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NEW YORK, NY May 20, 2008 —The state board charged with resolving the contract standoff between the Bloomberg administration and the police union - the Patrolmen's Benevolent Association - has made its decision.

WNYC's Bob Hennelly reports.

Rookie officers will finally see a pay increase. The Public Employment Relations Board raised starting salaries from $25,000 to just under $36,000, but they lost half of their 20 vacation days. Veteran officers will see a roughly $5,000 pay increase to $65,000 a year.

The PBA contends that even with the raise, the NYPD pay still lags behind other police departments in the surrounding, less-demanding suburbs.

The Bloomberg administration will need to find an additional $50 million to cover the settlement. A spokesman for the mayor wouldn't say what the impact would be on the budget. He said they're not sure if they can pay for the pay increase and keep the mayor's commitment to a second annual 7 percent property tax cut.

For WNYC, I'm Bob Hennelly.

OUTRO: Now, other uniformed services like firefighters, sanitation and corrections are eligible for a similar deal. The Bloomberg administration says the ripple effect could cost taxpayers an additional $135 million.

And, it's not over yet because the pay raise is retro active for 2004 through 2006, the PBA and the city will have to return to the bargaining table to negotiate a contract for the last two years.