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January 18, 2008

State of the City: $3.1 Billion Deficit

mayor-state-of-city-01-2008.jpgIn his State of the City speech last night Mayor Bloomberg warned that “this is likely to be a difficult year” and announced belt-tightening measures in response to the Independent Budget Office’s projection that the city will see a $3.1 billion deficit in 2009. Bloomberg is ordering all city agency heads to cut their budgets by 2.5 percent this year and 5 percent next year. Despite the predictions of economic woe, the mayor said the city would continue to offer the $400 property tax rebate and will roll out a few new services, including one that allows online access to 311. Bloomberg also noted that 2008 is the 130th anniversary of the death of Boss Tweed and said it was time to “finally put to rest his style of politics.”
Mayor Hails City’s Immigrants and Innovation [NY Times]
Mike Takes Baby Steps in City Plan [NY Post]
Photo from nyc.gov.




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Comments

I don't think this is as bad as it looks. Chin up, everyone!

The What

Someday this war's gonna end...

Posted by: guest at January 18, 2008 9:09 AM

3.1 Bil Deficit? This city is so full of fat and union patronage that I would imagine it wont be so hard to cut spending. That is of course after the city agencies finish their lamenting and Union ranks receed further into irrelevance and obscurity.

I think this downturn is actually a great opportunity to break the backs of the unions and run a leaner and more efficient city.

Posted by: guest at January 18, 2008 9:20 AM

I respectfully disagree. As a Union Man, I think this is a great opportunity to break the kneecaps of 9:20.

Posted by: guest at January 18, 2008 9:25 AM

9:20, what kind of a fucktard ARE you, anyway? Do you think people are stupid enough to blame UNIONS for that kind of deficit, when Corporations (like the one you obviously work for, ass-pole) ride ridiculous tax breaks off into their golden sunset? Pay your fair share, fat cats!

Posted by: guest at January 18, 2008 9:27 AM

Please, stop being so selfish and think of poor Bruce Ratner! You're out there wasting money on garbage pickups and cops, while Bruce is getting by on a mere $2 billion handout from us.

If we are all willing to have our taxes raised more and services cut, maybe we can ease his suffering and come up with another billion or so.

You know it's right.

Posted by: Johnny at January 18, 2008 9:36 AM

Johnny, I only have two words for you: GOD BLESS! You know, I'm sick and tired of these liberal, Union thug-whiners thinking that just because Bruce Ratner and his billionaire brethren are a little soft around the middle, maybe kind of lilliputian, somewhat nerdy, fairly fucktardian, etc... that they can just be pushed around!

It's time folks like you and I stood up for them and said ENOUGH! It's a small thing, but it's a start.

Posted by: guest at January 18, 2008 9:42 AM

New York City has among the highest taxes in the nation. It is in the interest of everyone to keep businesses here, although only a few truly receive tax breaks (Goldman Sachs comes to mind).

It is true however - city employees make a ridiculous amount of money totally inconsistent with their skills. If the budget deficit gets worse, government workers will be fired no matter what.

Also, it's crazy to bring up Ratner. That is not a city issue, as the land is owned by the state. As well, if anything - building new housing increases tax revenues. People who would otherwise move to the suburbs will move into those apartments. That means the city gets income tax from them, sales tax from the money they spend, and a healthier economy due to employers staying in the city rather than moving elsewhere to find employees.

Posted by: Polemicist at January 18, 2008 9:42 AM

Yes, Polemicist, folks who would consider moving to the suburbs will definitely choose a high rise apartment instead. It meets the same needs. Bravo!

Posted by: guest at January 18, 2008 9:47 AM

9:20 Here -

Unions are the #1 reason our city budget is soooo high. NY is the most expensive state and highest taxed ditto for the city. Why is that - Big, abusive, extortionist, organized crime Unions.

Guess what the #2 most expensive state is? California - Also known for massive Unionocracy.

Every other state where unions are marginalized have lower taxes, and more efficient governments and employees.

