City and state budgets announced

With the economic future of the city still uncertain, Mayor Michael Bloomberg recently unveiled plans for his fiscal year 2009 preliminary budget that increases spending by a modest 3.7 percent - a far cry from his most recent budget proposals.
The proposed $58.5 million budget reduces spending in all agencies citywide including the Department of Education (DOE), New York Police Department (NYPD) and Fire Department of New York (FDNY), which will realize $1.42 billion in revenue during the next two years.
However, Bloomberg also announced his intention to continue the extension of a $400 property tax rebate and 7 percent property tax reduction - which started last year - unless conditions dictate further actions.
“Because we didn’t squander our resources when times were good, we’re much better prepared to deal with these more challenging times,” Bloomberg said. “We used surpluses to close gaps in the out years, paid down debt and put money away to pay the healthcare costs for our retirees.”
Bloomberg, who cited national economists predicting a recession, said that the city originally projected profits for Wall Street firms to be $16.8 billion for the 2007 calendar year; however, those profit projections are now estimated at only $2.8 billion.
“The current volatile economic climate creates the need to take immediate steps to prevent future sizeable budget gaps, as New York City had struggled to overcome,” City Comptroller William Thompson said in a statement following the address. “This budget plan smartly exacts sufficient belt-tightening measures that may seem harsh, but are unfortunate necessities.”
In addition, Thompson said he plans to continue to work closely with Bloomberg’s administration to find ways to save money so that no further more damaging cuts are necessary.
Meanwhile, two days earlier Governor Eliot Spitzer announced his preliminary $124.3 billion budget, which increases spending by nearly 5 percent as well as increases the state’s workforce by 1 percent. The budget, which many financial experts considered very ambitious considering the negative economic forecasts, also included reductions in education aid to city schools.
“This is outrageous,” said City Councilmember Hiram Monserrate. “The city of New York educates nearly 38 percent of the state’s student but receives only 35.5 percent of the state education aid. We have consistently received less in tax revenue from the then we have sent.”
Both budgets are only preliminary, and the city council and state legislature, respectively, will make their proposals during the upcoming months before a final budgets are ironed out.