Recession Watch

Big Apple Needs Big Save

Start spreading the news. New York City Mayor Michael Bloomberg issued a stark assessment of the city's troubled fiscal situation in a budget address this morning. "It's fair to say that nobody was prepared for the severity of the downturn we are experiencing," he said. So how bad is it? The city must close a $4 billion gap for the 2010 fiscal year. And that's after $2 billion in cost cuts. But Bloomberg is optimistic that through labor concessions, Medicaid reimbursements and federal assistance, it's "manageable."