NYC Freezes Hiring, Orders Spending Cuts

By Melissa Russo
|  Tuesday, Oct 4, 2011  |  Updated 2:13 PM EDT
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NYC Freezes Hiring, Orders Spending Cuts

AP

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City Hall has ordered a citywide hiring freeze and directed agencies to slash their budgets as a multibillion-dollar deficit looms ahead.

Mayor Bloomberg's budget director Mark Page said in a memo Tuesday that hiring is frozen at all agencies, except for jobs that immediately affect public health and safety.

A number of other hiring exceptions will also be made, including for employees already offered jobs and for positions that "help achieve budget balance."

The city last had a hiring freeze last year.

The agencies must cut spending by 2 percent this fiscal year, which ends in June, and 6 percent the next fiscal year.

Agencies must submit their planned cuts by Oct. 18. If those actions are put into effect, they would be the 11th round of cuts since 2007.

The city is seeking $2 billion in savings -- $500 million this fiscal year and $1.5 billion the following year.

The city forecasts its budget gap for next fiscal year at $4.6 billion.

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