Mayor Michael Bloomberg released his plan Friday for the 2010 executive budget, which includes new layoffs and a sales tax hike, for a total of $3.4 billion in gap-closing savings.

Facing a shortfall of more than $1.4 billion, the budget includes increased taxes and layoffs, but teachers, Administration of Children's Services workers, firefighters, and police police officers are being spared.

The mayor announced 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.

"The budget isn't just about numbers. It's about making choices that keep our social safety net strong for those in need," the mayor said. "It's about keeping our streets clean and safe for your kids and mine. It's about continuing to improve our schools. It's about creating jobs and keeping jobs here. It's about keeping New York, New York."

According to the mayor, 328,000 jobs have already been lost as a result of the recession. New York City, the mayor says, has also experienced a decline in tourism and a weakened real estate market.

The city's construction budget is set to get a slight reprieve after Bloomberg proposed cutting most of it by 30 percent.

Under the mayor's plan, New Yorkers would also pay a sales tax rate of 8.875 percent, up from 8.375 percent. He also wants to end a sales tax exemption on clothing purchases. The two moves would generate a billion dollars in revenue.

To make the changes, Albany lawmakers would have to green light the plan.

City Council Speaker Christine Quinn came out Friday against the proposed tax.

"I continue to believe that increasing sales tax is a regressive way to generate revenue because it places an unfair burden on those who have the least," Quinn said in a statement. "The idea of eliminating the tax exemption on clothing only compounds that burden."

Bloomberg needs the support of the City Council to pass the budget, but some join Quinn in her opposition.

"A lot of our membership is concerned about the regressive nature of the sales tax proposal," said Queens Councilman David Weprin.

City Comptroller Bill Thompson, who is running against the mayor this fall, wants to instead raise incomes taxes on the those making a $500,000 or more a year.

Bloomberg opposes that idea and seemed unconcerned Friday about what his budget will affect his reelection.

"It never occurred to me," said the mayor. "I do it every year, this is the seventh or eighth year, depending on how you're counting."

During his address, Bloomberg also made 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.

After hoping for $750 million in savings from city workers, officials say Bloomberg has decided to budget for just about half of that.

The city's fiscal year 2010 begins July 1.