Mayor Bloomberg is expected to take a break from scrapping with the teacher’s union today to unveil his preliminary plan for next year’s city budget. The city currently faces a $2 billion budget shortfall, thanks to unexpected costs incurred from October’s freak blizzard and Hurricane Irene, and increasing pension needs.
So far, the city has made up the difference by selling an additional 2,000 taxi medallions, and cashing out $1 billion from a rainy-day health care trust fund that will likely be bankrupt by the time Bloomberg leaves office.
Despite this revenue, some city agencies are bracing for possible cuts, especially since Bloomberg has called for layoffs to make up budget gaps in the past. According to DNAinfo, the HIV/AIDS Services Administration, the fire department, and the Department for Homeless Services are all at risk to land on the chopping block again.
There is some good news: Bloomberg is not expected to announce any increases in city taxes. However, that could still change — the mayor and the city council have until the end of June to decide on a final plan.