Dire Times: New NYC Budget Cuts 23,000 Jobs, Hikes Sales Tax
Photograph of Mayor Bloomberg rubbing his eye during Senate testimony last week by Mike Groll/AP
Mayor Bloomberg will be giving his budget address later today and it won't be fun: Because of the economic climate, he's proposing to increase sales tax to 8.75% (and putting tax back on clothing under $110; the sales tax is currently 8.375%) in order to raise $900 million. Bloomberg is also proposing to cut 23,000 city jobs, cuts to capital projects and requiring employees to pay for some health care, according to the Daily News. These measures would fill the $4 billion gap and come on top of previously announced cuts.
The Post points out some caveats: The State Legislature and City Council must approve a sales tax hike, plus some of these severe cuts could be avoided "if labor unions don't agree to givebacks and Albany doesn't cough up enough aid." City Councilman David Weprin, who chairs the finance committee, told the NY Times, "It’s certainly not a good-news budget, but it’s seems to be a responsible approach to closing the budget gap, and it’s a reality that we on the Council have to deal with," but also "warned that much could change between now and the July 1 start of the fiscal year and that the budget deal must be agreed on by the mayor, the Council and the Legislature."
Of course, the State is facing its own budget problems.
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