Bloomberg Warns of Layoffs in New Budget

New York Mayor Michael R. Bloomberg presented a revised $42-billion budget and warned that, without union concessions, $65 million in layoffs would be necessary.

The Republican mayor, who pledged during his campaign not to lay off city workers, said the budget shortfall, projected at $5 billion for next year, could grow to $6 billion by 2006.

He also raised the possibility of a state takeover of city finances if the City Council approves a tax increase.

Critics say Bloomberg has reason to exaggerate the city’s troubles, as he wants unionized workers to accept $500 million in cost savings and wants Albany and Washington to take steps that would let the city save $650 million.