Economy ‘Firing on All Cylinders,' Mayor Says

Mayor Bloomberg touted the city's positive fiscal outlook at a meeting of the state Financial Control Board yesterday.

"Our economy is firing on all cylinders," he said, noting that a $5 billion deficit from 2003 had been turned into a $5 billion surplus this year, and that all three major bond rating agencies had upgraded the city's ratings to the highest point ever.

But he emphasized the need for continued fiscal prudence, saying, "The good times don't last forever."

City Comptroller William Thompson delivered an analysis certifying that the city's budget for 2008 is balanced. He said that, while the city is still expected to face budget gaps in 2009 and 2010, those gaps will be much smaller than previously predicted — $1.55 billion in 2009 and $3.4 billion in 2010, compared to last summer's predicted estimates of $4.58 billion and $4.069 billion.

Mr. Thompson said he expected that the local housing market would not soften as much as the city's forecast has predicted. He said tax revenues for this year and next could total $1.4 billion more than currently expected.