DEP Press Advisory on Deer Hunting Cancellation, October 2, 2001

NYC 9/11 Public Portal Document

A Looming New York Fiscal Crisis V ' The New York economy, already shaky before ingly difficult achievement tests. But some very the terrorist attacks of Sept. 11, is headed for an tough choices are in the offing. aftershock that could produce the biggest budget The city will no doubt call for help from Albany, crisis since the 197O’s. Estimates of lost city and and the state needs to do what it can. But Gov. state tax revenues over the next 18 months ap­ George Pataki and the Legislature are not likely to proach $10 billion. The shortfalls would come on top have much leeway. The state budget is itself de­ of multibillion-dollar deficits already projected for pendent on the very businesses that have been hit the next fiscal year. In preparing his first budget, hardest — finance, insurance, tourism and retail the next mayor of New York City may have to close sales. With its so-called “bare-bones” budget ' a gap of $4 billion or more, a nearly impossible task passed earlier this year — and decried as inade­ without major sacrifice by New Yorkers and help quate by everyone from Mr. Pataki to the local from Albany and Washington. school districts — the state can very likely make it Until recently, some of the mayoral candidates to the end of its fiscal year on March 31. For the next might as well have been campaigning on the moon year, the state could easily face its own deficit of for all the attention they paid to the challenge lying several billion dollars. ahead. Now they are beginning to speak more One way of easing the crunch would be through frankly about the future problems. But the difficul­ federal aid — if Washington can be persuaded to ties with the city’s budget were not all created by compensate the city for tax revenue lost because of the terrorists. Irresponsible practices over the last the destruction of the World Trade Center. The city several years allowed the Giuliani administration also may be able to use $2.5 billion in emergency and City Council to use surpluses from the Wall borrowing allowed by the Legislature. But that Street boom to plug deficits that were bound to could create new problems: If the city runs a deficit remain when the boom faded away. of more than $100 million, the laws enacted during The city can probably limp through its current its fiscal crisis of the late 7O’s call for a control fiscal year, which ends next June 30. But for the board, headed by the governor, to take over city year beginning July 1, the Giuliani administration is finances. To address all these problems, Mr. Pataki projecting a $4 billion gap. That would represent should begin working immediately with Mayor Ru­ about 8 percent of the budget, and it does not include dolph Giuliani, the legislative leaders and all the any raises negotiated in future labor contracts. It mayoral candidates. would be heartbreaking for City Hall to have to ask In a time of trial and tragedy, it will be hard for the city’s heroic work force, especially its uni­ the city to get used to the fact that the economic formed services, for pay freezes and givebacks. It boom of the last several years is now gone. In fact, it would be almost suicidal to try to deny the teachers was gone even before the attacks on the World a significant wage hike at a time when higher- Trade Center. Deferring the task of dealing with the paying suburban schools are competing for staff coming emergency will only make that emergency and city students are being required to pass increas- worse.

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