Ever been to a city or state agency in NY? How many times have I been denied service becuase some Union Clod has to go on 15 min break, only open from 9:45 to 4:00, or some other archane non-productive rule.

Why does it cost us 5X more in garbage collection than other cities per capita? We certainly generate less garbage per person than other parts of the country - Real Simple Answer - Shady Union Contracts.

Wonder why public schools suck here? Answer again = Unions. Sucky Teachers perpetuate and languish when in the real world they would be fired immediately. Not to mention the teachers union lining up to block any incentive based pay or performance enhancing initiatives to protect their ranks from possibly having to be accountable for something.

Hate the cost of housing in NY - Look no furhter than the highest construction costs in the Nation due to Unions - And god forbid you hire a painter who is not union to cut costs, you get a giant inflatable rat outside with some 300 pound dudes whinning about how his union is getting screwed.

Sorry folks - Unions are what makes this city and state so taxed, innefficient, and expensive.

Posted by: guest at January 18, 2008 9:52 AM

I think you'd be surprised how low salaries are for typical city employee. Even uniformed union employees make much less here in city than in surrounding areas.
Certainly they are not the ones affording all the new condos or buying brownstones that readers of this site are able to do.

Posted by: guest at January 18, 2008 9:53 AM

cops and firefighters are in unions too, 9:20. say that to their face.

Posted by: guest at January 18, 2008 9:55 AM

What Polemicist says is true. My country club has been OVERRUN recently by city employees, who come in with their briefcases full of cash and think that somehow they OWN the place now. Last night at dinner, one of them ostentatiously "made it rain" and they all laughed as those of us who are mere Wall Streeters scrambled after the bills like pigeons in Madison Square Park.

And not only do they flaunt their wealth at the club, I had the misfortune of attending a cocktail party at the home of a clerk at the Department of Buildings. More gold than midas, a re-creation of Krakatoa using black truffles and russian caviar, high priced hookers in every half bath and the list goes on!!!

The place must have been 7000 square feet of prime Park Avenue real estate. I was shocked that our city continues to fund these illiterate fucktards so that they can live so high on the hog. My suggestion: pay them minimum wage, with tips (they're all surly, you know) and tell them to move to Ossining or the Poconos and commute.

Posted by: guest at January 18, 2008 9:56 AM

9:52 best post. Privatize the MTA first. Retirement at 50 my a$$...

Posted by: guest at January 18, 2008 9:58 AM

In terms of real dollars 9:53, you may be right.

But in terms of total compensation, I would disagree whole heartedly.

I work in private industry and I dont get a pension, nada, 0, Zilch. I also contribute 25% of the cost to my health plan, and I get 3 weeks vaction and 8 holidays, compared to the 4-6 weeks and 14+ holidays for most city employees. add in all of the countless benefits and perks and I think the numbers come very close.

Not to mention if you compare private industry at the same education levels as city employees. You will probably find that the total compensation for most city employees exceeds what they would get in the private market for the same education level.

Posted by: guest at January 18, 2008 10:01 AM

I agree with 9:58. The only people who should be allowed to retire at 50 are the billionaires who are awarded a city service such as the MTA as their own personal money-minting monopoly.

Posted by: guest at January 18, 2008 10:02 AM

You chose to be in private industry, 10:01. Live with your decision and stop whining or I'll call a waaaaaaaaaambulance for ya!

Posted by: guest at January 18, 2008 10:04 AM

Not Whinning 10:04 - Just responding to someones assertion that public employees make less - I disagree in terms of total compensation.

Posted by: guest at January 18, 2008 10:06 AM

$3 billion is the forecast budget deficit if no action is taken. As budget gaps go, this one is pretty manageable.

There is plenty of blame to go around for how expensive and highly taxed this city and state are. Wicks laws require public buildings to hire trades separately, reportly adding up to 30% to construction costs. Or how about the requirement low bid contracts rather than looking for best value so you don't get cheap stuff that costs a fortune to maintain. Byzantine rules, cumbersome bureaucracy all add to the unseemly stew. Even union supporters must admit that some of the rules are counterproductive and inefficient.

