WEINER:

BUDGET DEAL A “FAILURE OF LEADERSHIP”

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SURPLUS SHOULD HAVE BEEN USED ON LONG-TERM DEBT

New York City – Renewing his warning that the City is facing a burgeoning debt crisis, Rep. Anthony Weiner (D-Queens & Brooklyn) called tonight’s handshake deal on the City budget a “failure of leadership.”

Over a year ago, Weiner released a study showing that City debt was on track to hit $55 billion in 2008.

In June, at the Citizens Budget Commission Mayoral Forum, he said: “We should not accept a budget as being successful if it does not…pay down a substantial portion of our debt.”

This year’s budget surplus gave the City a unique opportunity to do that.

But the deal agreed to by the Mayor and the City Council spends the entire budget surplus on the deficit in next year’s budget only--none of the surplus is to be used on debt in the out years.

“The problem with this budget isn’t that it’s a Republican budget or a Democratic budget but that it’s an irresponsible budget,” said Rep. Weiner. “We have an obligation to pay our debts, even in election years. This budget doesn’t do that. That’s a failure of leadership, and a fiscal policy that will fail our city. Rather than paper over our problems, we need to pay down our debt and invest in our priorities. That takes real leadership and tough choices.”

Weiner has proposed a middle class budget and tax plan that would reduce income taxes on the middle class while cutting waste out of the city budget.

Weiner would introduce a new middle class tax cut that would reduce taxes on everyone making $150,000 a year by 10%. The cost of the plan: $207 million. To pay for it, Weiner would create a new 4.67% tax bracket for New Yorkers making $1 million a year or more in income. Weiner would also cut or reform the bottom 5% percent worst performing city programs every year, effecting up to $1.7 billion in savings for the City. And Weiner would 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.

The substantial savings over and above the cost of the tax cut under the Weiner plan would be allocated for other key priorities, like increases in education, health care, anti-poverty programs and affordable housing.