New York City faces shortfall on Wall Street weakness

Reuters reports:

New York City expects a total budget gap of $495 million for the current and next fiscal years due to weaker profits on Wall Street than previously forecast, although funds from a legal settlement will largely fill the gap, an administration source said on Wednesday.

The tax revenue forecast for the two budget years was revised downward by $352 million, with taxes paid by the growing tech, film and television, tourism and higher education sectors not enough to offset weakness in the financial sector, the source said.

The lower revenue forecast compresses the surplus the city had expected for fiscal 2012, which ends on June 30.

When you are a city that relies on the 1%: it's hard to have a middle class.