A drop in Wall Street's profits is putting strain on the budgets of New York City and New York state, top financial officers said yesterday before the state's Financial Control Board.

Comptroller Thomas DiNapoli's office projects that city tax collections will decline by 5.9%, based on economic assumptions of national and local recessionary trends. In a report, DiNapoli said that it was "unlikely" that the securities industry would recover in the second half of 2008 to generate $7.1 billion in profits, as assumed in the city's financial plan.

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