Tax Hikes vs. Spending Cuts

Today's Daily News editorial mentions that since the recession, the city has brought in $370 million through tax hikes, and cut $175 million in spending. Here are the numbers in detail.

Tax Hikes

We calculated the revenue generated by each tax hike by taking the taxes collected each year and subtracting the tax revenue projected for that year in Fiscal Year 2009, before the recession hit.

We did not take into account planned tax cuts that were postponed.

Real Estate Taxes

FY11 actual: 482,700,000

FY11 projected: 442,900,000

FY11 hike: 39,800,000

FY12 actual: 491,500,000

FY12 projected: 457,800,000

FY12 hike: 33,700,000

School portion (school tax hike has only been in effect for one year)

FY12 actual: 633,300,000

FY12 projected: 599,600,000

FY12 hike: 33,700,000

Sales Taxes

FY10 actual: 207,100,000

FY10 projected: 142,800,000

FY10 hike: 64,300,000

FY11 actual: 244,600,000

FY11 projected: 146,300,000

FY11 hike: 98,300,000

FY12 actual: 250,200,000

FY12 projected: 150,000,000

FY12 hike: 100,200,000

Total sales and real estate tax hikes, FY10-FY12: 370,000,000

Spending Cuts

We calculated spending cuts by estimating what each year’s budget would be had it grown at the rate of inflation from FY09, then subtracting the actual budget. The difference between the two budgets is the spending cut.

DHS funding has been removed from all budgets, because it is mostly a pass-through and in 2012 was re-categorized as a grant.

We’ve also calculated what spending would have been had pension payments not been deferred in 2010 and 2011, because we can’t rightly call deferment of payments a “cut.”

FY09 actual: 3,315,500,000

FY10 inflation budget: 3,303,700,000

FY10 actual: 3,092,600,000

Reduction: 211,100,000

FY10 + deferred pension payment: 3,247,600,000

Reduction w/ pension payment: 56,100,000

FY11 inflation budget: 3,358,000,000

FY11 actual: 3,242,400,000

Reduction: 115,600,000

FY10 + deferred pension payment: 3,322,400,000

Reduction w/ pension payment: 35,600,000

FY12 inflation budget: 3,463,900,000

FY12 actual: 3,380,300,000

Reduction: 83,600,000

Total reduction from inflation, FY09-FY12: 410,300,000

Total reduction w/ pension payments: 175,300,000


Total tax hikes, 2010-2012: 370,000,000

Total spending cuts: 410,300,000

Total spending cuts w/ deferred pension payments: 175,300,000