The New York Police Department is scaling back plans to deploy 800 officers to protect ground zero and Wall Street from terrorist threats.

Police Commissioner Raymond Kelly told the City Council on Tuesday that budget restraints and a development slowdown are to blame. Fewer officers will be assigned to the so-called Lower Manhattan Security Initiative until the economy picks up or federal funding comes through.

Kelly said a proposed city budget allows a maximum 34,771 officers for the nation's largest police department in 2010. That's down from an earlier projection of 37,838.

The security initiative also calls for 3,000 security cameras. Kelly said about 300 have been installed so far.