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Mayor Bloomberg made no mention of the grim budget news Wednesday as he was announcing a grant to fund green jobs in the Bronx.

But shortly afterward, his office released a letter to the media, warning that 7,000 city workers could be laid off.

The city's budget director, Mark Page, puts a lot of the blame on Albany and the municipal unions for not providing enough help, even though the mayor was sounding confident about the economy on Tuesday.

"I do think that we are probably near the bottom. I don't know that the economy is going straight up from here but I am getting more optimistic every day," said Bloomberg.

Page is giving all city agencies until Monday to come up with ways to slash a total of $350 million from their budgets, on top of the $3 billion they have already cut.

Most city agencies, like the Administration for Children's Services, are being asked to trim their budgets by four percent. The Department of Education is being asked to cut 1.4 percent of its budget.

Uniformed services, like the police and fire departments, are also facing a half a percent percent reduction.

"Given the efficiencies you have already achieved, this next step would most likely rely on additional headcount reductions, whether through attrition, or, as is more likely, through layoffs," said Page in the letter.

The possible job cuts come on top of the 1,300 layoffs the mayor has already proposed. Another 8,000 jobs could also be cut through attrition, leaving union leaders fuming.

"It makes me angry. You don't toy with individuals livelihoods. It's a union busing technique and a failure to take a look at the waste in the city," said DC37 Executive Director Lillian Roberts.

The unions accuse the mayor of negotiating in public. Bloomberg has been pushing labor leaders to adopt a plan that would make city workers contribute to their healthcare costs. He is also is urging state lawmakers to approve additional taxes and create a new pension tier.

Earlier in the year, Bloomberg threatened 14,000 teacher layoffs, but backed off when federal and state aid came through.

The full extent of the proposed cuts will be known by the end of the month, when Bloomberg delivers his executive budget.