NEW YORK (PIX11) — Mayor Adams directed all New York City agencies to cut their budgets nearly 8 percent by the end of the upcoming fiscal year, a spokesperson confirmed Monday.

The order calls for a 3 percent cut by the end of this fiscal year, which ends on June 30, and then an additional 4.75 percent cut the following fiscal year, officials said. Mayor Adams said the cuts were needed because of new costs for pensions, expiring labor contracts and health care expenses. He estimated the new costs will increase the city’s spending by billions.

“In response, we are asking every city agency to tighten its belt without laying off a single employee or reducing services,” Adams said. “This Program to Eliminate the Gap savings plan is strong and decisive action that will protect both the city’s financial outlook and funding for critical programs and services, promote efficient government operations, and protect the city’s long-term financial stability. We appreciate our agencies’ partnership and will work with them to identify areas where savings can be achieved.”

Citizens Budget Commission President Andrew Rein applauded Adams’ call for cuts. He said it was prudent and a fiscal necessity.

“This is a timely call that rightly focuses on increasing productivity to reduce recurring costs while preserving services that New Yorkers rely on,” Rein said. “The directive to identify savings of 3 percent this year, growing to 4.75 percent in future years, is reasonable and provides agencies runway to restructure programs and operations to achieve the PEG targets.”

Schools in New York City were already dealing with an ongoing budget battle. City officials signed off on cuts and then parents sued to stop it. UFT President Michael Mulgrew, who represents the teachers’ union in New York City, slammed Adams’ new call for cuts.

“It is a shame that when the city has unprecedented financial reserves, the mayor calls upon his agencies to plan for budget cuts that will affect services across the city,” he said. “New York City will never rebound from the pandemic if we don’t have a better plan than this.”