Bloomberg's $65.6 Billion New York City Budget Would Fire 4,666 Teachers
New York Mayor Michael Bloomberg presented a $65.6 billion preliminary budget for next fiscal year that would reduce the city’s 78,000 teachers by 6,166.
The mayor, 69, said the biggest U.S. city also might have to fire hundreds of other workers if lawmakers in Albany reject $600 million in state aid he’s already placed in the budget. The amount includes unrestricted revenue-sharing funds, school aid and a request to end a $12,000 yearly supplement to pensions for retired police and firefighters.
“If we don’t get these or similar kinds of things, then we have this $600 million to cover,” the mayor said. “It will hurt every single agency.”
The job cuts are needed even though an improving economy bolstered by $34 billion in Wall Street profits over the past two years and record tourism will help pour about $2 billion of unanticipated revenue into city coffers through June 30, 2012, Bloomberg said. About 4,666 teachers would be fired under the mayor’s plan, with the rest removed through attrition.
The budget next goes to the City Council, which will modify it in negotiation with the administration. They must approve a final plan by June 30.
Since June, the city has compensated for the loss of federal and state aid to the schools by replacing it with $1.86 billion in taxpayer-generated revenue, Bloomberg said. The schools will receive $2.2 billion more in 2012, totaling $22 billion, than in the current fiscal year, he said.
‘Bizarre’ Plan
Michael Mulgrew, president of the United Federation of Teachers, described Bloomberg’s intention to fire teachers as “bizarre” in light of the mayor’s own prediction of increased city revenue and Governor Andrew Cuomo’s statement this month that “the state budget should not require local layoffs.”
Bloomberg said New York faces deficits of about $4.9 billion for fiscal 2013 and $4.8 billion the following year.
Pension expenses, now about $6.8 billion, will increase to $8.3 billion next year and rise to $8.6 billion in 2015, the spending plan predicted.
Bloomberg said the city could save $1 billion by 2019 if the state Legislature approves changes that would require future non-uniform employees to work until 65 to get full benefits, eliminate overtime pay from benefit calculations and increase workers’ contributions to retirement plans.
‘Unacceptable Level’
Harry Nespoli, president of the Municipal Labor Committee, a coalition of city-worker unions, said the preliminary plan “contains an unacceptable level of service and personnel reductions,” and will result in “reducing the quality of life here.”
The mayor could have saved $100 million by renegotiating contracts with private vendors, Nespoli said, and he called upon the mayor to seek more revenue by backing a continuation of a state income-tax surcharge set to expire on the highest earners.
Reduced agency services would include elimination of 20 fire companies; 16,624 child-care placements due to lost federal aid; 350 civilian police positions; and $28.5 million less for libraries and cultural institutions.
The mayor reduced a proposed cut in capital spending to 10 percent from the 20 percent he contemplated in November. That would save about $800 million in debt service payments through 2021, he said.
The mayor is founder and majority owner of Bloomberg News parent Bloomberg LP.
To contact the reporter on this story: Henry Goldman in New York at hgoldman@bloomberg.net
To contact the editor responsible for this story: Mark Tannenbaum at mtannen@bloomberg.net
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