It’s hard to believe they couldn’t have seen this coming:

Mayor Bloomberg’s proposed budget for next year appeared balanced just two months ago, but the city’s Independent Budget Office says the latest economic indicators show it’s now $1.4 billion in the red. IBO director Ronnie Lowenstein says it’s due to a precipitous slide in tax revenues and a deteriorating economy.

From the assignment desk: Square with “City’s massive budget gap hits $23.8B, service cuts, tax hikes likely” (3/18/09).