NYC-WTC_000195490

NYC 9/11 Public Portal Document

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I; The 2002 budget provides for a budget stabilization account of $345 million and a general reserve of $200 million, which is double the $100 million that is mandated by the Financial Emergency Act at the beginning of a fiscal year, A new tax reduction program in 2002 valued at $494 million, growing to $1.3 billion by 2005, has been designed to continue to provide economic stimulus and to improve the City’s long-term economic competitiveness. The following table details changes to the 2002 budget since the 2001 budget was adopted.

{ FY 2002 Changes Since Adoption ( ($ in millions) ISs'f

> Additional Sources of Funds • FY 2001 Budget Stabilization Account $ 2,761 • Agency Programs 846 • Revenu^ Forecast 285 • Debt Service 150 • 0TB Privatization 250 • Reimbursement for Landfill Closure Costs // 225 IBS • State and Federal Actions 150 ( Total Additional Sources of Funds $4,667 I' r Additional Uses of Fund^ • (FY 2002 Gap Reduction • Collective Bargaining \$ (2,652) (505) (671) • Targeted Spending L • Public Safety (197) • Health & Welfare (186) • Energy , (59) IF Is' • Campaign Finance Board • Environmental Protection (58) I: (31) • i City Council (11) • I All Other (net) (129) \ • Additional Tax Reduction Program (494) • Fund FY 2002 Budget Stabilization Account ■ Total Uses of Additional Funds $(4,667)

. Summary of Financial Plan

1 The City’s financial plan sets forth projected operations on a GAAP basis for the 2002 through 2005 fiscal years. In accordance with the City Charter a four-year financial plan is to be included in the Executive Budget " submission. The financial plan will also be submitted to the Financial Control Board in accordance with the Financial Emergency Act. The assumptions, upon which the four-year plan revenue and expenditure estimates j are based, are summarized in the Appendix section of this Mayor’s Message.

As indicated, a budget stabilisation account of $345 million is included in 2002 and a general reserve of $200 tls million is included for every year of the plan. The tax reduction program is valued at $494 million in 2002, $719 IS million in 2003, $1.0 billion in 2004 and $1.3 billion in 2005.

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