Mayor Michael Bloomberg and City Council Speaker Gifford Miller, surrounded by several members of the New York City Council, signed off on a $47 billion budget deal June 21 that includes a $400 property tax rebate to homeowners and restoration of funds to after-school and senior programs. Both leaders agreed that the spending plan for the budget fiscal year 2005, which began on July 1, “stands up for all New Yorkers.”

Bloomberg called the deal, which was hammered out after more than two months of discussions between the mayor’s office and the City Council, and in advance of the state budget, “a budget that addresses the priorities of all New Yorkers.”

“This is a responsible agreement that protects critical services and makes sound investments in the future of this great city,” said Miller. The compromises reached in this budget show respect for the city’s rebounding economy. Further, they protect our most vulnerable, balance the budget and leave us with a surplus for the upcoming fiscal year.”

In addition to the $400 property tax rebate, the budget includes the enactment of an historic city Earned Income Tax Credit (EITC). According to a City Council press statement, the city EITC is expected to benefit about 700,000 New Yorkers who will see their annual income tax drop by as much as $215 per year.

The Council restored $215 million in services that had been reduced or slashed in the mayor’s original executive budget plan, including 2,500 day care slots, longer library hours, after-school programs, weekend meals for seniors and HIV/AIDS prevention programs. The Council and the administration also agreed to invest funds targeted at reducing class size from kindergarten through third grade, strengthening legal aid services and programs to combat chronic unemployment in certain communities.