The document discusses how the global economic crisis is hurting municipal budgets nationwide, including in Gotham City. It proposes several ways Gotham City could balance its budget, such as by increasing property taxes, making cuts to agency budgets, or generating revenue from special events organized with community support.

1. B A L A N C I N G T H E G O T H A M C I T Y B U D G E T A BUDGET PLAN OF, BY AND FOR COSMOPOLITANS Drafted by SOLVEIG A. WILDER Submitted to PROFESSOR MANNY TIRADO for PoliSci Computer Applications At the CUNY GRADUATE CENTER FOR WORKER EDUCATION

2. I T S E E M S T H E R E I S A “ 2 0 0 8 G L O B A L E C O N O M I C C R I S I S ” HIGH OIL PRICES triggered … AN INCREASE IN FOOD PRICES which resulted in … GLOBAL INFATION which triggered … A SUBSTANTIAL CREDIT CRISIS which caused … MAJOR BANKRUPTCIES AND STOCK MARKET FAILURES which has led to … INCREASED UNEMPLOYMENT AND HOUSING FORECLOSURES which could culminate in … A GLOBAL RECESSION ! ! !

3. “ R I P P L I N G E F F E C T S “ A R E B E I N G F E L T A R O U N D T H E W O R L D 1 IN EUROPE several major financial institutions have failed or have needed rescuing. IN ASIA, despite concerted efforts to sufficiently de-couple from the Western financial systems, countries have seen their stock markets suffer and currency values spiral downward . IN LATIN AMERICA there will be much slower growth than expected as a result of a loss of trade to the US, which absorbs 50% of all Latin American exports. IN THIRD WORLD NATIONS financial instability coupled with a rise in food prices have resulted in high fuel costs and soaring commodity prices. 1 See GLOBAL ISSUES

4. I N T H E U N I T E D S T A T E S, T H E D O M I N O E S A R E F A L L I N G O N E R I G H T A F T E R T H E O T H E R 2 THE DEMISE OF LEHMAN BROTHERS, a global investment bank, triggered... THE RUSHED SALE OF MERRILL LYNCH, a leading global financial management and advisory company, which forced … BANK OF AMERICA, the buyer and leading financial institution, to cut thousands of jobs, which necessitated… AMERICAN INTERNATIONAL GROUP (AIG), a global insurance and financial service, to be taken over by the federal government, which could not stop… A NATIONWIDE CREDIT CRISIS ! ! ! 2 See TIME BUSINESS & TECH

5. T H I S G L O B A L E C O N O M I C C R I S I S I S H U R T I N G M U N I C I P A L I T I E S N A T I O N W I D E NEW YORK CITY will be hardest hit because Wall Street supplies 9% of its revenues, employs 5% of its workforce, and pays 20% of its wages. MAYOR MICHAEL BLOOMBERG announced on October 3rd that there will be a $2.3 billion dollar budget gap 3 . GOVERNOR DAVID PATERSON said later that same day that the crisis on Wall Street will create a budget “emergency” throughout New York State 4 . LOS ANGELES will be hard hit because it is a hub for sub-prime mortgage lenders. Since 40% of homes now sold are foreclosures, new construction has nearly come to a halt. Unemployment has risen from 5% to 7.9%, and joblessness is up from the statewide average of 7.7% to 9.2% 5 . MAINSTREET MUNICIPALITIES with large percentages of residents working in finance, real estate, insurance, and leasing (i.e., Darien CT, Bloomington IL, and Hoboken NJ) must cope with a sudden big drop in tax revenues 6 . 3 See BLOOMBERG.COM 4 See NEW YORK POST 5 See DEADLINE USA 6 See YAHOO NEWS!

6. G O T H A M C I T Y W I L L B E H I T H A R D A S W E L L B Y T H E G L O B A L E C O N O M I C C R I S I S $ 7,080,490,000 TOTAL REVENUES $ 525,000,000 Other Taxes/User Fees $ 2,921,625,000 General Corporations $ 90,000,000 State Aid $ 700,000,000 Federal Aid $ 68,850,000 General Sales Tax $ 1,466,965,000 Personal Income Tax $ 1,308,050,000 Property Tax REVENUE SOURCES/TAXES $ 1,057,212,058 Debt Services $ 7,907,805,014 TOTAL EXPENDITURES $ 410,165,820 Other $ 860,028,400 Education $ 285,607,200 Environmental $ 516,108,000 Transportation $ 14,770,000 Libraries & Museums $ 329,122,000 Health $ 859,213,536 Social Services $ 559,515,000 Corrections $ 369,081,000 Sanitation $ 848,130,000 Fire $ 1,590,092,000 Police $ 208,760,000 General Administration EXPENDITURES/GOTHAM CITY AGENCIES $827,315,014 A P R O J E C T E D B U D G E T D E F I C I T O F

