New York, NY —

Police commissioner Ray Kelly says the cuts to the city's federal homeland security money will set back plans for state of the art counterterrorism measures in Lower Manhattan and Midtown.

Kelly says plans were in the works to create an integrated database system and a ring of video monitors, used in London to help identify suspects in the bombing of the subway system there.

Mayor Bloomberg has said he would speak with Homeland Security Chief Michael Chertoff about the 40 percent cut in the city's funds. DHS officials have said the city's application was poorly prepared, and focused on flawed counterterrorism programs.