Mayor Michael R. Bloomberg today announced an immediate freeze of personnel hiring to ensure the City meets its legal obligation to maintain a balanced budget, while the State Senate remains unable to act on any legislation.  Additionally, the Mayor has ordered a review of all City contracts so the City does not enter into non-essential obligations. Contracts under review include the entire universe of City contracts with independent agencies that provide services to the public.  The contracts are typically entered into at the start of the fiscal year.

“I’ve instructed the City’s Budget Director to immediately freeze all hiring while the gridlock in the State Senate imperils the City’s budget,” said Mayor Bloomberg. “This includes a class of 250 Police Recruits, who were set to enter the academy this week, along with Firefighters, School Safety Agents, 911 and 311 call takers, and EMTs. Further, we will be reviewing all City contracts to ensure we do not enter into non-essential contracts. We have a legal mandate to produce a balanced budget – something we’ve done for seven consecutive years – so we have to act responsibly.”

The Fiscal Year 2010 budget, adopted by the City Council in June, included new revenues that require approval in the State Legislature.  The lack of action in the State Senate on the new revenue package has cost the City to $60 million in the month of July and $60 million will continue to be lost each month without State Senate action, which would necessitate further reductions in City spending.  If the State Senate is unable to act on the revenue package this year, the City stands to lose nearly $900 million.

The hiring freeze is going into effect immediately, although certain hires will be permitted for extraordinary needs that may arise. The hiring freeze will indefinitely delay the Police Department’s class of 250 recruits who the Mayor had planned on swearing in on Wednesday, July 8th. It also puts plans to hire other important City workers on hold, including:

• 150 Firefighters
• 151 Traffic Agents
• 34 Emergency 911 Operators
• 175 School Safety Agents
• 150 School Crossing Guards
• 90 Emergency Medical Technicians
• 20 3-1-1 Operators

“I urge Senators in both parties to put aside their political differences and approve theCity’s revenue plan so we can move forward with providing the core services that New Yorkers rely on,” Mayor Bloomberg concluded.