NEW YORK, NY October 29, 2008 —Business leaders and economists are warning state Assembly members that New York's economy won't hit bottom until next year as housing prices fall and the financial sector sheds jobs. Kathryn Wylde is president of the pro-business Partnership for New York City. She says the city's securities industry expects to permanently lose 100,000 jobs.

WYLDE: We're not in a cycle. We're in a fundamental restructuring. That's a change in profit, a change in compensation. The silver lining in this is that income disparities that we've seen grow up in our society over the last dozen years are going to be less.

REPORTER: Wylde spoke at a hearing organized by State Assembly Speaker Sheldon Silver. The leaders from commercial real estate, banking and technology sectors said the state should consider lowering taxes now to encourage companies to come to New York and hire New Yorkers.