By Courtney Dentch
Bloomberg unveiled a balanced $46.9 billion budget for the next fiscal year that begins July 1 and included his $400 property tax rebate for the borough’s homeowners.
But Queens council members want to see more money restored from cuts to funding for library, education and senior programs, which Bloomberg outlined in his preliminary budget proposal in January.
“There was $230 million in proposed cuts that are not restored,” said Councilman David Weprin (D-Hollis), chairman of the Finance Committee. “There are cuts across the board that will affect Queens.”
The city is still recovering from multibillion-dollar deficits that emerged after its finances were hard hit by losses from the Sept. 11 attacks and the recession that followed. Steep funding cuts were made to a wide array of city services and large increases were made to taxes, including the 18.5 percent property tax hike.
Bloomberg’s budget theme Monday was one of “better revenues but bigger expenses.” Thanks to the 18.5 percent property tax hike and other tax increases, city revenues were expected to be $791 million more than initially projected, the mayor said. Fixed expenses that the city has no control over, such as Medicaid costs, pension payments and others, are growing rapidly and were slated to cost $800 million more than originally thought, he said.
“New Yorkers have managed this fiscal crisis with fortitude and compassion, and our sacrifices are starting to pay off,” Bloomberg said. “Unfortunately, the growth of fixed costs and non-discretionary spending is outpacing revenues and creating serious budget challenges in the near future. Now is the time to address the escalating increases in pensions, Medicaid and other fixed costs before they overwhelm our city’s operating budget.”
New York state is the only state that makes municipalities absorb a piece of the Medicaid costs, Councilman Tony Avella (D-Bayside) said. While other states split the expense in half with the federal government, New York state chips in 25 percent and requires cities to put in another 25 percent, he said.
“There are a lot of things in the budget that we don’t have control over,” Avella said. “Medicaid is a huge part of the city budget and it’s ballooning out of control.”
And while some have faulted Bloomberg for not doing more to secure aid — both for Medicaid costs and general budget assistance — from the state and federal governments, Councilman Dennis Gallagher (R-Middle Village) thinks the burden should be shared among all elected officials.
“Now that our city is in a time of need, the federal and state governments need to step up to the plate,” he said. “This is an issue that crosses party lines and all the Democrats and all the Republicans in the city all have to join together. This is not solely on the back of our mayor.”
Bloomberg’s budget also includes a three-year contract with District Council 37, which represents a third of the city’s municipal workers. About $650 million more has been earmarked to cover the employees’ first raise in four years, said Councilman Joe Addabbo (D-Howard Beach), who chairs the Civil Service and Labor Committee.
“These individuals have had to try to make ends meet,” he said of the 36,000 DC 37 members in Queens. “Most unions have understood the city’s tough financial position and said, ‘when the city comes into the foray of making money again, then we’re going to ask for more.’”
The mayor also wants to send one- and two-family homeowners a $400 property tax rebate check, which would cost a total of about $250 million, he said.
“Some people really are getting hurt,” Bloomberg said. “There are homeowners who got burnt right away and some of them are on fixed incomes. People would really go out and spend this money.”
Bloomberg blasted a proposal by Speaker Gifford Miller (D-Manhattan) and others in the City Council, saying their 2 percent rollback plan would only get Queens residents $49 a year. But Weprin said the plan also includes a complete rollback for some homeowners.
“I think our plan is fairer,” he said. “We do have a 100 percent rebate for seniors on a fixed income.”
The Queens delegates would like to see more money restored to key borough programs, particularly to the Queens Borough Public Library system. Bloomberg has planned $11.8 million in cuts to the city’s libraries, including those in Queens.
“This is the highest used system in terms of circulation in the country,” Avella said. “Yet we get a very small percentage of the money for the libraries. Brooklyn gets more than we do and, of course, Manhattan gets the lion’s share of the money.”
The mayor’s budget also includes a $159 million subsidy for the Metropolitan Transportation Authority to take over the borough’s private bus lines, a reversal from his initial claim the city would save $150 million in the transfer, Addabbo said.
“We’re no longer saving that money,” he said. “We have to be a little skeptical of this plan since it affects mostly Queens County. Thousands of people use these buses.”
Reach reporter Courtney Dentch by e-mail at news@timesledger.com, or by phone at 718-229-0300, Ext. 138.
