By Seth Fiur, USCM Intern
December 9, 2002

New York City Mayor Michael Bloomberg won fast agreement by the City Council to key elements of his plan for addressing a $1.1 billion budget shortfall this fiscal year and a $6.4 billion shortfall predicted for the next fiscal year.

The new budget increases property taxes by 18.5 percent and cuts city spending by more than $840 million. The mayor proposed cutting almost 2,000 police officers and an additional 8,000 workers from other city agencies. The city made an additional $3.5 billion in budget cuts over the past year.

"We have a law that requires us to balance the budget. The tax revenues weren-t there. We can-t borrow and leave this problem for our children the way it was done in the -70s," Bloomberg said.

Bloomberg also called for commuters, those who work in the city but live elsewhere, to pay income taxes to the city. The state repealed the city's commuter tax in 1999. Bloomberg would simultaneously reduce incomes taxes for city residents. He is also seeking increased financial assistance from New York State and the federal government. His budget also relies on $600 million in productivity savings from city unions.

New York's economy was hard hit by the September 11 attack and the recession.