7. D R A S T I C S T E P S A R E B E I N G T A K E N I N T H E U . S . T O D E A L W I T H T H E G L O B A L E C O N O M I C C R I S I S 7 To deal with “the gravest economic crisis since the Great Depression,” Congress passed a “rescue package” on October 3, 2008 . The Treasury Department will receive $700 billion dollars to dole out: A $200 billion dollar bailout of mortgage lenders Fannie Mae and Freddie Mac; An $85 billion dollar loan to AIG; and A $29 billion to bail out of Bear Stearns. The legislation places "reasonable" limits on severance packages for executives of companies that benefit from the rescue plan. The government will receive stock warrants in return for the bailout relief, giving taxpayers a chance to share in financial companies' future profits. However, there are no guarantees that the tax dollars we invest will be paid back. 7 See THE INDEPENDENT WORLD

8. D R A S T I C S T E P S A R E B E I N G T A K E N I N N E W Y O R K C I T Y 8 MAYOR MICHAEL BLOOMBERG PLANS TO INCREASE PROPERTY TAXES AND FORCE ALL AGENCIES TO: Cut spending by 2.5% to save $500 million dollars from this year’s fiscal budget; Cut an additional 5% from their budgets during the next fiscal year to save $1 billion dollars. THESE “ACROSS THE BOARD” CUTS MEAN THAT: The Parks Department will lose $6.7 million; The Department of Homeless Services will lose $7.8 million; The Department of Transportation will lose $11.9 million; The Fire Department will lose $33.8 million; The Department of Education will lose $185 million. 8 See NEW YORK TIMES

9. G O T H A M C I T Y C O U L D B A L A N C E I T S B U D G E T T H E N E W Y O R K C I T Y W A Y $ 7,315,939,000 TOTAL REVENUES $ 525,000,000 Other Taxes/User Fees $ 2,921,625,000 General Corporations $ 90,000,000 State Aid $ 700,000,000 Federal Aid $ 68,850,000 General Sales Tax $ 1,466,965,000 Personal Income Tax $ 1,543,499,000 Property Tax Increase REVENUE SOURCES/TAXES WITH A PROPERTY TAX INCREASE $ 977,921,154 Debt Services $ 7,314,719,638 TOTAL EXPENDITURES $ 379,403,384 Other $ 795,526,270 Education $ 264,186,660 Environmental $ 477,399,900 Transportation $ 13,662,250 Libraries & Museums $ 304,437,850 Health $ 794,772,521 Social Services $ 517,551,375 Corrections $ 341,399,925 Sanitation $ 784,520,250 Fire $ 1,470,835,100 Police $ 193,103,000 General Administration EXPENDITURES/GOTHAM CITY AGENCIES WITH 7.5% ACROSS THE BOARD CUTS $1,219,362 A P R O J E C T E D B U D G E T S U R P L U S O F

10. H O W T A C K Y ! ! !

11. D R A S T I C S T E P S A R E B E I N G T A K E N I N C A L I F O R N I A IN ORDER TO CLOSE A $17.2 BILLION DOLLAR BUDGET GAP, GOVERNOR ARNOLD SCHWARZENEGGER SLASHED GOVERNMENT SALARIES “DRAMATICALLY” AND ORDERED THE FOLLOWING 9 : The Department of Education budget will be reduced by $4 billion dollars through cuts to cost-of-living increases; Health and Human Services must make 20% cuts across the board ; All reimbursement for Medical providers that treat Medi-Cal recipients must be cut by 10%, making it harder for the 6.6 million children, parents, seniors & people with disabilities to get the care they need by reducing access to providers; A change in Medical eligibility rules that will deny coverage to parents earning very low wages (from $11,000 to $18,000/year for a family of three). 9 See US NEWS AND WORLD REPORT

12. G O T H A M C I T Y C O U L D B A L A N C E I T S B U D G E T T H E C A L I F O R N I A W A Y $ 7,080,490,000 TOTAL REVENUES $ 525,000,000 Other Taxes/User Fees $ 2,921,625,000 General Corporations $ 90,000,000 State Aid $ 700,000,000 Federal Aid $ 68,850,000 General Sales Tax $ 1,466,965,000 Personal Income Tax $ 1,308,050,000 Property Tax Increase REVENUE SOURCES/TAXES $ 1,057,212,058 Debt Services $ 7,078,735,668 TOTAL EXPENDITURES $ 381,454,213 Other $ 627,820,732 Education $ 265,614,696 Environmental $ 479,980,440 Transportation $ 13,736,100 Libraries & Museums $ 240,259,060 Health $ 687,370,829 Social Services $ 520,348,950 Corrections $ 343,245,330 Sanitation $ 788,760,900 Fire $ 1,478,785,560 Police $ 194,146,800 General Administration EXPENDITURES/GOTHAM CITY AGENCIES WITH 7% SALARY CUTS & 20% CUTS TO SOCIAL SERVICES, HEALTH & EDUCATION $1,754,332 A P R O J E C T E D B U D G E T S U R P L U S O F