Can't blame any one group of people but you can blame our leaders. It would be so nice to have representatives who would go after these arcane laws that everyone knows are bad public policy. Self interest seems to rule so we are stuck. No guts.

Posted by: trudylou at January 18, 2008 10:10 AM

Bravo trudylou!

Posted by: guest at January 18, 2008 10:11 AM

@9:52

Just to add to your list and show an example of what happens when there are no taxes AND union coruption.... (drum roll, big lights)

LAS VEGAS Baby!!

Take a step off the strip and its heroin addicts and meth labs. (kinda like 4th ave and 9th street)

Posted by: Gross at January 18, 2008 10:15 AM

Should we start of list of CEO's who run companies into the ground and get 90 million to leave? Nah. The problem with this country is unions. Unions. If there were no unions there would be health and safetey and immortality for everyone for evermore. They are perhaps the worst thing that has ever happened to humanity in the history of the universe. I don't know why more people don't see this and think that having such a huge proportion of the nation's wealth in the pockets of a handful of extremely rich people might seem ridiculous.

Keep your eyes on the prize, people. UNIONS are the cause of all your problems. Oh, and terrorists. And illegal immigrants. And did I mention unions?

Posted by: guest at January 18, 2008 10:22 AM

CEO's running companies into the ground has nothing to do with the high cost of services, inflated taxes and political partonage that we pay for every day.

Posted by: guest at January 18, 2008 10:40 AM

Gross....you are...well...gross.

Posted by: guest at January 18, 2008 10:51 AM

NOTHING to do with it? Shove your head a little further up your ass, 10:40.

Posted by: guest at January 18, 2008 10:58 AM

Yes, great retort 10:58 - Now I see the merits of your asertions.

Posted by: guest at January 18, 2008 11:06 AM

It's amazing that a bunch of people who can't seem to make it on $250K a year in the private sector, are going to turn around and begrudge a lower level city employee making $50K and a good benefits package, their salary.

Granted, their is waste, mismanagement and patronage galore in our city system. Show me anywhere in the world where there is not. That doesn't make it right, but to blame our city's fiscal problems totally on unions is ridiculous.

"city employees make a ridiculous amount of money totally inconsistent with their skills." - Polemicist

The same could be said of most people on Wall Street, as well as other parts of the private sector.

Posted by: Montrose Morris at January 18, 2008 11:06 AM

I support the concept of Unionization in private industry, however I work with a number of Unions and quite frankly with the ones I deal with, it is clear that Union cares little about its members and alot about the Union.

In the municipal arena I believe Unionization should be illegal. Unionized Municipal workers end up with "2 bites at the apple" and as a result they wield too much power in their negotiations. 1. They have the power of collective bargaining and 2. they have the power to VOTE.

I recognize that many municipal workers are prohibited from striking in NY due to the Taylor laws but even still, the ability to significantly influence who "management" will be (and then collectively bargain with that same "management") results in municipal workers having too much power and results in bloated overpayed bureaucracies.

Posted by: guest at January 18, 2008 11:07 AM

"city employees make a ridiculous amount of money totally inconsistent with their skills."

Do you know how much a starting professional (civil engineer, architect or attorney for example) makes working for the City? Mid $40s....and then they're required to live in the 5 boroughs (not cheap)....while paying back student loans. Compare that with the private sector where $40k is a mere bonus for some people and not a yearly salary.

That aside, the problem with the City stems from crappy administration. I spent 2 years at a City agency and left because HR and administration did not reward productivity. The emphasis was more on having warm bodies in seats than having people actually perform. So as long as you showed up on time, nobody gave a damn if you actually did anything. If you were a "firecracker" as I was, and tried to do things that would increase efficiency/make the agency look good, all you get is a "thanks". No promotions or bonuses because "it's not in the budget, and you don't have enough 'time in your current salary level' to justify an increase." So that's what happens...you become a drone and do nothing because nobody will recognize your efforts anyway, or you just leave.

