The Great Recession Americans had been muddling through for almost three years was officially called off by the National Bureau of Economic Research in September. However, New York City Mayor Michael Bloomberg paints a picture that says otherwise.
Recently, Bloomberg ordered a city-wide hiring freeze, along with $2 billion in cuts to city agencies, as his administration prepares to deal with a multi-billion dollar budget deficit in 2011. NYC has been taking almost $500 million in gap-closing actions in 2010 and is expected to take $1.1 billion in gap-closing actions in 2011.
Image Source: ABC News
What do gap-closing actions really mean? Drastic layoffs and massive cuts to city services. Bloomberg wants city agencies to submit plans by October 8 to cut a total of $800 million from the remainder of their 2010 budgets.
As an immidiate result, MTA, the nation’s largest transit authority, approved fare hikes in an attempt to increase revenue to offset budget cuts.
This skeleton budget is made worse by New York Governor David Patterson and his team in Albany depriving the city of $1.3 billion in 2011.
Effects of budget cuts are seen everywhere, from the Department of Education to the Department of Parks and Recreation where budget cuts were said to have an effect on cleaning the aftermath of severe storms that the city recently witnessed.
New York is named a fiscally challenged state in a new collaborative study done by the Pew Center for the States and the Public Policy Insitute of California. The study reveals public attitudes in five fiscally stressed states and includes examples of budget cuts the public would take if they had a choice.
New Yorkers feel stripped of their needs.
If you had the power to make budget cuts, what would you cut?
Should schools be allowed to escape budget cuts?
What is an alternative solution to budget cuts?