Mayor Michael Bloomberg will reveal that the city’s revenues are not growing as fast as originally projected when he unveils his executive budget on Thursday.
The city's revenue projections have been reduced by $352 million for the remainder of this year and next. The administration plans to apply the $400 million CityTime fraud settlement to help close the revenue gap.
In February, the mayor presented a $69 billion preliminary budget. City Hall would not release the total spending number ahead of the mayor’s presentation on Friday.
The mayor's analysis will show that high tech, film and TV production as well as tourism are all emerging as promising revenue generators for the city.
But instability in the global credit markets has produced disappointing results in the financial sector, which historically been the city's primary tax revenue earner.
City Council Finance Committee Chairman Domenic Recchia told WNYC he hopes the mayor will back off plans announced earlier this year to cut day care and after school programs for close to 50,000 children. He said his phone is ringing off the hook.
"I got at least 40 phone calls from not-for-profits that have been cut one way or the other, but I don't just mean being cut --what I mean by cut is programs wiped out completely," he said.
The Children's Aid Society said the city's cuts come as the percentage of children living in poverty has grown significantly. They are calling for $170 million budget restoration.
The City Council and mayor have until July 1 to reach a budget deal.