DC 37 issues 4th White Paper says Finance Department layoffs will cost the city $2 billion in lost revenue

District Council 37 today released its fourth white paper at a press conference on the steps of City Hall, where the union was joined by City Council members. The White Paper (PDF format)* claims a more intensive tax collection strategy by the Department of Finance could retrieve more than $2 billion in uncollected tax dollars, while laying off city tax assessors will only result in millions of dollars in lost tax revenue.

"Where is the wisdom in laying off 25% of the Finance Department's assessor staff during a budget crisis?" said DC 37 Executive Director Lillian Roberts. "Basic accounting rules tell us you don't balance the books by NOT maximizing your potential income. City assessors bring in money to the city. They are needed now more than ever to see that every penny of tax revenue due to the city is identified. It makes no financial sense to lay them off.

"The city has already lost 30 assessors through attrition over the past year," said Ms. Roberts. "By cutting assessing staff further, not only will the City see further revenue loss, but also it may see a slipping of its bond rating by issuing a highly suspect tax roll in the coming year. The monies saved from layoffs of assessing staff are a mere pittance compared to the 980,000 properties that the assessors value. Less than a dozen properties under-assessed would cost the city more than the $2 million supposedly saved by the layoffs.

"We also question the city's decision to close Dept. of Finance office in Chicago and Los Angeles and lay off eleven employees who bring in nearly $40 million in revenue. These offices cost only $720,000 to maintain—money well spent given the revenue they bring in.

"If the Mayor is serious about finding additional revenues, he should consider a tax amnesty that would allow time for a fully-staffed Finance Dept. to bring in billions of tax dollars. We should also amend current tax laws to require companies getting contracts from the City to pay their fair share of tax."

The Mayor asked for ways the city could save money or find additional revenues. We have made excellent recommendations in all of our White Papers. While the Mayor may be turning his head and not listening, the City Council is listening. The Council has incorporated a number of DC 37's money saving proposals into its own budget. We believe it's time the Mayor should, at the very least, pay attention to a report that details how to increase revenues at the Dept. of Finance. We are offering real alternatives to the Mayor on saving money and preventing layoffs. Any assertion by the Mayor to the contrary is belied by these White Papers and other proposals this union has put forth."

The Queens Civic Congress has estimated that last year misclassification of property cost the city over $1 billion in tax revenue when the assessor staff was already reduced by attrition.

"By laying off more experienced assessors," said Ms. Roberts, "The city could continue to see a tax drain in this and other assessment areas and jeopardize its good bond rating. Tax shortfalls from under-assessment might also oblige the City Council to make another upward adjustment of the tax rate.

"An accurate property tax roll is a major part of the income stream. For the sake of fiscal integrity, the Mayor should take action to not only stop the layoff of assessors—most of whom are permanent civil servants with over 15 years of city experience—but to restore the assessor ranks to an appropriate working level."