Taveras Cuts Deficit by $57 Million

Taveras Cuts Deficit by $57 Million

In two months, Mayor Angel Taveras has whittled down the budget deficit for the current year from approximately $69 million to $12 million, a top administration official announced last night.

The new deficit number is the result of a number of significant shifts in the budget since Taveras took office: $47 million in additional revenues and a $13 million cut in expenses. But the city also had a $1 million loss in other revenues and some expenditures were nearly $3 million more than expected.

Increases in revenues came from a range of sources—everything from $700,000 in new police grants to $600,000 in interest from overdue taxes. Taveras also cut expenses, including eliminating $2 million in longevity payments to Local 1033 members, rescinding a one percent raise on January 1, and $350,000 less in Law Department claims.

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City may not eliminate whole deficit

The bottom line? The city is still in the red by about $12 million.

“There is more work to be done,” Director of Administration Michael D’Amico told members of the city council’s Finance Committee last night.

He said he expects that the $12 million number will be smaller next month—just how small, though, he wasn’t sure. Whatever remains by the end of the fiscal year will be added on to the $110 million deficit the city is already facing next year.

Council President Michael Solomon praised the progress Taveras has made on the deficit. He said the city “is going in the right direction.”

But he also said the council was going to have Internal Auditor Matt Clarkin double check the numbers. “Trust, but verify,” Solomon said.

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