LIU IDENTIFIES EXTRA $100 MILLION FOR FY 2013 CITY BUDGET

-Additional funds available to provide budgetary relief -  

  Due to the $997 million General Obligation bond refinancing set to be finalized on June 7^th and lower than expected interest rates for the current year, the City will gain more than $100 million in additional funds to help close gaps in the Fiscal Year 2013 budget, according to City Comptroller John C. Liu.

Liu will provide the information, which has not yet been included in the Mayor’s Executive Budget, today when he testifies before the City Council Finance Committee.

Comptroller Liu said that lower than expected interest rates will yield $33.6 million in savings which could be rolled over to FY 2013; while the  refinancing, which was announced on May 23^rd by the Comptroller’s Office and Mayor’s Office of Management and Budget, would produce savings of $67.8 million in FY 2013 and  $68.9 million for Fiscal Year 2014.

“By successfully navigating the bond market, we have been able to save more than $100 million which can now be used to provide budgetary relief,” Comptroller Liu said.  “As our national and local economies remain fragile and we are facing a number of risks to the City’s bottom line, we must continue to aggressively identify savings and recoup every single dollar the City is rightfully owed.”

Comptroller Liu also reiterated his call for the City to recoup as much as $163 million from Hewlett Packard as a result of overbilling and underperforming on the contract to upgrade the City’s 911 call system, which was uncovered as a result of a recent audit.

Some other aspects of Liu’s testimony and budget report, which can be found at http://www.comptroller.nyc.gov/bureaus/bud/budget_reports.shtm include:

·         The budget relies heavily on one-shots to close the gap, specifically an estimated $1 billion for the sale of taxi medallions that may not materialize

·         The settlement from CityTime and $1 billion in funds from the Retiree Health Benefit Trust are being used to close gaps

·         Events outside the City’s control such as the Eurozone or a stalemate in Washington D.C. should spur the City to institute a Capital Acceleration plan to foster job growth and address  the high unemployment rate

·         The potential cost as a result of City Hall’s failed negotiations with the United Federation of Teachers and Council of School Supervisors and Administrators could be as high as $2.5 billion in FY 2013

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