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The Mayor thinks the city budget for next year is balanced. City comptroller William Thompson and the Independent Budget Office have begged to differ. Now state comptroller Thomas DiNapoli says in a report that the budget might be balanced if nothing goes wrong.
The city faces a “$6.8 billion drop in
anticipated tax revenue” next year, tax collections are “expected to be $4 billon less than projected one year ago,” and the city “faces $1.9 billion in budget risks over the balance of this year and next,” the report explains. On the plus side, the city’s “extraordinary actions” to save money — via a “mid-year real property tax increase” and spending cuts — means it has “substantial reserves that it can draw upon to help balance the FY 2010 budget.” But DiNapoli warns that some of the resources currently holding the budget together, such as the surplus transfer, are one-time affairs, and that the political budget items the city has requested of Albany, such as pension relief, are not sure things.
Basically, we just have to hope that our politicians’ most optimistic assessments of New York’s future are accurate.