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While testifying before the City Council Monday, Budget Director Mark Page says the uncertainty of international events coupled with a likely $600 million funding shortfall in Albany makes the city's financial outlook seem even more grim.

"We're in a period of notable uncertainty in terms of, we've not seen exactly these things before, certainly not in the events comparable to the Japanese events and oil problems are not totally new to us, but it's very difficult to know where that's going to come out," Page said.

City Council officials are using the annual hearings to discuss several hot button issues, including proposed teacher layoffs, senior center closures and the plan to shutter some fire companies.

City Councilman Domenic Recchia, who chairs the body's finance committee, leapt to the defense of the city's district attorneys Monday, saying he will block any budget that undercuts them.

"What we're saying is look at the district attorneys. This City Council is not gonna pass a budget where the district attorneys are not treated fairly," Recchia said. "We fight this every year. But this year we're putting our foot down."

Meanwhile, City Council Speaker Christine Quinn and City Comptroller John Liu are targeting outside contractors as a way to save the city money.

"Spending on outside contracts is an area that we simply must scrutinize more closely," Quinn said.

"It is possible to save hundreds of millions if not billions of dollars in the coming months and years," Liu said.

Several Council members have suggested averting some of the cuts by extending the so-called Millionaires' Tax, which would require Albany approval.

Governor Andrew Cuomo has said he is opposed to the move.