NYC's Bloomberg Warns of Deep Budget Cuts

NEW YORK (AP) — Mayor Michael Bloomberg is warning in his "State of the City" address that New York's deepest budget deficits are yet to come.

Bloomberg said in his speech Wednesday on Staten Island that spending cutbacks won't stop New York from transforming itself into a city of the future.

He says he is stilling planning development projects and other improvements meant to maintain the city's status as a world capital.

The mayor says the cuts will be made to government services, and he plans to target the pensions of city workers. He also says some capital projects will have to be slowed down or privately financed.

But Bloomberg says he doesn't want to see the city repeat mistakes of the 1970s, when vital city services broke down due to a lack of money.