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city’s fiscal crisis in the 197O’s. cost of the attack will be a direct and tate tax base is entirely unpredict- assist victims’ families, other fac o
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New York is likely to suffer the indirect loss of revenues,” Mr. able. tors may come into play. As insur o
most long-lasting financial effects in Barsky said. “If the city is unable to “The long term issues are clearly ance proceeds flow into the market c
officials plan to present their propos- areas like the falloff in tourism, de get full reimbursement for all of its unresolved,” said Colleen Woodell, place and construction begins, the
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als to the New York Congressional pleted personal and corporate tax cost including those lost Revenues, managing director in the public fi boost to the city’s economy may re
delegation in the next several days, revenue and a possible downward there will be difficult choices that nance department of Standard & semble what happens in cities thai
hut both Democratic and Republican spiral of real estate taxes. Mitigating have to be made.” Poor’s. suffer natural disasters. The city is
congressmen say they expect an up- factors, like the increase in construc- The Giuliani administration had The federal government has al sued a bond whose proceeds will be
hlll battle in trying to get billions tion and a successful bond issue, already asked agencies to [come up ready set aside $20 billion for recov used to rebuild businesses down
more ih aid. Congressional Republi- could staunch some losses. with $500 million in reduttions in ery efforts in New York City, north town, and yesterday it received
cans had already resisted approving But city and state officials are not anticipation of shortfalls from the ern Virginia and Pennsylvania. The billion in orders from institutiona
the initial package of $20 billion. taking any chances, and are already state, and is pressing theni for real first $10 billion will be distributed at investors, on top of the $387 milHoi
“It is a steep cliff we’re climbing; angling for ways to get the federal proposals to make cuts, officials the president’s discretion among the sold Monday to individual investors
that’s why it’s going to be critical for government to take the unusual step said. The administration is also ex three sites and the rest will be as- making it the biggest city bond salt
there to be consensus among us New of reimbursing the city not just for amining programs that can be cut signed by Congress later. And law- ever, Mr. Giuliani said.
Yorkers,” said Representative John expenses, but also for a loss of reve- and other ways to trim costs, but makers are studying the appropria The mayoral candidates have of
Sweeney, an upstate Republican who nues. There is some precedent for doesn't plan to seek layoffs for now. tion bill carefully, trying to ascertain fered their own proposals for re
is close to Gov. George E. Pataki and Washington making up lost toll reve- City officials and independent what expenses can be picked up with building the city’s financial health
helps oversee appropriations. nue after a state is hit by a natural budget analysts concede that the fu it. The Democrats, Mark Green anc
^nator Charles E. Schumer said disaster, but there is less precedent ture is uncertain. For instance, it is But New York is already asking Fernando Ferrer, have talked aboii
that the New York delegation recog- for reimbursements for corporate not yet clear whether hotel occupan- for another $20 billion that it insists creating a panel of business leader^
nized how tough it would be, but and personal tax losses. “FEMA’s cy rates, which have fallen by 40 is needed to cover losses. Among and others to come up with a detailec
added: “We will have opposition. But policy has been to not reimburse for percent to 80 percent sine e the at- them are increased pay for the fam plan, and Mr. Ferrer said yesterda;
so far the support has been over- those types of revenue losses,” Mr. tack, will remain low, along with Ilies of the dead, rebuilding the city’s that he would immediately begii
whelming. I hope and pray it stays Brecher said. other aspects of the tourist industry, office of emergency management — construction of lost office space an<
that way.” But the city plans to make the case Some losses, like the roughly $1 for $150 million — and heavily in complete construction and rehabili
As for the White House, Adam that unlike a hurricane, the terrorist million a day lost to meter revenues creased security around the city. The tation of at least 10 million squat'
Barsky, the city’s budget director, attack on the World Trade Center and parking tickets since the attack, city also may find itself with in feet of office space within two years
said the Bush administration had was really an attack on the country, will be limited in the normal course creased applications for financial “The next administration will hav
encouraged city officials to present and that therefore the federal gov- of things, once the city drops its car- help; 1,369 people applied for food to come up with a long-term plari t'
economic development plans, which ernment should take up more of the pooling regulations and reinstates al- stamps or emergency funds so far. deal with this,” said Jeffrey Sorr
he said was a stark contrast to Ger- bill. “It is very important that there ternate-side-of-the-street parking. Outside of the government aid and mer, acting executive director of th
Afld Ford’s infamous response to the be a recognition that a significant And the effect nn the city’s real es- various funds set up by the city to Financial Control Board.
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