01/24/2011 12:25 pm ET Updated May 25, 2011

Andrew Cuomo Budget Cuts Could Cost New York City $1 Billion

Gov. Andrew Cuomo's proposed budget would slash city funding by $1 billion, according to those with knowledge of the proposed cuts.

From the New York Post:

Cuomo, grappling with a projected $10 billion deficit for the fiscal year beginning April 1, has "slashed aid to local governments and, more importantly, state school aid, which of course will have a major impact on the city," said a source close to the budget preparations.

While the exact amount of aid that will be lost by the city has yet to be calculated, legislative budget experts predict it could be around $1 billion.

That would likely put a strain on the relationship between Cuomo and Mayor Bloomberg who, up until now, have been cordial with one another.

Cuomo has already expressed his intentions to slash funding for several upstate prisons, many of which he found nearly empty. However, those prisons are a major source of employment to several poor, right-leaning upstate towns, so resistance to the cuts is expected to fierce in the Republican-controlled Senate.

The state's budget deficit sits at around $10 billion.

Since Cuomo received some encouraging poll numbers shortly after his inauguration, the Governor has been rocked by several negative stories.

He gave five-figure bonuses to several members of his campaign staff, just after promising to lead by example when it came to fiscal prudence.

Shortly after, it was revealed that his budget cuts could result in the loss of 15,000 state jobs.

There's also some indication that Cuomo's plan to cap the state's property tax could meet resistance from constituents he was counting on to support the proposal.