Sam Zell had another tough greeting from construction workers as he arrived at a speaking engagement in Manhattan April 7. “Whose City? Our City!” called out roughly 400 union members outside the Taj Pierre Hotel. “Whose Jobs? Our Jobs!” Recently, union workers protest whenever Zell steps up to a speakers podium in New York City. Demonstrations began after negotiations broke down last year between unions and Zell’s Equity Residential Properties Trust to build 111 luxury apartments at 500 West 23rd Street. “We are not going away,” said Bill Hohlfeld, labor-management coordinator for the Metallic Lathers Union, Local 46, which organized the protests and is carefully tracking Zell’s schedule. When Zell spoke at the Harmonie Club in Midtown Manhattan on an icy winter morning December 14, two dozens construction workers lined the sidewalks, blowing traffic whistles and chanting slogans. When Zell spoke at the New York Public Library November 4 as part of the Bloomberg Real Estate Briefing, 100 workers turned up in the rain.

At the Taj Pierre, protesters wore the jackets and hardhats of several construction unions, including Bricklayers and Allied Craftworkers, the Laborers International Union of North America, and the Ironworkers, including Local 46. Union members handed out leaflets describing Zell’s “shocking record of irresponsible practices,” including “Hazardous Buildings and Tenant Abuse at Equity Residential.” Zell had come to town to sit on a panel at New York University’s 16th annual REIT Symposium. Traded on the New York Stock Exchange, real estate investment trusts like Equity Residential include many of the largest developers in the country and have become increasingly important players in New York City, buying hundreds of existing buildings and development sites. For example, 500 West 23rd Street was a stalled development begun by local developer Shaya Boymelgreen until Equity bought the site.

Zell’s development companies have used union labor in the past. For 500 West 23rd Street, unions offered a 20 percent savings on usual union labor costs, including wages, benefits, and other work rules. But Equity Residential backed away from the deal. Non union contractors are now finishing the apartment tower, which topped off in January. Zell’s company has several other construction projects planned for the City. Local 46 has pledged to keep up pressure on the developer. Labor activists have also started a website equityresidentialwatch.info to document Equity Residential’s “record of poor conduct, tenant abuses and building safety issues.” The website is full of headlines like: “Chicago Better Business Bureau Gives an F Rating to Equity Residential,” and “Tenant Survey Results… Inadequate Security.”

WHOSE SIDE ARE YOU ON? WHO STANDS FOR THE BOTTOM 95 PERCENT OF AMERICANS?

by Bill Ayres

In case you have not noticed it, there has been an economic recovery. In the past two years the stock market has had a dramatic recovery, with the Dow-Jones Industrial average almost doubling. Corporate profits were $1.659 TRILLION in the third quarter of 2010, the highest on record and 28 percent higher than a year ago. CEO salaries are once again in the superstar category and they have just had the Bush tax cuts extended. The top five percent of earners are doing quite well and the top one percent is doing extraordinarily well.

Big business takes care of its own and so does our government. After all, the super rich are the biggest contributors to campaigns for the Republican Party and increasingly for the Democratic Party.

In the meantime, we still have almost 9 percent unemployment, almost half of which is long –term (more than six months). The real number is 15 percent when you count those working part time who want to work full time and those who have left the workforce as discouraged workers. Behind those astronomical numbers are millions of tragic stories that we all know and which many of us live. Most economists do not see those numbers dropping very soon. Why? Why do we have another jobless recovery? Why does our economy pay half of our workers pitifully low wages? Last year the median annual wage for American workers was less than $ 27,000. Try feeding and housing a family or even one person on that.

With all this business profit you would think that companies would be hiring millions of workers including ones they let go when the economy hit rock bottom. Not so! Since then almost half a million of the net jobs created were temp jobs. Why? Nearly half of all the income that the top 500 companies make these days comes from overseas. They are registered as American businesses often with familiar names but increasingly they rely on foreign investments for their profits and they often pay little or no taxes on that income.
The great breakthrough for many of them during this Great Recession is that they learned they can do more with less in America, especially less full time workers with hefty benefit packages. They laid off millions of workers at the start of the downturn and found that they can do very well with less full time workers, more part time workers and requirements that their employees perform at a higher level than ever before for the same or less money. Who stands with American workers in our time of dire need?

