"We're going to do what we think is right, and if the burden falls solely on the taxpayers of New York City, that's not good, but in the end the number one priority is to provide security," said the mayor.

    The Homeland Security plans to cut counter-terrorism funding for New York City by 40 percent, or some 83 million dollars in 2006, including fund to pay for the counter-terror efforts of such agencies as the police department, fire department, hospitals, and even the Metropolitan Transportation Authority, which is in charge of public transportation.

    Bloomberg said New Yorkers may have to pick up the slack.

    The Department of Homeland Security said one of the reasons it reduced the city's security funding is because of problems with New York's application. But local politicians argued that there is no excuse when it comes to protecting a high terror target.

    "I think the Homeland Security application process should be designed and tailored to meet the needs and threats that exist in this country," said Congressman Vito Fossella.

    Fossella called on the White House to intervene in the matter. Many New York lawmakers tried to reverse the department's decision.

    Former Mayor Rudolph Giuliani said the cuts were based on "odd" and "incompetent" evaluations on what constitutes a monument. As a result, neither the Statue of Liberty, the Empire State Building nor the New York Stock Exchange are considered monuments by the agency.

    Giuliani said he would join the fight to get the money reinstated.

    New York Senator Charles Schumer accused Homeland Security Secretary Michael Chertoff of playing politics, and tried to introduce legislation to safeguard the city against future cuts by requiring federal funds be distributed based solely on the level of risk.

    In his meeting with Chertoff on Monday, Bloomberg said he was disappointed with the 40-percent cut in federal funding. He also criticized the decision to categorize many cities as "high risk," spreading the money around thinly. Enditem