All New York Will Feel Wall Street's Pain

Mayor rolls out plans to hike taxes, cut services and ax 20,000 city jobs
By Rob Quinn,  Newser Staff
Posted Dec 30, 2008 6:00 PM CST
New York Mayor Michael Bloomberg presents his city budget proposal for fiscal years 2009-2013, in New York's City Hall Friday Jan. 30, 2009.    (AP Photo/Richard Drew, Pool)
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(Newser) – All American cities are facing budget shortfalls because of the recession, but Wall Street's meltdown has decimated New York City's tax base, Michael Bloomberg said yesterday in announcing plans to slash 20,000 city jobs, cut services and raise taxes.  The aim is to reduce an expected $4 billion deficit, reports the New York Post.

"We had prepared for a downturn," Bloomberg said, "but I think it's safe to say nobody prepared for the severity of the downturn that we have been experiencing." The mayor predicted that New York would lose around 300,000 jobs through 2010—47,000 of them on Wall Street alone—and that the picture would get even bleaker if the state and federal government failed to help.