ALBANY – Gov. Paterson warned yesterday that year-end Wall Street bonuses would likely plummet this year because of the subprime-mortgage crisis and the overall weakening of the state economy, costing fiscally hard-pressed New York state $700 million in revenue.
Yet, the seemingly exasperated governor said, the state’s political leaders don’t seem to appreciate how serious a problem New York faces because of deteriorating economic conditions.
Paterson, who has repeatedly warned that the state faces $20 billion or more in projected deficits over the next three years, said he was especially worried that corporate-tax revenues from New York City “are falling and falling at a frightening pace.”
Wall Street bonuses, which jumped last year, were projected at “a negative 20 percent,” Paterson said, adding that the state loses about $350 million in tax revenue for every 10 percent drop in bonuses.