Janet Babin, Economic Development Reporter, WNYC News
Janet Babin is a reporter at WNYC covering economic development.
The State Comptroller's office says budget targets for New York City and New York state will likely fall short this year. The reason is a drop in Wall Street revenues.
Comptroller Thomas DiNapoli released the new forecast Tuesday morning. It found that New York's tax revenues will be down about a third compared to last year.
"Keep in mind 2010 was a very strong year so, to put it in context, this is still going to be a good year and a profitable year, it just shows that some of the high profitability we saw last year you're not going to see again this year," DiNapoli said.
He added it seems likely that job losses in securities-related industries will continue as well, and Wall Street bonuses will be smaller than last year.
"These developments will have a rippling effect through the economy and adversely impact State and City tax collections," he said.
The Comptroller’s office report found that the securities industry has lost more than 4,000 jobs through August of this year, and another 6,000 are expected to be laid off before the end of the year.
DiNapoli blamed the weak Wall Street outlook on a volatile stock market, debt woes in Europe and stronger market regulations.