NEW YORK—The planned sale of 2,000 new yellow taxi medallions helped plug the budget gap for fiscal year 2013.
The city anticipates $635 million in revenue from medallion sales in 2013, down from the $1 billion projected in the May executive budget.
Mayor Michael Bloomberg attributed the reduced figure to legal challenges, which had delayed sales. He said that although the city anticipates less revenue from medallion sales in 2013, $1.46 billion is expected by the end of 2015.
The city’s plan, which also includes selling licenses for 18,000 outer-borough taxis, was temporarily blocked by a state Supreme Court judge. The dispute revolves around the fact that the medallions sales were approved by the state, not the city. A final decision from the judge is expected in the coming weeks.
Now that the $1 billion expected revenue from the medallion sale has been reduced to $635 million for 2013 “there’s a little less money at risk,” said George Sweeting, deputy director of the Independent Budget Office. “If they did not get that money next year, they would have to find other ways to balance the budget.”
The Taxi and Limousine Commission said, “We remain confident that the version of the plan that was supported by many in the livery industry and public, and overwhelmingly approved by the Legislature, will ultimately provide the taxi service that borough residents want and deserve.”
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