NYC Comptroller's Office Press Office


PR03-03-020		MARCH 4, 2004
Contact: Press Office		212-669-3747

COMPTROLLER THOMPSON TESTIFIES BEFORE CITY COUNCIL FINANCE COMMITTEE ON CITY’S BUDGET CHALLENGES

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New York City Comptroller William C. Thompson, Jr. testified before the City Council Finance Committee on the Mayor’s Preliminary Budget for FY 2004 and the City’s modification of the FY 2003 budget and FYs 2004-2007 Financial Plan today. In his prepared remarks, Thompson said:

“The Mayor’s preliminary budget puts the deficit for the next year at $3.4 billion. As I indicate in the report my office issued yesterday, the actual deficit may be $3.9 billion --a half-billion dollars higher than the Mayor’s estimate.”

“Let’s be clear: the City has done its share to reduce the budget gap. It has addressed the impact of the current recession with a major tax increase and large spending reductions. The time has come for Albany and Washington to stand by our side.”

“This year’s budget problems will not be fixed by economic growth. Both the national
and local economies continue to sputter…These economic forecasts will directly result in diminished City revenues. The City anticipates that revenues will shrink by $2.4 billion in Fiscal 2004. My office believes the decline may be $179 million more than that. The drop is largely due to the infusion of extraordinary one-time revenues to balance the budget in Fiscal Year 2003.”

“The Mayor is requesting and relying on $1.7 billion of help from the State. The Governor has responded to these requests by completely ignoring the plight of New York City. The Governor’s Executive Budget is structured to increase the City’s financial burden rather than reduce it. Instead of cutting our deficit by $1.7 billion as requested by the Mayor, Governor Pataki’s proposals would widen the Fiscal Year 2004 budget gap by $844 million.

“If we do not get the help from Albany and Washington that we require, the City will be forced to adopt draconian budgetary measures such as further service cuts and revenue enhancements. It must be stressed that the current crisis impacts us all. Only by working together can we implement sound and effective policies and ensure the future economic prosperity of our City.”

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