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The latest class of police academy graduates join the New York City Police Department at a time when crime continues to fall. The department says it's down 12 percent so far this year compared to last. But this latest class is the smallest in years -- so small, they graduated in Madison Square Garden's WaMu Theatre rather than in the main arena where the ceremony normally takes place.

"We're just happy to have a class. I'd like to have more police officers on the street," said Police Commissioner Ray Kelly.

Budget cuts limited the class to just 256 new officers, compared to 1,136 in December. All the rookies will now take part in Operation Impact.

Launched in 2003, the program calls for some graduates to start their careers patrolling one of 14 high-crime areas. It's been lauded as a critical piece to the city's crime fighting success in recent years.
But with such a dropoff in graduates, City Councilman Peter Vallone, who chairs the public safety committee says Commissioner Kelly has a tough task ahead.

"He either has to rely less on Operation Impact, end Operation Impact, or our local precincts will get no police officers. In any instance, it will have a huge affect on policing in New York City," said Vallone.

While the number of officers in Operation Impact was roughly 2,400 in January, it's since dropped to 2,100. When asked Thursday, Commissioner Kelly dismissed speculations that the program might be in jeopardy.

"No, we're committed to fielding a significant impact team and we're doing it now. We're going to continue to do that for the foreseeable future. We're doing that because it works," said Kelly.

Maki Haberfeld, who teaches police studies at John Jay College in Manhattans, says fewer police officers doesn't have to mean a jump in crime rates.

"It's how you deploy the 2,000 or however many you have and not necessarily how many," said Haberfeld.

One bright spot from the grim economy shows fewer uniformed service members are retiring right now, which has helped cushion the blow to NYPD precinct staffing.

With another very small class coming into the academy next week, and no new hires planned for 2010 absent federal stimulus money, it's unclear how long the current drop in crime will last.