New York Gov David Paterson has ordered that more than 4 per cent of state government workers be laid off.
Budget Director Laura Anglin tells The AP that the layoffs of almost 9,000 workers would be the first of their kind since the late 1990s. The state employs nearly 200,000 people.
The decision comes after unions refused concessions amid the economic downturn. The layoffs could begin July 1.
Anglin says unions could still try to return to the table before a budget is negotiated.
She says the layoffs will save nearly $500 million over two years. The state faces a $16 billion deficit this year.