From now through March 24, City Council committees will be holding hearings on the preliminary budget presented by Mayor Bloomberg on Jan. 28. The annual budget gains momentum amidst a civic fog of dismay and uncertainty – dismay over the ongoing chaos in Albany, and uncertainty about how that, and the state's generally poor economy, will affect the city's $63 billion budget.

Council will gather its findings into a report to be delivered by April 8, which should inform the mayor's Executive Budget to be released by April 26.

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Eileen Markey
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The number of New York City residents without homes continues to grow. Daily estimates of the number of people in shelters hover around 37,000 – the population of a decent-sized town in New Jersey or Connecticut. Even if the economy is starting to show glimmers of recovery, city revenue from taxes is way down and the anticipated fiscal year 2011 budget shows city services in retreat.

In his first term, Bloomberg initiated ambitious plans to cut homelessness in half by deploying aggressive wrap-around services. Yet the new budget pulls back to the Department of Homeless Services' traditional bailiwick of simply sheltering homeless individuals and families – and calls for doing it with less. DHS' proposed FY 2011 budget is $699 million, compared to $873 million for the current year. The city's contribution drops from $340 million to $329 million.

“Reading this budget, I see the agency focusing on its core mission, which is shelter. They are focusing on making sure the stay is shorter and cutting back on the other programs,” said Kerry Spitzer, housing analyst at the Independent Budget Office.

Cuts affect programs throughout the agency, from diminished reimbursements for privately run shelters, to the elimination of a Times Square drop-in center, to the reorganization of the program for street homeless who don't want to go to shelters.

Reshaping homeless services

Homelessness prevention and aftercare – a centerpiece of Bloomberg's attempts to stem the tide of homeless families entering shelters – takes a major hit, shrinking by more than 50 percent, from $35.9 million to $15.5 million. The city's contribution drops from $5 million to $3.4 million, but the biggest loss is in federal aid: from $28 million down to $1 million. DHS spokeswoman Heather Janik said federal funds will be restored in the mayor's executive budget, which is due in April, once additional stimulus funds are allocated.

The city currently spends huge amounts housing homeless families in motels. Increased emphasis on getting people into permanent housing quickly will mean shorter stays in the hotels, netting savings of $7.6 million. The Safe Haven program, aimed at the chronic street homeless who are reluctant to enter shelters, is losing 40 beds. Those beds will be redirected to regular city shelters, according to the IBO's analysis. Likewise the Stabilization program will lose 50 slots. These reductions amount to $293,000 saved.

DHS is pulling back on the wrap-around care it heralded in the first two Bloomberg administrations. In the past, the city provided employment counselors at shelters. These counselors helped people find jobs or helped them navigate work training programs as they looked for housing. No more. Employment specialists will be cut from shelters, reducing the budget by $372,000. That translates into approximately 17 contracted jobs and means case workers will have added responsibility for helping residents find jobs.