Mayor Bloomberg is expected to outline several cost-cutting measures, including new layoffs and a sales tax hike, during his executive budget address later today.

The city has taken a beating from the economic downturn. When Mayor Michael Bloomberg unveils his budget plans to New Yorkers on Friday, he’s going to be the bearer of more bad news.

The mayor will announce that city agencies will have to cut their budgets by 16 percent next year for a savings of $3.4 billion.

The cuts mean an anticipated 13,500 employee positions will be eliminated — 3,750 through layoffs, the rest through attrition.

Firefighters, police officers and teachers will be spared from the layoffs.

He’s not going to raise nuisance taxes and he’s not going to raise property taxes, but he is going to raise the sales tax.

Sources said the mayor intends to raise $900 million to close his budget gap. By raising the sales tax half a percent, the sales tax in New York City will jump to 8.875 percent. Only 4.5 percent is city tax; the rest goes to the state and the Metropolitan Transportation Authority.

The mayor will officially unveil his budget Friday; the City Council must approve it by June 30.

(Source: WCBSTV / NY1)