Proposals

Bloomberg unveils fiscal plans to help New Yorkers

Increasing investments in small business, softening the property tax deadline and creating a special Web site for the jobless were among several proposals Mayor Michael Bloomberg detailed yesterday to help New Yorkers hold on to their homes and manage debt better.

Like the rest of the country, New York is reeling as the economy continues to sink. Bloomberg's administration and the City Council crafted an 18-point plan in response to the fiscal crisis.

"The current economic downturn will in all likelihood not end quickly or painlessly," Bloomberg said. "We will survive this crisis and we will, as we always have, thrive and come out stronger."

But he acknowledged the challenges.

The city has a projected deficit of $2.3 billion for 2010 and $5.2 billion for 2011. The gaps prompted Bloomberg to order all city agencies to trim $1.5 billion in spending and he said yesterday that more cuts are coming.

The next fiscal year, which begins in July, has a projected deficit of at least $3 billion.

Over the next 24 months, city officials predict job losses will range from 145,000 to 165,000.

The response plan is designed, Bloomberg said, to help secure and create jobs, buoy small businesses, promote home ownership, assist cash-strapped families and combat hunger.

For small businesses hampered by the frozen credit market, Bloomberg said $5 million in city funding will be used to generate $10 million for small businesses and nonprofits seeking loans ranging from $10,000 to $20,000.

According to a recent Manhattan Chamber of Commerce poll, 17 percent of 172 small business owners interviewed reported they have no access to credit. The chamber represents 1,500 small businesses.

"Many small businesses, to no fault of their own, find themselves backed into financial corners and unable to expand or even survive," Bloomberg said. "Their access to credit is cut off. Their cash flow is drying up."

To relieve owners of residential and business properties, the plan calls for adjusting the tax payment schedule. If the property is valued at at least $250,000, the owners can pay smaller amounts quarterly rather than larger lump sum payments twice a year.

In another initiative, the city would use $24 million in federal funding to buy and sell foreclosed properties to convert them into affordable housing for middle- and low-income residents across the city.

In addition to a yearlong public awareness campaign informing New Yorkers on how to control their finances, Bloomberg also plans to launch a helped wanted Web site. It will provide job listings, training resources and health insurance options for those who lost financial service jobs.

(Published by Newsday - October 31, 2008)