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Public
Employee Press Demands
approved amid fiscal gloom The
DC 37 Delegates Council voted Oct. 22 to approve the unions bargaining demands
for the next round of contract negotiations. The union hopes to present
the demands to the city in December. Traditionally, DC 37doesnt publicize
demands until the opening of bargaining. We know the city faces
difficult economic times, but we want to get the bargaining process under way
as soon as possible, said DC 37 Executive Director Lillian Roberts at the
Oct. 16 meeting of the DC 37 Negotiating Committee.That day, the committee voted
to send the demands to the Delegates Council, the unions highest decision-making
body.
Were going to fight hard to make sure our members get
a fair contract, she said. The Negotiating Committee, which is
composed of the presidents of the 56 local unions in DC 37, adopted demands that
were crafted by four subcommittees over the summer and considered other proposals
submitted by local presidents. At its meeting, the Negotiating Commitee also discussed
bargaining strategy, and DC 37 Research and Negotiations Director Dennis Sullivan
gave an overview of the collective bargaining climate in the city. The
unions economic agreement expired June 30. But under city collective bargaining
law, the terms of the contract remain in effect. Fiscal
crisis This round of negotiations is expected
to be particularly difficult because the union will be bargaining while the city
faces what politicians, fiscal monitors and public policy experts describe as
its worst budget gap since the 1970s. The fiscal crisis a generation ago resulted
in layoffs of tens of thousands of public employees and dire consequences
such as hospital closings and the end of free tuition at CUNY that are
still felt today. Amidst the dark clouds, though, a ray of sunshine is
emerging: As the battered economy stagnates and the local fiscal picture grows
bleaker, the political establishment is increasingly accepting the need to address
next years projected $5 billion budget gap by raising taxes. Since
before he approved the current budget in June, Mayor Michael R. Bloomberg has
hinted at layoffs but has softened his stance on taxes. With the exception of
the cigarette tax hike and some extra fees, Mr. Bloomberg closed the gap in the
current budget primarily through cutting spending, borrowing $2 billion and stretching
out city pension payments. More recently, though, Mr. Bloomberg has acknowledged
that the city will need to raise taxes to deal with next years budget shortfall.
Everything has to be on the table, Mr. Bloomberg said Oct. 1, commenting
on the citys budget situation. The law requires us to have a balanced
budget, Mr. Bloomberg said. Period. And those that think we can cut
$5 billion out of expenses just have absolutely no idea how this city works. You
could not do that under any stretch of the imagination. DC 37 earlier
this year issued a White Paper to the city that identified how the city could
save $600 million through increasing the civilian work force in the New York Police
Dept., eliminating waste in city government and reining in contracting out.
The city has various revenue options: -
Restoring the commuter tax, which DC 37 has advocated,
would fetch nearly $500 million. -
Increasing
the property tax rate by 10 percent would bring in about $1 billion. -
Hiking the personal income tax surcharge
by 10 percent would raise $584 million. -
Changing the business tax structure could shift the
burden away from individuals and more toward corporations, which benefited from
tax breaks during the boom years of the 1990s.
As local governments nationwide
grapple with revenue shortfalls, policymakers are looking at PILOTs,
or payments-in-lieu-of-taxes made by traditionally tax-exempt organizations,
such as foundations, private universities and hospitals. PILOTs require
owners of tax-exempt properties to compensate municipalities for services they
receive. For instance, Yale University contributes $2 million a year to New Haven
to cover fire and other services. Harvard University will pay Boston $40 million
over the next 20 years for property it owns in the city. DC 37 estimates
that New York City could raise $50 million to $100 million in revenue through
a PILOT. The local fiscal picture will become clearer later this month when
Mr. Bloomberg announces the midyear budget modification and revisions in the citys
four-year fiscal plan. Cutbacks coming
Mr. Bloomberg is expected to announce 7.5 percent in midterm agency cuts that
the administration projects should save $1 billion this year and make savings
a little easier next year. We recognize that the city faces difficult
economic times, Ms. Roberts said. But we will insist that our members
dont become the victims in the citys effort to address the budget
gap, which is mostly the result of reckless and irresponsible tax cuts adopted
by the previous administration. | |