NEW YORK - (AP) - Mayor Michael Bloomberg says the Big Apple will be 2.3 billion dollars in the red next fiscal year.

In response, Bloomberg says the city will slash spending 5.6 percent and delay some capital projects.

The mayor says that even if he rescinds a 7 percent property tax cut approved a year ago, the city will still face budget shortfalls of more than $5 billion in fiscal 2011 and 2012.

One huge factor -- the billions being lost on Wall Street, which drives the city's economy.

Meanwhile, Gov. Paterson Tuesday called an emergency legislative session to discuss the fiscal woes.