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Good evening I'm reporting to you tonight on the budget talks between the city and the state when these discussions began four months ago the city as a result of mandatory increases inflation and the cuts in state aid needed seven hundred fifty million dollars to balance its budget. At that time the mayors of the state's six largest cities proposed a program to meet the needs of local governments throughout the state in response to big six pressures the legislature restored the crippling cuts made last year and increased some aid to education but this amounted to nothing more than token relief it still left our budget gap at six hundred thirty million dollars and we still believe that this gap can best be closed by the Big Six program but Albany is response has again forced us to seek last minute funds from a variety of local revenue measures most local revenue measures require state approval so that virtually any program to finance the budget including new taxes that affect only our city must be approved by Albany. This means that the city is again put in the humiliating position of spending this final week of the legislative session begging for help from Albany. Even worse we have been forced to plead with the state for permission to impose on ourselves a hodgepodge of additional local taxes that are burdensome and regressive That is why in these past few days you have seen the city propose a variety of additional revenue measures such as a parking lot sales tax the two cent increase in the gasoline tax and increase in the commercial occupancy tax and then also use tax. As of today there is some hope of approval of additional state aid and several local revenue measures. In addition the city can take some limited action on its own I will propose increases in fees and in real property tax rates. But even with all these proposals and even if the state legislature approves it we would still be left with a gap of several hundred million dollars. To meet this gap I proposed last week a progressive payroll tax on city residents and commuters to replace the present income and commuter tax this is the fairest and simplest way to provide additional funding through city taxation but it has met with strong opposition in the legislature largely because of its impact on commuters who earn their living in the city and live elsewhere. Have also proposed a system of off track betting it would provide fifty million dollars next year and as much as two hundred million dollars in the following year it would strike a blow at organized crime polls show that the public is in favor of off track betting by a margin of five to one yet apparently the tremendous behind the scenes pressure of the racetrack lobby has stalled this measure in the legislature. That is our situation I realize it is not a proud position here we are pleading for the right to help ourselves. I will continue to take responsibility for sponsoring any reasonable revenue measure which has a chance of gaining state approval. I have told the City Council leadership and the controller that I am as distressed as they are at this shabby and you will process of trying to finance our city at the eleventh hour of the legislative session. This is the worst way to solve the city's financial problems this is not the way we chose. Tonight I will go to Albany to continue these talks. Thank you.