New York could lose $9.7 billion in tax revenue by mid-2021 as well as 475,000 jobs due to the coronavirus shutdowns, according to a report unveiled Wednesday by the city’s Independent Budget Office.
“In terms of its impact on employment, a recession in which the city lost 475,000 jobs would be the worst it has faced since the early 1970s,” the report says.
IBO estimates a $2.9 billion revenue loss related to the pandemic for the remainder of the fiscal year ending June 30 and another $6.7 billion drop for fiscal 2021.
The retail industry is expected to be hit the hardest, losing 100,000 jobs over the next year. IBO also predicts a loss of 86,000 jobs in hotels and restaurants and another 26,000 in the arts, entertainment and recreation industries.
The findings are even grimmer than a similar study released by Comptroller Scott Stringer last month that estimated the pandemic could cost the city $6.1 billion in tax revenue losses through fiscal 2021.
Mayor Bill de Blasio did not dispute the IBO’s report, telling reporters Wednesday he believes revenue losses could hit up to $10 billion and result in about a half million residents being unemployed.
He also called on the federal government for help “in the time of crisis,” saying “the billions and billions of dollars of revenue we’ve lost … isn’t the fault of everyday New Yorkers,
“Remember the famous headline back during the [70s] fiscal crisis, ‘Ford to City Drop Dead?’” he said. “Well it’s Donald Trump’s time to decide what kind of headline he wants.”
