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September 24, 2008
It's Time for all New Yorkers to Sacrifice, Unless You Happen to Own a Pro Sports Team
The headlines this week have been full of stories about the tough times facing New York, and how we're all going to have to tighten our belts, cut back, and suffer for the greater good. Unless, of course, your name happens to be Steinbrenner, Wilpon or Ratner.
The New York Times, New York City Wants Cuts by Agencies Across Board
With an eye on Wall Street’s turmoil and New York City’s fragile economy, Mayor Michael R. Bloomberg ordered city agencies on Tuesday to cut spending by about $500 million this year and $1 billion next year.
The cuts are to be made across the board, affecting agencies including the Police Department, which must cut costs by $95 million this year, and the school system, which needs to trim $185 million.
Over all, the reductions represent 2.5 percent of the agencies’ budgets this year and 5 percent next year.
The midyear budget cuts are intended to provide a financial cushion should the city’s tax revenue, which is heavily dependent on Wall Street’s profits, drop further, as many expect.
The timing of the announcement suggests that Mr. Bloomberg may be seeking to soften the political fallout of a possible 7 percent property tax increase, which he disclosed on Monday. The spending cuts, aides said, showed that everyone, including government, will feel the pain from a slowing economy. [emphasis added]
NoLandGrab: Actually, not everyone, since the Bloomberg administration is still doing everything in its power to help the the Yankees, Mets and Nets secure tax-exempt financing for their new palaces, a scheme that will place an added burden on the same taxpayers already in the cross-hairs.
The New York Times, In Fiscal Crisis, Mayor Considers Raising Property Tax 7 Percent
Unless your property happens to be a stadium or arena, in which case, of course, the land beneath it would be conveniently tax-exempt.
As if to underscore the seriousness of the situation, Mr. Bloomberg said that while he sat next to Christine C. Quinn, the City Council speaker, for a full inning at the final game at Yankee Stadium on Sunday night, “The economy was the only thing we talked about.”
NoLandGrab: Who wants to bet that the Mayor and the Speaker never once said, "hey, what if we eliminated the tax exemption on the land right beneath our arses?" Wonder how they scored those great seats?
And in related news...
The New York Times, Transit Agency Requests Review of How Contract for Special Bus Fuel Was Awarded
The MTA is launching an investigation into "a highly unusual contract that has added millions of dollars to the cost of buying diesel fuel for city buses."
NoLandGrab: Like us, you might still be waiting for the investigation into the MTA's agreement to sell the Vanderbilt Yard to developer Forest City Ratner for less than half the amount of its own appraisal — and $50 million less than rival bidder Extell Development Company was willing to pay.
Posted by eric at September 24, 2008 12:51 PM