Council’s revenue projections fall below Office of Management and Budget estimates for the first time since 2003

City Hall – Speaker Christine C. Quinn, together with Finance Committee Chair David Weprin, today presented the City Council’s response to Mayor Bloomberg’s Fiscal Year (FY) 2010 preliminary budget. According to the Council’s projections, City tax revenues have fallen an additional $295 million since the Mayor released the FY10 preliminary budget. Council projections include the most recent economic data.

As per our Charter mandate, the Council held numerous hearings on the FY10 preliminary budget that included over a hundred hours of testimony. The Council heard from 64 City Agencies and well over 200 members of the public during 3 ½ weeks of committee hearings. This year’s budget response details many of the concerns expressed by agency commissioners, Council Members and average New Yorkers during the FY10 preliminary budget hearings.

“We are currently facing the worst economic environment in two generations, and without question we will have to reduce spending,” said Speaker Christine C. Quinn. “As we enter budget negotiations, we do so with the knowledge that any budgetary decision will carry with it very real consequences for New Yorkers. We will do our best to make sure that the impact of these cuts is as minimal as possible.”

The City’s economy is now fully in the throes of the national recession. Private employment in February 2009 showed a 76,700 decline since February of last year, with forecasts projecting a total job loss of 260,000 private sector jobs through the end of 2010. City tax revenues are already feeling the impact with sharp decreases across the board.

“This response to the Mayor’s Preliminary Budget recognizes the severity of the fiscal challenges we face as a City during this national and global recession,” said Finance Committee Chair David Weprin. “There are still uncertainties that can change this budget long before final adoption. One issue of particular importance as we move forward is to strengthen our defensive position against the tide of rising joblessness and business retrenchment. These fundamentals will be critical to determining the breadth and speed of our recovery.

This year’s budget response illustrates the Council’s recognition of the challenges New York City faces in this difficult economic environment and needs to cut City spending. The City’s budget is its single most important policy document, affecting the lives of every one of our over 8 million citizens.