Mayor Bloomberg’s budget plan includes cutting New York City’s working force by as many as 23,000 jobs and in the mean time increases its sales tax. The plan will be explained in detail by Mayor Bloomberg in a news conference scheduled Friday.

The plan includes a cut of $1 billion for city agencies in order to reduce long-term spending on health care, pensions, Medicaid costs and debt service. City workers will be asked to contribute to paying for health care.

Bloomberg’s plan also relies on help funds from federal and state governments and city unions. If the help doesn’t come, NYC would be left with no other alternative but to cut approximately 23,000 jobs through both attrition and layoffs. Of that number, which represents about 6.5% of the city’s working force, 15,000 cuts would be among teachers and educators, a move described by United Federation of Teachers President Randi Weingarten as “devastating" to schools. The plan also includes eliminating this month’s Police Academy class and firing 500 Housing Authority workers.

Under Bloomberg’s plan, homeowners will lose the $400 rebates, but the new property taxes won’t affect them. The Mayor said he does not plan to increase income taxes, but he wants to increase the city’s sales tax by $900 million, which means the sales tax would grow to 8.75% from 8.375%.

"The Mayor is cutting agency spending as much as he can without compromising our quality of life," Deputy Mayor Edward Skyler said.

In the Friday news conference, Bloomberg will announce that the budget deficit for fiscal year 2010 is $4 billion.

The City Council has until July 1 to approve Bloomberg’s plan.