Mayor Michael Bloomberg, New York at the prospect of budget deficits, means a reduction of 20 per cent of expenditures for the construction and maintenance of buildings belonging to the town and infrastructure.
Page by mark the requested budget agency heads to revise their strategies for 10 years of spending and capital report the status of all projects with explanations for the delays, according to a Protocol 14 December. Responses are due January 5.
"We are actively research ways to reduce costs the city to pension, health benefits and we are forced to deal with the amount of the budget for the debt service," wrote the page. "We need to reduce spending plan that borrowing capital drives and debt service costs resulting from the capital.
Release directive came yesterday is page, on the same day, the City Comptroller John Liu and State Comptroller Thomas DiNapoli each has warned that the city may face more deficits over the next three years that provides Bloomberg. The administration has challenged some of their findings.
Liu said budget gaps can grow to 3.6 billion and $ 6 billion 6.6 billion over the next three years. 18 Financial plan November the Bloomberg expected deficit of 2.4 billion dollars, 4.8 billion and $ 5.6 billion dollars over the years.
Exercise the city begins July 1. Its budget is about $ 65 billion. New York capital for 2010 through 2019 planned spending of $ 61.9 billion plan. municipal funds $ 47 billion.
The plan includes 22 billion for schools. 13 billion for supply of water and other environmental protection. 9 billion for bridges and streets; 4.6 billion for housing. and 3 billion for prisons and other criminal justice facilities.
Going Deep
"He will make some serious necessary expenditure cuts," said Richard Saperstein, Director General of partners of the Treasury in New York, who oversees the 10 billion dollars in assets.
The extra give investors require to purchase Treasury bonds will be digging until it managers to determine how they will be closed the deficit of city, Saperstein predicted.
"If we wanted to add obligations of the New York City, we suggest waiting for this information", he said. The city is "a very clever transmitter that a lot of respect in the market.
General obligation to 10 years in New York City are releasing 3.96% or 0.6 percentage point more top-rated: obligations of the same maturity, according to data compiled by Bloomberg.
Pay for teachers
Liu and DiNapoli each founded their deficit estimated on unresolved involving 70,000 teachers city contracts. The administration may face an increase of approximately 900 million in expenses related to each of the next four years, said Liu.
"Relying heavily on forecast of contracting work and consistently underestimated the overtime cost contributes to our budget gaps especially when added to the loss of State aid and debt", Liu said in a press release that accompanies the report.
The city can also exceed budgeted overtime by more than 100 million dollars annually, he said.
The administration has promised that any increase in salary of teachers receive savings pensions or benefits, said Marc Lavorgna, spokesman for the Mayor on budget issues.
"The Mayor has made it clear that we can further increase the salaries of teachers without corresponding economies and their contracts are not subject to arbitration, so that their earnings will continue under the existing contract with toll an unforeseen increase city"Lavorgna said.""
Office of the Comptroller has overestimated the overtime cost in recent years, he added.
Strapped state
Endorsed in the assessment of the city budget deficit DiNapoli Bloomberg administration may increase due to the loss of State aid and federal stimulus money, said Lavorgna.
December 6, page said at the Council of the city that 2012 budget deficit may dig by $ 4.5 billion to $ 2 billion because reductions in State aid can be higher than anticipated. The lieutenant-Governor Richard Ravitch, in an interview with Bloomberg Television yesterday, said the State is facing a deficit of approximately $ 14 billion its fiscal year 2011-2012, which begins on April 1. Its current budget is approximately $ 135 billion.
The city was ordered to 1.6 billion in cuts over the next 18 months, reducing workforce over 10 000 inhabitants, including more than 6,000 who will lose their jobs.
"The reality that we face is that the future could be considerably worse", page said the Board members. "This is something which we are concerned of solemnly.".
The Mayor is the founding owner and the majority of Bloomberg News parent Bloomberg LP.
To contact the reporter on this story: Henry Goldman in New York City Hall in hgoldman@bloomberg.net and Martin z. Braun, in New York at mbraun6@bloomberg.net.
To contact the responsible editor of the story: Mark Tannenbaum to mtannen@bloomberg.net
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