NYC Taxes Revenues Eroding

Just as the City Council and the Bloomberg Administration digest the small print in Albany's budget deal, there's more bad news for the city from the Independent Budget Office. WNYC's Bob Hennelly has more. REPORTER: Mayor Bloomberg's proposed budget for next year appeared balanced just two months ago, but the city's Independent Budget Office says the latest economic indicators show it's now $1.4 billion in the red. IBO director Ronnie Lowenstein says it's due to a precipitous slide in tax revenues and a deteriorating economy. And she says the current crisis will have lasting effects as a re-regulated Wall Street moves away from high stakes risk taking that generated billions in profits and tax revenues. LOWENSTEIN: It doesn't mean that New York City won't be the financial capital. it just may mean that the City of New York can no longer expect the huge growth of revenue we anticipated, for example, in the most recent upturn. REPORTER: IBO reports that by the middle of 2010 the recession will have claimed 270,000 New Yorkers their jobs. For WNYC I am Bob Hennelly.