Increased tax collections driven by real estate and Wall Street will pump up the city’s budget surplus by “a couple hundred million dollars” – to at least $1.5 billion, a senior mayoral aide disclosed yesterday.
Mark Page, director of the mayor’s Office of Management and Budget, painted the rosy fiscal picture amid negotiations between the mayor and City Council on next year’s $46.9 billion budget.
The budget director also pointed out that agencies probably spent less than budgeted since they were warned to stay within limits.
The Independent Budget Office estimated that the news might be even better, with a $1.6 billion surplus on June 30, the end of the 2004 fiscal year.
City Comptroller William Thompson said he had not seen the new figures but wasn’t surprised.
“Wall Street and tourism seem to be carrying us in a lot of ways, but you’re still not seeing major changes in jobs and other things in the city,” Thompson said.
“We urge caution. You’re not seeing tens of thousands of new jobs in the city.”
Despite news of the growing windfall, the nearly three-hour hearing grew testy as frustrated council members tried in vain to get Page to own up to $220 million in service cuts they contend are hidden in the mayor’s proposed budget.
Councilman James Oddo (R-S.I.) said the administration should have the courage to say it is making cuts, while also proposing a $250 million rebate to homeowners.
“There are too many wordsmiths. Let’s just call it a cut. We’re going to cut spending and give a few dollars back to taxpayers. Let’s have the courage to say it,” the Republican leader said.
Councilman David Weprin (D-Queens) said: “Last year, when we were in a fiscal crisis and we were asking for a $2.7 billion bailout package from Albany, using the word ‘cut’ was politically correct. But this year, when we’re talking about rebates and good-news budgets, using the word ‘cut’ is not a politically correct term. Is that a good way to characterize it?”
But Page insisted there are no cuts.
“I don’t believe that it’s an accurate way of characterizing it. I think as a factual matter last year we were looking at very substantial cuts in available resources, and I don’t believe that is overall the case at this point,” he said.
Weprin said the council would push for restorations using the newfound cash. The council is expected to vote on the budget on June 7.
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Cash cow
City finances are reaping benefits from an improving stock market and the property tax:
* Previously estimated surplus: $1.3 Billion
* Latest windfall: $150-200 Million bring surplus to about $1.5 Billion
Service restorations that City Council wants: $220 Million
Cost of Mayor Bloomberg’s $400 rebate to homeowners: $250 Million
Additional cost of council alternative budget plan: $300 Million
TOTAL BUDGET: $46.9 BILLION