Bloomberg, New York City Council Agree on $63 Billion Budget

New York Mayor Michael Bloomberg and the City Council agreed on a $63 billion budget with reduced spending for schools, libraries, cultural institutions and social programs to make up for declining revenue and the loss of $1.3 billion in state aid.

The spending plan for the most-populous U.S. city contained no new taxes, kept the police department’s uniformed headcount at 35,000, and saved 20 fire companies targeted for closing. The city may need to cut more from the budget should the U.S. Congress reject a Medicaid funding bill the city relied upon for $600 million over the next two years, Bloomberg said.