New York City Mayor Michael Bloomberg is seeking to cut fiscal 2010 expenditures by $550 million and reduce next year’s spending by $1.2 billion.
City budget director Mark Page sent a letter to agency heads that included spending reduction guidelines and asked departments to submit proposals by Dec. 3. New York City’s fiscal year began July 1.
The spending reductions are not tied to revenue collection performance, but the administration anticipates that once economic growth resumes in fiscal 2011, the city will be starting from “a diminished base.”
“Although our tax collections year-to-date through October are marginally above our June forecast, the local economic outlook remains uncertain,” according to the letter. “Our economic forecast expects the city will continue to lose jobs through this fiscal year before the economy begins to slowly grow again in the later part of calendar year 2010.”
The administration is seeking to cut Department of Education and uniformed forces spending by 1.5% and 2%, respectively, this fiscal year, with all other agencies expected to reduce expenditures by 4%, the letter said. Officials anticipate the citywide reductions will cut $550 million from the fiscal 2010 budget.
The fiscal 2011 reductions are even greater, with the Department of Education and uniformed forces expected to cut their spending by 4% and all other agencies directed to slash spending by 8%. Those decreases are expected to generate $1.2 billion of savings in the fiscal 2011 budget.
