WTC Records Folder 0139 label, 2001

NYC 9/11 Public Portal Document NOU 3z 2001 5:52 PM FR EDC/ECO&SNGY ANALYS 518 8858 TO 7593251518877037 P.06

• The secuudties industry, which accounts for 25% of state tax revenues, estimates a 75% decline in profrs for 2001. 15,000 jobs have been lost. • Of the 19,000 Wall Street area jobs that have left the City, 7,000 are considered at risk for not returning. These jobs support as many as 30,000 support service jobs that may also be at risk. • Visitor spending in NYC dropped by $357.2 million from Sept. 11- Nov. 4, with an estimated loss of $66.1 million in city, state and federal taxes from tourism alone, • Attendance at arts and cultural amractions was down by 40%. 61 arts organizations reported combined lost revenues of $18 million in September alone. • The NYC Partnership report forecasts at least $83 billion in losses from the attack, of wluch $16 billion will not be covered by insurance or federal assistance. They project a $39 billion loss in output to the economy.

Overall, the State Division of Budget estimates the State may face direct and indirect revenue losses as high as $9 billion in the next 18 month,; the City may face revenue losses of about $3 billion in the same period. These revenue losses represent only the taxable percentage of the much greater total loss that is borne by the businesses and families of the City and State_

Spending Plan for Business Recovery and Economic Revitalization

As Governor Pataki's designated lead agency for coordinating business recovery, Empire Start Development (ESD) has developed the following spending plan for the funds ($700 Million) appropriated to New York State through HUD for economic recovery and revitalization. As the above section demonstrates, the magnitude of economic damage, lose and need, far exceeds this appropriation. To respond appropriately where damage and loss so greatly exceed resources, ESD has incorporated three guiding principles in the proposal• I. target assistance with greatest impact for overall economic recovery 2. retain program flexibility to deliver assistance in the most timely and effective manner possible 3. provide administrative coordination to integrate the various federal, stare, city, community and private business assistance efforts, reducing the likelihood of duplication and enhancing the value of combined resources

ESD has identified the following areas of business assistance as key components of a comprehensive recovery and economic revitalization approach. • Damage: compensation • Dislocation assistance/retention incentives • Business replacement/attraction • Economic revitalization - marketing/tourism/public services • Infrastructure rebuilding • Administration

Damage compensation Damage to business from the World Trade Center attacks includes both physical damage to property, and economic injury from lost business. Physical damage is limited to the directly impacted area of lower Manhattan including tenants of the World Trade and World Financial Centers, as well as buildings sn the blocks immediately surrounding the Centers, which, while still

NYC-WTC 000136551