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B A L A N C I N G T H E G O T H A M C I T Y B U D G E T
A BUDGET PLAN OF, BY AND FOR COSMOPOLITANS
Drafted by SOLVEIG A. WILDERSubmitted to PROFESSOR MANNY TIRADO for PoliSci Computer Applications
At the CUNY GRADUATE CENTER FOR WORKER EDUCATION
I T S E E M S T H E R E I S A“ 2 0 0 8 G L O B A L E C O N O M I C C R I S
I S ”HIGH OIL PRICES triggered …
AN INCREASE IN FOOD PRICES which resulted in …
GLOBAL INFATION which triggered …
A SUBSTANTIAL CREDIT CRISIS which caused …
MAJOR BANKRUPTCIES AND STOCK MARKET FAILURES which has led to …
INCREASED UNEMPLOYMENT AND HOUSING FORECLOSURES which could culminate in …
A GLOBAL RECESSION ! ! !
“ R I P P L I N G E F F E C T S “ A R E B E I N G F E L T A R O U N D T H E
W O R L D 1
IN EUROPE several major financial institutions have failed or have needed rescuing.
IN ASIA, despite concerted efforts to sufficiently de-couple from the Western financial systems, countries have seen their stock markets suffer and currency values spiral downward.
IN LATIN AMERICA there will be much slower growth than expected as a result of a loss of trade to the US, which absorbs 50% of all Latin American exports.
IN THIRD WORLD NATIONS financial instability coupled with a rise in food prices have resulted in high fuel costs and soaring commodity prices.
1 See GLOBAL ISSUES
I N T H E U N I T E D S T A T E S, T H E D O M I N O E S A R E
F A L L I N G O N E R I G H T A F T E R T H E O T H E R 2
THE DEMISE OF LEHMAN BROTHERS, a global investment bank, triggered...
THE RUSHED SALE OF MERRILL LYNCH, a leading global financial management and advisory company, which forced …
BANK OF AMERICA, the buyer and leading financial institution, to cut thousands of jobs, which necessitated…
AMERICAN INTERNATIONAL GROUP (AIG), a global insurance and financial service, to be taken over by the federal government, which could not stop…
A NATIONWIDE CREDIT CRISIS ! ! !
2 See TIME BUSINESS & TECH
T H I S G L O B A L E C O N O M I C C R I S I S I S H U R T I N G
M U N I C I P A L I T I E S N A T I O N W I D ENEW YORK CITY will be hardest hit because Wall Street supplies 9% of its revenues, employs 5% of its workforce, and pays 20% of its wages. MAYOR MICHAEL BLOOMBERG announced on October 3rd that there will be a $2.3 billion dollar budget gap 3. GOVERNOR DAVID PATERSON said later that same day that the crisis on Wall Street will create a budget “emergency” throughout New York State 4.
LOS ANGELES will be hard hit because it is a hub for sub-prime mortgage lenders. Since 40% of homes now sold are foreclosures, new construction has nearly come to a halt. Unemployment has risen from 5% to 7.9%, and joblessness is up from the statewide average of 7.7% to 9.2% 5.
MAINSTREET MUNICIPALITIES with large percentages of residents working in finance, real estate, insurance, and leasing (i.e., Darien CT, Bloomington IL, and Hoboken NJ) must cope with a sudden big drop in tax revenues6.
