October 11, 2001
Governor seeks $54 billion in new federal recovery aid
Governor George Pataki has asked the federal government for $54 billion in new aid to rebuild downtown Manhattan, reinvigorate the state's economy, and enhance the state's security.
"We must make restoring the strength of the New York economy one of our top priorities, and, to do that, we must rebuild our nation's financial capital," the Governor said in announcing the "Rebuild NY - Renew America" plan Oct. 9.
"As we have seen throughout the entire history of our nation, when New York and its economy succeed, America and the American economy succeed."
The plan outlines requests in three areas: rescue, recovery and rebuilding; economic recovery and revitalization; and New York's homeland security.
The aid would support "essential rebuilding activities," the Governor said in a release.
These include "supporting and retaining businesses that remain in the affected area, bringing back those that have temporarily relocated, and rebuilding buildings, roads, tunnels, subways and other components of the mass transit system."
Total costs in this area are an estimated $19 billion, including more than $10 billion to replace and re-equip the World Trade Center and Hotel, the release said.
The requested aid also would:
- Create a new "Liberty Zone" in lower Manhattan, with a variety of tax benefits designed to encourage businesses to relocate there.
- Add $260 million to the state's Unemployment Insurance (UI) trust fund to cover added benefits that will be paid through Dec. 31 as a result of the disaster. UI claims caused by the disaster "are adding to the considerable after-shock the state's businesses are experiencing," the Governor said. "Without federal reimbursement of these charges, employers would be subject to unaffordable increases in UI costs," the Governor said.
- Add a similar amount to the state's workers' compensation fund to offset additional claims expected as a result of the disaster.
- Increase and accelerate federal investment in New York State transportation infrastructure projects to create jobs and facilitate recovery.
- Give New York State and New York City unrestricted aid to offset expected revenues losses caused by the economic disruption. New York State and New York City have projected revenues losses of $9 billion and $3 billion, respectively, in the next 18 months.
- Permit an investment of at least $100 million in New York State's "homeland security" efforts.