NYC budget cuts: Most city agencies must soon cut spending by 4%

Published

3 years ago

April 6, 2023

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NYC Mayor Adams asks city agencies to cut budgets by 4%

New York City Mayor Eric Adams has asked almost all of the citys more than 60 agencies, including the police department, to cut their budgets by 4%. This move has perplexed city leaders, with some calling it "puzzling" and "hasty and arbitrary."

NEW YORK CITY – In the midst of uncertainty surrounding the now-delayed state budget from Albany, New York City Mayor Eric Adams is asking nearly all the city’s more than 60 agencies—including the police department– to cut their budgets by 4%.

Only two city agencies are not being asked for a 4% cut: The City University of New York and the Department of Education is being asked to slash their budgets by 3%.

"We reached a point that we're at a cliff," Adams said at a press conference Wednesday.

The move has perplexed city leaders. In interviews with FOX 5 NY, City Council Finance Committee Chair Justin Branna called it "puzzling," and City Comptroller Brad Lander called it "hasty and arbitrary."

The letter sent out by budget director Jacques Jiha.

Brannan and Lander argue the city’s financial position hasn’t changed in months, which is why, they say, they are especially confused by the city’s request that agencies make their respective cut proposals by next Friday, April 14th— giving them just ten days from the day of notification.

"You need to go in there with a surgeon's precision," argued Brannan. "Giving someone ten days to make these cuts– it means they're going to have to go in there with a scythe. And that's not what we need right now. That’s not what New Yorkers need right now."

Brannan says a 4% cut could "straight-up paralyze" critical agencies, adding they would "obviously have a real-world impact."

"We could see cyberattacks," Lander added. "We could see structural problems with buildings." NYC Migrant day laborers struggle to find American Dream

Dozens of migrant day laborers gather on the streets of Woodside, Queens every day, hoping to find work for the day. FOX 5 NY spoke with some migrants about their struggles of finding stable work and making ends meet, despite risking everything to come to the United States.

Lander says agencies were already strapped, many already dealing with forced vacancies in staff. More cuts, he says, could impact everything from libraries to building inspections, even cyber security protection.

"When one of those big risks turns into a catastrophe, we'll really wish that we hadn't cut those positions," Lander said.

RELATED: NYC mayor asks state lawmakers for more money

In the letter that went out to agencies Tuesday, city budget director Jacques Jiha asked that agencies "avoid meaningfully impacting services."

But, at a press conference Wednesday, Mayor Adams conceded that "every service deliverable that we have will be impacted." NYC asks state for more money

Mayor Eric Adams asked state lawmakers for more money during a hearing on Wednesday.

He added, "And we have to be honest about this."

Adams blames the influx of asylum seekers in the city as the primary reason for the cuts.

Business

Getting a job becomes harder with fewer vacancies – official ONS figures

Published

46 mins ago

October 14, 2025

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Getting a job becomes harder with fewer vacancies - official ONS figures

The jobs market continued to slow, with 9,000 fewer vacancies in the three months to September, official figures show.

It is the 39th consecutive period where vacancy numbers have dropped.

Having fewer job openings can mean it is harder to find work.

Money blog: Big retirement age surprise awaits 14% of Britons

There was also a surprise increase in the unemployment rate, up to 4.8% from 4.7% a month earlier, primarily driven by younger people, as a record number of people over 65 are in work, the Office for National Statistics (ONS) said.

Economists polled by Reuters anticipated no change in the jobless rate, but instead the figure is now the highest since the three months to May 2021, when the country was in lockdown due to the COVID-19 pandemic.

The ONS, however, has advised caution when interpreting changes in the monthly unemployment rate and job vacancy numbers due to concerns over the reliability of the figures.

The labour market has struggled in recent months as the cost of employing staff became more expensive due to higher employers’ national insurance contributions and an increased minimum wage.

Wage rises slowing

Further signs of a slowing labour market were seen in the fall of annual private sector wage growth to the lowest rate in nearly four years – 4.4%.

Public sector pay growth increased more quickly, at 6%, as some public sector pay rises were awarded earlier than they were last year.

Average weekly earnings rose more than expected by economists at 5% and also more than previously thought after a revision to last month’s figures (4.8%).

Also published by the ONS was data on industrial action, which showed August had the fewest working days lost to strike action in a single month for nearly six years.

What does it mean for interest rates?

While a tough job market is difficult for people looking for work, the slowing wage rises can mean interest rates are brought down.

