With negotiations to
start Dec. 4, mayor asks $600 million in labor productivity savings.
Union says civilianize, eliminate waste and cut contracting-out
to protect jobs and services.
Mayor Michael R. Bloomberg outlined an austere
financial plan on Nov. 14 to close an estimated $1.1 billion budget
gap in the current fiscal year and another projected $6.4 billion
shortfall next year.
His proposal would raise property taxes, restore a commuter tax,
cut services and require concessions from the municipal unions.
The centerpiece of Mr. Bloomberg's plan is raising the property
tax by 25 percent and restructuring the personal income tax to require
commuters to pay city taxes.
The new commuter tax would be about six times higher than the previous,
tiny 0.45 percent tax. Eventually, the plan would reduce personal
income taxes for city residents, partially offsetting the increase
in the property tax, according to the Bloomberg administration.
DC 37 detailed savings plan
Restoring a commuter tax was one of the key proposals DC 37 made
in a white paper released earlier this year by Executive Director
Lillian Roberts.
The union recommended $600 million in savings and revenue through
restoring the tax, replacing uniformed employees in non-enforcement
duties with civilians, reducing privatization and contracting out
and eliminating waste.
"We are determined to work with the administration to help
it address the city's budget problems," said DC 37 Executive
Director Lillian Roberts. "The mayor's tax proposals show that
he realizes that he cannot take an ax to municipal services to address
the shortfall without severely crippling local government and undermining
services.
"But this is only the beginning of the budget process. We are
on guard to make sure that union members do not become the scapegoats
as the city gets its fiscal house in order in the upcoming months."
The administration hopes to close the budget gaps in 2003 and 2004
through, among other things, $3.4 billion in property tax increases,
$1 billion in commuter taxes, $1.8 billion in agency spending reductions
and fee increases, as well as labor concessions and increases in
state and federal assistance
.
The property tax is the only tax the city can increase without the
approval of the state Legislature.
Mr. Bloomberg wants to implement the increase quickly to boost revenues
in the current fiscal year, thereby reducing the financial strain
on next year's budget. Adopting the increase now would also signal
that the city is ready to do what it can to repair its own house
before seeking help from the state.
Mr. Bloomberg outlined deep budget cuts—totaling $1.95
billion—this year and next year. The reductions include
cutting the police force by 2,000 positions and eliminating eight
fire stations, 2,500 day-care slots and 32 senior centers.
The November plan would eliminate 8,000 municipal jobs by June through
the already-implemented retirement incentive, attrition and a hiring
freeze.
Mr. Bloomberg is also asking for $600 million in productivity savings
from city employees in next year's budget. He says possible methods
include extending the workweek from 35 hours to 37 1/2 hours, requiring
city workers to contribute to their health-care premiums and containing
pension costs. The $600 million would come on top of the $270 million
in labor savings achieved earlier this year by stretching out the
time for the city to make certain pension contributions.
Without such productivity savings, up to 12,000 layoffs could become
necessary, said the mayor's proposal. Contract talks open Dec. 4.
Ms. Roberts said that she expected that the municipal unions would
deal with the administration's various proposals on labor savings
as they launch a new round of bargaining talks on future economic
agreements. The opening meeting for bargaining is set for Dec. 4.
"We are going to fight hard to preserve our benefits and win
a fair and equitable increase for our members," Ms. Roberts
said.
"This should be possible if, among other things, the city is
successful in enhancing revenues, reducing government waste and
cutting contracting out."
—Gregory N. Heires