NEW YORK, NY July 02, 2009 —The mayor has been clear that inaction by the state Senate on several tax bills means a loss of sales tax revenue for the city. But as WNYC's Bob Hennelly reports, it also may affect the way the city raises capital in the bond market.

The trade publication The Bond Buyer reported this week that a required state authorization is hanging in limbo and leaves the city unable to sell bonds through so-called private negotiation. It can still raise capital through bonds but only in the competitive market. Still, the privately negotiated sales drive interest and confidence in the bonds. And spokespeople for both the mayor and the comptroller say losing the private option may reduce the demand for city bonds in the competitive market. The first sale since Albany’s stalemate should come some time later this summer.