New York City could lose $6.1 billion in tax revenue as the Big Apple’s coronavirus shutdown puts a vice on local tax revenues, city Comptroller Scott Stringer estimated Monday.
That’s almost double the $3.2 billion Stringer projected the pandemic would cost the city in lost tax revenues just a week ago — before the escalating crisis forced New York officials to pause almost all businesses across the city and state.
“The COVID-19 pandemic is already putting enormous financial strain on our city’s workers as millions of New Yorkers grapple with the uncertainty of their next paycheck, paying rent, and taking care of their families,” Stringer said.
“At the same time, the massive slowdown of our city’s economy is going to result in substantial losses of the tax revenue that keep this city running,” he added.
Stringer said that under a worst-case scenario where Gov. Andrew Cuomo’s state of emergency lasts into the summer revenue losses would total $1.5 billion for fiscal 2020 and $4.6 billion for the fiscal year beginning in July.
“We are staring down a fiscal emergency and need the federal government to step up by injecting as much funding into our city’s economy as possible — our healthcare system, infrastructure, transit network, and so much more depend on it,” the comptroller added.
The comptroller says some of the impact on New Yorkers could be lifted through various measures, including offering direct cash assistance to the poor, forgivable loans to nonprofits and small businesses, and increased unemployment insurance.
“Our city government must act immediately to protect our fiscal position so that we can continue to provide vital services for our most vulnerable New Yorkers in the face of this emergency,” he said.
