NYC-WTC_000195490

NYC 9/11 Public Portal Document

The strides we have made are significant. Since 1993 private sector employment has increased by 481,000 and we have regained all the jobs lost in the 1990-91 recession. The resurgence in employment has helped thousands of New Yorkers avoid reliance on government subsidies, and today the public assistance caseload is lower by more than 50 percent. Whole new areas of the City have been developed as sources of economic growth, with new developments ip such areas as 125th Street in Harlem and 42nd Street in mid-town Manhattan. Lower Manhattan has been turned around as well, a result of the Commercial Revitalization Program's targeted tax incentives. Vacancy rates downtown have fallen from 20 percent in 1993 to three percent today, and lower Manhattan now contains a vibrant residential community which virtually did not exist in 1994. The future of New York City's status as the world's financial center is also assured because of our successful efforts to retain the New York Stock Exchange and NYMEX, and by bringing the Nasdaq headquarters here. Additionally, we can look to our historic investments in the City's cultural institutions as catalysts for new economic development, as well as the development which will accompany the Staten Island and Coney Island stadiums.

Tax cuts were an important contributor to the City's economic recovery. Our first reduction-the hotel tax cut-was crucial in providing evidence that targeted tax reductions can actually spur economic growth. The hotel occupancy rate, which stood at 70 percent before the imposition of the hotel tax cut, rose to 85 percent last year and visitor spending in the City is up over 40 percent. Today the tax burden is lower for both individuals and businesses; tax reductions already enacted have saved New York City's residents and businesses a cumulative $8 billion.

Finally, the City is markedly safer. Since 1993 the number of murders is down 65 percent, vehicle theft is down 68 percent and overall crime is down 52 percent.

These changes-decreasing the taxes paid by residents and businesses and increasing the quality of New York City as a business and residential location-will do much to mitigate the impacts of the weakening U.S. economy; '

Despite all these successes, however, now is the time when we must be especially vigilant in maintaining the City's hard won fiscal discipline. This year, our fiscal strategy of maintaining discipline in spending has helped generate a $2.8 billion surplus. Next year, the proposed budget actually lowers spending 2.8 percent while maintaining investments in core services and funding a collective bargaining agreement with an historic provision for merit pay. The budget also continues to make tax cuts a priority and lowers the cost of government for residents and businesses by making further reductions in the personal income tax surcharge and by continuing the reductions in the commercial rent tax which we began in 1995.

i f

NYC-WTC_000195493