NEW YORK, April 1 (Reuters) - New York City dwellers still might have to pay higher income taxes in both the city and state, as the speaker kept that option open on Tuesday when she released a report estimating revenues had again fallen.

Democratic Speaker Christine Quinn predicted that the city's tax revenues have fallen $438 million since Mayor Michael Bloomberg in January unveiled his preliminary plan for the new budget that starts on July 1.

New York City's tax revenues have sunk with Wall Street's profits, and the speaker's statement on Wednesday made no mention of the income tax increases she proposed in February.

But her spokesman would not rule out a city income tax hike, saying: "We're going to see what our options are once the state passes its budget and go from there."

The speaker is still committed to ending city income taxes for people who earn less than $45,000 a year, he added.

The speaker emphasized cuts will be needed to balance the city's budget.

"We are currently facing the worst economic environment in two generations, and without question, we will have to reduce spending," Quinn said.

In February, the speaker recommended raising income taxes just over half a percentage point to 4.25 percent on yearly income of $297,000 to $532,000. Rates would rise about three-quarters of a percentage point to 4.45 percent on income up to $1.2 million; above that level, the top rate would rise to 4.65 percent.

The state's Democratic Senate is in the midst of enacting a budget that is expected to raise income taxes by one percentage point for couples who earn $300,000 a year, and just over two percentage points for couples whose annual incomes top $500,000.