By MOLLY CHARBONEAU
The New York City budget adoption process reached a crossroads in
April, as the City Council and Mayor Michael R. Bloomberg squared
off over proposed cutbacks and tax increases aimed at bridging a nearly
$5 billion gap.
District Council 37 and its locals played a vigorous role in the debate,
testifying against service cuts at numerous hearings during March
and April. As the Public Employee Press went to press, the union was
preparing to release a detailed special report expanding on Executive
Director Lillian Roberts' testimony about areas where the city can
save millions of dollars (see box).
Mayor wants labor savings
The mayor's executive budget, released April 17, contained few changes
from the February preliminary plan. While Mayor Bloomberg included
selling taxi medallions to raise revenue, he did not propose any additional
tax programs to reduce the budget gap.
The mayor's proposal also included a $500 million contingency reduction
program in case needed state and federal aid and the requested labor
savings fail to materialize.
The contingency plan called for additional 7.5 percent budget reductions
for most agencies, 2.5 percent for the Board of Education and uniformed
forces, a delay in hiring the next police class, elimination of a
plan to hire 800 civilians in the Police Dept. and a 10 percent staff
reduction in the Parks Dept.
The administration hopes to achieve $500 million in savings by negotiating
with municipal unions over pensions and fringe benefits, and an additional
$50 million for FY 2003 through a severance and early retirement package.
The mayor warned that unless unions agree to the pension and benefit
adjustments, "the contingency cuts include layoffs." (See
page 3.)
However, until the completion of the schools budget - which may include
added state funds that could reduce the city's contribution - the
final need for the labor savings remains unclear.
Other changes of importance to DC 37 and its locals include the restoration
for FY 2002 of overtime funding for the 75 ambulance tours the Fire
Dept. was scheduled to turn over to voluntary providers; the addition
of two structural engineers in the Fire Prevention Unit; the reversal
of a plan to civilianize export posts in the Sanitation Dept.; the
restoration of a $1-million gap-closing cut in the Dept. of Citywide
Administrative Services; a $1.98 million increase for Homeless Services
Family Staff; and funding of collective bargaining increases at the
City University of New York.
City Council alternative
On April 8, the City Council released its alternative financial plan.
The council projects $100 million in savings through an early retirement
incentive for city employees and does not call for layoffs.
Titled "Education First," the council plan included a noteworthy
proposal to levy a $400 million Personal Income Tax Surcharge to leverage
a $5 billion capital program dedicated to education. The council also
identified $1.2 billion in additional resources, including $445 million
more in revenue than the mayor projected.
The added resources would include $831 million to restore many of
the mayor's proposed reductions and fund council initiatives. The
council also called on the state to restore the Commuter Tax, with
proceeds used to further reduce the $1.5 billion in proposed borrowing
and reduce interest payments in coming years.
The City Council' s agency savings program includes a proposal to
privatize collection of Emergency Medical Services Ambulance Transport
Revenues (generating $100 million) and to fully restore funding for
75 ambulance tours for FY 2003.
Civilianization saves money
The City Council also estimated higher savings through reducing uniformed
headcount in the Police Dept. by 1,600 positions and adding 800 civilians.
Because 726 of the uniformed officers involved are above the entry
level, $20 million more could be saved above the $43 million already
projected.
The council would also civilianize an additional 232 positions to
save $10 million in uniformed overtime. Nevertheless, the mayor's
contingency cuts would eliminate the plan to hire 800 civilians.
Agency restorations
Besides dedicating the proceeds from the Personal Income Tax Surcharge
to fund capital programs in the schools, the City Council would also
restore $344 million in operating funds to the Board of Education,
bringing its funding back to the FY 2002 level, and provide $1 million
in funding for School Crossing Guards.
The council plan would also restore $19 million to the Dept. of Cultural
Affairs and $32 million to the libraries, and establish a Minority
and Women-Owned Business Enterprise Program.
The council's alternative would also restore $60 million of the mayor's
proposed $80 million cut in child care funding for FY 2003; enhance
HIV prevention and infant mortality funding; provide $11 million in
after-school programs; restore $5.5 million to Family Health Services
clinics; and restore $2.55 million to HHC's Diagnostic and Treatment
Centers and $360,000 to the Sydenham Clinic.