New York City Independent Budget Office Director Ronnie Lowenstein today told the City Council that the city faces large budget gaps in the coming years. In presenting IBO's analysis of the Preliminary Budget for fiscal year 2002, Lowenstein said that if the Mayor's proposals are enacted the city faces a prospective shortfall of up to $1 billion next year, with gaps growing to $4.5 billion in 2004 and 2005.
“Even without a recession, slower U.S. and New York City economic growth means that future budget gaps will be much harder to close since the city will no longer have significant surpluses available to roll into the years ahead,” said Lowenstein.
Under the City Charter, IBO--along with the Mayor's Office of Management and Budget--is responsible for forecasting city tax revenues. IBO projects tax revenues in 2002 will be $263 million higher than the Mayor's estimate.
Lowenstein's complete testimony is attached along with tables detailing IBO's reestimates of the Mayor's spending and revenue proposals.
Testimony to the City Council Finance Committee on Projected Revenues, Expenditures and Budget Gaps (PDF Format)
March 5, 2001; Testimony, 5 pages
IBO is an independent city agency whose mission is to provide nonpartisan budgetary, economic and policy analysis for the residents of New York City, and to increase New Yorkers’ understanding of and participation in the budget process.