Bloomberg Says His Budget is Both Balanced and 'Historic'

Mayor Bloomberg announced that the city had balanced its budget, in what he claimed was "the first time in modern memory" that an incoming mayor wouldn't have to close a deficit. 

The mayor pointed to several unforeseen developments this year, including more than $500 million in additional tax revenues and the announcement by the city's primary healthcare provider that it would not seek a premium rate increase, saving $364 million. Additionally, the city has saved $200 million this year by refinancing debt service costs, and sold properties it owned for another $200 million. Earlier this year, the projected budget gap totaled $2 billion.

Bloomberg characterized the balanced budget as "historic." And yet, he argued that it was consistent with his fiscal stewardship of the city over the past 12 years in the face of two serious setbacks: the "devastating blow" of 9/11 and the recession.

"I think the results are there, and history will show that we acted responsibly," he said.

However, Harry Nespoli, chair of the Municipal Labor Committee, said the budget was "misleading" because it failed to address the substantial costs of back pay for thousands of city employees, many of whom are out of contract.

“Since 2009, the City has not changed its offer," said Nespoli in a release. "Since that time two things have happened: inflation has increased and City employee wages remained the same. All while the City has incurred billion dollar surpluses each year — including a $1.6 billion surplus for this year."

An aide to Mayor-elect Bill de Blasio said the budget was being reviewed, and that his staff "remain concerned about the continued impact of sequestration, high uncertainty around the flow of Sandy recovery aid, and the liabilities from unresolved labor contracts."