Obviously not big business, they do not see it in their best interest. They used to when they needed workers but now they need less and less American workers. Many of us are becoming expendable.

The federal government has not seen fit to create massive numbers of new jobs, has not invested sufficiently in green jobs and infrastructure, has not made it any easier to join a union and has not sent any of the corporate criminals to jail who created this whole financial mess that has also cost millions of additional jobs around the world.

The federal government does not stand up often enough for American workers. More and more, they stand for their high roller supporters. Whose side are they on?

In 1970 some 25 percent of American workers belonged to a union, made 20 to 25 percent more income and had much better benefits than non-union workers.

Now only about 7 percent of non-government workers are in unions and the 25 percent of government workers in unions could soon be an endangered species if ultra conservative governors with budget deficits have their way and create a climate that will strangle the unions.

Unions which used to stand for workers still do but even as they continue to be a political force for worker rights their numbers have dwindled.

So, if business does not stand for the 95 percent of us and the Democratic Party only partially supports us and labor unions continue to lose power, who stands for the vast majority of Americans who are not the super rich and the super stars?

Is there any one force that can stand up against the power of unjust globalization, multi-national corporations that do not have our best interests at heart, unpunished financial criminals and politicians that are on the take?

There is only one answer, the people, the 95 percent of us who have been left out of the action and face worse times ahead. Community organizing on a mass level among citizens across the country around common themes and goals is a daunting task but it can be done and was done during the Civil Rights Movement and the Anti-War Movement.
There are already many movements that sometimes work together on issues: hunger, poverty, health, workers rights, immigration, jobs, housing, childcare, women’s rights, civil rights, food, agriculture, nutrition, the environment and more.

All too often however, we work in silos and we do it from the top down not from the grassroots up.

It is time that we unite, agree on an agenda for real change, agree to disagree where we can not find common ground, work for bottom up change in local, state and federal government policy and law and learn to tell our story framed to reach a variety of our constituents.

We certainly have many deep disagreements but the future of our nation is at stake. Nothing less than a national movement that unites many movements and thousands of community and state based organizations will succeed.

If we truly believe that America is the land of the free and the home of the brave we must get off our couches and organize for a real economic recovery and revival. Whose side are you on?

Bill Ayres is a noted author, activist and the Executive Director of World Hunger Year, Inc. www.whyhunger.org

WSJ Reports: Saratoga Large Capitalization Growth Fund is a One-Year Category King

In the April 4, 2011 issue of the Wall Street Journal, the Saratoga Large Capitalization Growth Fund was ranked the NUMBER ONE fund out of the 821 funds in the Lipper Large-Cap Growth category for the one-year period ended 3/31/2011 based on total return.

Click here for the full report: Saratoga

New York City Construction Costs on the Rise

City’s Construction Workforce First in Wages and Benefits Among Major US Cities

After a brief respite in 2009, construction costs in New York City are back on the rise, according to a New York Building Congress review of multiple cost indices. The Building Congress review of cost data also indicates that New York City construction workers earn considerably more than their counterparts in other U.S. cities.

Recent Cost Surveys

The Building Congress reviewed a series of surveys in its analysis. Each survey estimates the percentage change in overall construction costs. The percentage increase or decrease represents the change from the start of each year or quarter to the next.

According to Engineering News-Record’s (ENR) Building Cost Index (BCI), construction costs in New York City are projected to rise 2.86 percent in the first quarter of 2011. This is in addition to a 2.68 percent increase in 2010, which came after a 0.9 percent decline in 2009. ENR uses local prices for Portland cement and lumber, the national price for structural steel, as well as local union wages, plus fringes, for carpenters, bricklayers and iron workers, to derive BCI.

