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I chaired a series of committee's hearings to help make the case for substantial direct aid to New York City once the State of New York receives their portion of the ARRA, otherwise known as the Economic Stimulus Package. My goal was also to ensure that the average New Yorker benefits, particularly the small business owner—the life blood of our City.
The current estimate is the City could receive approximately $4 to $4.5 billion in expense funding and $500 million in direct capital funding over the next several years. Each of the programs in the stimulus package has requirements about how money can be spent and how quickly it must be allocated and committed.
Relief For NY Families, Individuals
Among those that will see immediate relief will be the unemployed: more than 670,000 New Yorkers who are currently out of work will benefit from the $25 per week increase in unemployment insurance as well as the additional 33 weeks of benefits that the Federal government is looking to provide until December 31, 2009.
In addition, the bill would provide assistance for workers who have lost their health insurance by providing a nine-month 65 percent subsidy for COBRA healthcare premiums, (Under current law, eligible workers may continue to receive health coverage through a previous employer’s health plan for up to 18 months, but are responsible for 102 percent of the cost of that coverage.
The package helps return money back to working Americans by protecting an estimated 26 million middle-class families from being hit by the AMT and through the refundable Make Work Pay tax credit of up to $400 per worker ($800 per couple filing jointly).
Seniors will receive a one time $250 payment through their Social Security, SSI, Railroad Pension or Veterans pension, while low-income workers with three or more children will also get an increase in their Earned Income Tax Credit. Millions more families would now be eligible for up to $1275 from the child tax credit.
The recovery package would also help families cope with the rising cost of education expenses though an enhanced tax credit for tuition and school expenses. Families with children in college will see as much as $10,000 over four years in tax credits for higher education. (The College Tax Credit will benefit an estimated 295,000 students statewide ) Students with Pell grants - an estimated 461,816 in New York State -- will see the maximum stipends increased by $ 500. The bill also adds $300 million nationwide for work-study programs that help needy students pay for their education.
Help for the City
The recovery package will help State and local governments cope with increasing hardships and budget deficits by investing in infrastructure projects to improve roads, schools and bridges while also creating jobs. Relief will be targeted to areas that need it most to create “Recovery Zones” aiding communities in areas of high unemployment growth.
In addition to more funding for local law enforcement, state and local government will be able to bridge budge gaps with aid help in the following areas:
HOUSING- The New York City Housing Authority will receive over $290 million for long need repairs such as the elevators that have failed in so many of its buildings.
EDUCATION- New York City will get in excess of $1 billion in education money with funds for special education, Title I, state equalization funds and for school construction and modernization.
TRANSPORTATION- The metropolitan area of New York City, Northern New Jersey and Westchester will get over $800 million to fund transit projects. The state will also receive an additional $654 million for water and sewer projects, many of which will impact the City of New York.
HEALTHCARE - The package will bring nearly $2 billion in FMAP money to New York City over the next several years. Hospitals and other health care providers will also receive assistance to up grade their computer systems so that all health care providers can better use information technology and provide better health care.
Help for Businesses Large and Small
New York businesses, large and small would also receive benefits to help them grow and create new jobs. Companies would benefit from the continuation of bonus depreciation and expensing for smaller corporations. Small business will also be able to take advantage of a more liberal rule on applying operating losses to previous years' tax liability.
The job creation tax incentives include credits to hire unemployed veterans and disconnected youth. New greener jobs would also be generated with critical investments in renewable energy and energy efficiency. Workers will also see maximum tax free employer provided transit benefits increased to $230 a month, a move that will not only help offset increased transit fare increases but also encourage more people to use public transportation.
For more information and specifics on programs, projects and dollar amounts click on the links below.
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