New York City needs to cut its government workforce and operating expenses and rescind property tax breaks to deal with growing deficits caused by falling revenue, Mayor Michael Bloomberg said yesterday.

As Wall Street reels from the credit crunch and write-offs Bloomberg said were approaching $500 billion, the city faces a $4 billion deficit through fiscal 2010. Even with gap-closing measures, the city still faces a $1.3 billion gap in the next fiscal year. As of October, non-property tax collections were $108 million below projections forecast in June.

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