Attachment 2: Article VII Budget Actions to Relieve Fiscal Pressure on New York City
Several Article VII bills are included in the Executive Budget at the request of the Mayor. These bills will provide significant fiscal and budgetary relief to New York City. The proposals include:
- Reauthorization of the City’s Local Sales Tax: Legislation will permanently reauthorize the fourth cent of the New York City local sales tax. This revenue, also known as the “MAC penny”, is worth $1.15 billion this fiscal year. Currently due to expire at the end of June 2008, the ongoing revenue from this tax has long been fully assumed in the City’s financial plan.
- Amendments to the Financial Emergency Act (FEA): Amendments to the FEA would enable the Financial Control Board (FCB) to waive new GAAP budgeting rules related to financing of environmental remediation costs. Without the relief provided in this legislation, these costs are estimated to have a $500 million annual impact on the City’s operating budget.
- Wicks Law Reform: The Governor’s proposed Wicks Law reform will reduce New York City debt service costs, and also lower the City’s capital budget costs. Capital plan savings are estimated at $200 million beginning with the CFY 2009 NYC Capital Plan.
- Revised Debt Cap Calculation: Revisions to the City’s statutory debt cap calculation methodology will both lower the cost and help simplify the marketing of the City’s long term debt portfolio.