Mayor Bloomberg’s Budget Director Mark Page sent a letter to NYC agency heads today seeking 5.4 percent spending reductions for the 2013 fiscal year, (except from the fire, police and education departments, which have lower targets) thanks to a larger-than-forecast budget deficit.

The budget was adopted in June forecast a $2.5 billion budget gap for the next fiscal year (FY 2014, which starts July 1, 2013). But the administration’s estimates show the gap will grow to more than $3 billion annually in FY 2015 and FY 2016.

In addition, Page said, other factors – like the lack of expected revenues due to the courts’ rejection of the mayor’s outer borough taxi plan – could make deficits even larger. The cuts are as follows:

Civilian Agencies (not including the Department of Education):

- 5.4 percent of controllable planned spending in FY 2013 (current year).

- 8 percent of controllable planned spending in FY 2014.

Uniform agencies (Police, Fire, Sanitation and Correction):

- 2.7 percent of controllable planned spending in FY 2013.

- 4 percent of controllable planned spending in FY 2014.

The Department of Education:

- 1.6 percent of controllable planned spending in FY 2013.

- 4 percent of controllable planned spending in FY 2014.

The total target for this action is $2 billion in savings – $750 million in FY 2013 and $1.25 billion in FY 2014. Agencies must submit their proposals by Oct. 4.

If implemented, this would be the 12th round of budget gap closing actions since early 2007. The first 11 rounds produced approximately $6 billion in recurring annual savings.

November 2012 PEG Letter