Monday, January 07, 2008

Bad times ahead

In what is probably its most alarming forecast in recent memory, the city’s Independent Budget Office today projected a $3.1 billion budget deficit in the 2009 fiscal year, rising to $4.6 billion in 2010 and $6.3 billion in 2011 — largely as as result of the weakening in the housing market and higher labor costs. The office warned that the “the city’s fiscal picture could become even darker” if Wall Street’s economic woes worsen or if the housing market, which in Manhattan has remained strong, further declines.

I seem to recall that Mayor Beame got hit by this problem - Lindsay was in office and everything was peachy, but by the time he was sworn in the city was on its way to bankrupcy.


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