City budget deficit has tripled, thousands of job cuts sought
Mayor Michael Bloomberg will ask for large budget cuts. AP photo.
In an effort to close a projected budget gap that has more than tripled to $4 billion, the mayor will announce plans Friday to cut some 23,000 city jobs and will ask agencies to trim spending by another 5 percent.
Mayor Michael Bloomberg, who has already sought cuts of 7.5 percent across the board, will also ask city employees to contribute to their health plans and will seek changes in workers pensions when he unveils his Fiscal Year 2010 budget proposal Friday, an administration official said.
The mayor is cutting agency spending as much as he can without compromising our quality of life, said Deputy Mayor Edward Skyler.
The mayors office did not release any information on potential tax increases, but in the November budget plan, when the Fiscal Year 2010 budget gap was forecast to be $1.3 billion, Bloomberg left open the possibilities of income and sales tax increases.The mayors office also predicts that tax revenues will drop by $800 million this year and another $2 billion in 2010.
The budget includes anticipated revenue from the federal stimulus package passed Wednesday by the House.
Having employees pay for part of their health coverage would require renegotiating union contracts, officials say, and any changes to the pension system would need state legislative approval.
The job cuts will come through a combination of layoffs and attrition and could include the police and fire departments, according to officials.
Bloomberg will also ask that the citys capital spending be reduced, though officials would not detail what cuts are being sought.