Faced with a downturn on Wall Street and a slowing real estate market, New York City Mayor Michael Bloomberg yesterday announced a 20% cut in city-funded capital spending over the next five years as part of his $59.1 billion executive budget for fiscal 2009. The budget also calls for a $2.7 billion reduction in bonding for capital projects during that period.

Despite the gloomy outlook, forecasted tax revenue for fiscal 2008 have been revised upward by $2.2 billion, and the mayor said he wanted to extend a popular 7% property tax cut and $400 property tax rebate to homeowners for another year. The budget also calls for the early payment of $1.99 billion of debt in the current fiscal year.

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