By Mark Scott
Albany, NY – State Comptroller Thomas DiNapoli says the financial crisis gripping Wall Street and the world economy could cost the state and New York City both jobs and tax revenues over the next two years.
In a report released yesterday, DiNapoli said the number of lost jobs could top 225,000. And he said state and local governments will have to deal with the loss of $6.5 billion in tax revenues.
"Wall Street is the engine that drives the economies of New York State and New York City, but the global credit crunch has slowed that engine down," DiNapoli said. "This year is on pace to be one of the worst years ever on Wall Street. Through the first half of this year, broker dealer operations of New York Stock Exchange member firms reported a loss of nearly $21 billion."
DiNapoli suggested the city and state may need a federal bailout despite the efforts of elected leaders to close budget deficits.