Federal budget cuts will result in $800 million hit to city

U.S. President Barack Obama speaks about the sequester after a meeting with congressional leaders at the White House in Washington March 1, 2013. (Credit: Reuters)
U.S. President Barack Obama speaks about the sequester after a meeting with congressional leaders at the White House in Washington March 1, 2013.
(Credit: Reuters)

The federal budget cuts that started taking effect last week will hit the city for $800 million, the city’s budget director said at a council hearing on Monday.

Budget Director Mark Page said a revenue gap for the city is likely because the sequester cuts, an automatic $85 billion reduction in federal spending, were not taken into account in the mayor’s proposed budget for 2013-2014, The Daily News reports.

Local cuts could breakdown as follows:

  • $500 million hit to Hurricane Sandy aid
  • $75 million less for Medicaid funding for city hospitals
  • $60 million in lost funding for city housing
  • $200 million in cuts spread between other city agencies.

If lawmakers in Washington reach a deal to reduce the nationwide cuts, the impact on the city could be minimized, Page said.


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