we are 7 women in our twenties go to nyc. We are not comfortable going to Times Square on New Year's Eve. We do not have a lot of money to spend. Does anyone have any safe suggestions.

NYC is even more expensive on New Year's Eve than any other night. Finding an inexpensive activity will not be easy. Two basic questions:
How much do you have to spend?
What type(s) of activity are you looking for?

Do you have hotel rooms yet? This is the second most crowded/expensive week of the year in NYC (after Thanksgiving). If you do not have hotels suggest you get resies ASAP - and do not be shocked by the prices!

My idea of safe could be your idea of boring. What do you have in mind? Here's a website I found that mentions some of the ideas I would have suggested (like going to Chinatown)There is a regular Fodor's poster (wantsomesun) who sings in the concert at St John the Divine on NYE. If you decide to do that, you might post here.
http://www.theinsider.com/nyc/fun/3maratho.htm

the party is staying in westchester about 25- 30 minutes away from manhattan in a Marriot for $113. a night. I was hoping that someone might know about some free activities put on by either the city or some organizations.

I may be wrong but other than watching the ball drop in Times Square I don't think there are any free activities on New Year's Eve in NYC.

If you look at the website I gave you it lists a lot of free activities including fire works in Central Park which rarely gets mentioned. The concert at St John the Divine I believe is free. They're evidently doing "first night" again this year, much of which is free.

Are you in shape? Road Runner club has a costumed midnight run in Central Park. Fun to watch, but even more fun if you are involved and can say you did it. Nominal fee to join, just check out their website. They even have refreshments.

I would also head over to see the tree.