Mayor Warns Of City's Ballooning Deficit
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Mayor Michael Bloomberg warned Tuesday that the city's fiscal health is even worse than originally thought.
The mayor's office originally projected a $2.3 billion budget deficit in 2010, but now Bloomberg said the after the losses on Wall Street, the deficit has ballooned another $1 billion.
The city is facing a $500 million deficit next year.
The mayor has instructed all city agencies to cut spending and warns raising taxes is a possibility.
"Taxes are clearly one of the things on the table. Going to be for us, going to be for the state, going to be for the federal government, I think,” said Bloomberg. “And tough times, unfortunately, it's the worst time in the world to raise taxes, but you may not have any other choices."
On Monday, Governor David Paterson warned the state's budget deficit could reach $10 billion.