The outlook revision on New York City's outstanding GO debt rating to stable from negative is based on the funding package recently negotiated with New York State that provides recurring revenue, state aid, and other budget relief measures to balance fiscal 2004 and alleviate pressure on out-year gaps. While the package differs from the city's original request, the funding level is consistent with the executive budget proposal. The major revenue items in the plan, which include a one-eighth percent sales tax increase and a personal income tax increase, are temporary taxes that will be an impediment to long-term structural balance. The option to extend the sources is available if the economic climate and budget situation warrant. Since November 2002, the
