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