New York Revenues' Worst Fall Since Great Depression Reports Bambridge Accountants New York

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May 18, 2020, 10:00 ET

NEW YORK, May 18, 2020 /PRNewswire/ -- 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, [email protected], +1 646 956 5566.

Bambridge Accountants has offices in London and New York, specializing in creatives and U.S. expats around the world.

www.bambridgeaccountants.com

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SOURCE Bambridge Accountants New York