3 See BLOOMBERG.COM
4 See NEW YORK POST5 See DEADLINE USA
6 See YAHOO NEWS!
G O T H A M C I T Y W I L L B E H I T H A R D A S W E L L
B Y T H E G L O B A L E C O N O M I C C R I S I S
REVENUE SOURCES/TAXES
Property Tax $ 1,308,050,000
Personal Income Tax $ 1,466,965,000
General Sales Tax $ 68,850,000
Federal Aid $ 700,000,000
State Aid $ 90,000,000
General Corporations $ 2,921,625,000
Other Taxes/User Fees $ 525,000,000
TOTAL REVENUES $ 7,080,490,000
EXPENDITURES/GOTHAM CITY AGENCIES
General Administration $ 208,760,000
Police $ 1,590,092,000
Fire $ 848,130,000
Sanitation $ 369,081,000
Corrections $ 559,515,000
Social Services $ 859,213,536
Health $ 329,122,000
Libraries & Museums $ 14,770,000
Transportation $ 516,108,000
Environmental $ 285,607,200
Education $ 860,028,400
Other $ 410,165,820
Debt Services $ 1,057,212,058
TOTAL EXPENDITURES $ 7,907,805,014
A P R O J E C T E D B U D G E T D E F I C I T O F $827,315,014
D R A S T I C S T E P S A R E B E I N G T A K E N I N T H E U . S .
T O D E A L W I T H T H E G L O B A L E C O N O M I C C R I S I S 7
To deal with “the gravest economic crisis since the Great Depression,” Congress passed a “rescue package” on October 3, 2008. The Treasury Department will receive $700 billion dollars to dole out:
A $200 billion dollar bailout of mortgage lenders Fannie Mae and Freddie Mac;
An $85 billion dollar loan to AIG; and
A $29 billion to bail out of Bear Stearns.
The legislation places "reasonable" limits on severance packages for executives of companies that benefit from the rescue plan.
The government will receive stock warrants in return for the bailout relief, giving taxpayers a chance to share in financial companies' future profits. However, there are no guarantees that the tax dollars we invest will be paid back.7 See THE INDEPENDENT WORLD
D R A S T I C S T E P S A R E B E I N G T A K E N
I N N E W Y O R K C I T Y 8
MAYOR MICHAEL BLOOMBERG PLANS TO INCREASE PROPERTY TAXES AND FORCE ALL AGENCIES TO:
Cut spending by 2.5% to save $500 million dollars from this year’s fiscal budget;
Cut an additional 5% from their budgets during the next fiscal year to save $1 billion dollars.
THESE “ACROSS THE BOARD” CUTS MEAN THAT:
The Parks Department will lose $6.7 million;
The Department of Homeless Services will lose $7.8 million;
The Department of Transportation will lose $11.9 million;
The Fire Department will lose $33.8 million;
The Department of Education will lose $185 million.
8 See NEW YORK TIMES
G O T H A M C I T Y C O U L D B A L A N C E I T S B U D G E T
T H E N E W Y O R K C I T Y W A Y
REVENUE SOURCES/TAXESWITH A PROPERTY TAX INCREASE
Property Tax Increase $ 1,543,499,000
Personal Income Tax $ 1,466,965,000
General Sales Tax $ 68,850,000
Federal Aid $ 700,000,000
State Aid $ 90,000,000
General Corporations $ 2,921,625,000
Other Taxes/User Fees $ 525,000,000
TOTAL REVENUES $ 7,315,939,000
EXPENDITURES/GOTHAM CITY AGENCIESWITH 7.5% ACROSS THE BOARD CUTS
General Administration $ 193,103,000
Police $ 1,470,835,100
Fire $ 784,520,250
Sanitation $ 341,399,925
Corrections $ 517,551,375
Social Services $ 794,772,521
Health $ 304,437,850
Libraries & Museums $ 13,662,250
Transportation $ 477,399,900
Environmental $ 264,186,660
Education $ 795,526,270
Other $ 379,403,384
Debt Services $ 977,921,154
TOTAL EXPENDITURES $ 7,314,719,638
A P R O J E C T E D B U D G E T S U R P L U S O F $1,219,362
H O W T A C K Y ! ! !
