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On The Absurdity Of Rebates

Smoke and mirrors, just without bothering with the smoke and mirror part:

Facing unexpected resistance in the City Council over his midyear budget changes, Mayor Bloomberg warned yesterday that he’ll order more drastic agency cuts in two weeks if a deal isn’t reached quickly.

“If we decide to — or have to — send out the [$400 property-tax] rebate or the City Council doesn’t act, the $1.4 billion cut is not adequate, and we will send out another letter next week,” the mayor said.

That letter would be directed at agency heads, who were told on Wednesday to come up with another $1.4 billion in savings starting July 1.

Sources said the chief sticking point in the negotiations is the 7 percent property tax increase that the mayor has asked the council to approve as of Jan. 1 to generate an extra $600 million.

The sources said Bloomberg is willing to accede to the council’s demand that he send out the $400 property-tax rebate to small-home owners this year — but only after it approves the property-tax hike.

Posted: December 12th, 2008 | Filed under: Everyone Is To Blame Here, Follow The Money, I Don't Get It!

In A, Uh, Stroke, 18 Years Of New York Magazine References To Yobbery Rendered Unintelligible To Future Generations

Scores is set to shut down:

Once the highest-grossing strip club chain in the world and a hangout for Madonna, Howard Stern, Russell Crowe, Jason Giambi and countless others, Scores will shut down before the new year, company officials said.

“It’s over; it is what it is,” said Scores lawyer George Weinbaum. Co-owner Elliot Osher confirmed the closing.

A weak economy, the loss of the W. 27th St. Scores’ liquor license and the possibility the E. 60th St. joint would lose its booze ticket all helped do in the flesh factory.

. . .

Founded in 1990 with one club at 333 E. 60th St., Scores grew into a national chain of seven clubs, including Scores West on 27th St., which took in as much as $400,000 a night, according to sources.

In its heyday, the East Side club was a mecca for sports stars like Giambi and Mark Messier, actors like Crowe and of course Stern, who talked up the club on his radio show. The Knicks held parties there, and eventually Scores became a publicly traded company.

The clubs were honey traps for out-of-town businessmen, who blew expense accounts on lap dances and champagne magnums, only to have their hangovers worsened by mind-boggling tabs.

. . .

On Wednesday night, at the E. 60th St. location, a lone customer downed a half-price beer as club employees kept promising dancers would take the stage “any minute.”

Posted: December 12th, 2008 | Filed under: Follow The Money, Historical

Just Out Of Curiosity . . .

. . . why does it cost $400 million a year to administer tolls? That seems high or, at the very least, slightly inefficient:

A state commission led by Richard Ravitch, a former chairman of the Metropolitan Transportation Authority, presented a wide-ranging rescue plan on Thursday for the region’s subways, buses and commuter railroads that includes a new “mobility tax” on corporate payrolls in the region; tolls on the free East River and Harlem River bridges; a much smaller fare and toll increase than the cash-strapped authority has threatened; few service reductions; and improvements in bus service.

The plan — presented in a 19-page report — would permit automatic, inflation-adjusted fare and toll increases every two years without public hearings, ending what Mr. Ravitch called a cyclical “political circus.” The plan would allow for a state takeover of the city-owned Harlem River and East River bridges, which have historically been free to drivers. The new tolls would be collected electronically, without toll booths.

The regional mobility tax — 33 cents on every $100 of payroll — would provide $1.5 billion a year, and the tolls would produce $600 million in net revenue a year ($1 billion a year in gross revenue minus expenses), Mr. Ravitch said. The new revenue streams would help finance borrowing for a $30 billion-to-$35 billion M.T.A. capital plan for 2010 to 2014 that would help stimulate the economy while maintaining vital infrastructure.

Posted: December 4th, 2008 | Filed under: Architecture & Infrastructure, Follow The Money

Can Boot-Blacks And Scrap Peddlers Be Far Behind?

Dire economic times are linked with a rise in the cobbling arts:

As New Yorkers cut back on spending and cobble together their cash, the city’s shoe repair stores are getting an unexpected boost.

“It’s getting better and better,” said Cesar Andrade, who owns Andrade Shoe Repair in the West Village.

“We’ve been getting more customers for the past two or three months, and they’re coming in with more expensive shoes to be repaired.”

As people look for ways to tighten their belts, splurging on a new $150 pair of shoes or boots is no longer an option, says John McLoughlin, president of the Shoe Service Institute of America.

The roughly 7,000 cobblers nationwide are all reporting soaring trade and many of those doing so are here in New York City.

“It’s tough to go and buy a new pair of shoes. I’ll leave these and pick them up tomorrow and they will look like new,” said Kathleen Owen, 30, a financial adviser who always brings her worn out heels to Gary’s Top Shoe Repair in Rockefeller Center.

“I’m a New York City woman, and I hit the pavement a lot. I would not be able to afford nice shoes every time the soles get holes.”

Igor Nabatov, her regular cobbler, has been giving shoes a new lease of life for 17 years and says he has seen a 15% increase in business this year.

Posted: November 26th, 2008 | Filed under: Follow The Money

Bold Cost-Cutting Measures Continue!

As in bold, public relations-scamming cost-cutting measures amounting to precisely 0.52 percent of a $1.3 billion deficit:

The MTA’s doomsday budget may take a huge toll not only on drivers’ wallets but also on their time.

The agency is weighing a plan to close some cash lanes at the nine bridges and tunnels it operates.

And as if that won’t create enough congestion, it may also begin stopping drivers without enough money on their E-ZPasses instead of letting them through and billing them later – saving $3.4 million in mailings.

The possible changes are part of the agency’s plan to close a $1.3 billion budget gap unless city and state lawmakers step in with a crucial bailout package.

MTA officials expect to save $3.4 million by closing cash booths at times when fewer cars use the crossings. Still, it would likely slow traffic to a crawl as cars pile up behind the remaining tollbooths.

Posted: November 25th, 2008 | Filed under: Follow The Money, Grandstanding, Things That Make You Go "Oy"
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