City May Suffer More Job Cuts

Mayor Michael Bloomberg

Mayor Michael Bloomberg

The New York Times reported today that even though Mayor Michael Bloomberg says he is trying to avoid laying off more city workers, his aides have actually encouraged the job cuts through a budget maneuver. Obviously, this is all done quietly and information is not released to the public.

The plan is to cut spending by $1.7 billion over the next 18 months. The mayor’s office has added the cost of fringe benefits, such as employee health care and social security contributions, to the agencies’ individual budgets. Fringe benefits cannot be reduced until a job is terminated completely.

What seems like a small change in accounting, actually makes job cuts an efficient way of cutting spending and meeting new financial targets, City Hall officials told the New York Times. Also, the city’s work force, which currently has 305,000 employees, may face its first significant reduction in years.

Most of city spending comes from paying wages, salaries, health care, and pensions, which are all expenses that have only risen in cost in the last few years.

The New York Times also received a full letter that was given from the mayor’s office to the heads of agencies. The letter describes how the city’s budget director, Mark Page, emphasizes job cuts as a way to reach budget goals.

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