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THE C ITY OF NEW YORK
OFFI CEO FTHE MAYORNE W YO R K, NY 10007
FOR IMMEDIATE RELEASE
January 29, 2013No. 42www.nyc.gov
MAYOR BLOOMBERG PRESENTS FISCAL YEAR 2014 PRELIMINARY BUDGET
Economic Growth and Spending Discipline Provide for a Balanced
Budget with No Tax Increases
Citys 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 YorkCitys 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
citysprivate 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 emergency
response 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 theunions refusal to agree to an evaluation system.
The financial plan presented today continues to protect critical
services and fostereconomic 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. Were 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.
(more)
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Improving Economy
The Citys economy continues to grow and tax revenues have
increased: in FY 2013, non-property tax revenue was $222 million
higher than anticipated when the budget was updated inNovember.
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.
Education
Since 2002, City-funded spending on educationhas increased by
132 percent, from $6.0billion 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 percent of non-Federally funded education costs,
while the State funds 39 percent. In FY 2002,the State and the City
evenly shared the costs.
The City stands to lose $724 million in State education aid for
New York City schools overthe 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
extracurricularactivities 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 blockan 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.
Headcount
The Citys 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
Citys 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 willbe 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.
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Contact: Marc La Vorgna/Lauren Passalacqua (212) 788-2958
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