Council Member Yassky Comments On New Economic Reality:" The Pain Will Be Real"

I am sure you have or will receive this email sooner or later, but I thought I would post it here. It is written by Council Member David Yassky. He is warning Brooklynites not only of the new economic reality that will dictate some serious budget cuts but is preparing residents for the real possibility of higher real estate taxes. Yikes!

From: David Yassky <david@councilmemberyassky.com

Sent: Thu, 25 Sep 2008 3:33 pm
Subject: Where We Stand

Dear Friend-

The full impact of the Wall Street earthquake will not be known for some time, but it is already clear that New York’s leaders must begin planning now for a significantly weaker City economy.

The pain will be real. Mayor Bloomberg has already ordered City agencies—including police and schools— to implement $1.5 billion in cutbacks, and has signaled that he is likely to propose an increase in the property tax rate. These are prudent steps to address the short term crisis. The real challenge will be responding to the wholesale restructuring of the City’s core industry.

First, we must work to strengthen policies aimed at diversifying our economy. For example, I recently proposed an expansion of the City’s tax credit for film and TV production. The original credit, which I sponsored three years ago, has spurred a doubling of film production, creating some 6,000 new jobs. We must take advantage of similar growth opportunities in biotechnology and green manufacturing.

Second, we must intensify efforts to create a more efficient and entrepreneurial City government. Earlier this month, I called on the Department of Sanitation to sell advertising space on the City’s 25,000 trash cans. Today, the City adorns its trash cans with the names of local politicians (including me). Let’s use this space to generate revenue rather than political support. Now, we need a hundred more ideas to generate revenue and eliminate wasteful spending.

Finally, we must recognize that New York’s position at the center of the financial world is at risk. Merrill Lynch will soon be a North Carolina bank; the surviving parts of Lehman Brothers will be absorbed by a British firm; Bear Stearns has disappeared; and AIG has been taken over by Washington. To be sure, a new order will emerge, and the next generation of financial giants is likely to be found among the many smaller, nimble firms already operating here in New York. But our government must do its part by making sure the City remains a preeminent place to do business.

I have great confidence in the leadership of Mayor Bloomberg as we enter these uncharted waters, but I have no illusions about the difficulty of the choices we face. I spoke last night at a residents’ meeting in a large new apartment building in Downtown Brooklyn. When I explained the City’s financial situation, a young father said, “So we’ll be paying more taxes for less service?” I agreed, and he did not look happy. But as I was leaving, he stopped me to thank me for my work and asked, “What can we do to help?”

That’s the spirit.

Sincerely,

David Yassky

Council Member, 33rd District

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