New York State Comptroller H. Carl McCall yesterday called on the state"s Financial Control Board to play a "more prominent role" in helping New York City deal with its budget woes. while releasing a report detailing serious problems with the city's fiscal 1995 budget.
The report comes as city agencies begin to cul $250 million from their spending, and prepare to slash $200 million more in response to-Mayor Rudolph Giuliani's plan to keep the city's $31.6 billion fiscal 1995 budget in balance. The city's fiscal year began July 1.
The state financial control board is scheduled to release its report today on the city's fiscal 1995 budget. At a July 11 control board meeting, control board executive direct Allen J. Proctor said the city's fiscal 1995 budget faces more than $1 billion in risks that would push the spending plan out of balance.
McCall's report, prepared by the office of the state deputy comptroller for New York City, said that the city faces a fiscal 1995 budget gap of $616 million. and an additional risk of $152 million.
The potential $768 million gap in this year's budget reflects a possible increase in the city's subsidy for the Health and Hospitals Corp., additional overtime spending, higher pension fund contributions, and other risky revenues, the report said.
"In terms of actual dollars as well as percentage of the budget, this is the largest gap we've seen at this point in the fiscal year since 1986," McCall said in a press release.
City budget director Abraham Lackman did not return a telephone call.
As pan of the report, McCall took the unusual step of urging the state's Financial Control B9ard, which currently monitors City finances, to take -a more active stance in helping the city deal with its fiscal 1995 budget problems.
McCall spokesman Steven Greenberg said the comptroller's plan, which was first made public during a July 11 control board meeting, is designed to help the city through a difficult financial period. As pan of the plan, the comptroller would call on the control board, which is headed by Gov. Mario Mario M: Cuomo and includes as members McCall, city comptroller Alan G. Hevesi, and Giuliani, to hold additional meetings to discuss city budget problems. A [incomplete text in original publication]