Bloomberg and NYC Council Agree on Budget


bloombergMayor Michael Bloomberg and the City Council reached an agreement today on the budget for next fiscal year, raising the city sales tax and cutting hundreds of jobs from the workforce. Bloomberg and City Council Speaker Christine Quinn cemented the expected deal with a ceremonial handshake in the City Hall rotunda today, following tradition. By law the budget for fiscal 2010, which starts July 1, must be approved by the end of the month. The mayor first laid out his election-year budget in January and has worked for months with the City Council to negotiate the specifics.

As expected, the budget includes a sales tax increase of .5 percent, which officials say will raise more than $500 million in fiscal 2010. The city sales tax would go up to 8.875 after the increase.

The budget also eliminates hundreds of jobs through layoffs and attrition.

The cost-cutting moves and efforts to raise revenue help bridge what was a $6.6 billion budget gap in 2010.

The state must approve the sales tax increase, along with a few other tax measures in the city’s budget. A sales tax exemption on clothing is expected to be changed to apply to purchases under $110, and the city also wants to give a tax break to 27,000 businesses headquartered in New York City.

The legislature in Albany is in turmoil over which party is in control, but officials said they do not believe that will affect the budget matters that need approval.

{New York Now/ Newscenter}



  1. There is no funding for the Oral Health Program in next years budget. Children that have depended on this valuable program for decades will suffer from the loss of services provided by this program that will not be replaced. In spite of support from Betsy Gotbaum, various city council members. the American Dental Association, and the New York State Dental Association, the program has been permanently terminated. Shame on Mayor Bloomberg, the City Council and Health Department officials. Its a dark day for children’s oral health.