NY & NJ Governors See Tough Times Ahead

New York Governor David Patterson and New Jersey Governor Jon Corzine foresee some tough times in their respective states because of the current problems in the credit and equity markets.

They voiced their concerns on the economy, Wall Street and regulation during appearances on CNBC Monday.

Budgeting In The Wall Street Crisis

“Because 18 percent of the financial jobs in New York are emanating from Wall Street as opposed to 2 percent, which is the national average. And New York derives 20 percent of our revenues from Wall Street and the fourth quarter of the fiscal year we actually derived 30 percent of revenues from Wall Street… Right now, we are estimating that personal bonuses will be down 43 percent, which will lose us $20.7 billion and capital gains taxes are down 35 percent which will lose us $38 billion…We may need $2-2.5 billion just to close the budget deficit this year.

—Gov. David Paterson, D-NY

We have the same kinds of problems. 25 to 30 percent of our revenues generated from financial services-related kinds of activities… 275,000 jobs before the layoffs began; we’ve lost about 15,000 jobs in that process. It’s going to have a meaningful impact… What I’m really worried about is the next fiscal year.

—Gov. Jon Corzine, D-NJ

Fixing Wall Street

"We’ve almost taken for granted that there was criminality… it was such a superfluous situation that is very hard for law enforcement officials to now start to understand banks.. which is why a lot of law enforcement entities are starting to bring banking people in to help monitor these situations."

—Gov. David Paterson, D-NY

Calling For Another Stimulus

“If you look at history we always get through recessions and depressions… We need to be very thoughtful about public policy. I do believe we need another stimulus package that as Bob Doll said really focuses on stimulating investment and long-term thinking.”

—Gov. Jon Corzine, D-NJ