Basic HTML Version
December 1971
The
PLAIN TRUTH
IBW
YOBI CITY
Bankruptcy in Babylon
NEW
YORK
CITY
has a larger city
budget than the
next
25 largest
American cities combined. Since fis–
cal 1968, the New York City budget
has grown by nearly a billion dollars
a year, from six to nearly
nine
billúm doilars.
A Nation-Sized Budget
New
York City's budget is larger
than any state budget ( although six
states are more populous) . Also,
NeiV York City's b/1(/get
is
Larger
than those o
f
al/
b11t
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naliom in
the United Nations.
Its budget is
larger than any nation in South
America, Central Amcrica, or Africa.
In Asia, only the U.S.S.R., Main–
land China and Japan have larger
annual budgets. Ncw York City's
budgct is twice that of India, and
eguivalent to Australia's. In the
Western world, only the U. S., Cana–
da, and six nations in Europe (Bri–
tain, France, East antl West Ger–
many, ltaly, and Poland) have larger
national budgets.
New York City municipal taxes
excced $1,000 per man, woman, and
chi ld, apart from all Federal and
statc levies.
The budgct increased 8-fold from
1950 to 1970, from
$1.1
to $8.8 bil·
lion, while thc population actually
remained at the samc basic level.
Such statistics secm hard to believe
at first. And, yet, Ncw York City
is
having dire financia! shortages. How
can this
be?
Here are sorne of
the
most star–
tling reasons: 1) a ten-fold increase
in
111eljare paymenls,
now comprising
over $2 billion dollars and
1
million
people; 2)
IncreaJing salaries, j1·inge
benefits,
and
early pensiom
for more
city employees. Nearly half a million
workers are now on the city payroll,
with virtually evcry faction - from
teachers to trashmen - agitating for
more pay; and
3)
blflation
in New
York City - far above the U. S.
national average, especially in hous–
ing, land va lues, food, wages, and
other necessities.
Another distortion in
New
York
City's budget is the exponcntial cf–
fect of bigness. For instance,
the per
capita
expense of hospital services in
a moderate city ( 100,000 to 300,000
in population) is about
$5
to
$8
per
person.
In New York City per capita cost
is ten times as great - $55! Like–
wise, per capita police costs are three
times as great in New York City as
in the moderate-sized city. More
policemen and hospitals are needed,
because of the greatcr crime ancl
illness engendered by closer city
living, and the greater costs of ser–
vices, which are due to an inAated
local economy.
Where Does the Money
Come
From?
Where does New York City get
all the money it needs to cover such
soaring expenses? How do city
administrators squeezc another bil–
lion dollars per year from already
tax-bled citizens?
Not many options are open to the
Mayor. The Federal antl Statc gov–
ernments provide about S3.5 billion,
mostly "with strings attached," while
S2.) billion comes from property
taxes on those unfortunate citizcns
who have a city address. There is
little hope for much from
these
two
sectors. The remaining $2.5 billion
comes from "miscellaneous" taxes -
city income tax, stock transfers, mort–
gage taxes, sales taxes, off-track bet–
ting, and who knows what next!
(Bear in mind that these same citi–
zcns are also paying about $15 billion
to the Federal and $tate governments,
in addition to the $5 bill ioo city tax).
The lesson of
New
York
City
New York's example is singled
out here as a warning. Cities that
attempt to pack so many people
with widely divergent caces, classes,
and cultures, into so small an arca,
without jobs, good education and
hope, wi ll suffer much the same
problems.
Other city budgets are not as un–
wicldy as
New
York's, mainly since
other large cities give the
county
sys–
tem a lot of the administrative func–
tions ( such as LA. County, Los
Angeles; Cook County, Chicago).
In such cases, the budget burden
is dispersed, but remains heavy and
potcntially bankruptive.
Many New Yorkers would like to
sec the city
become
the
fifiJ·firsl
Jlale
of the United States. Mayor
Lindsay has seriously proposed that
man}' of America's megalopolises be–
come
"National Cities" with direct
access to the Federal government, by–
passing the states. There is only one
catch to this -
monetarily.
The Fed–
eral government itself is spending
more money than it is taking in.
Whatever the near-term "solu–
tion" - whether revenue sharing,
statehood, or national city status -
New York City will oot solve its
problcms without
some
kind of fun–
damental change io government and
fin.mcin14 systems, coupled with a dis–
p(•rs;tl of )l('r vast millions of pcople
into workable smaller communities,
and a change in basic attitudes - of
its rich and poor, black and white,
young and old, sad and mad citizens.
Necded also is a dispersa! of the
vast conglomerates of people into
smaller, well-functioning units, and
a change in basic big-city attitudes of
all citizens - militancy, truculence,
and slothfulness, whether rich or
poor, black or white, young or old. O
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