Archives of the Mayor's Press Office

FOR IMMEDIATE RELEASE
Tuesday, April 18, 2000
View the Executive Budget Press Conference
(text available)

Release #122-00

Contact: Sunny Mindel/Curt Ritter 212-788-2958

MAYOR GIULIANI UNVEILS $37.3 BILLION EXECUTIVE BUDGET

CUTS ADDITIONAL TAXES BY $364 MILLION
BRINGING TOTAL CUTS TO $3.6 BILLION BY 2004

Proposes Largest Capital Budget in History for Board of Education

Provides Funding in Labor Reserve for Merit Pay Plan

Increases Spending for Public Safety Initiatives

Announces Record $2.9 Billion Surplus

Year-To-Year Spending Reduced By 2%

Mayor Rudolph W. Giuliani today released New York City's Executive Budget for Fiscal Year (FY) 2001. This Executive Budget reflects the Giuliani Administration's continued success in achieving fiscal discipline. It cuts taxes, to continue the stimulation of record private sector job growth and economic development. It provides increased spending in targeted areas, and provides funds to further reduce the City's out-year gaps. In addition, this Executive Budget projects a record surplus of $2.9 billion, the largest in the City's history, and reduces City-funded year-to-year spending by 2%.

The Executive Budget reflects the Giuliani Administration's success in reducing taxes by more than $2.4 billion since 1994. It proposes cutting taxes by $364 million, which will bring the total value of the Mayor's tax reduction program to $3.6 billion by 2004 -- more than any administration in the history of the City.

"This Executive Budget continues on the course of fiscal discipline that over the last six years has been instrumental in turning New York City around," said Mayor Giuliani. "When I first came to City Hall in 1994 we faced a $2 billion budget deficit and
shortsighted economic policies. Today, as a result of the difficult decisions we made in controlling the growth of government spending, New York City is a leader in preparing responsible budgets. We have set an example for cities and municipalities throughout the nation that an adherence to the basic principles of fiscal accountability can bring a city out of the red.

"The cornerstone of this success has been our ability to control the growth of spending. Since 1994, the City has lowered projected spending by $15.2 billion. Following the creation of a Budget Stabilization Account three years ago, the City continues to be prepared for any downturns or slowdowns in the economy. We will not repeat the mistakes of the past: 71 percent of this money will be used to reduce the out-year gaps; 21 percent will fund targeted educational, public safety and other initiatives; and an additional 8 percent will be used to reduce taxes even further. This Budget reflects our Administration's commitment to improving the quality of life for all New Yorkers. It's an investment in the City's fiscal health.

"Today New York City is a better place to live. Our City's economy is stronger than it has been in decades. Our streets are safer and cleaner than they have been in a generation, and in 1999 New York City had its strongest private sector job growth in more than 40 years. And with its welfare rolls cut nearly in half since 1995, New Yorkers are more optimistic about the future of their City than they have been in many years," the Mayor concluded.

LABOR POLICY

Six years ago the City's Executive Budget made no provision for a new labor settlement. This Executive Budget articulates a strategy in which the work force can be rewarded by providing for a Merit Pay Plan. In the future, employees will receive pay increases based on performance evaluations. This is a departure from the old system, which encouraged mediocrity by giving across-the-board raises. Under the new system, employees will be expected to be more efficient. This will generate productivity savings.

TAX CUTS

Since 1994, the Mayor has reduced taxes by $2.4 billion -- more than any administration in the history of the City. This Executive Budget proposes a substantial new tax reduction program valued at $364 million in FY2001, which will bring the Administration's tax reductions to $3.6 billion by 2004.

Among the tax cuts proposed in this Executive Budget are:

JOB GROWTH

In 1999, New York City experienced its largest single-year private sector job growth on record, with the creation of more than 83,800 jobs - surpassing last year's record, when the City created 76,2000 private sector jobs. During this Administration, the City has experienced the strongest six-year job gain on record, with the creation of more than 380,000 new jobs since January 1994, compared to the loss of over 340,000 jobs during the early 1990s. In 1999 New York City's private sector employment recorded a growth of 2.8%, outpacing the rest of the country's employment, which grew by 2.3%. And this growth occurred throughout the City, with private sector job growth up 4.6% in Staten Island, 3.3% in Brooklyn, 2.9% in Queens, 2.6% in Manhattan, and almost 2% in the Bronx.

TARGETED INVESTMENT IN CRITICAL AREAS

This Executive Budget demonstrates the Administration's commitment to continuing to improve the quality of life for all New Yorkers. Among the investments the Administration will make to ensure that New York City becomes an even better place to live, work and visit are:

Investments to Enhance Public Safety

Investments in Health Care

Investments in Education

Investments in the Environment

Investments in Infrastructure

EDUCATION INITIATIVES

The Executive Budget will continue to meet the educational needs of New York City's children by providing the Board of Education (BOE) $11.4 billion in funding - its largest level ever. In addition, the BOE will also receive its largest Capital Budget ever of $1.6 billion. As a result of the policy to end social promotion, failing students are expected to attend summer school this July. This Budget provides a $64 million increase in summer school funding, bringing total funding to $160 million. In addition, $108 million for air conditioning classrooms has been funded in the capital budget. To assist the BOE in managing a program of this size, at least 20 percent of the summer program should be administered through contracts with private education companies, private schools and colleges using the funding provided. These providers generally work with and train BOE personnel to administer intensive remedial course work.

The Executive Budget also calls for continued funding of several educational initiatives to ensure their continued success, among them:

CAPITAL EXPENDITURES

The Fiscal Year preliminary Capital Plan provides a total of $26.2 billion in capital funding over the next four years. The Capital Plan demonstrates the Mayor's continued commitment to strengthening the City's economy by emphasizing infrastructure rehabilitation. More than half of the funding provided in the Executive Budget, a total of $12.9 billion, will be devoted to improving the City's transportation, mass transit, water, sewer and sanitation systems.

Among the projects included in the preliminary Capital Plan are:

  • New Willis Avenue Bridge
  • CNG Buses
  • Bellevue Hospital Modernization
  • Kings County Hospital Redevelopment
    Phase Two
  • Office of the City's Medical Examiner
    DNA Laboratory
  • Hudson River Park
  • ACS Children's Center
  • Staten Island Criminal and Family
    Court Complex
  • Brooklyn Minor League Baseball Park
  • Kingsbridge Armory Reconstruction
  • Staten Island Minor League Baseball Park
  • Flushing Meadows Pool
  • East River Park

$250 million
$189 million
$159 million
$129 million

$126 million

$ 98 million
$ 63 million
$ 40 million

$ 31 million
$ 30 million
$ 29 million
$ 15 million
$ 5 million

MAJOR CULTURAL EXPANSIONS

The City will be a partner in a number of world-class cultural construction projects that will enhance our position as the Cultural Capital of the World and help attract even more tourists than the record 34 million who visited the City this year. These projects will significantly improve the City's cultural base, strengthen the City's economy and provide lasting cultural monuments for generations to come.

The City will fund several projects to improve the City's cultural institutions, among them:

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