CWA 1180 - Political Action

The budget and bargaining
by Linda Jenkins
August 2002

On June 19 the mayor and the City Council agreed on a final budget. Local 1180 members need to understand the implications of that budget for our next round of contract negotiations. As city workers we are directly impacted by the city's budget. We know all too well that service cuts and the loss of personnel in city agencies result in more work for those who remain. We also need to understand that the budget has a direct connection to our ability to bargain for wages and other benefits.

The final budget closed a $5 billion gap through borrowing and broad-based spending cuts. It represents an improvement from the mayor's proposed executive budget - it stops the bulk of the proposed cuts to schools, and also finds funding for senior centers, library hours, and other services. But it does not look to any significant progressive revenues. The City Council failed to convince the mayor or the state to consider its progressive package of tax increases, including restoration of the commuter tax and a personal income surcharge. So many deep cuts in services affecting kids and poor individuals and families in education, public health, and children's services were left in place. The only taxes included in this budget are some regressive tax increases including a huge increase in the cigarette tax, a new tax on cell phones and increases in parking fines. The new budget also includes $1.5 billion in new borrowing.

The city's projected deficit for the next budget year has grown to $3.7 billion while a number of revenue sources that this budget relies upon will not be available to help close future budget gaps. In the short time since the budget was passed Mayor Bloomberg has gone from indicating a willingness to look at taxes next year to calling for a billion dollars more in spending cuts now. He has ordered city agencies to come up with proposals to cut 7.5 percent of their spending this year. He has even raised the possibility of layoffs. Facing negotiations with city unions and hoping to win $250 million more in union concessions on pensions and other fringe benefits to help balance the budget, the mayor is obviously seeking leverage to use in the upcoming labor negotiations.

The city's labor unions and City Council members are responding by renewing the call for tax increases. It is clear that without substantial additional revenue we face additional losses of vital city services and an uphill battle in attempting to improve wages in the next round of contract negotiations.

To succeed in bargaining we have to succeed in putting progressive taxes into the budget. A coalition of municipal unions, the Working Families Party, community groups and organizations worked hard earlier this year to raise public awareness and support for some targeted tax increases. We have to keep the pressure on to keep the issue of taxes on everyone's agenda, not only to preserve vital city services, but also to ensure that there is money in the budget for bargaining labor contracts.

Back to Political Action page