Newsline: May 2007
Bloomberg Announces $59 Billion 2008 Budget
 Grim-faced and showing little sign of the enthusiasm one expects to see from someone about to deliver good news, Mayor Michael R. Bloomberg announced on April 26 his Fiscal Year (FY) 2008 Executive Budget that includes an unprecedented $4.4 billion surplus.
Speaking at City Hall, Mayor Bloomberg said the $59 billion executive budget for the fiscal year beginning July 1, 2007, “maintains the city’s firm financial footing in the near term.” In addition it maintains the tax reduction initiatives and the additional funds for retiree health benefits that the mayor announced as part of the preliminary budget in January, provides funding to begin paying down the city’s debt and close budget gaps through FY 2010, and offers new initiatives to improve the long-term financial health of New York City.
Bloomberg added that the city expects to generate a surplus of $4.4 billion this year as a result of the city’s strong economy, and “near record profits” on Wall Street. The mayor said he has already earmarked this “exceptional revenue” to help close the significant budget deficit expected over the next four years.
“I’m determined not to leave a problem for our successors,” Bloomberg declared. “We are going to act in a fiscally prudent manner. We are not going to squander our good fortunes on politically popular giveaways which will jeopardize our future.”
As he had previously announced in his State of the City address in January, Bloomberg said he intends to return $1.25 billion of the surplus to the people of the city in cuts to business, sales, and property taxes. Approximately $750 million of this tax relief will come as a temporary, one-year property tax rate reduction, which would come in addition to the extended $400 property tax rebates for homeowners. It also includes $250 million in proposed permanent tax cuts for families and small businesses: $140 million in sales tax relief by eliminating city sales taxes on all clothing and shoes, and $110 million in five job-creating tax breaks for small businesses and S-corporations in New York City.
Included in the surplus is $729 million generated from the city’s Agency Program savings in FY 2007 and FY 2008. The mayor said he will spend $700 million of that savings to fund new initiatives and PlaNYC expenses.
Program Highlights:
$3.3 million for bulletproof vests for auxiliary officers at the NYPD
$1.5 million to enhance the 311 system at DoITT
$5.4 million for ferry security at the Department of Transportation
$2.8 million for additional EMS Tours and Fire Marshals at the FDNY
$75 million in increased funding to the classroom at DOE
$3.5 million to open up schoolyards citywide (PlaNYC 2030)
$8.1 million for tree pruning and maintenance (PlaNYC 2030)
$8.1 million to develop a city bike network (PlaNYC 2030)
Over the next 10 years, the administration plans to invest more than $83 billion in city infrastructure as part of its capital plan. The administration will devote $1.6 billion in capital funding for PlaNYC 2030 capital expenses, including the following:
$42 million for soccer fields
$387 million for eight regional parks
$111 million to open up schoolyards
$46 million for bus initiatives
$938 million in funding for the city’s third water tunnel
$28.2 billion for school construction
$3.5 billion for reconstruction and resurfacing of 10,778 lane miles
The Administration will also spend $1 billion to build a new Police Academy for the NYPD in College Point, Queens, with planning and design scheduled to begin in FY 2008 and construction in FY 2010.
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