New York already making plans to reduce spending.

• Position: News Briefs

Less than a month after New York City's budget took effect, Mayor Michael R. Bloomberg announced during a meeting of the New York State Financial Control Board that the city would withhold 7.5 percent of the funds for every agency. The announcement followed reports by the city comptroller, state comptroller, and the control board that more than a billion dollars in revenue used to balance the budget might not materialize. The city is facing a potential budget gap of at least $3.7 billion for the next fiscal year. Although the mayor did not mention any specific targets for spending reductions, budget officials...