CITY HALL – Speaker Quinn today announced two developments following the Mayor’s financial Plan released on Nov 5th: the schedule for a series of public hearings and the release of the Council’s economic and revenue forecast.

The severity and speed of the unraveling of the financial sector and its impact on the real economy was unanticipated only four months ago when the FY 2009 budget was adopted. The Council’s November forecast is largely in line with that of the Mayor’s Office Management and Budget (OMB), and confirms that since June the revenue outlook has worsened considerably, with revenues expected to decline nearly 7 percent this year and 1.3 percent next year. The following is a statement from Speaker Quinn.

“The financial crisis has forced all of us in government to assess our priorities, so that going forward we can minimize the impact that pending cuts will have on essential services.

“More than any other moment in recent history, the budget requires constant monitoring and modification. In beginning the budget process this early in the fiscal year, we are demonstrating both how serious the circumstances are and how committed the Council is to helping shape the important decisions that will be made over the coming months.

“Tomorrow’s Finance Committee hearing presents the opportunity for the Council and the Administration to lay out their budget priorities. Of particular interest will be the proposal to rescind the $400 rebate to homeowners. While we understand that we have many difficult choices in front of us, it is my belief that we should not rescind the $400 rebate at this time. Many working families are struggling, and in tough times, every little bit helps.

“We will also begin to examine the Mayor’s proposals to reduce spending, and to consider the possible early repeal of the 7% property tax reduction, as well as other revenue generating initiatives. We have questions that must be answered. Do all proposed spending cuts go far enough? Do some reductions go too far and do irreparable damage to core services, such as public safety, education and social services to the City’s most vulnerable? If tax increases are necessary, what is the best mix to ensure an equitable distribution of the burden and promote rapid and balanced growth of the City economy when the downturn ends?

“The Council continues to propose options for savings, alternative cuts, and new revenues which it will review with the administration. The November Financial Plan already incorporates some of the Council’s proposals, including a vehicle fleet reduction initiative ($20 million in FY10); and the sale of advertising on Sanitation Department vehicles and street wastebaskets ($2 million). Additional options include scaling back the proposed capital scoping project, eliminating Data Inquiry Teams in schools, and increasing the fee charged for police officers to provide security at private events.

“The current economic climate demands that we consider each and every option. We look forward to a productive hearing process as we guide the City through this economic downturn.”

Hearing Schedule

Oversight: Mayor’s November Financial Plan

MONDAY, NOVEMBER 17

Finance – David I. Weprin, Chair
Council Chambers, City Hall – 10:00 AM

THURSDAY, NOVEMBER 20

Finance jointly with General Welfare – David I. Weprin, Bill de Blasio, Chairs Council Chambers, City Hall – 10:00 AM

Finance jointly with Health; Mental Health, Mental Retardation, Alcoholism, Drug Abuse & Disability Services;– David I. Weprin, G. Oliver Koppell, Joel Rivera, Chairs
Council Chambers, City Hall – 11:30 AM

FRIDAY, NOVEMBER 21

Finance jointly with Housing & Buildings; Public Housing – David I. Weprin, Erik Martin Dilan, Rosie Mendez, Chairs
Council Chambers, City Hall – 10:00 AM

Finance jointly with Aging; Senior Centers – David I. Weprin, Maria del Carmen Arroyo, James
Vacca, Chairs
Council Chambers, City Hall – 11:30 AM

Finance jointly with Education – David I. Weprin, Robert Jackson, Chairs
Council Chambers, City Hall – 1:00 PM

MONDAY, NOVEMBER 24

Finance jointly with Public Safety – David I. Weprin, Peter F. Vallone, Jr., Chairs
Council Chambers, City Hall – 10:00 AM

Finance jointly with Fire & Criminal Justice Services – David I. Weprin, Miguel Martinez, Chairs
Council Chambers, City Hall – 11:30 AM

Finance jointly with Cultural Affairs, Libraries & International Intergroup Relations – David I. Weprin, Domenic M. Recchia, Jr., Chairs
Council Chambers, City Hall – 1:00 PM

Public Testimony
Finance; David I. Weprin, Chair
Council Chambers, City Hall – Following the Cultural Affairs/Finance hearing

For Background Purposes Only

The below are examples of possible alternatives to the Mayor’s November Financial Plan. They should be used only to understand possible differences between the Council and the Administration.

Some of the possible changes to the financial plan include:

* Paid Detail Fee Increase – The Department can increase the fee paid by private businesses to have NYPD officers perform security for them. We propose that the Department double the fee thereby generating double the current revenue baseline plan of $1.2 million.

* Transfer HPD’s Demolition Unit to the Department of Buildings – HPD’s Demolition Unit is responsible for abating hazardous conditions when the Department of Buildings issues a declaration of emergency ordering an owner to demolish a structurally unsafe building. Since DOB is currently responsible for the first phase of the demolition process, transferring the second phase (contracting and bidding out the demolition services) to DOB would lead to efficiencies and provide cost savings for HPD.

* Cut the Capital Scoping Project – A long standing problem in our capital budget is the fact that we almost always underestimate costs of big projects. This year, the Office of Management and Budget and the Dept. of Design and Construction funded a $20 million project to help improve the scopes and cost estimates of big capital projects before they go into the capital budget. At a time when capital projects will inevitably slow down, the Council believes this project can be cut to $10 million.

* Eliminate DOE’s Data Inquiry Team – According to DOE, the Data Inquiry Team is geared to assist schools in data-driven decision-making by integrating the components of the Accountability Initiative into the life of the school, a program that totals $13 million. This is job that principals and their teams are trained to do, and by cutting this program we can keep $13 million where it belongs – in the classroom.