July 22, 2009
DiNapoli: New York City Budget for FY 2010 is Balanced
Large Budget Gaps Remain in Subsequent Years
New York City’s budget for the current fiscal year (2010) is balanced based on relatively conservative assumptions, but it faces budget gaps that average more than $5 billion in subsequent years because this year’s budget includes $6.6 billion in nonrecurring resources, a report State Comptroller Thomas P. DiNapoli released today shows.
“The City is navigating through a very difficult economic period,” DiNapoli said. “While recent reports of strong Wall Street profits are encouraging, we can’t count on Wall Street to solve our budgetary problems. Balancing next year’s budget could be painful. The City has used up most of the surplus resources accumulated during the last economic expansion. And options are becoming increasingly limited; The City has already raised taxes and slashed agency spending. It’s going to be difficult, but the City has to find a way to protect middle-class taxpayers and keep them in New York.”
The DiNapoli report concludes that the City should get a head start on closing next year’s budget gap, which could grow to more than $6 billion if the budget risks identified in his report materialize.
Click here for a copy of the report.