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.
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