D R A S T I C S T E P S A R E B E I N G T A K E N
I N C A L I F O R N I AIN ORDER TO CLOSE A $17.2 BILLION DOLLAR BUDGET GAP, GOVERNOR ARNOLD SCHWARZENEGGER SLASHED GOVERNMENT SALARIES “DRAMATICALLY” AND ORDERED THE FOLLOWING9:
The Department of Education budget will be reduced by $4 billion dollars through cuts to cost-of-living increases;
Health and Human Services must make 20% cuts across the board;
All reimbursement for Medical providers that treat Medi-Cal recipients must be cut by 10%, making it harder for the 6.6 million children, parents, seniors & people with disabilities to get the care they need by reducing access to providers;
A change in Medical eligibility rules that will deny coverage to parents earning very low wages (from $11,000 to $18,000/year for a family of three).
9 See US NEWS AND WORLD REPORT
G O T H A M C I T Y C O U L D B A L A N C E I T S B U D G E T
T H E C A L I F O R N I A W A Y
REVENUE SOURCES/TAXES
Property Tax Increase $ 1,308,050,000
Personal Income Tax $ 1,466,965,000
General Sales Tax $ 68,850,000
Federal Aid $ 700,000,000
State Aid $ 90,000,000
General Corporations $ 2,921,625,000
Other Taxes/User Fees $ 525,000,000
TOTAL REVENUES $ 7,080,490,000
EXPENDITURES/GOTHAM CITY AGENCIESWITH 7% SALARY CUTS & 20% CUTS TO
SOCIAL SERVICES, HEALTH & EDUCATION
General Administration $ 194,146,800
Police $ 1,478,785,560
Fire $ 788,760,900
Sanitation $ 343,245,330
Corrections $ 520,348,950
Social Services $ 687,370,829
Health $ 240,259,060
Libraries & Museums $ 13,736,100
Transportation $ 479,980,440
Environmental $ 265,614,696
Education $ 627,820,732
Other $ 381,454,213
Debt Services $ 1,057,212,058
TOTAL EXPENDITURES $ 7,078,735,668
A P R O J E C T E D B U D G E T S U R P L U S O F $1,754,332
H O W G O U A C H E ! ! !
D R A S T I C S T E P S A R E B E I N G T A K E N B Y
M A I N S T R E E T M U N I C I P A L I T I E S N A T I O N W I D E
With falling revenue from sales, income and property taxes, cities and towns are laying off tens of thousands of government employees10.
Cutting just 1% of government jobs in cities, towns, and states nationwide will result in a job loss of almost 200,000 people, which is much more than the job losses in battered sectors like auto manufacturing or home construction in the past two years.
In states, towns and cities not yet laying off people, hiring freezes and early retirement packages are now common.
Tennessee state and local officials are cutting 2,000 jobs, or about 5% of the state's government work force;
New Jersey state and local officials are cutting 3,000 jobs;
Ohio state and local officials are cutting 2,700 jobs;
Michigan state and local officials are debating selling the Detroit-Windsor Tunnel to save 1,500 jobs.
10 See CNN MONEY.COM
G O T H A M C I T Y C O U L D B A L A N C E I T S B U D G E T
T H E M A I N S T R E E T W A Y
REVENUE SOURCES/TAXES
Property Tax $ 1,308,050,000
Personal Income Tax $ 1,466,965,000
General Sales Tax $ 68,850,000
Federal Aid $ 700,000,000
State Aid $ 90,000,000
General Corporations $ 2,921,625,000
Other Taxes/User Fees $ 525,000,000
TOTAL REVENUES $ 7,080,490,000
EXPENDITURES/GOTHAM CITY AGENCIES
General Administration $ 208,760,000
Police $ 1,590,092,000
Fire $ 848,130,000
Sanitation $ 369,081,000
Corrections $ 559,515,000
Social Services $ 859,213,536
Health $ 329,122,000
Libraries & Museums $ 14,770,000
Transportation $ 516,108,000
Environmental $ 285,607,200
Education $ 860,028,400
Other $ 410,165,820
Debt Services $ 1,057,212,058
TOTAL EXPENDITURES $ 7,907,805,014
A P R O J E C T E D B U D G E T S U R P L U S O F $27,315,014
$800,000,000 FOR THE SALE OF THE BROOLKYN BRIDGE11
11 See BROOKLYN BRIDGE-HISTORIC OVERVIEW
G O T H A M C I T Y W I L L B A L A N C E I T S B U D G E T
T H E C O S M O P O L I T A N W A Y LET’S PUT ON
A SHOW!
