NYC Deficits Grow as Wall Street Profits Slow, DiNapoli Says
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New York City may face increased budget deficits because of falling Wall Street profits, an “uncertain economic recovery” and the prospect of reduced federal and state aid, state Comptroller Thomas DiNapoli said.
The securities industry lost almost $3 billion in the third quarter of 2011, cutting year-to-date profits to $9.6 billion, DiNapoli reported today. He predicted profits will come in “significantly short” of the $20 billion the city forecast for 2011 in its financial plan, saying weakness on Wall Street may lower tax collections by $100 million in the next fiscal year.