Lackman picked to run New York budget office as city changes guard.

New York City Mayor-elect Rudolph W. Giuliani yesterday named Abraham M. Lackman, a veteran of New York State budget wars, as director of the city's Office of Management and Budget.

Lackman, who served as director of fiscal studies for the New York Senate Finance Committee, said in a statement, "I am honored to become part of the Giuliani administration. The mayor-elect and I share the same goals for New York City and we recognize that they cannot be accomplished without a strong economic environment."

Lackman, 45, who assumes the post next month, faces daunting budget problems. The city faces about a $2 billion budget gap in fiscal 1995, which begins July 1. In addition, billion-dollar budget gaps are projected in fiscal 1996 and 1997.

"The first order of business will be to prepare a budget which addresses the reductions necessary and to initiate a process of restructuring city government so that it can operate within its tax base and stimulate jobs and investment," Lackman said.

Lackman joined the Senate Finance Committee as a legislative analyst in 1980 and was named director in 1984. His responsibilities included reviewing all tax legislation. He was also responsible for reviewing legislation that affected New York City.

Lackman played an instrumental role in the 1987 Tax Reduction Act, which was slated to lower the state's income tax in three phases. State budget problems have prevented the third phase from being implemented.

Lackman was one of a number of budget and finance experts considered or interviewed for the post. The list included Marc Shaw, New York City Council finance director, and Allen J. Proctor, executive director of the New York State Financial Control Board. "I think he will work out fine and we will provide all of our support that he wants to take advantage of," Proctor said. "What he can bring to the table is over a decade of experience of how legislation gets passed in Albany." If the city is going to address its structural budget problems, Proctor noted, it is essential that a tremendous amount of legislation be passed in Albany. Lackman will be "effective" at bringing that about, Proctor said.

Raymond Horton, president of the Citizens Budget Commission, a nonprofit fiscal watchdog of New York State and New York City fiscal practices, said, "I thought it was a good appointment."

Lackman will contribute "a sense of state and fiscal relationships," said Horton, who served on the search committee that nominated Lackman.

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