Municipalities are facing drops in property, income, and sales tax revenues. Since many are bound by law to balance their budgets, they have few options
Tax revenues from Wall Street could drop by $2 billion over the next two years. The state may cut city funds for health care and other services.
To make up a $250 million deficit, officials may reduce hours at community centers, cut bus routes, and lay off hundreds of employees.
With a $100 million deficit, the city may need to raise taxes to combat its growing crime problem.
To prop up its underfunded pension system, the city may have to put $300 million into the plan.