City Agencies Told To Cut Spending By 20 Percent
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Burdened by rising costs and a growing budget gap, Mayor Michael Bloomberg is telling city agencies to make major cuts to their long-term spending plans.
City Budget Director Mark Page is ordering agency heads to slash their spending plans by 20 percent each year for the next decade.
The cuts will affect agency’s capital budgets, which are earmarked for construction projects and other long-term upgrades.
Page says rising pension and healthcare costs are forcing the city to find new ways to save money.
Officials have forecast a budget deficit of more than $2 billion for the city’s upcoming fiscal year which begins next July.
Department heads have until January 5th to submit their new budget plans.