NY State, City Face Shortfalls in Tax Revenues
The news on the tax revenue front from New York State Comptroller Thomas DiNapoli is sobering at both the statewide and New York City levels. DiNapoli said statewide tax revenues for April were down 68.4% year-over-year to $3.7 billion, as the full impact of the coronavirus pandemic hit home.
The nation’s largest city is facing 12.9% shrinkage in its economy this year, DiNapoli said. Tax collections in New York City are projected to fall next fiscal year for the first time since the Great Recession.
“The city faces a number of significant budget risks, including additional revenue losses, and without additional federal assistance, another round of state budget cuts,” said DiNapoli. “With so many uncertainties, and a recovery that may be slower than anticipated in the city’s latest plan, the city must be prepared to revise forecasts as new information becomes available. Difficult budget choices loom.”
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