NEW YORK, NY January 27, 2005 —Mayor Bloomberg outlined a $48 billion budget that he says will close a $3 billion budget gap without cutting services or raising taxes. Instead, the mayor says he'll close the gap with Medicaid savings and by rolling over a surplus from the current year. That surplus has come from higher-than-expected tax revenues. Mayor Bloomberg credits cuts he's already made with lowering the city's deficit

The Republican mayor, who is running for re-election this year, repeated his support for another $400 property-tax rebate for homeowners, and the end of a sales tax on clothing that costs less than $110.

In the council's reaction to the budget, a possible Democratic challenger, Speaker Gifford Miller, says the budget does not reflect the priorities and values of New Yorkers. Miller says Bloomberg's budget will cut senior meals, CUNY scholarships and funds to expand family day care.