NYC 9/11 Public Portal Document
ECONOMIC RESTITUTION
The destruction in lower Manhattan disrupted or eliminated revenue streams that
support the day-to-day functions of the City and the State. Coupled with the
extraordinary demand for immediate new expenditures related to the disaster response,
the City is facing a cash flow shortfall in the immediate near term, and the State may
reach that point as well.
➢ It is the intent of the City and the State to maintain the level of vital public
services that existed prior to September 11"' as required under State and
City statutes, while also addressing the extraordinary needs in the wake of
the terrorist attacks.
> The State believes that tax increases or providing further stress on the
unemployment insurance system is counterproductive at this time.
> The financial services industry, which was most directly and profoundly
impacted by the attacks, is by far the most important industry to the State
and the City in terms of generating taxable incomes for both individuals and
corporations, and is one of the primary engines which drives the national
economy.
Our analysis indicates that the State could experience significant direct and indirect
revenue losses stemming from the attack. We continue to gather the hard data
necessary to this analysis but even under the most optimistic assumptions, the loss to
both the State and the City will be extraordinary absent some form of unrestricted
Federal economic aid. This aid will likely be needed very quickly and over a period of
years to allow the City and State to maintain vital services.
C:\windows\TEMP\4-point stimulus plan.doc q3
NYC-WTC 000136708
OCR can misread numbers and units. Confirm readings against the page image before using them.