FOOTNOTES
[1] New York City Council Finance Division, Fiscal 2000: Preliminary Budget Response (NY: New York City Council Finance Division, March 29, 1999).
[2] Property-related taxes are the mortgage recording tax, the commercial rent tax and the real property transfer tax.
[3] The City budgeted $200 million for the general reserve in the adopted budget. If the remaining $99 million is not needed before the end of the fiscal year, it will increase the surplus.
[4] State of New York, Office of the State Deputy Comptroller for the City of New York, Review of the New York City Financial Plan for Fiscal Years 1999 through 2003 (NY: Office of the State Deputy Comptroller, February 24, 1999); City of New York, Office of the Comptroller, The Comptroller's Comments on the Preliminary Budget for Fiscal Years 2000 and the January Financial Plan for Fiscal Years 1999 to 2003 (NY: Office of the Comptroller, February 1999); City of New York, Independent Budget Office, Preliminary Budget for 2000 (NY: Independent Budget Office, March 23, 1999).
[5] This estimate is based on the difference between the Executive Budget and January plan projections of the Office of Management and Budget and the year-end actual for fiscal year 1998, as reported in City of New York, Office of the Comptroller, Comprehensive Annual Financial Report, fiscal year 1998 edition (NY: Office of the Comptroller, 1998).
[6] Totals may not add due to rounding.
[7] Since the Metropolitan Transportation Authority (MTA) owns the Coliseum, the City will receive the sale proceeds as part of an agreement to provide the MTA with $345 million in borrowed funds for its capital budget. In effect, this exchange allows the City to borrow for operating purposes.
[8] Currently the City's share of the settlement between 46 states and tobacco companies is estimated to be $6.7 billion over 25 years. Annual payments to the City would be $250 million to $300 million. However, the distribution of funds could change. New York City and Westchester and Erie counties are challenging the intra-state distribution and the federal government may try to receive a portion of these funds.
[9] The classification of proposed agency initiatives is based on CBC analysis of the programs described in City of New York, Office of Management and Budget, Financial Plan Fiscal Years 1999-2003, Volume 2 (NY: Office of Management and Budget, January 1999).
[10] This increase is from November 1998, the latest actual data provided in the preliminary budget.
[11] The City Comptroller and State Financial Control Board report that the $485 million of new intergovernmental aid is unlikely to be received; the State Comptroller reports that only $25 million of this aid is likely to be received. City of New York, Office of the Comptroller, The Comptroller's Comments on the Preliminary Budget for Fiscal Years 2000 and the January Financial Plan for Fiscal Years 1999 to 2003 (NY: Office of the Comptroller, February 1999); State of New York Financial Control Board, Status of the FY 2000 Budget (NY: Financial Control Board, March 16, 1999); State of New York, Office of the State Deputy Comptroller for the City of New York, Review of the New York City Financial Plan for Fiscal Years 1999 through 2003 (NY: Office of the State Deputy Comptroller, February 24, 1999).
[12] The New York State Senate estimates that the City would save $120 million. New York State Senate, Staff Analysis of the SFY 1999-00 Executive Budget, February 1999.
[13] Numbers do not add due to rounding.
[14] Values are for fiscal year 2000. These do not include eliminating the sales tax on clothing and footwear priced under $110; although this is not yet enacted, it is already included in the reported fiscal year 2000 gap.
[15] Contracts expire on March 31, 2000, with the Municipal Coalition, on May 22, 2000, with sanitation workers, on May 31, 2000, with firefighters, on July 31, 2000, with police and correction officers, and on November 15, 2000, with teachers.
[16] Calculated based on the City's projected rate of inflationž2.4% in 2000, 2.5% in 2001, 2.8% in 2002, and 2.8% in 2003. As discussed later, if the collective bargaining agreements financed raises with increased productivity, then there would be no increase in future budget gaps.
[17] Between fiscal years 2000 and 2003, the plan allocates $6.0 billion to environmental protection, $4.9 billion to education, $4.3 billion to transportation, $1.7 billion to housing and $6.0 billion to other functions.
[18] A constitutional amendment requires approval of two successive State legislatures and then voter approval. The plan assumes this will happen and includes $2.7 billion of general obligation bonds in fiscal year 2003.
[19] These revenues will become available when the challenges to the intra-state distribution are settled.
[20] This includes debt service of the Water Finance Authority and the Health and Hospitals Corporation. Without these entities, debt service would grow 8.0 percent annually, from $3.5 billion to $4.4 billion. These debt service totals have been adjusted to remove the accounting impact of the surplus rolls; therefore, they do not match those in Table 1.
