New York State Comptroller Thomas P. DiNapoli warned of the loss of 225,000 private sector jobs and New York City Comptroller William C. Thompson Jr. warned of a Wall Street bonus pool decline of 50% at a December 11th breakfast gathering sponsored by BALCONY, the Business and Labor Coalition of New York. The gathering, organized by BALCONY Director Lou Gordon, occurred at the Financial District headquarters of the United Federation of Teachers and was attended by more than two hundred business and labor leaders.

BALCONY Co-Chair Bruce Ventimiglia, Chairman of Saratoga Capital Management, introduced Comptroller Di Napoli, describing him as “exemplifying what a great public official should be, competent and alert to help all New Yorkers.” DiNapoli said that the comptroller position was a great training ground for executive positions like city mayor. He then paused and gestured to Comptroller Thompson on the dais. There was general laughter among the audience, most of whom were well aware that Thompson had just announced his candidacy to replace Mayor Bloomberg the day before.

Then DiNapoli turned serious and described the financial crisis that New York is facing because of the “Wall Street meltdown.” He warned that spending cutbacks in the state budget would spare no sacred cows, because anticipated job losses would mean that the state and city would lose up to $30 billion in revenues over the next three years. DiNapoli foresaw 225,000 job losses in the private sector, a number that could increase because of the multiplier effect. Just as financial sector prosperity creates many new jobs in other sectors of the workforce, so too does a financial sector decline mean layoffs for many of these ancillary positions.

DiNapoli also mentioned the proposed auto industry bailout, stating that it would help western New York as well as Michigan and Ohio, because the Buffalo area economy is highly dependent on small businesses that serve the auto manufacturing giants. 230,000 New Yorkers work in the automotive sector, receiving wages and benefits totaling $12 billion annually. Finally, DiNapoli warned that an anticipated federal stimulus package will help, but will not supplant the state’s efforts to overcome the structural budget gap that has existed in New York State for many years.

After DiNapoli concluded, UFT CEO Michael Mulgrew welcomed the audience to the forum. BALCONY Co-Chair Alan Lubin, the Executive Vice-President of the New York State United Teachers, introduced City Comptroller Thompson. Lubin said “I have known and worked with Bill for over thirty years, and he’s been a great steward for the finances of New York City.”

Comptroller Thompson characterized the current financial crisis as “the worst economic downturn since 1929” and ruefully stated that “we’ve learned more about the credit markets over the last few months than we ever wanted to.” Thompson assessed the likely damage to the five boroughs, referring to a report that his office has prepared, “The State of New York City’s Economy and Finances” (www.comptroller.nyc.gov). According to the analysis, 46,000 financial sector jobs will be lost, and 60,000 additional jobs that service the financial industry are also at risk. For each $1 billion drop in Wall Street bonuses, the city loses $20 million in personal income tax revenue. As the predicted 2008 slash of Wall Street bonuses nears 50%, this means that city and state revenues will also diminish. Thompson blamed this crisis on “an oversight failure of the banking industry by the federal government, especially great after the SEC made changes in 2004 that allowed banks to operate with a 30 to 1 debt to assets ratio.”

Thompson did sound one optimistic note. “If we ever needed a new president who understands the problems of cities, now is the time, and President-Elect Barack Obama is one fresh ray of hope.” He noted that Obama is proposing the largest public works project since the Interstate Transportation System in the 1950s. Thompson also believes that modification of at risk mortgages is a further critical key to recovery, and that the federal government should do this, as the problem crosses all state boundaries.

On a local level, Comptroller Thompson called for the reinstatement of the commuter tax and a new weight-based vehicular registration fee, the latter being part of his solution to the looming MTA crisis. He also pointed to the new Moynihan Penn Station as an example of a good infrastructure investment.

Both DiNapoli and Thompson stayed for a vigorous question and answer session, and both sang praises to BALCONY and its co-sponsors – UnitedHealthcare, TIAA-CREF, First American Title Insurance of New York, Saratoga Capital Management, New York State United Teachers, Emblem Health, and the Marwood Group. DiNapoli specifically welcomed the participation of the unique BALCONY coalition, asking that BALCONY serve as a key player in generating innovative new approaches to the upcoming financial difficulties. Thompson said that he had watched BALCONY grow over its three year history with great satisfaction.

The BALCONY coalition was well represented at the forum. Representatives included AARP, Autism United, BECATECH, the New York State AFL-CIO, Central Labor Council of the City of New York, Captain Consultants, Community Healthcare Network, CSEA, CWA 1180, First American Title Insurance of New York, the Fiscal Policy Institute, the Greater New York Chamber of Commerce, Local 46 Labor Management Cooperative Trust, the Marwood Group, M. D. Sass, the Medicare Rights Center, the National Center for the Study of Collective Bargaining in Higher Education and the Professions, the Public Employees Federation, the RWDSU, the South Bronx Board of Trade, Suggs Media, TIAA-CREF, Timberline Capital, Topdot Mortgage, UnitedHealthcare, and the Workforce Development Institute.

For further information on BALCONY, call (212) 219-7777.