A separate survey of the New York metropolitan region by Rider Levett Bucknall (RLB) finds that construction costs in the area will increase by 0.76 percent in the first quarter of 2011. According to the RLB survey – which examines much the same data as ENR but also includes estimates of bid price changes, including overhead and profit – construction costs increased 0.54 percent for all of 2010 after falling by 3.4 percent in 2009.

The rate of increase in local construction costs from 2010 through the first quarter of 2011 is roughly equivalent to the national average.

“After years of relentless cost escalation, New York City experienced a bit of a respite in 2009 as a result of the economic downturn,” said Building Congress President Richard T. Anderson. “Unfortunately, these data confirm what we suspected in our September cost report: New York has given back most of those cost declines.”

NYC Labor Costs Greater than US Competitors

In its review of labor costs for 14 different construction trades, the Building Congress found that New York City’s construction workforce earn considerably higher wage and benefit packages than their counterparts in other major U.S. cities.

Electricians, for example, earn $83.81 in wages and fringe benefits per hour in New York City, compared to $73.08 in Philadelphia, which is the second highest in terms of compensation for electricians, $67.50 in Boston, and $67.15 in Chicago, all of which are considered union towns. Houston ranks at the bottom of the cities analyzed at $22.93 per hour.

Similarly, plumbers in New York City cost $84.37 per hour in wages and benefits, followed by Boston at $68.20 and Philadelphia at $67.29. Cities that use non-union labor to a much greater extent, such as Houston ($38.29), Dallas ($14.43) and Atlanta ($41.66), all compensate their plumbing workforce at less than half the New York City rate.
Of the 14 trades analyzed, only one group in one city (Chicago painters) has a wage and benefits package that exceeds their New York counterparts.

“As any business leader can testify, New York City is an expensive place to conduct business, and the higher cost of living certainly has an impact on compensation for workers across the board,” added Mr. Anderson, “Having said that, however, the higher construction cost structure in New York City is bordering on unsustainable. While we must look carefully at all aspects of construction costs, it is hard to ignore the wide disparity in labor rates, which account for 50 to 60 percent of building expenses.”

New York City vs. Select International Cities

New York City fares well in overall construction costs when compared to London, its chief international rival. As of January, Class A office space construction reached $290 per square foot in New York, compared to $423 psf for comparable buildings in London. Similarly, the cost of multi-tenant residential construction reached $210 per square foot in the City vs. $255 per square foot in London. New York City’s costs also are lower, overall, than Tokyo and Sydney, though higher than most major Asian cities, including Beijing, Seoul and Hong Kong.

Anderson concluded, “To secure and continue New York’s position as an important economic engine locally, nationally and globally, and help jumpstart stalled projects in all five boroughs, measures to control and reduce overall costs are needed.”

For more information including charts, and to see previous Construction Outlook Updates, visit www.buildingcongress.com/outlook

DiNapoli: Wall Street Bonuses Declined in 2010

Earnings Down from Record High, but Wall Street Has Second Best Year Ever

Cash bonuses paid to New York City securities industry employees declined by nearly 8 percent to $20.8 billion in 2010, about one third less than paid out in 2007 before the financial crisis, according to an estimate released today by State Comptroller Thomas P. DiNapoli. The decline in the cash bonus pool reflects changes adopted by the industry in response to regulatory reforms, such as a shift toward deferred compensation and higher base salaries. Wall Street profits totaled $27.6 billion in 2010, which would be second only to 2009 when the industry benefited from federal bailouts and low interest rates.

Cash bonuses are down, but that’s not an indicator of a weakness on Wall Street,” DiNapoli said. “Wall Street is changing its compensation practices in response to regulatory reforms adopted in the aftermath of the greatest financial meltdown since the Great Depression. Past practices rewarded short-term gains at the expense of long-term profitability.”

“The industry’s greater emphasis on deferred compensation will hold down tax collections this year, but the State and the City will benefit in future years when taxes are paid on this deferred compensation. A more stable and less volatile securities industry is in the best interests of Wall Street, the City and the State.”

