No 7 Train Extension!

Sorry, I assumed that would be the headline instead of “MTA hike fare-y may visit us again”:

A rare back-to-back increase — along with service cuts — could be in store for commuters now that MTA number crunchers are suddenly dealing with a massive hole in next year’s budget.

The Metropolitan Transportation Authority’s projected 2009 budget gap has ballooned — doubling or even tripling original estimates, sources said.

Without new state money, officials may soon raise the spectre of increases, service cuts — or both, sources and experts said.

“They don’t have many options,” one source said.

Subway riders gasped at the suggestion.

“I’m a recent college graduate so I can’t afford the subway as it is,” said Bryan Tran, 21, of Queens. “Any higher and I will have to walk everywhere. It’s ridiculous.”

A Taxing Tautology

Because if you didn’t buy counterfeit goods, then we would have more police to investigate the selling of counterfeit goods:

The city is poised to unveil a campaign to educate tourists and locals alike about the harsh realities of supporting the counterfeit goods industry, which officials say costs the city more than $1 billion in lost sales taxes each year.

Beginning Monday, posters adorned with messages that relay the lesser-known perils of counterfeiting will be plastered on phone booth kiosks in areas of the city infamous for harboring peddlers of fake name-brand goods, such as Chinatown and Times Square, officials announced yesterday.

Unveiled at the Harper’s Bazaar Anticounterfeiting Summit, the posters warn shoppers about the harmful consequences of counterfeiting with messages such as “when you buy counterfeit goods, you support child labor.”

Deputy Mayor Edward Skyler announced the two-month campaign in front of a room of executives from businesses wounded by counterfeiting, an industry experts say generates upward of $650 billion a year. He said the sales tax lost to counterfeit goods would provide the city with funds to hire 10,000 new police officers, firefighters, or teachers.

“This is a problem that is a little like weeds, we need to keep pulling them out,” he said.

Except that . . . if all sales taxes only generate $4.5 billion for the city budget (see, for example, this .pdf from the city’s Independent Budget Office), is it really possible that New York City is losing $1 billion in revenue from counterfeit bags? Doesn’t that basically mean that counterfeit bags account for 25% of all sales in the entire city? (Geez, maybe New York really has become the Tijuana of the U.S.)

This is not to say that buying counterfeit goods is some kind of harmless, victimless crime — I don’t believe it is — but, again, what is the city doing carrying the water for the fashion industry? Don’t the police have better things to do? And citing “lost sales taxes” isn’t enough . . . if that were true then we should crack down on all sorts of things . . .

Time Was, They Referred To Them As “Discretionary Funds”

Thank goodness a more accurate label has emerged:

Five weeks into a federal probe of City Council slush funds, Mayor Bloomberg revealed yesterday that he kept his own secret taxpayer-funded cash stash — and used it to reward favored lawmakers.

The mayor’s $4.5 million slush fund had never before been made public — and some council members said they weren’t even aware of it.

After being doled out to selected lawmakers, the money was passed along to dozens of nonprofit groups supported by legislators — including at least one with a checkered history.

The largest chunk, $1.9 million, went to Councilman Simcha Felder (D-Brooklyn), one of the mayor’s most ardent supporters.

Brooklyn Borough President Marty Markowitz, who has publicly praised Bloomberg as the greatest mayor in city history, received $900,000 to help fund two popular concert series.

Poor Christine Quinn . . .

No One Knows A District’s Needs Better Than The Local Representative

More on those discretionary funds:

City Council members running for citywide office are allocating “member item” money to organizations miles away from their council districts, a New York Sun analysis has found.

The disclosure is reinforcing concerns that the taxpayer funds are being used to buy political support. It is also undercutting one of the most commonly made defenses of member items in the city’s budget, which is that no one knows a district’s needs better than the local representative.

The disclosure that council members are attaching their names to money sent to organizations miles from their constituents’ homes, in boroughs they don’t represent, is the latest angle in the “slush fund” scandal that began with the news that the City Council was budgeting money for made-up, nonexistent organizations as a way of stashing funds away to be allocated at the discretion of individual council members. After federal indictments of council aides, all four metropolitan daily newspapers in the city have come out with editorials calling for abolishing the grants of taxpayer funds at the sole discretion of individual council members.

The out-of-district grants are raising concern from council members and advocacy groups, who say it’s another sign that the member item system needs to be overhauled or ended completely.

“Why would you give your small discretionary funds to groups outside your district unless you are trying to curry favor for future elections or political purposes?” a council member of Queens who is running for mayor, Tony Avella, said. “It’s not like we get enough money as it is.”

See also: “Longtime Practice of City Council Financing Lands on Speaker’s Shoulders” (NYT, May 11, 2008).

Cipriani To Become BYOB?

As in, come for the bellinis, stay for the $18.95 bowl of minestrone*:

A Cipriani restaurant without a liquor license: aphorisms about dogs without bones spring to mind. How could it go on? And would it even be possible?

On Wednesday, the State Liquor Authority charged several affiliated Manhattan restaurants run by Giuseppe Cipriani and his father, Arrigo, with multiple violations of state laws, and threatened the maximum penalty: revocation of their liquor licenses.

Interviews with people in the restaurant business on Friday suggest that it would not be easy or even practical for the Ciprianis to continue to operate as a dry minichain, but that resourcefulness might go a long way. “They should look at it as an opportunity to get creative,” said Karine Bakhoum, a restaurant publicist.

The Ciprianis run the Rainbow Room, Harry Cipriani and several other restaurants and catering halls in Manhattan. The famous Harry’s Bar in Venice, opened in 1931 by Arrigo Cipriani’s father, is the flagship property of the empire. Ernest Hemingway was its best-known patron, and the bellini — Champagne with peach purée, juice or schnapps — its primary contribution to civilization.

Ms. Bakhoum said that in 2006, she represented Novo, a restaurant that had just opened on Hudson Street before being granted its liquor license. “It had a wonderful Latino menu, so we did a campaign with a water bar and fresh juices,” she said. “You could design your own water, with fruits and extracts. We made it a differentiation point rather than a detraction point. We found that many people weren’t interested in drinking alcohol because of the caloric content.”

Still, restaurateurs say that alcohol sales can account for more than half their revenue — with much higher profit margins than from food sales. The Cipriani chain’s logo depicts a bartender mixing drinks. Can you imagine a bellini built on fortified water?

Another point of inspiration might be called the Club Kalua strategy. Club Kalua is the nightspot in Queens where Sean Bell was shot to death by police officers in November 2006. The subsequent loss of the club’s liquor license became an opportunity to unburden the dancers of bikini tops, and it became a topless club (serving virgin passion-fruit mojitos and Red Bull cocktails).

“You lose a lot of business,” said Roger Duran, Club Kalua’s owner. Still, he said, “It’s working very well for me at the moment.” The patrons who stayed? “They go for the girls, basically.”

*Or the much vaunted $36.95 lasagna:

Over the years the Cipriani restaurant family and its employees have faced charges of sexual harassment, insurance fraud and tax evasion, the last leading to guilty pleas by two family members in July.

But the crime that comes to mind first when I think of the Ciprianis is highway robbery. Based on my recent experience, that’s what happens almost any time Harry Cipriani on Fifth Avenue serves lunch or dinner.