CityTime Settlement Cannot Fill NYC Budget Revenue Gap

Bloomberg: CityTime $500 Million Settlement Can't Fill Gap In Budget

Mayor Bloomberg revealed his executive budget proposal on Thursday with disappointing news that the city's revenue projects, primarily in the financial sector, are not working as well as initially hoped for and have produced an unexpected gap.

Despite the colossal $466 million CityTime fraud settlement the city was hoping to relieve the city's financial woes, Bloomberg announced the recovered funds were "already baked"into the budget, leaving the city with a projected $3 billion gap.

The disconcerting news comes as children advocacy groups around the city have slammed the mayor for his plans to cut $170 million in children services funding, specifically the school system's state-of-the-art after school programs, which Council Speaker Christine Quinn has criticized as "unacceptable."

Councilman James Vacca recently came out condemning the threatened cuts saying, "I believe that after-school programs and child care programs are not luxuries, they're necessities."

SAIC's connection to the epic CityTime scandal, which involved fraud from hundreds of contractors, kickbacks, and money-laundering schemes, resulted in the agreement to pay $370 million in restitution and $130 in penalty fines.

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