NEW YORK - May 18, 2020 - (Newswire.com)
New York saw a drastic fall in state income for April 2020, reports Bambridge Accountants New York.
According to the monthly figures released by the State Comptroller for New York, the key notes are:
- New York state tax receipts are down by $7.9 billion for April 2020.
- a fall of 68.4 percent compared to April 2019
- funds collected in April 2019 were $11.6 billion
- New York facing $8.2 billion in cuts
The New York State Comptroller Thomas P. DiNapoli forecasts the city economy will shrink by 12.9% in 2020.
Review of the Financial Plan of the City of New York, issued by the New York State Comptroller, includes the details below.
New York City economy
- Unemployment is at the highest levels since the end of World War II.
- Hotel occupancy has fallen from 87% to 15%.
- Broadway theaters are projected to lose more than $100 million in 2020.
- The securities industry in New York is expected to lose $6.4 billion in 2020, the first loss since the financial crisis in 2008. This industry contributes 6% of the City tax revenues.
- Office space in Manhattan will see vacancy rates rise from 11.1% to 17.6% in 2020 - asking rents are expected to decline by more than 10%.
Budget deficit
- The city faces significant risks as there is now a projected $8.7 billion budget gap for 2020 and 2021 and the city will need to draw down $4 billion from its reserves.
- The deficit will continue for 2022 ($5 billion deficit), 2023 ($4.5 billion deficit) and 2024 ($4.9 billion deficit).
$8.2 billion in cuts
As part of the review of New York's finances issued this month, Governor Andrew Cuomo will need to find $8.2 billion in cuts - the report warns these cuts will have an adverse effect on New York City as funding for education and lower-income households would be reduced.
Contact: Alistair Bambridge, alistair@bambridgeaccountants.com, +1 646 956 5566.
Bambridge Accountants has offices in London and New York, specializing in creatives and U.S. expats around the world.
Related Links
Review of the Financial Plan of the City of New York
Bambridge Accountants - U.S. Tax
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Original Source: New York Revenues' Worst Fall Since Great Depression Reports Bambridge Accountants New York
