NEW YORK, NY January 29, 2003 — Now that mayor Bloomberg has released his 44 billion dollar budget plan, all eyes are turned to Albany. The mayor is asking the state to help the city close its 3 point 4 billion dollar deficit by enacting a personal income tax on commuters, and other forms of aid. We may hear more about that later today when Governor Pataki gives his state budget address. WNYC's Beth Fertig has this report on what Bloomberg is seeking.

The mayor's budget would slash more than 500 million dollars from city agencies. That may sound like a lot. But consider what Bloomberg has already done in just one year alone.

BLOOMBERG: We have cut or found alternative revenue sources for 2 point 6 billion dollars of city expenses. And I think we've been able to maintain the services at an acceptable level or in some cases an enhanced level.

So, faced with the prospect of deeper service cuts, or another property tax hike - the Mayor is looking for help. He's seeking 600 million dollars in labor concessions from the unions. And despite the Governor's opposition, he's still asking Albany for a commuter tax even bigger than the one that was repealed in 1999.

BLOOMBERG: And for people that say it's not fair, those people take advantage of the protection that our police department provides, the safety our fire department provides, they throw out trash our sanitation department picks up.

The personal income tax on commuters would bring in roughly a billion dollars. Bloomberg's also seeking other forms of state and federal aid. He wants 690 million dollars in back rent the state owes for leasing the airports, and tolls on the east river bridges.

A spokesman for Governor Pataki said the administration would be as helpful as it can to New York City. But he added, the state is facing a 12 billion dollar deficit for this year and next. And that's why City Council Speaker Gifford Miller was predicting the whole plan would fall apart once the governor releases his budget later today.

MILLER What we have to be particularly concerned about is not what Governor Pataki will do for us but what the state budget will do to us.

Bloomberg himself acknowledged even a 10 percent cut in state aid to New York City would mean a loss of an additional one billion dollars. But he says it's his job to lobby Albany for the best deal he can get. The same goes for the unions. He hasn't set aside money for raises. And he's warning of layoffs if labor won't negotiate on productivity savings and benefits like co-payments on prescription drugs. There, too, he's facing stiff resistance. Lillian Roberts is executive director of District Council 37, which represents 125 thousand city workers.

ROBERTS: The last negotiations everybody got more than we did. And we make less than anybody in the city. The alternative for many of us is welfare and we're going to maintain our dignity.

She suggests that Bloomberg look for cuts among the city's high priced consultants. Civic groups will also be studying the budget closely. All agencies would lose three to six percent of their budgets. That means the education department would lose 130 million dollars - shrinking summer school slightly but sparing the classrooms. And despite cuts to the police department, the headcount isn't expected to shrink thanks to additional revenues from parking violations. But in order to avoid a further dismantling of city services, Bloomberg has to get at least some of what he's asking for says Douglas Muzzio, a public affairs professor at Baruch College.

MUZZIO Taxes and fees are going to go up and services are going to go down. It's virtually inevitable unless the state comes up with 2 billion dollars and the unions come up with 600 million. It's a wish list and the mayor recognizes that it's a wish list. But he had to move the ball into the other courts and that's where they are.

Mayor Bloomberg has definitely moved the ball, with his latest proposal. After spending the past election year asking little of his fellow Republican, Governor Pataki, Bloomberg's budget is a loud and clear demand for relief. For WNYC I'm Beth Fertig.