June 1999 Issue

Hevesi Addresses Bankers Luncheon

NYC Comptroller Reports on City's Economy

By Tara J. Oolie

New York City Comptroller Alan G. Hevesi recently addressed CPAs and bankers regarding the economic state of the city at a luncheon sponsored by the NYSSCPA Cooperation with Bankers and Other Credit Grantors Committee. He said that the city's economy has exceeded expectations in the past five years, but warned that this time of economic prosperity will be short-lived if obvious precautions are not taken.

"We must develop a credible plan so that the city can weather a slowdown if and when it comes," he said.

Hevesi said the city must maintain tax cuts for businesses to keep them in New York and improve the city government's infrastructure to stop needless spending.

"Our policy should be to maintain existing bridges and roads instead of paying for new ones," he said.

Hevesi also expressed his concern about keeping the crime rate down. In the last six years, New York has dropped from sixth to 170th on the murder/crime scale for cities in America, he said. With the decreased crime rate, 34 million tourists visited New York City last year, bringing the city government substantial revenue.

"Our police force is the world's model and as a result it's impossible to get a hotel room," he said.

Hevesi described New York City as the center of the technological revolution, the real estate industry, and the financial services market. Even at that, he cautioned, New York City must prepare itself for a change of economic tide.

"Although Wall Street continues to grow at breakneck speed, it eventually must correct itself," he said.

He pointed out that equipping public schools to ensure that students develop the computer and academic skills needed to succeed in today's competitive workforce, along with continuing efforts to decrease unemployment, will help the city maintain its position as the world's economic capital.

"New York City is the place immigrants fantasize about," Hevesi said. "People who were engineers, accountants, or other types of professionals somewhere else will work in menial jobs here just so their children will be able to get an education and excel. New York City will succeed because, with the creativity and brainpower of its citizens, we will always find a solution."