New York State Senate Majority Leader Ralph J. Marino dropped a bombshell on New York City late yesterday, saying the Senate would not approve a $335 million income tax increase for its fiscal 1992 budget.
Mr. Marino, R-Muttontown, said Mayor David N. Dinkins's $1.1 billion tax package for fiscal 1992, which begins July 1, is "excessive and would force people out of New York." Included in the tax package is a property tax increase to generate $776 million.
The mayor "risks the wrath of New Yorkers" with this package, Mr. Marino added.
A spokesman for the state Senate said that chamber may consider the personal income tax increase if other conditions regarding the mayor's tax package are met. Mayor Dinkins is counting on the tax package to help close a $3.5 billion budget gap in fiscal 1992.
Meanwhile, the members of the state's Financial Control Board, a fiscal monitor of the city's financial affairs, are expected to meet formally on July 2, according to New York State Comptroller Edward V. Regan, one of the board's seven members.
The state panel, which includes Mayor Dinkins and Gov. Mario M. Cuomo, could take over the city's finances if it has a $100 million budget gap at the end of its fiscal year; fails to meet debt service payments; or cannot enter the capital markets.