Apocalypse NYC

Sorry, I can’t help a sensationalistic headline…

At any rate, read this, courtesy of Reuters (h/t Clusterstock):

New York City’s net personal income tax revenues plunged 51 percent in the first 24 days of April, compared with the same period a year ago, the city comptroller’s office said on Monday.

Yes, 51%.

Though the city’s real estate market fended off much of the pain seen around the nation until late last year, the depth of its current fall was underscored by the state’s mass transit agency.

“We’re seeing it declining even faster and deeper than in the post-1987 deflating of the real estate bubble,” said Gary Dellaverson, chief financial officer for the Metropolitan Transportation Authority, at a finance committee meeeting.

Uh huh.

Democratic Governor David Paterson, speaking to reporters, estimated the state’s deficit next year at $2.7 billion.

The state will update its financial plan later this week, he said. New York City also should issue new estimates soon.

While there was a “significant” drop in state corporate tax revenues in March, followed by a decline in personal income tax collections in April, Paterson added that there were signs the economy might stabilize sooner than anticipated.

Well, this is true if New York State is going to receive a huge check from the Feds. If not, Paterson is smoking crack. Throughout this meltdown local, state, and the Federal government have drastically underestimated their budgetary shortfalls. New York State’s deficit next year will be an order of magnitude higher than $2.7 billion.

And if you think this is bad, wait until you see what happens on a federal level.

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