Because the agencies have already cut their expenditures of city funds by $2.6 billion, more cuts could require layoffs.
He also pointed out that the Mayor's plan would also require layoffs.
Administration officials say $600 million in further cuts could begin to cut vital services and could require layoffs.
Chrysler is the only American auto maker that has made production cuts requiring indefinite layoffs.
These "micro" conditions, requiring layoffs, are tough but necessary.
The state plans to cut 2,500 jobs by attrition through the hiring freeze, and more cuts are likely to require layoffs.
He said his hardest decision has been to close down Gymboree's Janeville division, which required substantial layoffs.
City budget officials estimated that the plan would require layoffs of 27,000 workers, including about 15,400 full-time city and school employees.
The budget sent to the Governor could require layoffs.
The state will also cut 1,000 employees, which may require layoffs.