New York City Comptroller William C. Thompson, Jr. today issued the following statement after Mayor Michael Bloomberg released his budget modification:

There is no doubt that New York City currently is confronting one of the most challenging economic environments in recent memory. As I have reported recently, the City is facing an estimated 165,000 job losses over the next two years at a time when many New Yorkers are struggling to hold onto their homes and make ends meet.

We are transitioning from a financial crisis to a broad-based economic recession, and it is inevitable that the City’s administration will need to undertake a number of steps to address its fiscal challenges. I credit the administration for over the last year initiating a number of prudent steps to stay ahead of the challenges.

I am pleased that City Hall is moving to cut waste and administrative bloat in the Department of Education before requiring layoffs and abolishing other positions that are more vital to retain necessary City services. However, I fully believe that the administrative cuts can – and should - be deeper. I urge the administration to re-examine all contracts with consultants at the DOE to determine whether they are exacting true savings and providing necessary services.

Additionally, I am concerned by the Mayor’s proposal to cancel the 1,000-member January class of Police Department recruits. New York City has already seen a diminished police force of about 5,000 in the last eight years. City Hall must keep a vigilant eye on its ranks to ensure that any reduction does not compromise public safety.

Finally, the Mayor acknowledged the responsible stewardship of the trustees of the New York City Pension Funds. During my tenure, I have worked with the trustees to markedly diversify the Funds. Because of these actions, we are not as vulnerable to the ups and downs of the market although we share similar fluctuations with many other public pension funds across this country. I am encouraged by Federal actions to restore our nation’s and Wall Street’s financial foundation, and strongly believe that over the long term our assets will remain strong.

My hope is that any and all budget cuts will be done creatively and thoughtfully, and look forward to thoroughly examining the proposal in the coming weeks.

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