Updated 05/01/2009 08:44 AM
Bloomberg To Outline New Layoffs, Sales Tax Hike
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Mayor Bloomberg is expected to outline several cost-cutting measures, including new layoffs and a sales tax hike, during his executive budget address later today. NY1's Grace Rauh filed the following report.The city has taken a beating from the economic downturn. When Mayor Michael Bloomberg unveils his budget plans to New Yorkers on Friday, he's going to be the bearer of more bad news.
NY1 will have live coverage of the mayor's budget address, starting at noon.
Administration officials tell NY1 the mayor will announce that city agencies will have to cut their budgets by 16 percent next year for a savings of $3.4 billion.
The cuts mean an anticipated 13,500 employee positions will be eliminated – 3,750 through layoffs, the rest through attrition.
Firefighters, police officers and teachers will be spared from the layoffs.
"We have to act responsibly. We have to pass a budget, and more importantly, at the end of the year, we have to be in balance," said Bloomberg.
Under the mayor's plan, New Yorkers would also pay a sales tax rate of at least 8.625 percent, possibly even higher -- up from 8.375 percent. He also wants to end a sales tax exemption on clothing purchases.
To make the changes, Albany lawmakers would have to green light the plan.
"Even if we have to pass a budget of our own, we should not allow him to balance the budget on the backs of poor, working class people in New York," said City Councilman Charles Barron.
"When you start to see the economics improve in the city, the last thing you want to do is stamp it down with additional taxes," said City Councilman Vincent Ignizio.
The city's construction budget is set to get a slight reprieve after Bloomberg proposed cutting most of it by 30 percent.
He's also likely to make a pitch to city workers, asking them to back cost-saving changes to the pension system and foot the bill for some of their health care costs.
In a statement, Deputy Mayor Ed Skyler said, "In order to balance the budget, we still need assistance from our municipal labor unions. city agencies and the city's taxpayers are being asked to do their part and we need labor to do their part."
After hoping for $750 million in savings from city workers, officials say Mayor Bloomberg has decided to budget for just about half of that.
Bloomberg needs the support of the City Council to pass the budget.
The city's fiscal year 2010 begins July 1st.