Budget Report

New York City Comptroller William C. Thompson, Jr. today released an analysis of the Fiscal Year 2003 Executive Budget. The report said revenue shortfalls and higher-than-projected expenditures are among the factors that have led to a FY2003 budget gap that exceeds $6 billion. Moreover, factors outside of the Mayor's control will leave the City facing a deficit exceeding $1.7 billion in FY 2003.

"Washington and Albany must now stand up and realize that New York City is not crying wolf and that we need additional help," said Comptroller Thompson. "This is not a one-year issue but a problem that New York City must deal with for multiple years."

The report released today is the second of three reports to be released on the state of the City's budget, as required by Section 225C of the City Charter.

The Comptroller's figures are significantly higher than those released by Mayor Bloomberg. The Mayor identified a FY 2003 gap of over $4.7 billion in his February 2002 Preliminary Budget, up from Mayor Guiliani's estimate of $2.8 billion. The gap was again revised upward to nearly $5 billion in the Executive Budget that was released on April 17.

"I also strongly encourage the State Legislature to reinstitute the commuter tax to help ease this fiscal crisis," the Comptroller said. "In addition, the City's labor unions must actively participate in the process by identifying savings opportunities. Today's fiscal challenges present the City with an opportunity to address its embedded structural imbalance and achieve long-term fiscal stability. While recognizing the burden this may impose on the City, the long-term benefits are real and will outweigh the hardship."

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