New York to lose $105 billion: Trade Center disaster
By Masood Haider
NEW YORK, Oct 5: The World Trade Center disaster would cost New York City an estimated $105 billion according to figures released by the city.
The estimate includes $34 billion in property damage and up to $60 billion in economic costs, including lost jobs and lost rents.
The New York State’s budget director estimated that the state would lose $1bn to $3bn in revenues in the fiscal year that ends in April, and $2bn to $6bn in the next fiscal year, as a result of the attack on the trade center.
Almost 6,000 people who applied for unemployment benefits in the last week said it was because of the trade center disaster, bringing the total of disaster-related job losses so far to 16,747, according to the New York State Department of Labour.
The report issued by city’s Comptroller Alan Hevesi estimates that the city will lose 115,274 jobs in its current fiscal year, which ends June 30. The largest losses “28,717” will come in services, including at least 6,000 airline jobs. Sales, retail or wholesale, will also be hard hit, with job losses of more than 17,000. But the biggest chunk of lost wages “which will total almost $9.6bn” will come from a loss of Wall Street paychecks totalling $3.4bn.
Tax collections are likely to drop by $738 million this fiscal year, the report said. The biggest decline will be in hotel and sales taxes, which are forecast to fall by $338 million. The comptroller’s office had been predicting a deficit of at least $3.6bn, and that will grow if tax collections fall by an estimated $567m.
The report calculates that replacing the entire trade center complex and repairing damaged buildings nearby will cost $12bn. The Port Authority of New York and New Jersey’s losses in addition to the trade center (it owned the buildings and leased them to a private developer) are $2.4bn.
Fixing the subways will cost about $3bn, and repairing phone and electrical systems will cost $2bn. Replacing what was lost in the trade center’s stores adds another $2bn to the tab. The report estimates the value of property in and around the towers, from cars in the garages to computers, was $12bn.
There will be some money coming into the city that will help offset New Yorkers’ losses, the report notes. Families of the victims are likely to receive about $4bn from life insurance payments, while property insurance should contribute $17bn. Other kinds of insurance, covering disabled workers and interrupted business, could pay as much as $18bn, while workers’ compensation would amount to about $3bn.
