As for the rest of the budget, a $495 million hole in the city's Fiscal Year 2013 budget will mostly be plugged with restitution money from the CityTime scandal, Bloomberg will announce.
Administration sources said that in giving his budget address at City Hall, Bloomberg will say that the budget hole comes from a $352 million decrease in tax revenue projections wrought by a slump on Wall Street, and $143 million in increased agency costs.
The numbers are updates from the mayor's preliminary budget numbers announced in February.
The hole will primarily be filled with $466 million recovered in the CityTime settlement with Science Applications International Corp. The company paid full restitution after a scandal involving a fraud-ridden city payroll system.
While the city's economy continues to grow along with tax revenues compared to the prior year, Bloomberg will say that the city's financial services firms continue to suffer, slicing profits and reducing the forecast for tax revenues from Wall Street.
On the bright side, revenue projections are up in the tech, film/TV, tourism and higher education sectors, areas that Bloomberg has looked to bolster.
"The mayor has spent the last decade diversifying the city's economy because the financial markets will always have ups and downs," said Bloomberg spokesman Stu Loeser. "Our efforts have paid off, with growth and job creation in non-finance sectors like tourism, tech and TV production, which softens the blow from the drastic drop in Wall Street profits."
While city agencies saved $124 million from FY 2012 and 2013, increased social service and other needs totaled $267 million, making for a net overall cost increase of $143 million.