If government administration would consider HR policies that actually make sense (realistic promotion/compensation packages) I think employees and the public would have a totally different opinion of public sector service. I know plenty of people who would have been fired if they were in private, but they just get marginalized and keep collecting checks in public sector. In the meantime, people who actually do work keep getting more work piled on for the same amount of pay. It makes no sense. If you want reform at the City service level, appeal to Mikey B. to implement administration that makes sense...or else you can expect more B.S. if/when he gets to the White House.

Posted by: guest at January 18, 2008 11:20 AM

I wonder why the bulk of Union dues go to political compaigns - Doesnt that anger any of you Union stalwarts out there.

How much of the dues they collect from you goes to fund campaign parties, union leadership patronage and other "Closed Book" operations?

Do you really think this is what Unions shoul dbe doing?

Posted by: guest at January 18, 2008 11:20 AM

11:20 - You just made the anti union argument for us.

Why do you think HR policies are not based on performance - because the Unions would never allow it. "How dare someone work harder than me and be more efficient - Ive been in this job twice as long so regardless of my skills or productiity, my seniority entitles me to make more than you" - This is the mantra of the Union Ranks.

Posted by: guest at January 18, 2008 11:24 AM

I didn't make the earlier assertions, 11:06--just came upon the thread and had to laugh at you.

Posted by: guest at January 18, 2008 11:24 AM

as opposed to the blind meritocracy of the corporate, trough, 11:24?

Posted by: guest at January 18, 2008 11:27 AM

Look, can we all just agree that humanity is fucked and life is nasty, brutish and short?

Posted by: guest at January 18, 2008 11:32 AM

I'll agree with that 11:32

Posted by: guest at January 18, 2008 11:40 AM

i think real estate brokers would benefit from Unionization! especially now that the market is tough and you can work all week and not make a dime. I for one am certainly glad that there is unemployment and that all of these real estate sales folks can get 433$/week until the market rebounds!

Posted by: guest at January 18, 2008 11:41 AM

Thank you my brother. We CAN all get along! :-)

Posted by: guest at January 18, 2008 11:41 AM

NYC is a union town, it's way to late to discuss that. Most of the city's expenses are fir mandated programs and services that cannot be cut.
It is also very difficult to fire a city employee unless he/she is found stealing or committing a felony. Even being a drunk can be claimed as a "disability". The city shrinks the workforce by offering early retirement to older employees. It is not a bad deal for them. The real budget cutting I think will come in the things like funding for new parks and other public works.
When Wall St. tanks, the city's revenues nose dive. We are so dependent on our hyper-capitalist markets to support our quasi-Socialist public sector.

Posted by: sam at January 18, 2008 12:05 PM

They should just privatize the city parks. I once walked into the lobby of Trump Tower and it was VERY clean. If he ran the parks, they'd be clean, too.

Posted by: guest at January 18, 2008 12:08 PM

11:20 makes the best points here.

Posted by: guest at January 18, 2008 12:10 PM

12:10 = 11:20

Posted by: guest at January 18, 2008 12:12 PM

Just pointing out that Polemicist is a kool-aid drinking Republican douchebag.

That is all.

Posted by: guest at January 18, 2008 12:16 PM

Excellent point, 12:16.

Posted by: guest at January 18, 2008 12:28 PM

This is 11:20....I'm not 12:10. Thanks to the person who agreed. 12:12- there's really no need for me to hype my own posts. People are free to agree/disagree. This is just a blog. Geez.

Posted by: guest at January 18, 2008 12:30 PM

I suppose we have to take your word for it 12:30 (aka 12:10 and 11:20).

Posted by: guest at January 18, 2008 12:33 PM


For the record, I am 12:10, and yes, I did agree with 11:20, and no, I'm not 11:20. Peace.

