,000
Campaign Finance Board
$11,586,000
$11,752,000
-1.40%
-$166,000
Dept. of Sanitation
$1,246,629,000
$1,264,922,000
-1.40%
-$18,293,000
City Univerity of New York
$450,153,000
$456,276,000
-1.30%
-$6,123,000
Dept. of Environmental Protection
$963,652,000
$974,495,000v
-1.10%
-$10,843,000
Dept. of Information Technology and Telecommunications
$241,325,000
$244,015,000
-1.10%
-$2,690,000
Dept. of Health and Mental Hygiene
$654,382,000
$660,851,000
-1%
-$6,469,000
Dept. of Juvenile Justice
$95,599,000s
$96,592,000
-1%
-$993,000
District Attorney Kings
$71,682,000
$72,318,000
-0.90%
-$636,000
Housing Preservation and Development
$78,323,000
$79,004,000
-0.90%
-$681,000
District Attorney Bronx
$42,265,000
$42,590,000
-0.80%
-$325,000
District Attorney Staten Island
$7,160,000
$7,218,000v
-0.80%
-$58,000
Office of Payroll Administration
$12,614,000
$12,721,000
-0.80%
-$107,000
Health and Hospitals
$94,614,000
$95,111,000
-0.50%
-$497,000
Office of the Special Narcotics Prosecutor
$15,402,000
$15,461,000
-0.40%
-$59,000
Mayor's Office
$67,937,000
$68,088,000
-0.20%
-$151,000
Dept. of Correction
$940,399,000
$941,612,000
-0.10%
-$1,213,000
Fire Dept.
$1,351,436,000
$1,352,007,000
0%
-$571,000
Board of Elections
$89,166,000
$89,166,000
0%
$0
City Clerk
$4,654,000
$4,654,000
0%
$0
City Council
$52,260,000
$52,260,000
0%
$0
Civil Services Commission
$644,000
$644,000
0%
$0
Equal Employment Practices Commission
$799,000
$799,000
0%
$0
Office of Collective Bargaining
$1,720,000
$1,720,000
0%
$0
Public Administrator - Bronx
$502,000
$502,000
0%
$0
Public Administrator - Brooklyn
$582,000
$582,000
0%
$0
Public Administrator - Manhattan
$1,242,000
$1,242,000
0%
$0
Public Administrator - Queens
$455,000
$455,000
0%
$0
Public Administrator - Staten Island
$366,000
$366,000
0%
$0
Business Integrity Commission
$6,248,000
$6,247,000
0%
$1,000
Taxi and Limousine Commission
$30,085,000
$30,084,000
0%
$1,000
Dept. of Consumer Affairs
$18,664,000
$18,662,000
0%
$2,000
Dept. of Investigation
$17,587,000
$17,583,000
0%
$4,000
Office of the Comptroller
$58,737,000
$58,717,000
0%
$20,000
Law Dept.
$120,875,000
$120,853,000
0%
$22,000
Board of Correction
$933,000
$932,000
0.10%
$1,000
Landmarks Preservation Commission
$3,765,000
$350,$3,762,000
0.10%
$3,000
District Attorney NY
$72,435,000
$72,175,000
0.40%
$260,000
Dept. of Social Services
$6,513,040,000
$6,470,475,000
0.70%
$42,565,000
Dept. of Parks and Recreation
$269,776,000
$267,058,000
1%
$2,718,000
Dept. of Probation
$61,284,000
$60,368,000
1.50%
$916,000
Independent Budget Officer
$3,155,000
$3,100,000
1.80%
$55,000
Dept. of Small Business Services
$104,353,000
$101,477,000
2.80%
$2,876,000
Dept. of Finance
$208,677,000
$202,229,000
3.20%
$6,448,000
Dept. of City Planning
$17,349,000
$16,789,000
3.30%
$560,000
Police Dept.*
$3,985,907,000
$3,786,667,000
5.30%
$199,240,000
Dept. of Citywide Administrative Services
$203,879,000
$184,099,000
10.70%
$19,780,000
Dept. for the Aging
$179,211,000
$157,890,000
13.50%
$21,321,000
Dept. of Design and Construction
$9,384,000
$7,522,000
24.80%
$1,862,000

 

Budget figures do not include debt service, pension costs, and long term employee health care costs.

*Library figures are skewed because the administration pre-paid costs in the previous budget year. Therefore, budget cuts for major library branches are 2.5 percent for this budget year and 5 percent for fiscal year 2010. Some budget increases, including the police department, are attributed to increases in labor union contracts.

Stimulus Money: The Downturn's Silver Lining?


The doom and gloom minor-key melody that has been the city, state and federal government's economic song for the past few months has a contrapuntal drum beat beneath it: the steady call for infrastructure spending as an economic spur.

Since the financial crisis began, transportation advocates and trade groups representing the construction industry have called, frequently and loudly, for increased spending on transportation infrastructure. Nobel Prize laureate Paul Krugman joined fellow New York Times columnist David Brooks to suggest that investment in transportation infrastructure is both necessary and sensible given the state of the country's roads, bridges, transit systems and railways, as well as the dire need for jobs and domestic spending.

The economic turmoil has also created a huge financial shortfall for New York City's mass transit system, which relies heavily on dedicated tax revenues to fund its day-to-day operations. While a stimulus package could provide capital money for the city's subways and trains to expand and improve, current proposals would do little to remedy the billion dollar operational deficit facing the system.