[21] City of New York, Office of Management and Budget, Monthly Report on Current Economic Conditions (NY: Office of Management and Budget, February 26, 1999).
[22] Implementing year-round schooling requires State action; current law restricts state education aid to 180 days per year. The Board of Education's capital plan, proposed in November 1998, includes a 14,400 seat year-round schooling pilot program. However, the pilot program represents less than one-fifth of the need; the bulk of the plan focuses of new construction for which the Board has requested $3.2 billion over five years.
[23] Cited in City of New York, Office of the Comptroller, Dilemma in the Millennium, Capital Needs of the World's Capital City (NY: Office of the Comptroller, August 1998), p. ES-3.
[24] New York City Council, op. cit.
[25] This is based on information contained in the Council's alternative gap closing plan. This plan presents $50 million in debt service savings and interest income together; the $105 million in additional spending assumes that the $50 million is reduced spending.
[26] The City Council's plan uses the surplus to support operating expenditures in fiscal years 2000, 2001 and 2002.
[27] For a full discussion of these and other suggested initiatives, see Dean Michael Mead and Andrew S. Rein, Restructuring Government Services: A Report of the Budget 2000 Project (NY: Citizens Budget Commission, December 1996).
[28] Ibid.
[29] The City Council proposes that the City hire 500 civilians over the next two years to allow 500 officers currently performing administrative duties to be transferred to enforcement duties. This civilianization would increase enforcement at a lower cost than hiring officers.
[30] Raymond D. Horton, An Unbeatable Combination: More Police Strength and Lower Cost (NY: Citizens Budget Commission, April 1994).
[31] City of New York, Office of the Comptroller, Audit Report on the Opportunities for Savings Through Civilianization in the New York City Police Department (NY: Office of the Comptroller, February 1, 1999).
[32] The Mayor proposes to accelerate the hiring of 1,589 officers; however the force will increase only 400 due to offsetting attrition. City of New York, Office of Management and Budget, Financial Plan Fiscal Years 1999-2003, Volume 1 (NY: Office of Management and Budget, January 28, 1999), p. 68.
[33] Raymond D. Horton, "Increasing Productivity in the New York City Fire Department: Proposals for Variable Staffing and Controlling Overtime Costs," memorandum to Peter Powers, Deputy Mayor for Operations, October 14, 1994.
[34] Richard J. Delaney, Opportunities to Improve Municipal Revenue Collection by Using Information Technology (NY: Citizens Budget Commission, July 1998).
[35] See Sheila Spiezio, Modernizing the Municipal Employee Health Insurance Program (NY: Citizens Budget Commission, April 1995).
[36] See Richard Delaney, "Productivity Enhancement for General Education Teachers," memorandum to the Citizens Budget Commission's Municipal Services Committee, August 31, 1995.
[37] See Richard Delaney, School Buildings for the Next Century: An Affordable Strategy for Repairing and Modernizing New York City's School Facilities (NY: Citizens Budget Commission, September 1996).
[38] City of New York, Office of the Comptroller, Dilemma in the Millennium, Capital Needs of the World's Capital City (NY: Office of the Comptroller, August 1998).
[39] Values are fiscal year 2000 impacts reported by the City.
[40] The City Council proposes to eliminate the CRT by fiscal year 2002. It also proposes to dedicate the City's hotel tax revenue to a New York Sports and Arts Corporation to fund sports stadiums and cultural programs.
[41] City of New York, Office of Management and Budget, Financial Plan Fiscal Years 1999-2003, Volume 1 (NY: Office of Management and Budget, January, 28, 1999), p. 6.
[42] Charles Brecher, Tax Policy: A Report of the Budget 2000 Project (NY: Citizens Budget Commission, December 1996).
[43] This also applies to the Council's proposed dedication of the hotel tax.
[44] City of New York, Office of Management and Budget, Financial Plan Fiscal Years 1999-2003, Volume 1 (NY: Office of Management and Budget, January, 28, 1999), p. 6.
[45] Data provided by the New York City Office of Management and Budget.
[46] David Belkin, Would Clothing Sales Tax Cuts Pay for Themselves? (NY: Independent Budget Office, June 1997); Thomas Conoscenti and Associates, Inc., Who Benefits?, prepared for the New York State Association of Counties and New York State County Executives Association, May 1997; New York State Department of Taxation and Finance, Office of Tax Policy Analysis, The Temporary Clothing Exemption: Analysis of the Effects of the Exemption on Clothing Sales in New York State, (NY: Office of Tax Policy Analysis, November 1997).
[47] Brecher, op cit.
[48] Ibid., p.15. The personal income tax rate cited does not include the 14 percent surcharge.