The city could be facing a budget gap of nearly $7 billion next year – $1.7 billion bigger than projected by Mayor Bloomberg, city Comptroller William Thompson warned yesterday.
In a gloomy analysis of the mayor’s $41.9 billion proposed budget, Thompson said revenue shortfalls, combined with higher-than-anticipated spending, could add as much as $1.7 billion to the city’s already bulging $5 billion deficit.
“This is not a one-year issue, but a problem that New York City must deal with for multiple years,” said Thompson.
The news was dire on just about every front.
According to Thompson:
* Personal income-tax revenues could come in $195 million under Bloomberg’s projection.
* Overtime costs are likely to be $145 million more than budgeted.
* As much as $456 million in anticipated federal and state aid is at risk.
* Spending will be more than $600 million higher than Bloomberg forecast in his executive budget April 17.
Jordan Barowitz, a spokesman for the mayor, said the administration stands by its numbers.
The mayor and the City Council are currently negotiating the budget for the fiscal year that begins on July 1.
City comptrollers have traditionally adopted ultra-conservative spending and revenue estimates.
But Thompson isn’t the only one raising a red flag.
The Independent Budget Office plans to issue a report next week showing that personal income-tax revenues in April came in $200 million to $300 million under expectations.
“I think it’s safe to say, given what happened in April, the situation the city is facing is somewhat worse than in the mayor’s executive budget,” said IBO Executive Director Ronnie Lowenstein.
Thompson, joining numerous other Democrats, urged the mayor to seek reinstatement of the commuter tax, worth at least $400 million a year.
But Bloomberg wouldn’t budge off his no-tax stance.
BUDGET BUSTERS
Where Mayor Bloomberg went wrong in estimating the proposed budget, according to City Comptroller William Thompson (in millions)
[-] sign reflects Bloomberg overestimating revenue, while [+] sign reflect Bloomberg underestimating costs
* Personal income tax (- $195)
* Other taxes (- $105)
* Airport rent (- $175)
* Miscellaneous revenues (- $67)
* Overtime (+ $145)
* Collective bargaining (+ $40)
* Public assistance (+ $28)
* Pension costs (+ $89)
* Teacher-support aid (- $49)
* Debt reform/federal actions (- $255)
* Anticipated federal and state actions (- $328)
* Accelerated depreciation (- $128)
[SOURCE: NYC Comptroller’s Office]