On Sept. 26, the House of Representatives passed the Job Creation and Unemployment Relief Act of 2008, a $61 billion economic stimulus package with $30 billion set aside for transportation and infrastructure programs, including $12.8 billion for highways and bridges, $4.6 billion for transit and $500 million for Amtrak. The Senate has not yet taken action on the bill, but Rep. Jerrold Nadler of New York, who sits on the House Transportation and Infrastructure Committee, said that he expects to see a $60 billion to $100 billion stimulus program, with large infrastructure allocations, signed into law during the lame-duck session this fall.

The New York Times reported that President-elect Barack Obama is already working with congressional democrats on a larger stimulus package to be passed in January, including "more jobless benefits, food stamps, aid to financially strapped states and cities, and spending for infrastructure projects that keep people at work." "Most economists I've talked to are saying between $300 and $400 billion for the larger stimulus bill" to be passed after Obama and the new Congress takes office, Nadler said.

If and when either of these bills becomes law, how much money will eventually find its way to infrastructure improvements in New York State and New York City?

Ready-To-Go Projects

This, in large part, depends on the list of "ready-to-go" projects prepared by the state and city transportation departments and regional authorities like the MTA.

For transportation infrastructure spending to work as an economic stimulus, the federal government's money needs to be put to use as quickly as possible, according to Nadler. "The point of a stimulus package is to get money spent and have it circulate, so part of an intelligent package is picking projects that can get done now: Environmental review is done. Plans are done. Shovels can go in the ground. Bricks can be laid. Workers can get paid," he said.

Projects that meet these requirements are termed "ready-to-go" and are given preference in the stimulus bill that the House passed in late September. It reads: "Priority in the use of funds shall be given to projects that can award contracts based on bids within 120 days of enactment." Similar language will almost certainly appear in any final stimulus legislation with large allocations for infrastructure spending.

According to the Metropolitan Transportation Authority, the economic impact of capital spending can be roughly estimated by assuming every $1 billion equates to 8,700 jobs, $54 million in wages, and $1.5 million in related economic activity. The House Transportation Committee staff estimates that the $30 billion set aside would create or sustain 834,000 jobs nationally.

Furthermore, because of Buy America laws, which require that steel, iron and manufactured goods used in federally funded projects be made in the United States, the benefits from these dollars will extend beyond construction companies. Parts producers, manufacturers, assembly-line laborers and every related industry, from food service to work-clothing companies, will see some of the benefit too.

Ready-to-Go in NYC

Because this money may soon be available, states, cities and regional transportation authorities across the country are scrambling to put together lists of ready-to-go projects. Last January both the American Association of State Highway and Transportation Officials and the American Public Transportation Association surveyed member groups about what projects they had in the pipeline that would be eligible for this kind of federal funding.

New York City Transit listed five projects in need of a total of $742 million, including $550 million for the rehabilitation of two dozen subway stations; $30 million for replacing obsolete rails and plates; $100 million for passenger-communications infrastructure at 87 stations; and $62 million for the construction of additional pedestrian overpasses and viaduct spans. The MTA's commuter rail lines responded by listing roughly $35 million in ready-to-go projects, including $23 million for maintenance facility repairs.

In response to the American Association of State Highway and Transportation Officials survey, the New York State Transportation Department listed 40 highway and bridge projects adding up to $200 million, although as of publication, specifics were not listed on the association's website. However, in a telephone interview, Felice Farber, director of external affairs at the General Contractors Association's New York chapter pointed to a Manhattan Bridge rehabilitation project as one that could be eligible for federal stimulus funds.

Of course, both here and around the country, there will almost certainly be more projects seeking funds than money available. The lame-duck session stimulus bill that the House has passed makes clear that fund distribution will be based on existing statutory formulas with preference given to ready-to-go projects. There is no indication of how funds will be distributed in the second stimulus bill, but some area advocates hope that, because of New York State's strong presence on the House Transportation and Infrastructure Committee, as well as Obama's pro-urban inclinations, big cities might do relatively well.

Building on a Bad Foundations

Although transportation and construction advocates long involved in the fight for maintaining the country's transportation system are pleased that the federal government might soon step up and contribute large amounts of money to help the nation's ailing infrastructure, some worry about spending on capital construction at a time when agencies like the MTA are struggling to meet their day-to-day operating expenses.

On Nov. 10, the MTA held an emergency meeting of its finance committee and projected an operating budget gap of $1.2 billion for 2009, growing to upward of $2 billion by 2012. The federal legislation being considered right now would not help the MTA close these gaps but would instead focus on capital construction projects. To runs its subways, trains and buses, the MTA will have to fight for increasingly limited city and state funds, enact internal cost-cutting measures and raise fares and cut service.

"We've raised the alarm on MTA finances plenty of times before, but this is the worst the books have looked in a generation," said Wiley Norvell, communications director at Transportation Alternatives. "We're staring down the twin barrels of big fare hikes paired with big service cuts, and it isn't pretty."

The choices here are complicated.

"It creates a real question to where the money should be going," said Neysa Pranger, communications director at the Regional Plan Association. "It's vital to expand for many reasons, but what happens if fares skyrocket and tracks crumble while that's happening? I don't see that resonating well with the public."

Richard T. Anderson of the New York Building Congress disagrees. "They should cut operational spending before they cut capital," he said. "Cutting capital would be disastrous. If we cut operations it means that each office needs to economize, but if you slash the capital you're hurting the economic growth of the city when you need it most."

Judging by the legislation as it's written now, it seems likely that Anderson and other construction industry advocates will have their way, but there is a lot left to unfold. Congress must first pass a stimulus plan, the president must sign it into law, and New York City and state must be ready to go. All the while new interest groups and new constituencies will be looking for their piece of the pie. One thing is for sure, in an economy like this, it will be a scramble from start to finish.

 



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