Revenue Rank: 1
Form of Government: Mayor-Council
Mayor: Rudolph W. Giuliani (took office 1993)
City Council: 51 members, elected by district
FINANCIAL MANAGEMENT: B
Finance officers like to point out that New York City is the most monitored municipal entity in the world. The city controller, state controller, financial control board, rating agencies and major investment houses all keep close watch over every move that’s made.
Partially as a result, cash and investment policies are excellent; there are meaningful future revenue and expenditure forecasts; and it is virtually impossible for agencies to overspend their budget allocations. The city updates its financial plan quarterly, in more rigorous fashion than any of the nation’s other big cities.
Still, New York doesn’t have a formal rainy day fund. And, although it makes the case that it’s using its surpluses wisely — to prepay future debt — this can be interpreted as a back door to use surpluses for ongoing expenditures, not for one-time needs, as most fiscal experts advise.
Also, while New York creates tons of useful financial information, citizens’ groups and even the city’s own citizen’s advocate and independent budget office say it can be difficult to get important data from the executive branch.
HUMAN RESOURCES: B-
The state of New York has handcuffed the personnel process in every one of its large jurisdictions, but NYC works around the situation. The state requires, for example, that managers be given lists of only three applicants for any job opening, except when there are ties. The city finds ways to ensure lots of ties, such as counting seniority on a full-year rather than a month-by-month basis.
The city generally uses a task-oriented appraisal system for non-managerial employees, (making the evaluation process somewhat less subjective than it otherwise would be). Although non-managerial pay levels are determined by collective bargaining, incentives are available, and a pay-for-performance option has been developed for managers.
Still, in many ways, the state and the unions conspire to restrict the city by complicating the hiring and firing process. NYC is constantly being sued by candidates claiming it has violated testing guidelines. Some are allowed to protest answers to individual test questions. This can add months to the time necessary to rate a test.
Disciplining poor workers is difficult. Employees have a right to union representation anytime they’re questioned about something that could lead to disciplinary action. The appeals process for terminations can take years.
INFORMATION TECHNOLOGY: B
Strategic planning for IT in New York is strong. A new technology steering committee has developed standards to ensure that agencies can’t get procurement funding without approval. Standardization has come a long way as a result.
The city is replacing 11 systems built over the past 20 years with a single, integrated financial management information system. Its human resources system is below par, but a new one should be in place within 18 months. New York was the first major city to use technology to organize its crime-fighting efforts, contributing to the now-famous drop in its crime rate.
The city’s Web site, NYC Link, provides a great deal of information and allows citizens to apply for permits and licenses and even complain about rude cab drivers online. New Yorkers can use public kiosks to pay parking tickets or obtain birth certificates. Many of these processes will soon be available through the Internet as well.
One significant fly in the city’s IT ointment: Collection of property and sales taxes is far less efficient than modern technology permits.
CAPITAL MANAGEMENT: B+
It’s not easy comparing New York to other cities in capital management. Many fill potholes in 48 hours after a citizen complaint. New York tries to get to them within a month. But you have to cut it some slack here: New York has more big potholes than some cities have streets.
The infrastructure problems are evident to anyone who has bounced around on NYC streets. Another notable problem is the city’s school properties, which are eroding at a rapid clip. By one estimate, the city needs to spend $28 billion in the next 10 years on schools alone. It plans on spending less than half of that amount.
Still, New York stands out as one of the best at capital management planning and data collection. Even though it doesn’t have nearly enough money for its needs, it spends what it has wisely. The city retains good information on the condition of buildings and streets, and it has a 10-year capital strategy, updated every two years, with a plan for every agency.
MANAGING FOR RESULTS: B
Citywide strategic planning is done on a four-year cycle and is done well. At the department level, planning varies in quality, according to officials at the not-for-profit Citizens Budget Commission. They complain that strategic plans for the fire department and for solid waste management are particularly weak, geared to crises rather than to goals for the future.
The Mayor’s Management Report is an unusually powerful document, with 3,500 separate indicators covering the city’s performance. Outcome measures are used for about one-third of the agencies, including about two-thirds of those with service missions that impact the public.
Some complain that the Giuliani administration has used the MMR as a public relations document. When the mayor holds his press conference to announce its publication, he dwells on the positive numbers, largely ignoring the others. This robs the overall document of some of the credibility it deserves.
AVERAGE GRADE: B
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