The placement of New York City, N.Y. on CreditWatch with success in controlling expenditure growth, reduced out-year gaps, sustained property-tax growth forecast during the plan period, and limited use of nonrecurring revenues. These factors are positive steps in bringing the city's natural revenue and expenditures into balance after a long history of budgetary stress. An upgrade to the 'A' category by this summer depends on passage of a fiscal 1999 adopted budget that closely resembles the outlines of the current proposal by keeping expenditures and headcount under control, limiting growth in the already substantial capital budget, and maintaining conservative budget assumptions going forward. The rating on the GO debt reflects the city's: * Broad stable economic base that, while performing
