So I Guess Those Property Tax Rebates Were His Way Of Being Flashy Beyond His Means

Hey Magic 8 Ball, are the mayor and his staff preparing for an economic slowdown? Outlook not so good:

In a surprising pullback, Mayor Bloomberg has asked agency heads to draw up plans to scale back spending on announced construction projects, The Post has learned.

One source said the cut could amount to as much as 25 percent of the four-year, $36.5 billion capital budget adopted in June. But Stu Loeser, the mayor’s spokesman, said that no such figure has been discussed and that, in any case, “no decisions have been made.”

He said agency heads received letters on Oct. 12 asking: “If what you had to do in the next four years was spread over five years, what would your priorities be?”

Just five months ago, Bloomberg and the City Council approved record expense and capital budgets and an ambitious list of projects throughout the five boroughs.

Over $10 billion was set aside for school construction and expansion and $2.6 billion allocated for rehabbing the four East River bridges and 68 other bridge structures.

The city was so flush that the mayor even found $2 billion for a new Retiree Health Benefits Trust Fund to help defray the future cost of city workers’ health benefits.

He also spent $200 million a year for each of the next four years to pay down debt service on bonds sold to fund the capital budget. Debt service is expected to cost taxpayers $4.8 billion this year and $6.1 billion in 2010.