Nov 20, 2008 7:13 pm US/Eastern
Bloomberg: We Have No Money For Rebate Checks
New York City Mayor: 'We Obviously Aren't Going To Send Out Checks When We Don't Have The Money'
NEW YORK (CBS) ―
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At a news conference Wednesday, Bloomberg said the rebates were a fiscal issue, rather than a legal one. He was referring to a lawsuit filed by some Council members to force him to send out the rebates. (File)
CBS
The city's rebate debate between Mayor Michael Bloomberg and the City Council is turning into a legal fight. A Supreme Court judge will decide whether the rebates have to be paid at all.
Like thousands who own homes in the city, Bill Iannachi is counting on the rebate that would put money in his pocket. "It's a $400 payment every year. I look forward to it every year and I'd be very disappointed if we lost it," he says.
Whether Iannachi and thousands of others are disappointed may be decided in court. Barring an agreement with the City Council, the Bloomberg administration is prepared to go to before a judge next month.
The City Council wants to give the rebates this year, but Bloomberg says that's fiscally foolish given the city's future deepening deficit.
'We don't print money so we have to balance the budget," Bloomberg said.
If the court forces a payment, Bloomberg says something will have to give...
"If we don't have the money before we do it, we'll have to announce other cuts or other revenue enhancements," he says.
Council Speaker Christine Quinn believes the law is on her side and says the quarter billion dollars the rebate will cost can be found somewhere in the budget.
"The mayor cannot hold back these checks without the council legislatively allowing him to do so," she said. "Some of this stuff is fat, some of it honestly isn't fat. It's things that it would be good to be able to do but we're just not going to be able to."
Meantime, fiscal expert Nicole Gelinas of the Manhattan Institute says the rebate is pocket change to the city.
"This is akin to a family that can't afford the mortgage arguing over whether it should buy desserts tonight," she said.
But it is to Iannachi and so many others. What would it mean to him if the rebate didn't come this year?
"A tighter Christmas for the family," he said.
Bloomberg has proposed canceling the checks as a way of saving $256 million.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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