New York, NY —
New York City's tax revenues are likely to be sharply down this year, by some 7.5 percent and a new study by the Independent Budget Office says the city is unlikely to start seeing a turnaround until 2011, a year after the rest of the country. The IBO says the city is likely to lose 243,000 jobs in that time. IBO's Ronnie Lowenstein says the current downturn will likely be worse than the one between 2001 and 2003.
LOWENSTEIN: When we lost about 230,000 jobs, all told. But considerably less than the jobs that we lost in the very prolonged, nearly five-year downturn that began in 1988, when we lost about 370,000 jobs.
Lowenstein says the city will need to develop other industries to make up for the loss of tax revenues from the financial sector, which is likely to be smaller and less profitable in the future.