DiNapoli’s office annually releases an estimate of bonuses paid to securities industry employees who work in New York City. Bonuses paid by New York City-based firms to their employees located outside of the City (whether in domestic or international locations) are not included. DiNapoli’s estimate is based on personal income tax trends and reflects cash bonuses and deferred compensation for which taxes have been prepaid. The estimate does not include stock options that have not been realized or other forms of deferred compensation.

Last year, bonus payments extended into March and even April, well beyond the traditional bonus season. As a result, the Comptroller has revised his estimate of the growth in the 2009 bonus pool from 17 percent to 27 percent.

DiNapoli also reported that:

* The profits of the broker/dealer operations of New York Stock Exchange member firms, the traditional measure of Wall Street profitability, totaled $27.6 billion in 2010, making 2010 the second most profitable year on record after the $61.4 billion record set in 2009, which was fueled by federal bailouts, low interest rates, and proprietary trading.

* Strong Wall Street profits combined with a profitable banking sector helped drive New York City’s tax collections higher in City fiscal year 2011.

* Before the start of the financial crisis, business and personal income tax collections from Wall Street related activities accounted for up to 20 percent of New York State tax revenues, but that contribution has declined to about 13 percent in the current year. Wall Street’s contribution to the City’s budget has declined from 13 percent of City tax revenues to 7 percent.

* The member firms of the New York Stock Exchange devoted nearly 47 percent of their net revenue to compensation (e.g., salary and bonuses) in 2010, which is in line with historical shares before the financial crisis but much higher than the 2009 share.

* Although the size of the cash bonus pool has declined, overall compensation has grown. An examination of the financial statements for selected securities firms indicates that overall compensation was higher by 6 percent in 2010.

* Wages paid to workers in the securities industry in New York City during the first half of 2010 were 21.9 percent higher compared with the prior year, reflecting cash bonuses paid during the first quarter of 2010 for 2009 activities, higher base salaries, and deferred compensation that was realized during that period.

* The securities industry in New York City lost 30,700 jobs during the recession, a decline of 16 percent, or 3.5 times the rate of total job loss in New York City.

* The securities industry in New York City added 3,600 jobs between August 2010 and December 2010, and an examination of trends in employment covered by New York State unemployment insurance suggest job gains may have been even stronger during this period. The New York State Department of Labor is scheduled to release revised employment data in March 2011.

* The average cash bonus declined by 9 percent to $128,530 in 2010. The average bonus declined slightly faster than the total bonus pool because the pool was shared among slightly more workers than in 2009.

Click here for a chart showing bonuses paid from 1985-2010.

New Data shows Extreme Inequality Restrains Growth for Most New Yorkers

NYC and NYS polarization trends expose economic fault line

New York–In a report released today the Fiscal Policy Institute (FPI) documented the pronounced concentration of income growth that has occurred in New York State and New York City since 1980. The richest one percent of households increased their share of all income statewide from 10 percent in 1980 to 35 percent in 2007, while in New York City the income share going to the top one percent rose from 12 percent to 44 percent over that span. For the first time, the report compiled state income tax data to analyze trends since 1980 in income growth by various segments of the state’s population.

In the United States as a whole, income concentration was higher in 2007 than at any time since 1928, reversing the trend that prevailed through the first three decades following World War II. For those three decades, the top one percent’s share of income was stable at around 10 percent and an expanding middle class enjoyed rising living standards. Yet, this new analysis shows that as historically high as income concentration has become in the United States, it is far greater in New York State and even more pronounced in New York City.

The FPI report helps put into context the highly skewed benefits flowing to the richest one percent from the proposed extension of the Bush tax cuts agreed to last week by President Obama and the Republican Congressional leadership. Citing estimates by the highly respected nonpartisan group Citizens for Tax Justice, FPI notes that the richest one percent of New York State households—which have an average income of $2.3 million—will receive an average tax cut of $123,890 in 2011. Meanwhile, the average household in the middle fifth of the population, whose incomes average $44,161, will see their federal taxes cut by $1,500 and the poorest fifth of households, with an average income of $10,685, will get a $288 tax cut. The richest one percent—whose inflation adjusted incomes already grew 36 times as fast as the incomes of the bottom 95 percent from 1980 to 2007—will get over one-third of the entire tax cuts destined for New Yorkers.

