Given the fiscal pressures on the City, what does Mayor Michael Bloomberg plan to do to cut debt service? Debt service, the payment of interest and principle due on long-term borrowing, has been growing rapidly under his tenure. Since it is tied to the size of the capital plan, it can only be controlled by reducing the level of capital investment that is supported with borrowing.

According to the budget the Governor submitted Tuesday, the State is facing a $6.7 billion budget hole in the 2010-11 fiscal year that begins on April 1 (that includes an additional $500 million deficit left over from this year.) This deficit amounts to about 8 percent of State operating funds, which are expected to climb to $84.9 billion without any action by the Legislature to reduce growth.

Many New Yorkers feeling the effects of the recession will be tightening their belts and shortening their gift-giving lists this holiday season; but, they might find an unexpected entry on their lists. Tomorrow, thousands of retired police and firefighters will be receiving $12,000 Christmas bonuses courtesy of the City's taxpayers.

A couple of positive steps were taken in the Capitol yesterday. The first was passage of the Deficit Reduction Program (DRP).