Public Employee Press

City plans for economy to slow, but projects no layoffs

Mayor Michael R. Bloomberg has proposed a $58.5 billion budget for next year that comes to about $2 billion less than the current year’s $60.4 billion budget and looks to cut some municipal services.

“The union will be watching this budget to make sure that it does not have a negative impact on union members,” says DC 37 Executive Director Lillian Roberts.

On Jan. 22, the mayor released his preliminary budget for fiscal year 2009, which begins July 1, and presented his financial plan for the next four years. Facing an economic slowdown, Bloomberg has begun a hiring freeze, which is expected to reduce the payroll by about 4,000 employees in fiscal year 2008.

The January financial plan calls for cutting the city’s education budget by $180 million this year and another $324 million next year. It could reduce Police Dept. spending by $33.8 million this year and $95.6 next year. The city has closed projected shortfalls in 2008 and 2009 with last year’s $4.6 billion surplus, spending cuts and new revenue sources.

Cuts to schools
Schools Chancellor Joel I. Klein said the proposed $324 million cut to the Education Dept. could result in a reduction of more than $100,000 for the average school next year. Principals will likely have to eliminate after-school activities or Saturday tutoring.

The Bloomberg budget for next year projects no layoffs but calls for eliminating hundreds of positions through the hiring freeze and attrition.
The positions the city proposes to eliminate include 127 posts in Child Protective Services, 200 at the Dept. of Health and Mental Hygiene, 115 at the Dept. ofFinance, 133 at the Dept. of Parks and Recreation and 75 at the Dept. of Social Services, as well as 472 nonteaching positions at the Dept. of Education. In addition, the city’s cultural institutions and three library systems could be hit with $22.5 million in cuts. Introducing labor-saving technology at the Dept. of Social Services could also allow for the elimination of another 530 positions.

The mayor blamed the city’s spending increases largely on the costs of pensions, health-care coverage for municipal employees, union contracts, debt service and Medicaid. He said he would seek the assistance of municipal unions to find $200 million in savings through health-care restructuring.

When the City Council holds hearings on budget issues in the spring “the union will be testifying and lobbying hard to prevent cuts in vital services,” said DC37 Political Director Wanda Williams.