Budget Agreement: NYC Won't Close 20 Fire Houses

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New York - Twenty New York City fire engine companies that were in danger of being eliminated have been saved under a new budget deal for next fiscal year. 

Mayor Michael Bloomberg and City Council Speaker Christine Quinn reached an agreement late Thursday on the city's $63 billion budget for the fiscal year that begins July 1. 

The spending plan restores about $300 million in funding that Bloomberg had proposed cutting in order to plug budget gaps. 

Part of that is due to expected cuts in state funding. The state is nearly three months late on its budget, but early proposals in January envisioned cutting aid to New York City by as much as $1.3 billion. 

The city still had to make about $1 billion in cuts. Those include closing some senior centers and eliminating thousands of jobs. However, it was the mayor's intention to get the budget done without any tax increases.

CBS 2 HD has learned $37 million was saved to keep the fire houses open.

In addition, the city will not be laying off 4,200 teachers, but 2,000 will go due to attrition, as was planned. 

Agreements are also expected on how to pay for library service, which will go from six days to five.

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