New York City Grappling with Fiscal Aftermath of Attacks. (News Briefs).

* A report by the New York City Comptroller estimates that the September 11 terrorist attacks could cost the city's economy between $90 billion and $105 billion, including $1.3 billion in taxes and other revenues through fiscal year 2003. To account for these losses, Mayor Rudolph Giuliani adjusted revenue expectations for fiscal year 2002 by $1 billion--from $22 billion to $21 billion. Still, the mayor says the city has faced much more difficult fiscal crises and that it will neither raise taxes nor dip into $545 million in general fund reserves to balance the budget. Instead, officials say the city would sell assets or privatize operations if necessary. One panel suggests that the short-term impact of the attacks will be worse than the long-term impact. Immediate disaster relief expenditures are estimated at $11.4 billion, much of which is expected to come from the $20 billion in federal disaster relief passed immediately after the attacks. The munic ipal market responded favorably to the city's first debt issue following the attacks, gobbling up the $1 billion in 12-month recovery notes in record pace and at competitive rates. The city expects to save $147 million in fiscal 2002 from lower than expected market interest rates on debt issues and refundings. (Source: The Bond Buyer, October 3, 5, 10, 19.)