13. H O W G O U A C H E ! ! !

14. D R A S T I C S T E P S A R E B E I N G T A K E N B Y M A I N S T R E E T M U N I C I P A L I T I E S N A T I O N W I D E With falling revenue from sales, income and property taxes, cities and towns are laying off tens of thousands of government employees 10 . Cutting just 1% of government jobs in cities, towns, and states nationwide will result in a job loss of almost 200,000 people, which is much more than the job losses in battered sectors like auto manufacturing or home construction in the past two years. In states, towns and cities not yet laying off people, hiring freezes and early retirement packages are now common. Tennessee state and local officials are cutting 2,000 jobs, or about 5% of the state's government work force; New Jersey state and local officials are cutting 3,000 jobs; Ohio state and local officials are cutting 2,700 jobs; Michigan state and local officials are debating selling the Detroit-Windsor Tunnel to save 1,500 jobs. 10 See CNN MONEY.COM

15. G O T H A M C I T Y C O U L D B A L A N C E I T S B U D G E T T H E M A I N S T R E E T W A Y 11 See BROOKLYN BRIDGE-HISTORIC OVERVIEW $ 7,080,490,000 TOTAL REVENUES $ 525,000,000 Other Taxes/User Fees $ 2,921,625,000 General Corporations $ 90,000,000 State Aid $ 700,000,000 Federal Aid $ 68,850,000 General Sales Tax $ 1,466,965,000 Personal Income Tax $ 1,308,050,000 Property Tax REVENUE SOURCES/TAXES $ 1,057,212,058 Debt Services $ 7,907,805,014 TOTAL EXPENDITURES $ 410,165,820 Other $ 860,028,400 Education $ 285,607,200 Environmental $ 516,108,000 Transportation $ 14,770,000 Libraries & Museums $ 329,122,000 Health $ 859,213,536 Social Services $ 559,515,000 Corrections $ 369,081,000 Sanitation $ 848,130,000 Fire $ 1,590,092,000 Police $ 208,760,000 General Administration EXPENDITURES/GOTHAM CITY AGENCIES $27,315,014 A P R O J E C T E D B U D G E T S U R P L U S O F $800,000,000 FOR THE SALE OF THE BROOLKYN BRIDGE 11

16. H O W D É C L A S S É ! ! !

17. G O T H A M C I T Y W I L L B A L A N C E I T S B U D G E T T H E C O S M O P O L I T A N W A Y LET’S PUT ON A SHOW! LET’S PUT ON A SHOW!

18. G O T H A M C I T Y I S A S K I N G I T S I N N O V A T I V E C I T I Z E N R Y T O L E N D A H E L P I N G H A N D Experts warn that Special Events can cost more than they make 12 . However, many of the pitfalls of Special Events do not apply to Gotham City 13 . Municipalities like Gotham City can make lots of in-kind contributions, including free venues and a wealth of resources; Municipalities can exchange things like college credits and fee waivers in exchange for free labor; Municipalities like Gotham City can exchange free advertisement for in-kind contributions made by private companies; Volunteering with municipalities like Gotham city can provide invaluable networking opportunities and experience. 12 See CHARITY NAVIGATOR 13 See STEP-BY-STEP FUNDRAISING

19. IF W E O R G A N I Z E 2 7 C I T Y W I D E E V E N T S A N D R A I S E $ 1 0 0 , 0 0 0 P E R E V E N T 14 14 See SPECIAL EVENTS FUNDRAISING OVERVIEW & HISTORY

20. A N D I F W E D U M P T H E E N T I R E G O T H A M C I T Y O F F I C E O F B U D G E T & M A N A G E M E N T $1,057,212,058 FOR “DEBT SERVICES”?!!!

21. G O T H A M C I T Y W I L L H A V E A B A L A N C E D B U D G E T W I T H M O N E Y T O S P A R E ! ! ! $ 2,700,000 Special Events $ 7,083,190,000 TOTAL REVENUES $ 525,000,000 Other Taxes/User Fees $ 2,921,625,000 General Corporations $ 90,000,000 State Aid $ 700,000,000 Federal Aid $ 68,850,000 General Sales Tax $ 1,466,965,000 Personal Income Tax $ 1,308,050,000 Property Tax REVENUE SOURCES/TAXES $ 6,850,592,956 TOTAL EXPENDITURES $ 410,165,820 Other $ 860,028,400 Education $ 285,607,200 Environmental $ 516,108,000 Transportation $ 14,770,000 Libraries & Museums $ 329,122,000 Health $ 859,213,536 Social Services $ 559,515,000 Corrections $ 369,081,000 Sanitation $ 848,130,000 Fire $ 1,590,092,000 Police $ 208,760,000 General Administration EXPENDITURES/GOTHAM CITY AGENCIES $23,597,044 A P R O J E C T E D B U D G E T S U R P L U S O F