The Ongoing Turmoil
September 29th, 2008

Talk about timing.

On the day Wall Street experienced its single biggest drop in two decades, state Comptroller Thomas P. DiNapoli released a preliminary budget estimate saying the state could lose $3.5 billion in tax revenues by March 2010 thanks to the financial crisis.

The latest figures, he says, are 40,000 in job losses, a 50 percent decline in Wall Street bonuses and business taxes are down $366 million from last year.

This news came as the House defeated the $700 billion bailout package by a vote of 228 to 205 and the Standard & Poors 500-stock index fell nearly 9 percent a drop not seen since 1987 (Daily Politics has this breakdown of the New York delegations votes and some of their explanations).

The report elicited this reaction from Gov. David Paterson.

I greatly appreciate Comptroller DiNapolis work and leadership in quantifying the potential impact of the financial crisis on State revenues and the State economy. Clearly, given the fact that 20 percent of New York State revenues come from Wall Street, the impact of recent events on our finances will certainly be significant, and I will be meeting with legislative leaders later this week to brief them on our preliminary findings.

The governor also said his office would release a financial report next month, factoring in the Wall Street impact.

By on September 29, 2008, 6:10 pm
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