City’s construction budget to be cut down

Mayor Michael Bloomberg’s budget director has ordered a 20 percent reduction in planned spending for the city’s 10-year construction plan, due to the struggling economy, according to the Daily News. It’s unclear which projects will be cut, but budget director Mark Page asked the city to identify work that can be postponed or canceled. “We are actively seeking ways of diminishing city costs of pensions and health benefits, and we are obliged to also address the amount of the budget going [to pay for construction loans],” Page wrote in a letter to city department heads. Recently, government officials issued reports warning that Bloomberg was underestimating the city’s troubles, and criticized him for spending too much on construction projects. State Comtroller Thomas DiNapoli said construction loans will cost the city $6.7 billion in 2014, a 31 percent increase from the $5.2 billion this year. [NYDN]