As Surplus Surges, Mayor’s Budget Includes Millions in Fee Increases

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The New York Sun

Even as the city budget surplus is growing, Mayor Bloomberg’s $52.7 billion budget for the next fiscal year includes tens of millions of dollars in fee increases for everything from higher admission costs at recreational centers to spikes in the cost of pest control exterminations.

The final budget proposal, which the mayor presented yesterday, includes a $3.4 billion surplus and is almost identical to the numbers he offered three months ago in his preliminary budget.

The new additions include $100 million to help shore up the finances of the public housing system; $12 million for 18,000 new bulletproof police vests, and $21 million to recruit more police officers.

While the city’s surplus has actually increased by $100 million since January, Mr. Bloomberg reiterated his warning that future years look bleak, with deficits of $3.6 billion forecast for fiscal year 2008 and $4.2 billion the following year. He said the economy is slowing as evidence by slightly lower Wall Street profits and fewer real estate transactions.

When he unveiled his budget three months ago, Mr. Bloomberg was praised by budget watchdogs for his fiscal prudence. At that time he announced the creation of a $2 billion trust fund to pay for future health payments for retirees and for putting money aside to pay for construction projects as they come up.

But he said that because of future pension and health care costs that the city has no control over, it could not cut taxes or increase spending by much.

“You can’t run the government praying,” Mr. Bloomberg told reporters yesterday. “This is not faith-based accounting.”

A deal with the City Council on the final budget is due by June 30 and many are watching to see how the budget process will play out this year under the new council speaker, Christine Quinn.

The $12 million Mr. Bloomberg allocated in his budget was adopted after the council requested it. Ms. Quinn, who has made a priority of changing the so-called budget dance, said it was the first time in more than a decade that a mayor included a council request in his executive budget. She said she was happy about that, but disappointed that Mr. Bloomberg had not restored the $338 million in funding for social service programs such as libraries and senior centers that the council wants.

If history is any guide – it usually is when it comes to the budget process – Mr. Bloomberg will restore that money before the June deadline.


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