NYC Mayor's Office Says More Cuts Coming

NEW YORK (AP) -- The mayor's office on Friday told most city agencies to target 3 percent of their budgets - $300 million in total - for potential cuts.

In a memo sent Friday, Mayor Michael Bloomberg's budget director, Mark Page, said the city continues to face hard times despite an improving economy.

Page said the cuts may prove necessary because the city faces a projected $2 billion deficit next fiscal year.

The city Department of Education, avoiding the brunt of the costs, was asked to set aside less than 1 percent of its budget instead of the 3 percent that other agencies, including police and fire, may have to trim.

The cuts could go into effect as soon as November.

To erase a projected $6.4 billion deficit last fiscal year, Bloomberg cut city spending by about $3 billion, ordered some 5,500 layoffs and raised property taxes 18.5 percent.