Posted by: guest at January 18, 2008 1:46 PM

I believe you, 1:46. I believe everyone on here, in fact. I believe in humanity. I believe I can fly. I believe I can touch the sky. Think about it every night and day. Spread my wings and fly away.

The What

Someday this war's gonna end...

Posted by: guest at January 18, 2008 2:21 PM

12:16

I may be many things, but at least I maintain a standard of civility not found amongst my detractors.

How fitting, given this entire thread deals with the maintenance of our common civilization.

I have little concern for the political views of anyone whose ideals are nothing more than insults.

Posted by: Polemicist at January 18, 2008 2:33 PM

2:21 - Hi sterical!

Posted by: guest at January 18, 2008 2:33 PM

I'm sorry, Polemicist, did you say something, you fucktard?

Posted by: guest at January 18, 2008 2:58 PM

I love Bloomberg - I wish he would run for President....

Posted by: guest at January 18, 2008 5:19 PM

Let's all unionize. Unionize everything. Let's all make BILLIONS!!! Not millions. So many millionares these days. It's about becoming part of the BILLIONARES club not the millionares club. Millions is peanuts. It's 2008 already. Come on guys lets shoot for the BILLIONS!

Posted by: guest at January 18, 2008 5:40 PM

Whoa, 12:08: If Trump ran the parks department, they might be clean.

But they'd be full of polished gold statues. Of Trump.

Posted by: Rehab at January 18, 2008 7:07 PM

I'm sorry that all of you highly educated a**holes who are not even originally from New York, but think they are so cool now that they live in Brooklyn, think of City and union employees as a bunch of illiterate idiots. I happen to work for the MTA, and I am a Certified Public Accountant. I used to work for the City Comptroller's Office as an auditor, and I can tell you that there are a lot of dedicated individuals who worked there, and made a real difference improving City services and programs. Sure, there are bad apples in City agencies, but they are everywhere, including private companies.

There are a lot of highly creative and innovative individuals working for the City. Who do you think keeps it running? Our compensation is far less than the private sector. I dare any of you to work as a bus driver, subway conductor, train operator or sanitation worker for even one day. You would be crying if you did.

So what's wrong with a blue collar union worker earning a living wage? Do they only deserve $8 an hour because they did not go to an Ivy league school? Look at all of the non-unionized corporations like Wal-Mart, destroying this country, buying goods from China and paying workers $8 an hour?

Posted by: guest at January 18, 2008 9:03 PM

Well said 9:03

Posted by: guest at January 18, 2008 11:20 PM

Bravo 9:03.

The destruction of unions in this country, something that our government has been actively involved in since Ronald Reagan, is, I believe, one of the main causes of the extreme disparity in income and wealth that currently plagues our economy. We all know perfectly well that an economy in which the lion's share of the rewards are accruing to the top 1% is a bad thing. The post-war compact between unions and industry insured that the majority of the population would share in the productivity of the economy. That compact was shattered in the 80s and we have seen the result -- a second Gilded Age based on government-enabled, utterly corrupt speculation and corporate welfare gone wild.

Posted by: guest at January 19, 2008 1:36 PM

Yes Bravo 9:03, and 1:36 - Unions are the champions and stalwarts of wealth re-distibutions.

I applaud your position that historically inefficient, archane, and extortionist Unions are actually heroes that we should all be grateful for.

Bravo.

Posted by: guest at January 19, 2008 7:37 PM

Easy to be so glib, 7:37, what with your trust fund and all, you asshat.

Posted by: guest at January 20, 2008 5:45 PM

Nope, no trust fund union flunky at 5:45.

Worked really hard as a teenager, paid my way through school with my savings and student loans. Studied something ueful and work hard everyday to be competitive, efficient, and a valuable employee.

Dont rely on my "Seniority" or Union Rep to be sucessful. I work at it everyday, and the day I start to suck, I hope I will be replaced or overtaken by someone who is even harder working and deserving - Free market baby...

