The New York City Council Wednesday passed a $66 billion fiscal 2012 budget that avoids thousands of teacher layoffs and shutting down fire stations.
The vote follows an agreement last week between the council, Mayor Michael Bloomberg, and labor officials. Earlier this year, the mayor proposed reducing teacher head count by more than 4,000. An increase in teacher retirements, union concessions, and further spending cuts within the Department of Education helped to offset the potential teacher layoffs.
“Even in these difficult fiscal times, New Yorkers expect us to protect the most vital services without putting our future economic stability at risk,” City Council President Christine Quinn said in a statement. “Those New Yorkers can rest easy tonight knowing that our children will still have great teachers, our seniors will still have great centers to visit, and our neighborhoods will still have great firehouses to keep them safe.”
The budget passed in a 49 to 1 vote.
Fiscal 2012 begins July 1. The spending plan does not include any tax increases. It uses $3.2 billion of surplus funds to help balance the budget as the city faces a decrease in state and federal aid.
“This budget protects jobs and vital services without mortgaging our future,” Councilman Domenic Recchia, chairman of the Finance Committee, said in a statement. “We saved teachers, firehouses, seniors, libraries and child care, and we did it without crippling our ability to deliver a budget next year.
The Office of Management and Budget expects to collect $47.9 billion of tax and miscellaneous revenue in fiscal 2012, which is $1.45 billion more than fiscal 2011 collections, according to June 29 budget documents. Federal and state grants bring total fiscal 2012 revenue to $65.91 billion.
The administration projects the city will face a $4.6 billion deficit in fiscal 2013, according to a June 29 OMB financial plan update. In early May, Bloomberg anticipated a $4.8 billion deficit next year.
Officials peg budget shortfalls for fiscal 2014 and 2015 at $4.8 billion and $4.9 billion, respectively, which are lower than May projections.
In New York City, the mayor has five days to veto a budget passed by the council. A Bloomberg spokesman said the mayor will not veto the fiscal 2012 budget, as the administration and the council negotiated and agreed upon the budget last week.
