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New York City/state

As cash rolls in, they cut services

By G. Dunkel
New York

The city and state of New York are flush. The boom on Wall Street has leaked so much money into government tax receipts that they ran a budget surplus in 1998 and expect another in 1999.

The state's budget surplus in its last fiscal year was $1.7 billion; the city's surplus was $1.6 billion.

Yet Mayor Rudolph Giuliani announced budget cuts of $561 million--that's over half a billion--out of a budget of $34.5 billion. Gov. George Pataki, whose budget is $73 billion, announced that educational aid to the city would be significantly sliced. Pataki will pay only $17 million out of $700 million of state aid that is past due. The projected increase in state aid to education will go to the suburbs and rural upstate areas.

The cuts are all in social services--child care, after-school youth programs, libraries, AIDS prevention and education, Medicaid reimbursement. They are all programs aimed at helping people solve their practical problems, enjoy themselves, learn or enrich their lives.

The major new spending program in the city will be for a new West Side stadium on the Manhattan waterfront and improvements to New York's transportation required for the stadium.

This will be a huge, multi-billion-dollar gift to sports billionaires and entertainment moguls--George Steinbrenner's ilk--who dominate New York's second-largest industry. Entertainment and culture here come in second only to finance, symbolized by Wall Street.

Why are social services cut in boom times as well as bad? Giuliani and Pataki have a glib answer. They say, "We have to save for a rainy day."

In reality, an attack on workers

At the same time Giuliani was announcing next year's budget, a suit against his Human Resources Administration was being settled. The city government admitted it had broken federal laws in the new "job centers" that have replaced welfare offices.

So-called financial advisers--a new name for people who used to be called caseworkers--have cut back on the city's welfare load by refusing to give out applications. If an applicant came in after 11 a.m., didn't bring her husband, or didn't have all the necessary papers, they advised her to either go to a food pantry or go hungry.

They also deliberately misled people into withdrawing food stamp applications, which should be made available even if welfare is denied.

This deliberate denial of benefits violates a federal law that says applications must be given out promptly.

These admittedly illegal acts were a planned, deliberate program put into place after Giuliani hired Jason Turner from Wisconsin to head the HRA. Turner is responsible for Wisconsin's plan to eradicate welfare by dumping people off the rolls.

On Feb. 6, Giuliani boasted to the Daily News, "The City of New York has reduced its welfare rolls more than any [city] in the country." He is really saying that attacking workers, cutting back on programs that help them, or cutting them out completely, is a national policy. And he is doing it better than anybody else.

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