Posted by: guest at January 20, 2008 8:24 PM

Nope, no trust fund union flunky at 5:45.

Worked really hard as a teenager, paid my way through school with my savings and student loans. Studied something ueful and work hard everyday to be competitive, efficient, and a valuable employee.

Dont rely on my "Seniority" or Union Rep to be sucessful. I work at it everyday, and the day I start to suck, I hope I will be replaced or overtaken by someone who is even harder working and deserving - Free market baby...

Posted by: guest at January 20, 2008 8:26 PM

The public-private debate misses the point. America and NYC have enjoyed over the last 100 years tremendous growth and unprecedented increases in living standards and all this with the growth of government. In fact western democracy is a blending of the private sector and public sector. We could not have the standard of living in this country and city with out government steadying the ship (Of course not all of us have done great). This is why when we force feed capitalism on other countries with weak governments it just doesn’t work well.

If anyone wants to see what limited government looks like just head down to New Orleans. Sky high murder rate, no public housing, corrupt political establishment, lots of poverty existing right next to great wealth, and most citizens not very happy, the Big Easy really makes one appreciate the Big Apple.

Posted by: guest at January 20, 2008 10:18 PM

Hey, 8:26, it's a good thing that everything you said is most probably claptrap. Otherwise, you're just another mediocre neocon with a high opinion of his obsolete self.

I look forward to your divorces, alcoholism and born again Christianity.

Posted by: guest at January 20, 2008 11:01 PM

got news for you naive free market loser, it won't come down to you "sucking," (actually, you were probably born sucking) it will come down to you making too much money. and you will be gone. but don't worry, some day you'll join ronald reagan in heaven and it'll all be good again.

Posted by: guest at January 20, 2008 11:05 PM

oh, 8:26, how easy it is to be such a blowhard when you're fresh out of your shitty college.

Posted by: guest at January 20, 2008 11:55 PM

typical low-brow responses from all the Union Clods making false assumptions that I must be "fresh out of your shitty college" or a neocon bent on spreading Christianity.

Sorry folks I am neither of those things - but keep your lowest common denominator vitrol flowing - it only adds to the appearance of union ignorance and bullying to achieve their self-serving goals.

Posted by: guest at January 21, 2008 8:25 AM

You make the same assumptions, 8:25. To be against greedy, self-obsessed motherfucks such as yourself is not to be a "Union Clod." It is to simply be opposed to deluded, greedy, self-obsessed, delusional, weak minded, nimrods such as yourself. Yeah, there's corruption in Unions--but compared to the amount of pain and suffering your "free market" inflicts on humanity (oh wait, sorry, they're in far off lands and you don't have to see it so it doesn't exist. How convenient for you, you selfish little prick) it's a blip on the radar screen. Get a clue, bootstraps.

Posted by: guest at January 21, 2008 9:38 AM

"but compared to the amount of pain and suffering your "free market" inflicts on humanity"

Yes - I agree 9:38. I finally see that Socialist and Communist minded organizations and states truly improve people's lives and raise the quality of life and standards of efficiency we all deserve. Oh, and BTW, the suffering of the world in "far off lands" has nothing to do with free markets, but rather socialist and imperialist policies of this and other countries. Not free markets at all, rather protectionism, cronyism, and other union type pillars that inflicts suffering.

Well done, I think we all finally get it now...

Freedom and Capitalism = Bad for the World
Protectionism and Cronyism = Good for the World

Got, it. Thanks!

Posted by: guest at January 21, 2008 10:13 AM

No, I get it, moron. It's the fault of the third world countries for exploiting their people--not the greedy assed corporations that do business there. Cheap goods made by invisible slave laborers are easy to sell to ignorant people. You call that freedom. I call that--and you--inhumane.

And by the way, opposing your unfettered greed fest does not make one a supporter of communism. It's not a black and white world, bootstraps. Though for an intellect such as yourself, I suppose it is.

Posted by: guest at January 21, 2008 10:39 AM

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