Executive Summary

New York City is faced with a budget gap of over $5 billion in FY 2003. Mayor Michael R. Bloomberg is seeking close to $5 billion in savings and revenues to address the budget shortfall. This includes: $1.8 million in an agency reduction program; $1.5 billion for transitional financing; $800 million in Federal and State aid; and $500 million in fringe benefit cost containment measures subject to negotiations with the municipal unions. In addition, on April 18, the mayor outlined draconian contingency cuts to make up for possible shortfalls in his gap-closing plan should the State and Federal governments fail to provide the $800 million requested in the mayor’s budget plan.

The Sept. 11 attack, the slowing economy, the loss of revenues due to policies of the prior Administration, and continued decreases in Federal and State aid have all contributed to creating our current economic crisis.

In our white paper report on DC 37 Recommendations for Fiscal Year 2003 Savings for the New York City Budget*, the city’s largest public employee union explains ‘We Can Do the Work: How the City Can Save Over $600 Million Without Cutting Services.’

We also believe that the Mayor should not balance the budget on the backs of the 125,000 members of District Council 37 who strive each day to ensure that quality services continue to be provided to those who live and work in New York City. In order to balance a budget with a deficit as large as the one our City faces, there must be a fiscally responsible plan that covers three areas: savings, revenues, and debt refinancing. Unfortunately, the Mayor's proposed budget relies very little on revenue enhancements and largely on debt refinancing and large service reductions.

We will always oppose any attempts to balance the budget on the backs of those most in need of critical services provided by the City - including education, the public health care delivery system and our public safety and social services. Nor can we damage our jewels, the cultural and library institutions and parks; and our infrastructure system and administrative agencies.

We agree with the mayor that we are all in this together. He has asked for our ideas for generating more revenue and providing greater savings. We have some solutions, and we want them acted upon.

In our white paper, District Council 37 has identified over $600 million in potential savings. Some of the proposals, such as an aggressive civilianization plan, can be acted on immediately. Others require legislative action, such as the reinstatement of the Commuter Tax. Still other recommendations are long term. Collectively, our proposals are included under four major areas: civilianization; contracting-in; efficiencies and "work-smarter" ideas; and revenue enhancements. We also offer recommendations on increasing state and federal aid, economic development, and legislative changes.

In addition, some of these recommendations should be considered in the context of the upcoming negotiations for the collective bargaining agreement between DC 37 and the City of New York. The current contract will expire on June 30, 2002.

We look forward to working with Mayor Bloomberg, the City Council, and the State Legislature to ensure that our city remains a vital and thriving community with the continued growth of our communities, New York State and our nation. We stand ready, willing and able to provide the best for New York. Together, we can do it!

Lillian Roberts,
Executive Director
District Council 37

Related Information:

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