Bloomberg Says Worst of Slowdown Hasn't Yet Hit New York City

Bloomberg Says Worst of Slowdown Hasn't Yet Hit New York City 2008-07-18 16:27:47.970 (New York) By Adam L. Cataldo July 18 (Bloomberg) -- New York Mayor Michael Bloomberg said the city hasn't yet felt the full effects of the economic slowdown, a day after the state reported a drop in projected tax revenue. ``We're doing better than the rest of the country, but it is going to get to us, it is... [more]

Bloomberg Says Worst of Slowdown Hasn't Yet Hit New York City 2008-07-18 16:27:47.970 (New York) By Adam L. Cataldo July 18 (Bloomberg) -- New York Mayor Michael Bloomberg said the city hasn't yet felt the full effects of the economic slowdown, a day after the state reported a drop in projected tax revenue. ``We're doing better than the rest of the country, but it is going to get to us, it is starting to get to us,'' Bloomberg said during his weekly appearance on WOR Radio. ``Anybody that thinks it is not going to hit us is wrong.'' Statewide business tax collections were $195 million less than expected for the three-month period ended June 30, the state comptroller's office reported yesterday. The city is projecting a ``very big'' deficit for next year, and has told its agencies to save money where they can, Bloomberg said. Officials can accurately predict expenses such as salaries and debt costs, Bloomberg said. Revenue projections are more difficult, and the city uses outside sources to estimate how much it will collect, he said. The city's budget for the year that began July 1 totals $59.1 billion. Bloomberg also said he wasn't surprised that, given the economy and losses Merrill Lynch & Co. has experienced, it won't occupy World Trade Center offices. The company broke off negotiations with site developer, Silverstein Properties Inc. Merrill, the third-biggest U.S. securities firm, reported yesterday a second-quarter loss of $9.7 billion, citing credit- market writedowns. The company raised money by agreeing to sell its 20 percent stake in Bloomberg LP to the company for $4.43 billion. The mayor is founder and majority owner of Bloomberg News parent Bloomberg LP. [less]