“We’re on the verge of growing further apart when we know our economy performs best when we grow together,” noted James Parrott, FPI’s Deputy Director and Chief Economist and the principal author of the report. “There are many reasons to be concerned about New York’s extreme income concentration. Among the most pressing is that the pronounced polarization in the distribution of the rewards of economic growth is holding back the nascent recovery. Growth is stalled because our system of rewarding economic effort is out of kilter—the average worker is not paid for the productivity he or she generates and incomes flowing to those at the top are far out of proportion to what they contribute to our economy.”

Since 1990, the sharp concentration of income growth at the top in New York has been accompanied by income stagnation for those at the bottom and very slight growth for middle income households. From 1990 to 2007, Wall Street pay and the average incomes of New York State’s top five percent more than doubled and their share of total income rose from 31 to 49 percent. However,

* Real median hourly wages barely improved over this period, inching up by less than one percent over the entire period;
* Real median family income increased by less than half a percent a year;
* New York’s poverty rate was basically the same in 2007 as in 1990 (14.5 percent); and
* The average real earnings of a young (age 25-34) college-educated worker fell by 14 percent from $60,000 to $52,000.

If all groups had grown together rather than apart over the past three decades, the highest earners still would have enjoyed the biggest income gains, they just would not have seen “super-charged” income gains. And the living standards of the other 95 percent of New Yorkers would have been substantially higher.

If all income groups gained by 2.1 percent a year between 1980 and 2007—the actual annual growth after adjusting for population change—and each group maintained its 1980 income share, the average income of the bottom half would have doubled from $14,000 to $28,000. The “middle” 45 percent would have seen their average incomes rise by 43 percent, twice the growth that was realized. This would have pushed the average incomes of the “middle” 45 percent to $104,000 in 2007, instead of the $72,300 level they did reach. And the top five percent would still have seen a substantial income gain of almost $150,000, putting their incomes on average at $343,300.

In addition to benefiting families directly, this income distribution would likely have also translated into faster and more sustainable (or less volatile) overall economic growth, since a more broadly dispersed pattern of economic rewards would have boosted consumer spending and productivity-enhancing investments in higher education.

The report notes that while there is no easy set of solutions to reverse our extreme polarization, better tax policies at the Federal, State, and City level are a logical place to begin. The report is available at: http://www.fiscalpolicy.org/FPI_GrowTogetherOrPullFurtherApart_20101213.pdf

To view the full report, click here

James A. Parrott, Ph.D.
Deputy Director and Chief Economist
FISCAL POLICY INSTITUTE
11 Park Place, Suite 701
New York, NY 10007
212-721-5624
www.fiscalpolicy.org
parrott@fiscalpolicy.org

Wal-Mart Tries Again for New York City Store

RWDSU

by Elizabeth A. Harris

The New York City Council was supposed to hold a hearing this Tuesday about a renewed campaign by Wal-Mart to open its stores in the city.

But it had to be rescheduled, for January.

“We needed a bigger room,” the Council speaker, Christine C. Quinn, said. “We heard from unions all across the city, small business leaders from across the city. It’s a growing list of people.”

Wal-Mart, an inescapable part of the retail landscape just about everywhere except in New York City, twice retreated on efforts to open stores in the city after fierce community opposition.

Now it is back, and mounting an aggressive campaign to crack the country’s largest urban market. Wal-Mart is looking at properties in each of the five boroughs and has hired Mayor Michael R. Bloomberg’s former campaign manager, Bradley Tusk, to help coordinate its lobbying efforts.

Bill de Blasio, the city’s public advocate, predicted, “They’re not going to find it easy to get serious public support.”

“As you reap,” Mr. de Blasio added, “so shall you sow, and they’ve had a really bad history. You can talk to people across the spectrum and they’ve all heard something about the problems of Wal-Mart.”

