NEW YORK, NY November 19, 2008 —Mayor Bloomberg says he "cuts the checks," and that's why he can withhold $400 rebate checks without the City Council's approval.

But he also suggests that he might be flexible on the issue as budget negotiations continue.

BLOOMBERG: We are far from having a balanced budget. We will by the time we get to June 30th. Until then we will keep talking all things are up in the air. It is a moving target.

REPORTER: The mayor suspended the popular property tax rebates because revenues from sales taxes and other sources have fallen drastically. His budget director admitted this week the mayor's office doesn't have the power to rescind the rebate without approval from the City Council. The Council says it is a top priority to restore the checks.