Mayor Stakes Popularity on a Budget Fix By MICHAEL BARBARO, New York Times, November 14, 2008 http: //www. nytimes. com/2008/11/15/nyregion/15 bloomberg. html? _r=1&oref=slogin
New York’s Mayor Bloomberg • A year before the next mayoral election, Michael R. Bloomberg appears to have settled on his campaign message: higher property taxes, smaller school budgets, shuttered dental clinics, more parking fees and a new surcharge on plastic shopping bags. • And by the way, he advises ordinary New Yorkers, buy fewer dresses and put off that new car. • It is a seemingly toxic sales pitch at a moment when the city’s economic engine, Wall Street, is imploding, thousands of jobs are disappearing and New Yorkers are on edge. • But in persuading the City Council to revise its term limits law so he could seek a third term, Mr. Bloomberg cast himself as an economic white knight who is uniquely capable of leading the city through a steep downturn. And he is acting swiftly to fulfill that promise.
Higher Taxes • Yet the severity of what he must do, the short time he has to accomplish it and his frequent lack of delicacy could threaten his popularity at a time when he needs it most. Already, New Yorkers are dialing up the city’s 311 information hot line and their council members’ offices to fume about higher property taxes. • The mayor and his aides see his ability to confront a financial crisis and make painful decisions as his greatest strength — and the explanation for his strong showing at the polls in 2001 and 2005. • So far, however, the mayor’s economic decisiveness is not exactly winning over New Yorkers. Just days after engineering the change to term limits last week, Mr. Bloomberg infuriated thousands of homeowners by stopping the city from mailing out an annual $400 property tax rebate, which many families rely on to buy holiday gifts or pay winter heating bills. The move would save the city $250 million — a fraction of the city’s $60 billion annual budget, but the mayor said it was a prudent step. • “People are starting to get really annoyed with him, ” said Jayson Levitz, a homeowner in Queens, who had been waiting for his $400 rebate check. “He is so arrogant that he feels only he can handle this meltdown. But it does not take a brainiac to increase taxes. ”
Unpopular budget cuts • The mayor’s rush to carry out politically unpopular budget cuts and tax increases has dumbfounded some Council members, especially since the next election is less than a year off. Council members, who also face re-election next year, must approve many of the mayor’s tax and fee increases. • “In bad times, you cannot expect people to smile and say, ‘Why don’t you take my money and not pay me the money you owe me, ’ ” said Councilman Simcha Felder, a Bloomberg ally. • Edward Skyler, deputy mayor for operations, said that with the city facing a budget shortfall of $4 billion over the next two years because of lower tax revenue, the mayor “has no easy options in front of him. ” “We saved for a rainy day, but instead we are in monsoon season, ” he said. “The depth of this emergency means there are no longer any sacred cows. ” • To close the budget gaps, the mayor has proposed a 7% property tax hike, the elimination of the rebate and across-the-board spending cuts, like canceling the next training class of 1, 100 police cadets, eliminating 300 jobs in the parks department and closing 44 dental clinics for the poor. The measures are expected to balance this year’s budget but will still leave the city with a $1. 3 billion shortfall next year, requiring further cuts and, possibly, more taxes.
The Economics • • • OK, you’re running a city. Tax revenues are down. Contractual expenditures are up. What do you do? How is NY different from Macomb County? How is it the same?
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