The renewed push by Wal-Mart comes five years after the retailer tried to open stores in Queens and Staten Island but faced furious opposition from community leaders and elected officials. But the retailer and its supporters, and even its opponents, say that the dynamics have changed and that the city has become more receptive to so-called big-box stores, like Target and Ikea.

But perhaps the greatest difference is the economy. With the city’s unemployment rate hovering around 9 percent, any project that promises jobs might find appeal.

“This is a time when the economy is bad and a lot of my constituents are looking for jobs,” said Darryl C. Towns, a state assemblyman whose Brooklyn district includes East New York, one area Wal-Mart is considering. “We have to begin to think out of the box and look at some different opportunities.”

Wal-Mart is the country’s largest private employer, with 1.4 million workers, but it has been a constant target for labor groups who say its wages are too low and its benefits insufficient. The United States Supreme Court recently agreed to hear the nation’s biggest employment discrimination suit, which claims that Wal-Mart has discriminated against female employees in pay and promotion.

“There are some people who say, ‘Well, if Wal-Mart comes in, that means jobs,’ ” said Stuart Appelbaum, the president of the Retail, Wholesale and Department Store Union, which supported the efforts to stop Wal-Mart the last time it tried to open stores in New York. “But what it does is, it replaces good jobs with jobs that keep people in poverty.”

Other big-box stores that have gained a foothold in New York, like Costco, provide far better compensation than Wal-Mart, some labor leaders said.

And critics say Wal-Mart would also spell doom for nearby small businesses that could never compete with the giant retailer on price and selection. But some Wal-Mart supporters say protecting businesses that charge higher prices is unfair to consumers, especially when so many New Yorkers are worried about their finances.

“Competition means people have to step up and compete or it’s not going to work out,” said Steven Spinola, the president of the Real Estate Board of New York. “I don’t think government should say that we’re going to make sure people have to pay more or travel farther because we want to protect certain types of establishments.”

This time, Wal-Mart is using different tactics to make stores more palatable to neighbors.

Steven Restivo, a spokesman for Wal-Mart, said the retailer was looking at sites of all sizes, including land parcels that would accommodate stores that — by its standards — are quite small, under 30,000 square feet. Many Wal-Marts are five times that size. The company is working with a commercial real estate broker to talk to property owners.

“There is a business case to be made for our growth in large cities across the country,” Mr. Restivo said. “We know we have customers there, and we know we want to make access to our brand more convenient.”

Wal-Mart might also look to build stores in New York that are small enough to require only a willing landlord and a lease, bypassing the City Council, which must give special zoning approval to projects over 10,000 square feet. About a year ago, the Council defeated a plan, which had been supported by the mayor, to redevelop the Kingsbridge Armory in the Bronx into a major commercial complex.

This year, Wal-Mart has also expanded its pitch, promoting itself as a solution to problems beyond unemployment. Mr. Restivo said that in its hunt for real estate, the company was focusing on areas that were “underserved” both economically and in their access to fresh food. Providing more fruits and vegetables to these so-called food deserts is a crucial issue for both Mr. Bloomberg and Ms. Quinn, the council speaker.

And in an effort that is likely to anger other labor groups, Wal-Mart is working to win the support of one powerful union group, the Building and Construction Trades Council, and is negotiating a deal that would guarantee that some stores would be built by union workers.

But there is still enormous opposition, from unions, community groups and elected leaders, to the idea of a Wal-Mart rising in any city neighborhood.

One union official, Pat Purcell, an aide to the president of the UFCW Local 1500, which represents supermarket workers, said, “This is not a battle, this is a war.”

Mr. Bloomberg, who invested major political capital in trying to win support for the Kingsbridge Armory proposal, told reporters recently that he “would love to see Wal-Mart open here,” noting that many New Yorkers travel to Nassau County or New Jersey to shop at Wal-Mart.

“You’re not going to stop, and nor should you stop, people from having the opportunity to shop where they want to shop,” Mr. Bloomberg said. “The city should not be in the business of picking and choosing who is there.”

