DiNapoli: Paterson’s Budget Hurts Bloomberg’s Ability to Balance

ALBANY—Comptroller Tom DiNapoli called David Paterson’s proposed budget risky in a preliminary analysis released today, and said it would hurt New York City in particular.

The five boroughs were singled out to have their direct municipal aid payment under the AIM program eliminated in the coming fiscal year, saving the state $328 million. (Paterson proposed to do this the month before he released his budget).

DiNapoli pegged the loss to New York at over $1 billion in this fiscal year and next, when school aid cuts are factored in.

“If enacted as proposed, the proposals could hinder the City’s efforts to balance its budget for next year,” the Comptroller’s report says. “Most of the adverse impact would come from reducing education aid for next year by $669 million, compared with the amount anticipated by the City in its financial plan. The Executive Budget proposal would reduce school aid to the City by $277 million, but the City had assumed an increase consistent with the resolution of the Campaign for Fiscal Equity (CFE) lawsuit. Despite the cutback, the Executive remains committed to increasing education aid to New York City as part of the CFE resolution, but it will now take longer to reach that goal given current economic conditions.”

DiNapoli: Paterson’s Budget Hurts Bloomberg’s Ability to Balance