The rate-setters at the Bank of England had been concerned about the effect higher wages could have on inflation, which it is mandated to bring to 2% though latest figures showed it was at 3.8%.

Following today’s figures, traders expect a cut in the interest rate to 4.75% in December.

No change is anticipated at the next interest rate setter meeting in November.

US

Authorities name 16 killed in Tennessee explosives factory blast

Published

47 mins ago

October 14, 2025

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Authorities name 16 killed in Tennessee explosives factory blast

Authorities have identified the 16 people killed in a massive blast at a munitions factory in rural Tennessee.

They were killed in an explosion on Friday at an Accurate Energetic Systems facility around 60 miles southwest of Nashville. The company researches and supplies explosives for the military.

Investigators are still working to discover the cause of the explosion.

Those killed were: Jason Adams, Erick Anderson, Billy Baker, Adam Boatman, Christopher Clark, Mindy Clifton, James Cook, Reyna Gillahan, LaTeisha Mays, Jeremy Moore, Melinda Rainey, Melissa Stanford, Trenton Stewart, Rachel Woodall, Steven Wright and Donald Yowell.

At a news conference, Humphreys County Sheriff Chris Davis said people in the community probably at least knew relatives of the victims killed in the explosion.

“It’s just small county, rural America, where everybody knows each other and everybody’s gonna take care of each other,” he said.

Authorities said there were no survivors of the blast, which left twisted and burning metal in its wake.

They said they were working to clear the area of hazards, including explosives, and identify remains.

Once the area is clear they can begin investigating what caused the explosion, said Matthew Belew, acting special agent in charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.

He said some of the relevant evidence was spread out over miles.

“It’s almost like putting a puzzle back together,” he added.

“We have worked closely with AES to look at pictures, look at blueprints, any of the identifying things that were in the building. And then we slowly methodically start to put some of that stuff together.”

Technology

CNBC Daily Open: A chance for peace in the Middle East and the U.S.-China trade war

Published

3 hours ago

October 14, 2025

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CNBC Daily Open: A chance for peace in the Middle East and the U.S.-China trade war

U.S. President Donald Trump gestures as he poses next to a sign before a family photo at a world leaders’ summit on ending the Gaza war, amid a U.S.-brokered prisoner-hostage swap and ceasefire deal between Israel and Hamas, in Sharm el-Sheikh, Egypt, Oct. 13, 2025.

Suzanne Plunkett | Reuters

This might not be Christmas, but the war in the Middle East is over — at least according to U.S. President Donald Trump.

On Monday, Trump declared at the Knesset, Israel’s parliament, that the “long and painful nightmare” was finally over for both the Israelis and Palestinians. More straightforwardly, Trump gave an unequivocal “yes” when asked by reporters if the war in the Middle East has ended, Reuters reported.

A similarly hopeful mood permeated markets, though for different reasons. After hitting China with 100% additional tariffs and triggering a sell-off on Friday, Trump appeared to walk back his stance, posting on Truth Social that “it will all be fine” with China.

And thus was TACO back on traders’ menus: Major U.S. stock indexes rebounded, with technology stocks leading the charge. Quantum computing names popped after JPMorgan Chase announced it will be investing $10 billion in sectors crucial to national interests.

Broadcom, meanwhile, surged almost 10% after it jointly announced a partnership with — who else? — OpenAI to build and deploy custom chips. But where this puts Nvidia, OpenAI’s other near and dear one, and on whose chips the ChatGPT maker relies, remains a question.

Though Christmas has yet to arrive, OpenAI is starting to look like the tech sector’s Santa Claus, who has his sack full of presents — and, more importantly, cash, according to Oracle.

— CNBC’s Holly Ellyatt contributed to this report.

What you need to know today

And finally…

U.S. President Donald Trump shakes hands with Argentina’s President Javier Milei during the 80th United Nations General Assembly, in New York City, New York, U.S., Sept. 23, 2025.

Alexander Drago | Reuters

The U.S. has stepped in with an extraordinary bailout of Argentina. Here’s what it means

In a move that Treasury Secretary Scott Bessent announced Thursday on social media site X, the U.S. is providing a $20 billion currency swap line with Argentina’s central bank — essentially exchanging stable U.S. dollars with volatile pesos.

The move comes amid liquidity concerns in Argentina that threatened stability for the country as it faces key midterm elections. There are equal parts economic and political stakes with the venture, which marks the first U.S. intervention of this nature since rescuing Mexico in 1995.

— Jeff Cox