Jun 27, 2008 12:36 pm US/Eastern
New York City Reaches Budget Agreement
7 Percent Property Tax Cut Remains, $400 Rebate Included
NEW YORK (CBS/AP) ―
Mayor Michael Bloomberg and City Council Speaker Christine Quinn said they have agreed on a $59 billion budget that keeps spending flat but continues to offer tax cuts and rebates for homeowners in the nation's largest city.
Bloomberg called the budget responsible. He said the city will offer a 7 percent property tax cut for a second year and a $400 property tax rebate program for homeowners for a fifth year.
The mayor said the budget, announced Thursday, had four main elements:
-- Putting the lid on city-funded spending.
-- Investing current tax revenues wisely by using them to help reduce looming budget gaps.
-- Extending help to homeowners who are struggling to balance their own budgets, many of them because of the subprime mortgage meltdown and subsequent credit crunch.
-- Keeping faith with the city's youngest and oldest residents, increasing funds for public schools and senior centers.
The budget increases city funding to the Department of Education by $129 million and to the New York City Housing Authority by $18 million over what was proposed in the Mayor's Executive Budget.
Bloomberg said at City Hall that these are difficult financial times so the city is acting prudently.
"With so much uncertainty in the local and national economy, our duty is to show fiscal restraint, just as families across this city are doing," he said. "At the same time we also have a duty to continue making the investments in infrastructure and services that are essential to the long-term health of our economy."
The deal for fiscal year 2009, which starts Tuesday, comes as the City Council is scrutinized for its budget practices and Bloomberg's administration is taking steps to be more transparent in how it hands out special funding for council members' pet projects.
The budget will be passed by the City Council over the weekend, a week ahead of deadline, Bloomberg said.
Quinn said some difficult but smart decisions were made in the budget to help the city through the financial uncertainty ahead while maintaining essential services.
"In particular," she said, "our children's education remained a priority."
(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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