Bloomberg Slashes Budget
November 17, 2009 1:43 PM
New Work’s Mayor Bloomberg has ordered a 4 % cut in budget in 2010 and a huge 8% in 2011 to save $1.75 billion though July 1, 2010 to June end, 2011. These cuts are aimed to plug a $5 billion gap for the 2011 budget.
City agency heads have till Dec 3 to produce the list of cuts before the City Council votes on it in January. The 2011 budget is projected to be more than $66 billion, and could also be accompanied by cuts in its 310,000 workforce. This is imperative to achieve the $5 billion savings. Bloomberg ordered Education to cut 1.5 percent this year and 4 percent in 2011. Again, the uniformed agencies of Police, Fire, Sanitation and Correction would need to cut budgets by 2 and 4 percent this year and the next respectively.
Bloomberg expects $200 million savings in creating a new pension tier for municipal employees. The mayor also wants employees to contribute 10 percent to their health-insurance plans, which would save $360 million in fiscal 2011.
