Tuesday, December 16, 2008

A pessimistic economic forecast gets more pessimistic (aka, Holy Fucking Shit — We're Screwed!)

Gothamist has the not-so-chipper economic news for the city:

New York City's budget gap will be as much as $1.9 billion in fiscal 2009 and could possibly balloon to as much as $5 billion by 2011, according to a wholly depressing new report from City Comptroller (and mayoral hopeful) William Thompson Jr. ... The recession could cost the city some $935 million in tax revenues next year, a figure that includes a $525 million shortfall in real estate-related taxes, a $345 million reduction in personal income and business taxes, and a $65 million loss in property taxes.

The annual report, titled The State of the City’s Economy and Finances (Or, Time To Move Back In With Your Parents), paints an even bleaker picture than Mayor Bloomberg's November budget proposal. In it, Thompson writes, "Waves of negative economic developments during 2008 have given way to a tsunami of financial anxiety and caused us to issue a more pessimistic forecast than was put forth by the mayor. As the economy erodes, the outlook for New York City’s fiscal future will continue to change."


Billy said...

I'm very interested to see the long-term effects the Wall Street meltdown will have on the city? I try not to be a pessimist about contemporary New York and understand it's foolish to long for the days of muggings and crack vials on the sidewalk. But maybe a little bit more grit wouldn't be so bad. Then again, now that the city is facing a 70s-style budget crisis, might we all look book and think we should have been more careful about what we wished for?

EV Grieve said...

Hi Billy,

Thanks for the comment.... I know several people who would like to see a little more grit...early 1990s grit anyway. I don't know, it's complicated. But, unless Bloomy uses some of his own $20 billion, I think it's going to be real ugly by 2011.