By Alex Davidson
Saying the state of New York had essentially abandoned the city of New York, members of the city council delegation from Queens blasted the governor Monday for blocking $500 million in debt relief that helped the city climb out of its $3.8 billion budget deficit.
Eight out of 14 Queens city council members were joined by City Council Speaker Gifford Miller (D-Manhattan) at a Department of Sanitation facility in Astoria, where the elected officials collectively attacked Republican Gov. George Pataki for supporting a state panel’s decision not to allow the refinancing of a total of $2.5 billion of debt owed by the city of New York by 2008.
“This imperils everything. This gets us back to doomsday,” Miller said. “This sets the city all the way back.”
Both houses of the state Legislature this spring passed a measure forcing the state to pay for all of the city’s debt accumulated when the city had to borrow money during its last fiscal crisis in the 1970s. The state then worked with the city to refinance that debt during a 30-year period, during which the city would cover the bill of $170 million per year.
This deal, however, was stopped last week when the three-member board of the Local Government Assistance Corp., the agency in charge of making the payments, decided to halt the deal. One member of the three-member board, Democrat Comptroller and former Forest Hills Assemblyman Alan Hevesi, voted along with two other Pataki appointees to not allow the refinancing plan to progress.
Republican Mayor Michael Bloomberg has said the city will file a lawsuit against Pataki to force him to go ahead with the state Legislature’s deal. There has not been any suit filed yet, according to city council members, and Bloomberg has refrained from directly criticizing Pataki for his role in blocking the refinancing deal.
“Gov. Pataki has not given New York City one cent since Sept. 11, and now he has the gall to take away from us money that others have provided,” Councilman Peter Vallone Jr. (D-Astoria) said. “It is an outrage.”
Queens delegation members said the potential loss of $500 million to the city budget would eliminate the restorations council members were able to secure following the lengthy budget battle for fiscal year 2004 that began July 1. This means senior centers, firehouses, the Queens Zoo and public libraries could soon again be on the chopping block if Pataki and the state do not come through with the anticipated funds.
Council members Melinda Katz (D-Forest Hills) and David Weprin (D-Hollis) said they anticipated that Pataki would come through in the end with the needed funds. Weprin, chairman of the City Council’s powerful Finance Committee, said the city was right in hoping to refinance its debt because of record-low interest rates that would in the end reduce the total amount of money owed.
“It is a responsible thing to do,” Weprin said. “But we need all, not just a portion, of the $500 million.”
Weprin said the city still plans to sell bonds in the upcoming weeks to help the state pay for the refinancing deal.
Miller said the agreement was a first step between the city and state Legislature in correcting the formula by which the city sends $3 billion more in taxes to the state than it receives in return. He said Pataki was “robbing” the city that he has not helped since Sept. 11.
“Pataki is supposed to implement the law,” Miller said. “We shouldn’t have to start from scratch. This deal was done.”
Council members James Sanders Jr. (D-Laurelton), Joe Addabbo (D-Howard Beach), John Liu (D-Flushing), Jim Gennaro (D-Fresh Meadows) and Eric Gioia (D-Sunnyside) also attended the press conference.
Reach reporter Alex Davidson by e-mail at TimesLedger@aol.com or by phone at 718-229-0300, Ext. 156.
