Archives of the Mayor's Press Office
FOR IMMEDIATE RELEASE
Date: Friday April 24, 1998
Contact: Colleen Roche (212) 788-2958
MAYOR GIULIANI UNVEILS $34.1 BILLION BUDGET AND
ANNOUNCES $2 BILLION SURPLUS -- LARGEST IN CITY HISTORY
See details of the Executive Budget FY '99.
Surplus to Fund More Tax Reductions & Gap Reduction; Disciplined Spending to Enhance Education, Public Safety & Quality of Life Initiatives
Proposes Creation of New York City Sport Facilities Corporation
to Fund City Portion of New Stadia
Mayor Rudolph W. Giuliani said today that the disciplined fiscal strategy of the past five years has resulted in the largest revenue surplus in the City's history. In releasing New York City's 1999 Executive Budget, the Mayor said that the $2 billion surplus will help reduce the out-year gaps to keep the City fiscally sound, cut taxes in order to increase private sector job growth, and increase spending in strategic areas to improve the quality of life for all New Yorkers.
"Today, New York City is in a position of financial stability and strength because, over the past five years, we have made difficult decisions that will preserve and protect the long-term future of our great City," the Mayor said.
"We have changed the direction of the City by significantly reducing the rate of growth of City spending and the size of City government. While we have made tax reductions the focus of budget debate, we have also made commissioners accountable for the delivery of services and management of their budgets.
"And while the City's financial condition has been significantly improved, out-year gaps still must be reduced. With submission of this Executive Budget, we reaffirm our commitment to disciplined financial management," the Mayor concluded.
Private Sector Employment:
- Cumulative City-funded savings since 1994 (based on budget growth rate 1990-1994) totals $10.3 billion.
- Rate of growth of City spending, since 1995, has been held to 1.7% -- below the rate of inflation.
- New York City now spends more than 58% on health, human services and education.
- Education funding now accounts for 30% of the City's $34.1 billion budget.
- Private sector job growth has increased by 216,600 (December 1993-March 1998).
- New York City has now experienced six straight years of sustained job growth, following years of record job losses.
- Additional Sources of Funds Since Adoption FY99
|FY 1998 Budget Stabilization Account
|FY 1999 Revenue Forecast
|Debt Service Savings
|State & Federal Aid
|Total Additional Sources of Funds
- Uses of Additional Funds:
|1999 Gap Reduction
|Fund FY99 Budget Stabilization Acct
|Add'l Tax Reduction Program
|Total Uses of Add'l Funds
|Public Safety Initiatives
|State & Federal Aid Losses
|Year 2000 Computer Planning
|One City One Fare
|Fresh Kills Landfill Closure
|Judgements & Claims
|Emerging Industries Fund
|All Other Spending
|Total Targeted Spending Increases
Tax Reduction Program - Enacted & Proposed:
- Out-year gaps have been reduced by almost 50%.
- By FY02, tax reductions enacted by the Giuliani Administration will total $6.5 billion -- following six consecutive years of tax reductions.
- Tax reductions program includes:
cuts to sales tax on clothing and footwear for items under $110;
sales tax exemption on school uniforms;
commercial rent tax rate reduction;
business tax reform which would include extending the Unicorporated Business Tax/Personal Income Tax credit to resident shareholders of sub-chapter S Corporations; and
extension of co-op/condo property tax relief.
- The City will fund the acceleration of the State Tax Assistance Relief (STAR) personal income tax credit to its fully phased-in amount beginning in tax-year 1998, instead of tax-year 2001, giving households faster tax relief than under the existing STAR program. Joint filers will receive a refundable credit of $125 per year, while all other filers will receive a refundable credit of $62.50. City residents will save an extra $153 million in 1999, $106 million in 2000, and $53 million in 2001.
- Education spending is at its highest level ever, accounting for 30% of the City budget:
|Partners in Reading (NYCHA)
||$ 3.5 million
|Ending Social Promotion
||$ 25 million
|Summer School Enhancement
||$ 39 million
||$ 50 million
|Young Adult Centers
||$ 7 million
|Project Smart Schools
||$ 34 million
|2nd Opportunity Schools
||$ 7 million
- Board of Education Capital Plan is at the highest level ever, at $1.3 billion in FY99
Beginning in FY99 no City tax levy funds will be expended unless CUNY:
- requires attendance;
- takes attendance, keeps records, and makes those records available for audit and public inspection; and
- mandates that at least 80% class attendance be required to maintain enrollment.
New York City Sports Facilities Corporation:
- The number of public assistance recipients in New York City is at a 30-year low -- having been reduced by 370,324 since the NYC Way program began in 1994.
- In March 1998 the number of recipients fell to 790,269 -- falling below 800,000 for the first time in 30 years.
- The New York City Sports Facilities Corporation will be created as the vehicle for funding the City's contribution to the construction of new City-owned sports facilities.
- The Commercial Rent Tax (CRT) reductions (for businesses in Manhattan south of 96th Street paying an annual rent of more than $100,000 ) proposed in January of 1998 will be spread out over several additional years. The resulting revenue will be used as the source of the City's contribution to the cost of the new sports facilities.
- Since 1994 the CRT has been substantially reduced. CRT reductions will cut the tax rate in half by 2001, and the tax will ultimately be eliminated.
Go to Press Releases |
Giuliani Archives |
Mayor's Office |
NYC.gov Home Page
Contact Us |
Privacy Statement |