As New York State officials and legislators pore over Governor Andrew Cuomo’s proposed budget, State Comptroller Thomas DiNapoli today released his office’s estimate of Wall Street bonuses. He says the annual forecast is in line with state and New York City budget expectations.
Cash bonuses paid to New York City securities-industry employees are forecast to rise by 8 percent, to $20 billion, for last year, driven, in part, by bonuses deferred from prior years. That’s according to DiNapoli.
Tammy Gamerman is a senior research associate with Citizens Budget Commission in New York City, a fiscal watchdog and research organization.
Republican State Senator John Bonacic, who represents Sullivan County, along with portions of Orange, Ulster, and Delaware Counties, says he is satisfied with the comptroller’s report in that the bonus estimates are in line with budget expectations.
DiNapoli, a Democrat, says the average bonus rose for 2012 – to nearly $121,900, because the bonus pool was shared among fewer workers than for 2011. Some of that bonus money could benefit the economy in the Hudson Valley. So says Jonathan Drapkin. He’s the president and CEO of Hudson Valley Pattern for Progress, a not-for-profit policy, planning, advocacy and research organization. He says those receiving Wall Street bonuses who live in the Hudson Valley might choose to spend some of those bonus dollars where they live.
Again, here’s DiNapoli.
He estimates that New York City lost more than 28,000 jobs during the financial crisis, regaining some 8,500 since, yet he says, despite downsizing in the securities industry:
DiNapoli says last fiscal year’s securities-related activities accounted for about 14 percent of the state’s tax revenues. Prior to the 2008 financial crisis, he says this percentage reached a high of about 20 percent of revenues.