NYC projected to lose at least 475,000 jobs and $9.7B in tax revenue

0
34
NYC projected to lose at least 475,000 jobs and $9.7B in tax revenue

Pedestrians pass through closed shops on Roosevelt Avenue in Queens. | AP photo

NEW YORK – The coronavirus pandemic could plunge New York City into the worst economic crisis since the 1970s and cost the city 475,000 jobs and nearly $ 10 billion in sales, a budget watchdog found.

For a new one report According to the Independent Budget Office, the local economy is expected to lose 475,000 jobs in the next 12 months. This would result in a $ 9.7 billion tax revenue deficit in 2020 and 2021 compared to previous forecasts.

advertising

Mayor Bill de Blasio agreed to the terrible forecast in Wednesday’s remarks.

“We’ll lose a lot more after that,” he told reporters. “It will be more difficult.”

De Blasio warned that without the help of the federal government, the city would not be able to maintain basic services.

“There is no way to reconcile this budget with cuts alone. It’s impossible. If we don’t talk about not offering basic services to New Yorkers, and if we don’t offer basic services, you can say goodbye to your recovery,” he said .

A recession with 475,000 jobs lost would be the worst the city has faced since the 1970s, and the decline in expected earnings is also the worst since the end of the city’s financial crisis, according to the IBO report.

Budget watchers expect a $ 2.9 billion drop in sales in 2020 and a $ 6.7 billion drop in sales in July 2021. These slumps account for 4.6 percent and 10.5 percent of expected sales, respectively.

“The damage caused by the pandemic is particularly high in New York City, as the city’s economy is heavily dependent on industries that have largely been shut down to limit the spread of the corona virus,” the report said.

Retail employment is likely to be hit hardest with 100,000 jobs lost. A further 86,000 jobs in hotels and restaurants and 26,000 jobs in the fields of art, entertainment and leisure could be lost.

Low and middle income jobs are most likely to be lost, although some losses are also expected in the financial sector. The only major sector that is spared the loss of jobs is, according to the report, healthcare.

Sales revenues are expected to decrease $ 1.1 billion in 2020 and $ 3.1 billion in 2021 from previous estimates. These losses are largely due to retail stores that do not sell food, leisure, and hospitality businesses that are closed.

As New Yorkers lose their paychecks, personal income tax collections are expected to decrease by $ 1.4 billion in 2020, followed by a $ 1.2 billion shortfall in 2021.

With hotels vacant, hotel tax revenue is expected to decrease by $ 127 million in 2020 and $ 530 million in 2021.

Property tax receipts less affected by the public health crisis are less affected.

De Blasio has ordered $ 1.3 billion in cuts, a plan that has been criticized by both supporters of the programs that have been cut and fiscal watchdogs for not cutting enough.

The city government is expected to receive only $ 1.3 billion from the recently approved federal incentive. De Blasio said Congress should give a new incentive with more help to local governments.

“We are financial capital. We are one of the nation’s economic engines. If we cannot provide basic services to our people and this city cannot function, there will be no rest for everyone else, ”he said.

He asked President Donald Trump to help the city do better business.

“You and I remember the famous headline” Ford to City: Drop dead “during the financial crisis,” said de Blasio, referring to an icon in the New York Daily News Front page. “Well, it’s Donald Trump’s time to decide what kind of heading he wants.”

LEAVE A REPLY

Please enter your comment!
Please enter your name here