Search PEP Archives | November 2002 Table of Contents | Public Employee Press Archives | Home Demands approved amid fiscal gloom The DC 37 Delegates Council voted Oct. 22 to approve the union’s bargaining demands for the next round of contract negotiations. The union hopes to present the demands to the city in December. Traditionally, DC 37doesn’t publicize demands until the opening of bargaining. “We know the city faces difficult economic times, but we want to get the bargaining process under way as soon as possible,” said DC 37 Executive Director Lillian Roberts at the Oct. 16 meeting of the DC 37 Negotiating Committee.That day, the committee voted to send the demands to the Delegates Council, the union’s highest decision-making body. “We’re going to fight hard to make sure our members get a fair contract,” she said. The Negotiating Committee, which is composed of the presidents of the 56 local unions in DC 37, adopted demands that were crafted by four subcommittees over the summer and considered other proposals submitted by local presidents. At its meeting, the Negotiating Commitee also discussed bargaining strategy, and DC 37 Research and Negotiations Director Dennis Sullivan gave an overview of the collective bargaining climate in the city. The union’s economic agreement expired June 30. But under city collective bargaining law, the terms of the contract remain in effect. Fiscal crisis This round of negotiations is expected to be particularly difficult because the union will be bargaining while the city faces what politicians, fiscal monitors and public policy experts describe as its worst budget gap since the 1970s. The fiscal crisis a generation ago resulted in layoffs of tens of thousands of public employees and dire consequences — such as hospital closings and the end of free tuition at CUNY — that are still felt today. Amidst the dark clouds, though, a ray of sunshine is emerging: As the battered economy stagnates and the local fiscal picture grows bleaker, the political establishment is increasingly accepting the need to address next year’s projected $5 billion budget gap by raising taxes. Since before he approved the current budget in June, Mayor Michael R. Bloomberg has hinted at layoffs but has softened his stance on taxes. With the exception of the cigarette tax hike and some extra fees, Mr. Bloomberg closed the gap in the current budget primarily through cutting spending, borrowing $2 billion and stretching out city pension payments. More recently, though, Mr. Bloomberg has acknowledged that the city will need to raise taxes to deal with next year’s budget shortfall. “Everything has to be on the table,” Mr. Bloomberg said Oct. 1, commenting on the city’s budget situation. “The law requires us to have a balanced budget,” Mr. Bloomberg said. “Period. And those that think we can cut $5 billion out of expenses just have absolutely no idea how this city works. You could not do that under any stretch of the imagination.” DC 37 earlier this year issued a White Paper to the city that identified how the city could save $600 million through increasing the civilian work force in the New York Police Dept., eliminating waste in city government and reining in contracting out. The city has various revenue options: Restoring the commuter tax, which DC 37 has advocated, would fetch nearly $500 million. Increasing the property tax rate by 10 percent would bring in about $1 billion. Hiking the personal income tax surcharge by 10 percent would raise $584 million. Changing the business tax structure could shift the burden away from individuals and more toward corporations, which benefited from tax breaks during the boom years of the 1990s. As local governments nationwide grapple with revenue shortfalls, policymakers are looking at “PILOTs,” or “payments-in-lieu-of-taxes” made by traditionally tax-exempt organizations, such as foundations, private universities and hospitals. PILOTs require owners of tax-exempt properties to compensate municipalities for services they receive. For instance, Yale University contributes $2 million a year to New Haven to cover fire and other services. Harvard University will pay Boston $40 million over the next 20 years for property it owns in the city. DC 37 estimates that New York City could raise $50 million to $100 million in revenue through a PILOT. The local fiscal picture will become clearer later this month when Mr. Bloomberg announces the midyear budget modification and revisions in the city’s four-year fiscal plan. Cutbacks coming Mr. Bloomberg is expected to announce 7.5 percent in midterm agency cuts that the administration projects should save $1 billion this year and make savings a little easier next year. “We recognize that the city faces difficult economic times,” Ms. Roberts said. “But we will insist that our members don’t become the victims in the city’s effort to address the budget gap, which is mostly the result of reckless and irresponsible tax cuts adopted by the previous administration.