Despite the recession, New York City balanced its budget and even eked out a $5 million surplus. It helped that the City put aside nearly $3 billion last year to offset expected budget gaps for the fiscal year that ended on June 30.
City Comptroller John Liu said New York City is beginning to "crawl out of recession."
"We as a city are doing better than many other major metropolitan areas across the country," Liu said. "But that doesn't mean that we are without problems. We have a national economic environment that is not yet strongly back on its feet and that will continue to effect New York City. We do not have an isolated economy."
With forecasts of a $3 billion budget deficit in 2012, the comptroller predicts the mayor and the City Council will need to make difficult cuts in the months ahead.