Is this a good link?
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Found a .gov link to my website www.kars4kids.org. The url it links to is
http://www.nyc.gov/cgi-bin/exit.pl?url=http://www.kars4kids.org/
which does eventually redirect to kars4kids. Will search engines see this as a link?
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I don't believe a page level redirect is going to give you any juice, and more so, is this 'link' on a page that is indexed and has links pointing to it?
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I just tried [site:nyc.gov kars4kids] in Google and nothing showed, so that's not an encouraging sign for you. And now I've had to turn on some music to get your commercial out of my mind.

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Don't think so. When I search for inurl:www.nyc.gov/cgi-bin/exit.pl in Google, there aren't any cached results with any content containing a link pointing to your site.
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I should clarify that the link is on this page
http://www.nyc.gov/html/nycwasteless/html/resources/prod_serv_auto_cars.shtml anchor text cars for kids, which is indexed although it doesn't seem to be cached. #odd
My main question was if this kind of redirect counts as a link.
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I'd go into www.opensiteexplorer.org and see if you can find this backlink. If you can't, then it probably doesn't count.
Check it out, it's cached with your link - search this...
inurl:www.nyc.gov "cars for kids"