New York City faces $1.9 billion of budget risk through the end of fiscal 2010, which begins July 1, state Comptroller Thomas DiNapoli said last week.

A large portion of that risk stems from the Legislature, which Mayor Michael Bloomberg and the City Council are counting on to raise sales taxes by eliminating a tax exemption on clothing and footwear purchases over $110 and to close some business tax loopholes. The tax initiatives are worth an estimated $900 million.

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