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Bloomberg FY 2014 Prelim Budget

Bloomberg FY 2014 Prelim Budget

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Published by Celeste Katz
Bloomberg FY 2014 Prelim Budget
Bloomberg FY 2014 Prelim Budget

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Published by: Celeste Katz on Jan 29, 2013
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, NY 10007
January 29, 2013 No. 42www.nyc.gov 
 Economic Growth and Spending Discipline Provide for a Balanced Budget with No Tax IncreasesCity’s Private Sector Employment Continues to Outpace National Growth
Mayor Michael R. Bloomberg today presented the Fiscal Year (FY) 2014 PreliminaryBudget and an updated four-year financial plan. The plan outlined today reflects the New York City’s ongoing economic growth and spending discipline, which provide for a balanced budget thatdoes not rely on tax increases. The Preliminary Budget includes $6.5 billion in savings achievedthrough 12 rounds of deficit closing actions the City has taken since 2007.It shows that the city’s private sector employment have grown by 6.9 percent since the end of the recession in 2009,compared to 3.9 percent nationally. The FY 2014 Preliminary Budget reduces controllable Cityspending by 1.1 percent compared to the prior year while maintaining City services.It alsoestimates $4.5 billion in Sandy-related expenses, including $1.4 billion spent on emergencyresponse and $3.1 billion on repairs – all of which the City anticipates will be reimbursed byFederal aid.The budget plan details the impact of a major loss of State education aid due to therefusal of the United Federation of Teachers to agree to a teacher evaluation system. The Mayor hasrequested that State legislators act to ensure New York City schoolchildren are not harmed by theunion’s refusal to agree to an evaluation system.“The financial plan presented today continues to protect critical services and foster economic growth, while also taking the responsible, budget-minded actions that have resulted in amore efficient City government,” said Mayor Bloomberg. “Our investments in industries like thetech, film and tourism sectors are paying off in the form of new jobs and revenue. Still, there ismore work to do, particularly in the area of State education funding and the potential loss of another $250 million. We’re hopeful Albany will protect our students against penalties levied because theteachers’ union refuses to agree on an evaluation agreement. The loss of this aid would undermineour consistent investments in public education and also jeopardize the progress City schools havemade.”The Preliminary Budget is a $70.1 billion plan, with a City-funded portion of $50.7 billion.The Preliminary Budget reduces year-over-year controllable City expenditures by $254 million, a1.1 percent decline from FY 2013. Expenses not fully controlled by the City – primarily pensions,health care, Medicaid and debt service – rise by $1.8 billion, a 6.8 percent increase from FY 2013.
 Improving Economy
The City’s economy continues to grow and tax revenues have increased: in FY 2013, non- property tax revenue was $222 million higher than anticipatedwhen the budget was updated in November.Private sector employment in New York City has grown by 6.9 percent since the end of the recession in 2009, compared with national growth of 3.9 percent. The City also welcomed arecord 52 million tourists, generating sales and hotel tax revenue.
Since 2002,City-funded spending on education has increasedby 132 percent, from $6.0  billion in FY 2002 to $13.9 billion in FY 2014.The continued increase in City-funded educationexpenses comes as the share of State-funded education expenses has declined: The City now funds61 percentof non-Federally funded education costs, while the State funds 39 percent. In FY 2002,the Stateand the Cityevenly shared the costs.The City stands to lose $724 million in State education aid for New York City schools over the next two years because the UFT has refused to come to agreement on an effective evaluationsystem. In the current fiscal year, the City will lose $250 million in State education aid, resulting ina loss of 700 teachers through attrition this year, as well as the reduction of funds for extracurricular activities and afterschool programming. The City will forfeit another $250 million in the next fiscalyear, as well as $224 million included in the State executive budget if the union continues to block an evaluation agreement. This reduction would result in another 1,800 teachers lost throughattrition. The City would also need to eliminate 700,000 hours of afterschool programs, and wouldhave approximately $67 million less for school supplies. The cuts would have a direct and direimpact on classrooms across the city and will be borne by the students who need and deserve high-quality education.Without an evaluation agreement, the City may also lose an additional $1 billion ineducation aid from the State and Federal governments.
The City’s full-time and full-time equivalent headcount in FY 2014 Preliminary Budget is293,527 a reduction of 18,277 positions (5.9 percent) since the start of the BloombergAdministration. The City’s December 31, 2001 full-time and full-time equivalent headcount was311,804.
 Hurricane Sandy
The Preliminary Budget includes an estimated $4.5 billion in storm-related costs. Of that,$1.4 billion is for emergency response and debris removal and is a part of the Expense Budget. Theremaining $3.1 billion is comprised of long-term repair needs for damaged infrastructure that will be incurred over time in the Capital budget. The total Sandy-related expenses include: $310 millionfor the schools; $812 million for hospitals; $1 billion for housing; and $601 million for parks.-30-2

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