But, he added, "it is certain that service reductions and tax increases will be required."

"It is not clear to me that there should be a service reduction," he said.

There are $380 million worth of service reductions in the budget.

He indicated that service reductions would still be needed to balance the budget.

"It's clear where the problems are, and we don't expect any layoffs or service reductions."

The bulk of it, 87 percent, is from service reductions.

The mayor said he was concerned about the service reduction in Queens.

The results included the first widespread service reductions in 20 years, and the 25-cent fare increase.

"Because of the redeployment program, we can't tell you exactly where the service reductions are going to take place," he said.

The revised budget also calls for $221 million in service reductions.