NEW YORK, NY December 11, 2008 —New York City has suffered 500 layoffs since the global economic crisis began. But now with the recession projected to deepen, that may change. WNYC's Bob Hennelly has more.

REPORTER: This fall, city managers were asked to squeeze out a five percent cut for the fiscal year that starts in July. Now this week they're told to find another 7 percent by Dec. 22.

So far, the job cuts existed mostly on paper, like the 100 rookie officers the city decided not to hire. Add to that list of economic casualties the 300 probationary firefighters who were supposed to start school this month.

Both Mayor Bloomberg and Council Speaker Christine Quinn have said layoffs beyond attrition are a last resort, but they refuse to rule them out. City budget makers are now bracing for more bad news coming from Albany this Tuesday, when Gov. Paterson unveils his budget plan, which will have to account for Wall Street's collapse. In addition to the state, the city is now expected to press its case in Washington for federal dollars. For WNYC I am Bob Hennelly.