DiNAPOLI: WALL STREET PROFITS COULD TOP $19 BILLION IN 2010

Wall Street rebounded quickly from record losses in 2007 and 2008 and is on pace to earn $19 billion in 2010, according to a report released today by New York State Comptroller Thomas P. DiNapoli. While the pace of job losses has slowed, the industry is still downsizing as it adjusts to new regulatory and economic conditions. DiNapoli’s report notes that while last year’s record $61.4 billion profits are not likely to be repeated anytime soon, New York’s securities industry is still likely to record its fourth best year ever.

“Wall Street is adjusting to regulatory reforms and learning how to do business in the new financial reality,” DiNapoli said. “These actions may trim profits and cash bonuses in the near term, but they are necessary in order to encourage long-term stability and profitability. As long as other international financial centers play by similar rules, Wall Street should retain its leadership position.

“New York needs Wall Street to do well, but the securities industry is still losing jobs. The state can’t rely on a full recovery of Wall Street to resolve its budget shortfall.”

DiNapoli’s report noted that the first quarter of 2010 was among the most profitable on record ($10.3 billion), but second quarter profits were more in line with pre-crisis levels, falling to $3.8 billion. Wall Street lost a record $54 billion during 2007 and 2008, but with the help of federal bailouts the industry quickly returned to profitability. In 2009, Wall Street earned $61.4 billion – nearly three times more than in 2006.

While Wall Street’s bonus pool may decline from last year’s level, DiNapoli’s report estimates that the average cash bonus may be larger because the pool will be shared among fewer workers. DiNapoli will release his report on Wall Street bonuses early next year.

The report also found that:

* While 2010 profits could be 69 percent below last year’s extraordinary record, this year’s profits could be the fourth highest in absolute dollars and the sixth best year (in at least 30 years) on an inflation-adjusted basis;
*Wages paid to securities industry employees who work in New York City declined by 28.5 percent in 2009, the largest decline in at least 30 years. The decline reflects job losses but also a sharp drop in bonuses that were paid at the beginning of the calendar year for work performed in 2008, which registered record losses. The decline in wages paid to the securities industry accounted for nearly two thirds of the wages lost in all of New York City in 2009;
*Nearly one in six jobs lost in New York City during the recession were in the securities industry. Job losses could reach 38,000 jobs if the industry contracts by 20 percent as it did during the past two downturns. Securities firms are likely to continue restructuring as they adapt to the new federal and international regulatory environment;
*The average wage in the securities industry in New York City fell by a record 20.5 percent in 2009 to $311,330 – still 4.9 times higher than the average in the rest of the private sector ($63,650);
*The Office of the State Comptroller estimated that cash bonuses paid to security industry employees located in New York City for work performed in 2009 grew by 17 percent to $20.3 billion, following a 47 percent decline in 2008;
*Wall Street’s share of city tax revenues fell from 13 percent before the financial crisis to about 7 percent in city fiscal year 2010. Wall Street’s share of state tax revenues fell from 20 percent before the financial crisis to nearly 15 percent in State fiscal year 2009-2010;
*Household wealth in the nation fell from $65.8 trillion before the recession to $48.8 trillion in the first quarter of 2009. It has since grown to $53.5 trillion in the second quarter of 2010;
*The national delinquency rate for residential mortgages exceeded 11 percent in the first half of 2010, compared with 2 percent before the recession, and;
*Consumers are paying down debt and saving more as they repair their personal finances. The national savings rate rose to about 6 percent of disposable income in the spring of 2010 – triple the rate in the summer of 2007.

Click here to read the full report, or visit the Comptroller’s Web site at www.osc.state.ny.us.

THE SARATOGA LARGE CAPITALIZATION GROWTH FUND IS A ONE-YEAR CATEGORY KING

In the October 4, 2010 issue of the Wall Street Journal© the Saratoga Large Capitalization Growth Fund was ranked the NUMBER ONE fund out of the 839 funds in the Lipper Large-Cap Growth category for the one-year period ended 9/30/2010 based on total return:

The Saratoga Fund returned +24.4% for the one-year period ending September 30, 2010 versus the category average that returned +10.2%.

Click here for the full WSJ write-up: Saratoga