Bloomberg Orders $1.5 Billion in Cuts

Confronting a rapidly worsening fiscal situation, Mayor Michael R. Bloomberg’s budget director ordered agency directors on Tuesday to cut spending by a total of $1.5 billion over two fiscal years, starting with the current fiscal year, which began on July 1. The spending reductions come as the mayor is floating the idea of a 7 percent property tax increase on homeowners, a move that could generate an additional $600 million in revenue each year. The spending reductions would amount to $500 million for the 2009 fiscal year, which ends next June, and $1 billion for the 2010 fiscal year. (The total city budget is about $59 billion.) The cuts would be permanent and expected to recur in future budgets.