New York City Mayor Michael Bloomberg imposed a hiring freeze and directed city agencies to slash spending by $800 million in fiscal 2011 and $1.2 billion in fiscal 2012. Agencies have until Oct. 8 to submit savings plans and generally cannot hire new employees until those plans have been approved by the Office of Management and Budget.
“Although the city’s unemployment rate has declined seven months in a row, and job growth in the city has outpaced growth nationally and statewide, we are not immune from the impacts of the recession,” Bloomberg wrote in a letter to agency heads. “Our economically sensitive tax revenues in FY2011 remain more than $4 billion below the peak levels reached before the recession began. Meanwhile, the costs of the services the city provides — particularly pension costs — continue to rise.”