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New York City mayor slashes public services
By Alan Whyte and Peter Daniels
27 February 2002
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The budget proposed by New York City Mayor Michael Bloomberg
earlier this month would mean major cuts in public and social
services. The mayor called for closing a projected $4.76 billion
budget deficit with funding cutbacks for city agencies ranging
from 6 to 26 percent, along with a series of increased fees that
will disproportionately affect workers and the unemployed. About
6,000 city jobs are to be cut through attrition and employee buyouts.
The reductions in services will come precisely as rising unemployment
and poverty make the programs all the more necessary. The budget
for the Administration for Childrens Services, for instance,
will be cut by about 18 percent, or $80 million, resulting in
the elimination of 10,000 slots in a proposed day-care expansion
program. Sixteen million, or 19 percent, will be slashed from
the budget of Youth and Community Services, leading to the likely
disappearance of 2,000 summer jobs for youth.
At the Department for the Aging the cuts amount to $26.1 million,
or 16 percent. Prescription drug reimbursements would be eliminated,
along with weekend meals for the elderly. Seven senior citizens
centers would be closed and four others would not be opened as
previously scheduled.
The Department of Homeless Services would be cut by 17 percent
at a time when the number of homeless is steadily increasing.
Legal services that help families fight evictions would also be
cut, a step sure to increase the demand for the homeless services
being slashed.
The citys public schools are in desperate shape, with
necessary supplies, such as paper, unavailable. After two decades
of increased immigrationrising at a rate unprecedented in
the past 100 yearsthe overcrowded and dilapidated school
buildings are a scandal, yet Bloomberg proposes to cut the schools
construction budget by $692 million, or 20 percent. The operating
budget for the schools will be cut by $354 million, or 7 percent,
leading, at the very least, to the elimination of all extracurricular
activities. On the college level, City University funding is to
be cut by 13 percent.
Other public services are also coming under the axe. Library
funding is to be cut by $39 million, or 15 percent, on top of
previous cutbacks over the past decade. Branch libraries that
are currently open for six days a week will probably be cut back
to five.
Other suggested cuts include $10 million from the Fire Department,
to eliminate some ambulance shifts; $56 million from the Sanitation
Department, eliminating metal, plastic and glass recycling; and
another 13 percent at the Parks Department, the agency that has
been all but decimated even during the boom years.
The mayor has depicted himself as a hands-on manager of the
citys finances, firm but compassionate, making sure that
the sacrifices are shared equitably. The media has
taken up this reassuring refrain, with the New York Times
pointing to the pledge to hold off on layoffs for a year and editorializing
that Bloomberg seems to be trying hard to be fair.
When the budget was announced by Bloomberg on February 14 the
Times declared what he has done can hardly be called
a St. Valentines Day Massacre. By avoiding layoffs and spreading
the pain broadly across the city, the mayor may even manage to
win a few hearts.
Notwithstanding these claims, it is obvious to all that the
wealthy will hardly be affected at all by the cuts. They have
no need for the citys public schools and social services.
Central Park, the citys crown jewel in the heart of the
wealthiest neighborhoods, is maintained largely through private
funds as a result of changes carried out over the past 20 years.
Bloomberg made much of the fact that even the Police Department,
in the aftermath of September 11, will be asked to absorb a reduction
of about 6 percent. He reiterated his commitment to zero
tolerance for crime, however, and said that whatever resources
were necessary would be found immediately if there was any increase
in the crime figures. He made no such promise about finding money
for schools, hospitals or other services.
While Bloomberg talks about sharing the pain, he
also insists that there can be no increase in personal income
or corporate taxes, lest businesses and the wealthy flee New York.
As a result the super-rich, like the billionaire mayor himself
(his net worth, it has been pointed out, coincidentally amounts
to roughly the same figure as the projected $4.8 billion deficit),
will pay nothing. The gulf between rich and poor, which has already
reached record levels, is going to be widened even further by
the recession and cutbacks.
There was one criticism raised in big business circles about
the proposed budget. A relatively mild one, it had nothing to
do with the cuts that workers are being told to absorb. On the
contrary, it called for more sacrifices. This was voiced by big
business watchdogs like Diana Fortuna, president of
the Citizens Budget Office, who generally praised the mayor, but
added, Could it be less borrowing and more cuts?
What the fiscal monitors and media pundits are concerned about
is the plan to issue another $1.5 billion in debt to cover current
expenses. They correctly point out that similar practices helped
to push the city into bankruptcy and financial takeover by the
state in the 1970s.
There is a large element of wishful thinking embodied in budget
plans based on hope for a rapid recovery from the current slump.
A period of stagnation, a so-called jobless recovery,
or a W-shaped downturn, in which a very modest improvement
is followed by another slump, would have devastating consequences.
New York City and the State of New York are already the most heavily
indebted governments in the US. The citys debt rose by more
than half, or about $15 billion, during the successive administrations
of Mayor Rudolph Giuliani, forcing the city to consume a large
portion of its budget just paying interest on existing debt.
Bloombergs much-heralded inclusiveness has
provoked favorable comparison with Giuliani. The new mayor has
met with union leaders and black politicians, such as Al Sharpton.
He has made various friendly noises in the direction of political
rivals, and has won the praise of nearly everyoneexcept
the millions of workers who will have to foot the bill for the
crisis produced by Wall Street and its political representatives.
One recent news report gave a glimpse of what these workers
are thinking. When a reporter went to one senior center affected
by the looming cuts in weekend meals for 12,000 elderly men and
women, 82-year-old Margaret Robinson made her feelings clear.
Hes got some nerve, she said. He has plenty
to eat in his house, Im sure. I wish I could staple his
mouth shut so he couldnt eat. Then he might understand.
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