Tax-revenue collections for
the first half of FY 02, after adjusting for delayed property-tax
payments, were lower than tax revenues for the same period in
FY 01, but above the December Plan.
Major miscellaneous revenue collections
were below FY 01 levels, but ahead of Plan.
As of December 31, 2001, the City
had 2,610 fewer employees than planned and 3,172 fewer than at
the end of 2000, which could potentially save the City up to $90
million in FY 02.
Overtime spending in the first half
of FY 02 was 98.9 percent above the same period in FY 01. When
adjusted for the overtime spending related to the attack on the
World Trade Center, overtime in the first half of FY 02 was 5.3
percent higher than the same period in FY 01.
Judgments and claims expenditures
for the first half of FY 02 are on pace with FY 01.
The public-assistance caseload declined
to 462,595 recipients in December, down 34,518 recipients from
June 2001.
The Board of Education projects a
budget gap of $137 million in FY 02, and expects to cut spending
by $600 million in FY 03.
Lower interest rates may save the
City up to $49 million on servicing its outstanding Variable Rate
Demand Bonds.
Continued stock-market weakness may
raise the City’s pension expenditures.
As a result of higher-than-projected
revenues, the City updated the December 4 Financial Plan ("December
Plan") on December 31, 2001, raising the projected FY 02
surplus from $375 million to $697 million and reducing out-year
budget gaps by $618 million.
Tax revenues for the first quarter of FY 02 were $198 million
below the June Plan and 3.7 percent below tax revenues for the
same period in FY 01, largely the result of postponement of payments
following the September 11 attack on the World Trade Center and
delayed mail delivery.
Major miscellaneous-revenue collections were $40.4 million below
Plan estimate, largely because of lower collections of $9 million
from parking-violation fines and $5 million for parking-meter
fines.
At the end of September 2001, the City had 1,266 more employees
than at the same date in 2000.
Overtime spending in the first quarter of FY 02 was $205.7 million,
27 percent above the same period in FY 01. However, $43.1 million
of the spending in the first quarter was directly related to the
attack on the World Trade Center.
The public-assistance caseload declined to 463,603 recipients,
33,510 below June 2001.
The Board of Education projects a deficit of $542 million.
Between July 1, 2001 and September 30, 2001, the City’s
pension-fund investments lost 9.4 percent of their value.
The City will realize savings of $22 million in FY 02 from lower
interest costs on General Obligation Revenue Anticipation Notes.
