WTC Records Folder 0124 Clippings label, Sept 2001

NYC 9/11 Public Portal Document = =6ç THE COST Assessing Financial Damages The New York City Comptroller's Office has released a preliminary report estimating the impact of the World Trade Center altack on the economy of New York City. In billions of dollars 22S90:1053 • TOTAL ESTIMATED LOSS.EE?:. •Capital Loss • PROPERTY LOSS AND DAMAGE Replacement of buildings in trade center complex Repair or replacement of buildings around compiex Port Authority (losses separate from complex)...... Metropolitan Transportation Authorily AT&T, Verizon and Con Ed...... Retail-space inventory and fixtures-. Technology losses at securilies firms in ihe trade center '. Technology losses al other companies Business fixtures • HUMAN CAPITAL (LIVES LOST)* - 6.7 12.0 2.4 3.0 2.0 2.0 3.2 0.5 2.5 11.0 Continuing Economic Costs • FROPERTY CLEANUP/RESCUE/POLICING Already spent on cleanup Additional budget for cleanup Private spending for cleanup Police and fire overtime Police and fire equipment, road reconstruction and school aid 1.0 .'5.0 1.0 3.6 3.6 • HUMAN DISABILITY AND TRAUMA Leave from work Medical cost …...... Pain and suffering 1.2 0.7 0.8 • BUSINESS INTERRUPTION AND LIABILITY LOSSES First four days Next four weeks 'Next nine months 1.8 4.9 14.2 Losses due to jobs relocated out of the city: Rents and wages this year Rents and wages next year 4.0 3.0-18.0 *Based on the average income and expected working lives of the dead. The New York Tlmes THE NEW YORK TIMES, FRIDAY, OCTOBER 5, 2001 1g#BI1 THEECONOMY City Says the Attack Could Cost $105 Billion By LESLIE EATON for unemployment benefits in the budget, as required by law, Mr. Hev- City, Comptroller Alan G. Hevesi last week' said, it was because of the esi said. But the next fiscal year may issued the first official estimate yes- trade center disaster, bringing the be more of a problem. The comptrol- terday of how much the World Trade total of disaster-related job losses so ler's office had been predicting. a Center disaster will cost New York- far to 16,747, according to the New deficit of at least $3.6 billion, and that ers, and the number is a shocker: as York State Department of Labor. will grow if tax collections fall by an much as $105 billion over the next The Hevesi report estimates that estimated $567 million. the city will lose 115,274 jobs in its The report calculates that replac- The estimate includes $34 billion in property damage and up to $60 bil- lion in economic costs, Including lost jobs and lost rents. The encyclopedic study calculates everything from the cost of rebuild- ing the twin towers ($6.7 billion) to revenue lost because lewer traffic tickets will be issued ($82 mition). While the comptroller's office is widely respected for its economic forecasts, it is clearly in the city's interest to make the total as big as possible so that officials can ask for increased federal aid. Mr. Hevesi urged them to do so, saying, "We current fiscal year, which ends June ing the entire trade center complex 30. The largest losses - 28,717 - will damaged bulidings come in services, including at least nearby will cost $12 billion. The Port "Sales, retail or Authority of New York and New Jer- wholesale, will also be hard hit, with sey's losses in addition to the trade job losses of more than 17,000. center (it owned the buildings and But the biggest chunk of lost wages leased them to a private developer) - which will total almost $9.6 billion will come from a loss of Wall Street paychecks totaling $3.4 billion. One of the report's most contro- versial figures may be its estimate of the loss of "human capital," $1l bil- lion. "It is impossible to put a real value on a human life and the pain of losing a loved one," Mr. Hevesi said. But Mr. Hevesi noted that econo- The report was issued as Gov. mists "ascribe value to human life" George E. Pataki's budget director by calculating how much people estimated that the stare would lose might earn in their working years. $1 billion to $3 billion in revenues in • Economists in his office assumed the fiscal year that ends in April, and that about 5,600 people were killed in $2 billion to $6 billion in the. next the disaster, that they had about 20 fiscal year, as a result of the attack working years left apiece, and that on the trade center. The budget di- their average income was $100,000. E.'Stone, acknowl- The damage to the city's budget, edged i that those were rough esti- while serious, is not as severe as the mates: based mostly on anecdotal overall injury to the economy, Mr. The governor has promised to bal- ance this year's budget without re- sorting to layoffs or tax increases. Ms. Stone ordered state agencies in a letter yesterday to hold spending in their budgets for next year at this people who applied •Tax collections are likely to drop by $738 million this fiscal year, the report said. The biggest decline will be in hotel and sales taxes, which are forecast to fall by $338 million. Because the city has been running a small surplus, it will be able to take "manageable" steps to balance its Fixing the subways will cost about $3 billion, while repairing phone and electrical systems will cost $2 billion. Replacing what was lost in the trade center's stores adds another $2 bil- lion to the tab. The report estimates the value of property in and around the towers, from cars in the garages to computers, was $12 billion. There will be some money coming into the city that will help offset New Yorkers' losses, the report notes. Families of the victims are likely to receive about $4 billion from life insurance payments, while property insurance should contribute $17 bil- lion. Other kinds of insurance, cover- ing disabled workers and interrupted business, could pay as much as $18 billion, while workers' compensation would amount to about $3 billion. Finally, there is federal and state aid. Congress has appropriated $20 billion for recovery, but the money must be shared with Pennsylvania where hijacked planes also caused damage. "Clear- ly, given the costs," Mr. Hevesi said, "this will not be enough." 33 NYC