New York mayor sounds bell of caution as he presents new budget

New York Mayor Michael Bloomberg warned Thursday that darker days lie ahead for the city though its economy is currently on solid ground,

Presenting a 52.7-billion-dollar spending plan for the next fiscal year, the mayor said signs of a slowdown in the residential real estate market, higher gasoline prices and lower Wall Street profits could worsen the exiting problems for the city.

But he noted the city had been put on stronger financial footing as the result of "tough but responsible" choices since he took office, including reduced spending, combined with higher tax revenues.

But even as he announced a 3.4-billion-dollar surplus from this year that will be rolled over in the fiscal 2007 budget, the mayor and the city's budget director warned of a grim picture in fiscal 2008, 2009 and 2010, when multi-billion-dollar deficits are likely.

Bloomberg said the strong growth already seems to be slowing.

The rising costs of employee health benefits, pensions and other costs related to employee contracts constituted the costliest spending items in the city's overall budget, said the mayor.

In a rare move, nevertheless, the mayor agreed to spend 12 million dollars to buy 18,000 top-quality bulletproof vests for police officers.

Bloomberg said the vests, which will be bought over the next two years, will protect against higher caliber bullets and will improve coverage of the neck and side of the torso.

Source: Xinhua