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THE COUNCIL OF THE CITY OF NEW YORK
PROGRESSIVE CAUCUS
250 BROADWAY
NEW YORK, NY 10007
June 2011
Mayor Michael BloombergCity HallNew York, NY 10007
Dear Mayor Bloomberg:
The Progressive Caucus of the New York City Council urges you to
employ some of the many realistic revenueraising options available
to the city in order to avoid cuts to human services and education
in this municipal budget.
Our communities cannot afford cuts to human services like child
care, HIV and homelessness services; like Englishclasses and legal
services for immigrants; like firehouses and libraries. And we
cannot afford cuts to schools that arealready overcrowded and
under-resourced.
We are committed to use $1 billion of the nearly $3 billion
Retiree Trust Fund to restore the worst cuts immediately,and to
employ revenue options like those below to replenish the fund
quickly for the future.
To replenish the surplus, we have options such as the
following:
End bank subsidies that are unnecessary and unaffordable at this
time. Four banks have received three quarters of abillion dollars
in recent years to create or protect jobs in NYC, and they have
fallen substantially short of their jobcreation promises. The banks
have returned to record profits, making the subsidies unnecessary;
and our working
communities are facing devastating cuts to jobs, education and
human services programs, making the subsidiesunaffordable. These
banks promised to create or protect over 33,186 jobs but only
delivered 14,000, falling short oftheir promise by over 19,000.
These four banks should be asked to return $100 milliona mere 12%
of the totalsubsidies awardedto help avoid the job losses that will
result if education and human services cuts go through.
Close tax loopholes for hedge funds and millionaires. We cannot
afford to continue the special $200 million taxloopholes for hedge
funds by exempting profits from the Unincorporated Business Tax.
Nor can we afford the $120million that New York City loses when we
allow 5,000 millionaires to deduct this tax from their City
PersonalIncome Taxes.
Renegotiate bank contracts with the City. The big six banks have
about $600 million in city contracts. A ten percentreduction in
those contractsfar less than the cuts that have been imposed on
not-for-profit human servicesagencies over the past two yearswould
raise $60 million.
Make the Mortgage Electronic Recording System (MERS) pay. Big
banks used MERS to avoid fees and taxes asthey traded mortgages and
created securities. Banks have avoided at least $70 million in
mortgage recording feesthat are owed to NYC. Other municipalities
and states are litigating to recover the fees and taxes lost to
MERS; NewYork should do the same.
Continue the State millionaires tax. We need you to use your
considerable influence in Albany to push for thecontinuation of the
modest State Personal Income Tax surcharge on millionaires that
would provide $450 millionthis year alone for NYC schools and
services.
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We look forward to working with you to protect the schools and
human services that New York communitiesespecially those hit
hardest by the economic crisisdesperately need.
Sincerely,
Melissa Mark-Viverito Brad LanderCo-Chair, Progressive Caucus
Co-Chair, Progressive Caucus8th Council District 39th Council
District
Letitia James Jumaane Williams35th Council District 45th Council
District
Margaret Chin Jimmy Van Bramer1st Council District 26th Council
District
Danny Dromm Debi Rose25th Council District 49th Council
District
Annabel Palma James Sanders Jr.18th Council District 31st
Council District
Julissa Ferreras21st Council District
Cc: Speaker Christine QuinnMark Page
