Gothamist
A non-profit newsroom, powered by WNYC.
Gothamist
Listen Live
News
Dire Times: New NYC Budget Cuts 23,000 Jobs, Hikes Sales Tax
By
Jen Chung
Published Jan 30, 2009
Modified Jan 30, 2009
Share
FacebookTwitterRedditEmail
Never miss a story
Email address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .
By
Jen Chung
Published Jan 30, 2009
Modified Jan 30, 2009
Share
FacebookTwitterRedditEmail
We rely on your support to make local news available to all
Make your contribution now and help Gothamist thrive in 2026. Donate today
Gothamist is funded by sponsors and member donations
Mayor Bloomberg will be giving his budget address later today and it won't be fun: Because of the economic climate, he's proposing to increase sales tax to 8.75% (and putting tax back on clothing under $110; the sales tax is currently 8.375%) in order to raise $900 million. Bloomberg is also proposing to cut 23,000 city jobs, cuts to capital projects and requiring employees to pay for some health care, according to the Daily News. These measures would fill the $4 billion gap and come on top of previously announced cuts.
The Post points out some caveats: The State Legislature and City Council must approve a sales tax hike, plus some of these severe cuts could be avoided "if labor unions don't agree to givebacks and Albany doesn't cough up enough aid." City Councilman David Weprin, who chairs the finance committee, told the NY Times, "It’s certainly not a good-news budget, but it’s seems to be a responsible approach to closing the budget gap, and it’s a reality that we on the Council have to deal with," but also "warned that much could change between now and the July 1 start of the fiscal year and that the budget deal must be agreed on by the mayor, the Council and the Legislature."
Of course, the State is facing its own budget problems.
Tagged
budget
budget deficit
mayor bloomberg
sales tax
Jen Chung
Jen Chung is a former WNYC and Gothamist editor.
Read more
Gothamist is funded by sponsors and member donations
Gothamist is funded by sponsors and member donations
MORE news
Jersey City mayor shakes up staff amid $255M budget gap
The city’s finance director, deputy mayor for housing, and several other senior officials resigned.
By
Michael Sol Warren
Published Oct 8, 2026 at 2:40 p.m. ET
Bronx residents will be exempt from new Medicaid work rule, state officials say
High unemployment entitles borough residents to a waiver from the new requirement, officials said.
By
Caroline Lewis
News
Bronx residents will be exempt from new Medicaid work rule, state officials say
High unemployment entitles borough residents to a waiver from the new requirement, officials said.
By
Caroline Lewis
MTA chair accuses Andy Byford, who's leading Penn Station rebuild, of going 'full MAGA'
By
Stephen Nessen
and
Carol Chen
NYC parents want affordable childcare. But they don't all want the same thing.
By
Karen Yi
NY gov race pits old immigration playbook against new outrage over data centers
By
Jimmy Vielkind
Never miss a story
Catch up on the most important headlines with a roundup of essential NYC stories, delivered to your inbox daily.
Sign upEmail address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .