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GGD-78-13 1 (1977-11-15)

handle is hein.gao/gaobaawfm0001 and id is 1 raw text is: DOCUMENT RESUME 5 - / 04052 - (B319. 35] Analysis of Operating Expenses in New York City's Fiscal Year 1978 Capital Budget. GGD-78-13; B-185522. November 15, 1977. Released December 15, 1977. 9 pp. + 2 appendices (14 pp.). Repor to Rep. William S. Moorhead, Chairman, House Committee on Banking, Finance and Urban Affairs: Economic Stabilization Subcommittee; by Elmer B. Stadtse Comptroller General. Issue Area: intergovernmental Policios and fiscal Relations: liscal Problems and Potertial Solutions (407). Contact: General Government Div. Budqet Function: Revenue Sharing and General Purpose kiscal Assistance: Other General Purpose Fiscal assistance (352). Organization Concerned: New York, NY; Departmert of the Treasury. Congressional Rel,vance: House Committee on Banking, Finance and Urban Affairs: Economic Stabilization Subcommittee. The operating expenses contained in New York City's fiscal year 1978 capital budget are understated, but only by a relatively small amount. This amount was determined using a strict interpretation of the criteria, which are more strict than many municipalities s.ght currently be following. However,, in view of the current fiscal problems of the city and its need to restore investor confidence, it is in the city's best interest to apply strict criteria in deteroining whether budget items are valid capital outlays or operating expenses. F-ndings/Conclusions: Bew York St&te law requires New York City to eliminate operating expenses from its capital budget over a 10-year period. Using criteria established by the State Comptroller, the city classified $643 sillicy, of its $1.031 billion in planned capital outlays as cperating in nature. Application of a strict interpretation of the State's criteria identified an additional $18.9 million which should have been classified as operating expenses. For an additional $8.3 million in planned expcnditures, city officials did not have sufficient documentatioa to permit determination as to whether the items were valid capital charges. City officials agreed that $5.5 million in expenditares should be classified as operating, but disagreed with the deterainations on the remaining $13.4 mi)lion. Representatives of both the State and City Comptrollers' offices agreed with the determinations in all cases. (Author/SC)