New York Mayor Michael Bloomberg presented the revised budget of the city of around 66 billion dollars, which does not provide for increases in taxes, but relies on cuts in about 7000 employees, Reuters reported.
Although the city already spends most of its reserves, even that will not be enough to avoid redundancy of some employees, including teachers, "said Bloomberg, who is not tied to any party, during a news conference.
The school system, which is the largest in the country with over 1 million students would be cut about 6000 teachers. These are the first layoffs of teachers for decades.
Politicians in New York have long complained that the city sent to federal and state government billions more tax revenue than it receives in aid. The problem is particularly acute today, Bloomberg said, because Washington and Albany completed their deficits by cutting billions in funds to cities and counties.