LET’S PUT ONA SHOW!
G O T H A M C I T Y I S A S K I N G I T S I N N O V A T I V E
C I T I Z E N R Y T O L E N D A H E L P I N G H A N D
Experts warn that Special Events can cost more than they make12. However, many of the pitfalls of Special Events do not apply to Gotham City13.
Municipalities like Gotham City can make lots of in-kind contributions, including free venues and a wealth of resources;
Municipalities can exchange things like college credits and fee waivers in exchange for free labor;
Municipalities like Gotham City can exchange free advertisement for in-kind contributions made by private companies;
Volunteering with municipalities like Gotham city can provide invaluable networking opportunities and experience.
12 See CHARITY NAVIGATOR
13 See STEP-BY-STEP FUNDRAISING
IF W E O R G A N I Z E 2 7 C I T Y W I D E E V E N T S
A N D R A I S E $ 1 0 0 , 0 0 0 P E R E V E N T 14
14 See SPECIAL EVENTS
FUNDRAISING OVERVIEW
& HISTORY
GOTHAM CITY SPECIAL EVENTS
100,000 100,000 100,000 100,000100,000
100,000100,000
100,000100,000
100,000100,000100,000100,000100,000100,000100,000100,000
100,000100,000
100,000100,000
100,000100,000
100,000 100,000 100,000 100,000
DANCE for Gotham ROCK for GothamOPERA for Gotham JAZZ for GothamTHEATER for Gotham FILM for GothamCOMEDY for Gotham ART for GothamFASHION for Gotham COOKING for GothamBASEBALL for Gotham FOOTBALL for GothamHOCKEY for Gotham TENNIS for GothamSKIING for Gotham GOLF for GothamCitywide RAFFLES for Gotham Citywide GARAGE SALES for GothamCitywide BAKE SALES for Gotham GOT 'EM in Gotham AUCTIONGOT HAM/GOT STEAK Dinner Party Just Throw $100,000 Coins in the Gotham Fountain100 Dates wth Gotham's FINEST 100 Dates wth Gotham's BRAVESTQUEER EYE for the GOTHAM GUY Fashion Show CELEBRITY STRIP POKER for GothamWALK-A-THON for Gotham
A N D I F W E D U M P T H E E N T I R E G O T H A M C I T Y
O F F I C E O F B U D G E T & M A N A G E M E N T
$1,057,212,058 FOR “DEBT SERVICES”?!!!
G O T H A M C I T Y W I L L H A V E A B A L A N C E D
B U D G E T W I T H M O N E Y T O S P A R E ! ! !
REVENUE SOURCES/TAXES
Property Tax $ 1,308,050,000
Personal Income Tax $ 1,466,965,000
General Sales Tax $ 68,850,000
Federal Aid $ 700,000,000
State Aid $ 90,000,000
General Corporations $ 2,921,625,000
Other Taxes/User Fees $ 525,000,000
Special Events $ 2,700,000
TOTAL REVENUES $ 7,083,190,000
EXPENDITURES/GOTHAM CITY AGENCIES
General Administration $ 208,760,000
Police $ 1,590,092,000
Fire $ 848,130,000
Sanitation $ 369,081,000
Corrections $ 559,515,000
Social Services $ 859,213,536
Health $ 329,122,000
Libraries & Museums $ 14,770,000
Transportation $ 516,108,000
Environmental $ 285,607,200
Education $ 860,028,400
Other $ 410,165,820
TOTAL EXPENDITURES $ 6,850,592,956
A P R O J E C T E D B U D G E T S U R P L U S O F $23,597,044
