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New York City Comptroller William C. Thompson, Jr. said today the City must address "looming" fiscal problems and accept the "sad reality" that vital City services will be reduced amid harsh economic times. The Comptroller testified before the City Council's Finance Committee Tuesday afternoon, stating that New York City "is facing challenging financial times in Fiscal Year 2003. While the current Fiscal Year is virtually certain to end with the budget in balance, no such assurance exists for Fiscal Year 2003."

Among the Comptroller's prepared remarks:

"The problems we face did not occur overnight. When economic times were good in the latter half of the 1990s, the City missed numerous opportunities to change the way it did business. We missed repeated chances to pay down long-term debt and instead enlarged our debt burden. We increased spending, cut taxes, and used budget surpluses from one fiscal year to pay off next year's bills. We postponed making tough decisions and instead chose political expediency over sound fiscal planning."

"Our needs are many. Now, we must take a step back and take a serious look at where we stand. The Mayor's proposed 1.3 billion dollars in agency cuts have a severe impact on important programs. Each and every cutback inflicts hardship on our citizens and we must examine them critically. But ultimately we must live within our means."

"Today's fiscal challenges present us with an opportunity to bring our levels of revenue and expenditure into alignment. While I recognize the challenge it may impose on the City in the short-run, the long-term benefits of fiscal stability are real, and will outweigh the hardship."

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