New York City could receive as much as $5 billion for schools, police and other services from the $787 billion federal economic stimulus package, avoiding potential layoffs of teachers and police officers, according to a city official’s analysis.
Only two weeks ago, Mayor Michael Bloomberg, in a sobering budget plan, threatened the city’s labor unions with 20,000 layoffs if they didn’t renegotiate contracts and require workers to contribute more toward their benefits.
The nation’s largest city faces a $4 billion budget deficit in the coming fiscal year, which begins July 1.
As President Barack Obama signed the giant stimulus plan into law Tuesday, Deputy Mayor Edward Skyler wrote to Bloomberg that New York’s estimated share of the stimulus funds would allow the city to “avoid severe headcount reductions” in the education department and “mitigate” staff cuts in the police department.
The city will use the stimulus money during the next two fiscal years, city officials said.
Skyler said the stimulus funding for education would offset a proposed reduction in state school aid.
The state has a projected $14 billion deficit for the 2009-10 fiscal year, which begins April 1. Gov. David Paterson’s budget plan would cut nearly $1 billion from the city’s budget, including $669 million in school aid and $328 million in general municipal aid, according to a report by state Comptroller Thomas DiNapoli.
Bloomberg has complained that Paterson’s plan would overburden the city and immediately mean higher city taxes and thousands fewer police officers, firefighters and teachers.
The city’s final share of stimulus funds for education, which will be funneled through the state, depends on the state’s final budget, said Bloomberg spokesman Stu Loeser. Some of the possible stimulus funding for police will turn on the success of the city’s grant applications, he said.
“We’re optimistic, but nothing is resolved until the state budget is resolved,” he said.
The state’s budget deadline is April 1; the city’s is July 1.
The city will receive $821 million directly over the next two fiscal years for high-needs and disabled students and school technology, Skyler said.
Also as part of the capital spending portion of the stimulus package, the city could get up to $544 million for water, sewer and transportation projects, according to Skyler’s analysis.
City-affiliated agencies stand to get tens of millions of dollars beyond what the city may get directly, the analysis says.
(Source: NBC NY)
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3 Responses
So are the people condeming the “stimulus” (bailout might be a better word) demanding that thousands of frum New Yorkers turn down their share of the money, quit their government jobs, replace the police, sanitation and fire department with volunteers, only use taxis and private buses to avoiding benefiting from the “stimulus”.
P.S. which isn’t to say the stimulus will do much to stimulate, but its an impressive relief measure and at least postpones bankrupting the state and local governments
Do people REALLY believe that Pres Obama can just ‘give out money’,?
#2- well, he needs to have the Congress appropriate the money
(but once the Congress decides, the Treasury can hand out the money – regardless of whether they get the money from taxes, selling bonds or “printing”)