Government Alert: City, state looking at big tax loss; Downturn could drain billions in revenue; state has larger reserve.(New York)(Brief Article)

Crain's New York Business, September, 2001

The state government, like the city, could be facing a multibillion-dollar hit from lower tax revenues as a result of the economic downturn caused by the World Trade Center disaster. ``Any impact that it has on the city on sales and income tax revenue will be at least as large for the state,'' says Robert Kurtter, senior vice president of Moody's Investors Service.

City officials have made preliminary estimates that New York City could lose up to $3 billion in tax revenues this year because of the terrorist attacks. Unlike the city, however, the state has a larger reserve with which to cope with any shortfall, Mr. Kurtter says. The state treasury has a $4 billion surplus left over from the last fiscal year, and another $4 billion in the current year because...

Read the rest of this article with a Free Trial at HighBeam Research.

Premium Content Partnership | HighBeam Research provides an in-depth online archive library of reference works.