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Preparing for losses

DiNapoli estimates that the securities industry accounted for approximately $22.9 billion in New York state tax revenue, or 22% of the state’s tax collections, for the 2021-2022 fiscal year. Based on the 2022 bonus numbers, it is projected that New York City’s securities industry will generate $457 million less in state income tax revenue and $208 million less for the city compared to the previous year.

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New York City remains the capital of the US securities industry, but its share of jobs has been declining with the departure of finance roles from the city. DiNapoli estimates that 1 in 11 jobs in the city is associated with the securities industry.

Officials in New York State and New York City anticipated significant declines and have taken actions to minimize fiscal shock to their budgets in the short-term. Governor Kathy Hochul’s proposed budget (pdf) assumes a decrease of 35.6% in the securities industry for fiscal year 2023. 

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