NYC Surplus Grows

NEW YORK (AP) - The city's finances are flush with revenues higher than expected, boosting the budget surplus beyond $4 billion, Mayor Bloomberg was expected to announce Thursday.

Mr. Bloomberg's revised budget plan for next fiscal year, which begins July 1, would show another $1.3 billion more in revenues for this year than had been predicted in January, officials said.

The $57 billion plan for fiscal 2008, which was described in January, already included what the administration said was a surprise windfall from real estate taxes on an extraordinary number of large building sales.

Those include two recent record-setting purchases: a reported $1.8 billion for a Fifth Avenue skyscraper and $5.4 billion for a massive Manhattan apartment complex, which was the biggest real-estate deal of any kind in the country.

But revenues have surged even higher, creating a surplus of more than $4 billion for this fiscal year, officials said. But budget gaps loom in future years: $1.6 billion in 2009, $3.3 billion in 2010 and $4.3 billion in 2011.

For that reason, the mayor is not looking at the $4 billion as a surplus, but will use it to roll over and help fill some of those gaps.

"By taking action now, we can begin to reduce these deficits as opposed to jeopardizing our future with politically popular giveaways," Deputy Mayor Ed Skyler said in a statement.

The mayor does believe there is enough to give some breaks to taxpayers - the $1.2 billion package announced in January includes cutting property taxes and eliminating the city's portion of sales tax on clothing and shoes.

Mr. Bloomberg was to present the details later Thursday. Officials said the revised plan would include $199 million for the various environmental initiatives announced on Sunday. There will also be $4.5 million more this fiscal year and $28 million in 2008 for health programs that help sick ground zero workers.