4/99 - COMPTROLLER EXPECT HIGHER SURPLUSES IN FY 99

COMPTROLLER EXPECT HIGHER SURPLUSES IN FY 99 & 2000

New York City could end fiscal year 1999 with a surplus of $1.75 billion, $171 million more than projected in the January Financial Plan, according to a report issued by Comptroller Alan G. Hevesi. For FY 2000, the city could have a surplus of as much as $190 million more than projected in the January Plan.

"The City’s economy and finances have remained strong despite the turmoil in world financial markets," Hevesi said. "But we must also develop a credible plan so that the City can weather a slowdown if and when it comes."

FISCAL YEAR 199

As a result of the strong local economy, the City has increased its tax revenue projections for FY 99 by $923 million since the budget was adopted in June. Through January, FY 99 tax collections were five percent ahead of FY 98, resulting mostly from growth in the personal income tax and the general corporation tax.
The Comptroller’s Office expects stronger growth in the City’s economy than is projected in the Plan. The economy is expected to grow by three percent in calendar year 1999 and 2.5 percent in 2000, according to the Comptroller’s projections. The Plan projects 2.4 percent growth in 1999 and 0.9 percent in 2000.
The City funded portion of its work force has increased by about 12,000 since the low point of about 200,000 employees in FY 97. Most of the increase is police and teachers.
Overtime spending for FY 99 through January is 18.6% ahead of last year. Overtime for all uniformed services is 22% year. For the police, excluding the special Courtesy, Professionalism and Respect training, it is almost 41% more than last year. Corrections overtime is 48% above last year.