NEW YORK (AP) — Mayor Michael Bloomberg’s $70 billion budget proposal for his final stretch in office is pointing up an issue that could linger for his successor: expired contracts with city workers.

The spending proposal he unveiled Thursday holds taxes steady and avoids major layoffs while grappling with rising benefit expenses, increased spending on schools and growing demand for aid to the homelessness and other social services, officials said. They credit an improving economy and a dozen rounds of belt-tightening since 2008, with holding the line on taxes.