NEW YORK - (AP) - Mayor Michael Bloomberg will proposeshrinking the city payroll by more than 4,200 jobs in his budgetupdate.

The mayor is set to outline his plans for the fiscal 2011 budgeton Thursday. The next fiscal year begins in July.

City officials said the plan envisions a proposed 934 layoffsand the elimination of another 3,352 jobs through attrition. Thecity workforce exceeds 300,000.

The police, fire, sanitation and correction departments will bespared from layoffs.

The mayor will also ask for union savings, including a proposedsmaller annual raise for teachers and principals.

Bloomberg will also propose basing raises for other unions onsavings negotiated through productivity, pension reform and healthcare givebacks.