ALL THIS WEEK: WEINER ANNOUNCES PLANS FOR REAL FISCAL RESPONSIBILITY AND EXPANDED ECONOMIC OPPORTUNITY
SPECIFIC MEASURES TO REFORM CITY BUDGET AND PROVIDE MIDDLE CLASS TAX RELIEF
TODAY: 10 STEPS TO CUT WASTE, REFORM BUDGET, AND PAY FOR KEY PRIORITIES
$1.7 BILLION IN SAVINGS TO RAISE TEACHER SALARIES, CUT TAXES ON THE MIDDLE CLASS, EXPAND MIDDLE CLASS HOUSING
New York City – Today, Rep. Anthony Weiner (D-Queens & Brooklyn) became the first candidate for Mayor to detail 10 specific budget cuts or reforms that he will use to pay for city priorities such as improved education, housing, and health care.
The sum total of Weiner’s reforms: $1.7 billion dollars for the City, or 5% of the City’s budget.
Weiner has promised as Mayor to cut or reform the bottom 5% worst performing programs in the City budget every year to pay for specific priorities including a pay raise for teachers, a 10% middle class tax cut, and expanded middle class housing.
$1.7 BILLION WORTH OF SAVINGS, NEW REVENUE
Modernize Medicaid Enrollment – Savings: $125 million.
According to the United Hospital Fund (UHF), Medicaid enrollment in New York City remains an antiquated system inordinately reliant on an enormous amount of paperwork. Modernization has been continually delayed. The UHF suggests transitioning to an electronic system which could save $500 million in administrative costs, the City’s contribution to which is 25% or roughly $125 million.
Aggressive Prosecution of Medicaid Fraud – Savings: $920 million.
News reports, including a front page series in The New York Times, estimate that 10% - 40% of the City’s Medicaid expenditures goes to fraud. As Mayor, Weiner will launch more aggressive prosecution of Medicaid fraud, as is done in other locales around the country, effecting savings conservatively estimated at $920 million.
Eliminate Madison Square Garden’s Tax Exemption – Savings: $12 million.
Since 1982, Madison Square Garden has benefited from a property tax exemption of $12 million a year. According to the Independent Budget Office, that’s cost the city $237 million in revenue, and counting. As Mayor, Weiner will do away with the Madison Square Garden tax exemption.
Cut Public Subsidy for Far West Side Development – Savings: $400 million.
According to the City Department of Planning, construction of the platform over the eastern portion of the West Side Rail Yards is slated to cost $351 million with the surrounding parks costing an additional $361.5 million, financed by bonds paid off through a combination of public financing and diverted revenue that would otherwise go into the general fund. Additionally, Mayor Bloomberg plans to offer commercial developers – already eager to build in the newly rezoned Far West Side – tax breaks for construction. As Mayor, Weiner will eliminate the tax breaks and let private developers cover the costs of developing what is some of the most valuable property in the world, saving an estimated $400 million.
Cancel Renovation of the Southwest Waste Transfer Station – Savings: $100 million.
The Mayor wants to renovate and reopen the Southwest Waste Transfer Station. But a now closed Department of Sanitation incinerator left toxins in the soil beneath the site, that renovation could release into surrounding waterways. According to the City Comptroller, renovation of the site will cost as much as $100 million. As Mayor, Weiner will cancel the renovation and keep the site closed.
Eliminate Duplication in the City’s Board of Corrections – Savings: $850,000.
The City’s Board of Corrections oversees the New York State Department of Corrections even though the New York State Commission of Correction and the Prisoner’s Rights Project of the Legal Aid Society both have the same function. As Mayor, Weiner will eliminate the redundant City’s Board of Corrections and its 15 staff positions, effecting savings, according to the Independent Budget Office, of $850,000.
Streamline the Administration of Supplemental Benefit Funds – Savings: $30 million.
The City provides funds to 73 different benefit administrators to negotiate benefits for city workers not covered by general health insurance, such as vision and dental. The administrative costs of the fund managers range from $14 per member to $1,000. Last year, the City paid $751 million for supplemental benefits to the 73 different funds, 8.1% of that was spent on administrative costs, for a total of $61 million. As Mayor, Weiner will consolidate the administration of supplemental benefits, allocating half as pure savings, and using the other half to incentive unions to eliminate their benefit administrators entirely. Independent Budget Office estimated savings: $30 million.
Implement PACE Preventative Care Programs for Seniors – Savings: $20.75 million.
PACE, or Programs for All-Inclusive Care for the Elderly, programs provide preventative care for seniors, driving down Medicaid costs by minimizing expensive emergency room visits and catastrophic care. In other cities, PACE has saved, on average, 17% of Medicaid costs. http://www.npaonline.org/website/article.asp?id=203 As Mayor, Weiner will enroll15% of New York City seniors on Medicaid in PACE, saving $83 million in Medicaid expenditures, roughly 25% of which will be savings for the city ($20.75 million).
Reform Parent Coordinators Program – Savings: $54 million.
Parent coordinators (PC) were supposed to be independent advocates for parents within the public school system. But the PC’s report to principals, not the parents, and when the Public Advocate conducted a study of the program last year, she found that 77% were unreachable after 5 p.m. and concluded that the program was a “$40 million failure.” http://pubadvocate.nyc.gov/news/releases_7_12_04.html This year’s budget allocates $54 million. As Mayor, Weiner will make the positions voluntary and use the savings to improve our schools.
Require State to Pay the Costs of Keeping State Inmates in New York City Jails – Savings: $75 million.
In 2003, the City paid for over 1,400 state prison inmates who are kept over a year for state trials due to backlogs in state courts. As Mayor, Weiner will require the state to reimburse the city for the cost of housing inmates who stay in our jails over a year on state charges. The Independent Budget Office estimates that this would yield a savings of approximately $75 million a year.
PERCENT OF THE CITY BUDGET: 5%
TOTAL SAVINGS/NEW REVENUE: $1.7 BILLION
“I have specific proposals for how to make New York City better, and a specific plan to pay for them,” said Rep. Weiner. “We can cut the waste out of our city budget without implicating critical programs if we are willing to take a hard look at everything we do and whether we are doing it the right, most efficient way. I’ve discussed a variety of proposals this campaign season, ranging from a 10% tax cut for the middle class, to increasing teacher salaries, to making sure 500,000 New York City kids don’t go hungry again next year. Now it’s time to talk about how we will pay for them, and I hope my colleagues will be as forthcoming about their proposals.”
Weiner has committed to cut middle class income taxes by 10%, covering every New Yorker who makes $150,000 or less a year.
To pay for this and his other proposals, as Mayor Weiner will cut or reform the 5% percent worst performing city programs every year, creating $1.7 billion in savings for the City.
In addition, Weiner will create a new 4.67% tax bracket for New Yorkers making $1 million a year or more in income, a small increase that will generate an additional $79 million in revenue for the City.
And Weiner will fight to make the state pay taxes on their city owned real estate, a proposal that would generate $1.5 billion in additional revenue for the city.
