[Congressional Record (Bound Edition), Volume 149 (2003), Part 6]
[Extensions of Remarks]
[Page 7620]
[From the U.S. Government Publishing Office, www.gpo.gov]




                   LET'S COMPLETE NEW YORK'S RECOVERY

                                 ______
                                 

                        HON. CAROLYN B. MALONEY

                              of new york

                    in the house of representatives

                       Wednesday, March 26, 2003

  Mrs. MALONEY. Mr. Speaker, with the Nation at war, our first thoughts 
today are with American servicemen and women . . . that they get home 
quickly and safely, and that Iraq is liberated with as little tragedy 
as possible.
  This week the President asked Congress to authorize $75 billion 
mostly to cover war operations, with reports that he will request an 
additional $70 billion more to help Iraq rebuild. I am supporting these 
funds and understand the President's commitment to rebuild Iraq.
  We are here today with a similar message about New York. Mr. 
President, New York's recovery is not yet complete. Billion dollar 
losses from the attacks remain unaddressed. Like our commitment to 
rebuild Iraq, we should also commit to New York's full recovery. To be 
sure, New York is grateful for the initial aid received.
  Those funds--part of the $16 to $20 billion in initial federal aid--
helped tremendously with the material recovery efforts, costs for 
overtime to rescue workers, and additional costs of the emergency 
response.
  But the wider economic impacts of 9/11 were not small ripples, they 
were crushing aftershocks.
  Total costs from the disaster are estimated as high as $95 billion, 
with only about $40 billion in estimated insurance payments, and under 
$20 billion in federal aid. That leaves a big gap of remaining needs.
  The largest losses still unaddressed are direct tax revenue losses to 
New York City and State estimated at $8.8 billion for just 2 years.
  And we are not alone in making this point . . . The non-partisan 
investigative branch of Congress--the General Accounting Office--has 
confirmed that this estimate from New York budget offices is reasonably 
approximate.
  New York shared the pain of the national recession, but in all 
reality, the Nation never experienced the full magnitude of 9/11's 
economic impacts.
  If some people think we're asking too much, just think what New York 
has already suffered: Fully HALF of almost 200,000 jobs lost in the 
last two years can be traced to 9/11's impacts, according to the Fiscal 
Policy Institute.
  Largely because of the massive budget shortfalls from 9/11, the city 
has already cut more than $71 million in child care aid programs, and 
over $25 million for HIV prevention programs, infant mortality 
reduction programs, libraries, and other community needs.
  $2.7 billion in service cuts are planned for 2003, with multiple 
firehouse closures and thousand person headcount reductions projected 
for police and fire departments in 2004.
  Now, because New York is almost universally recognized as target #1 
for future terrorist attempts, the Mayor and Police Commissioner have 
implemented Operation Atlas at a cost of $5 million per WEEK.
  While Mayor Bloomberg asks the President for $900 million to help, 
he's slated to get only about $30 million.
  New York's fighting the front lines of terrorism, but its hands are 
tied by limited federal support and billions lost from 9/11's economic 
impacts.
  That's why we are announcing the introduction today of the ``Whatever 
It Takes To Rebuild Act of 2003'' named after the President's decisive 
pledge after 9/11 to do ``whatever it takes'' to help New York recover.
  The bill would authorize the President to provide $8.8 billion to New 
York City and State for lost tax revenues or an amount that he 
determines is needed to fill the gap created by the 9/11 terrorist 
attacks.
  It would also remove the $5 million cap on federal aid for lost tax 
revenues following major disasters. This arbitrary cap was added by the 
Disaster Mitigation Act of 2000.
  Additionally, the bill makes State Governments eligible for this 
assistance.
  And finally it authorizes grants for lost tax revenues following a 
future terrorist attack.
  There may be no precedent for the scale of aid we're requesting, but 
there was no precedent for 9/11, or its vast economic impacts.
  There is, however, plenty of precedent for federal assistance with 
lost tax revenues after other national disasters.
  For instance, the U.S. Virgin Islands received $90 million dollars 
after Hurricane Hugo for losses to its revenue base. This may be 
smaller in scale than aid for 9/11, but so too were the economic 
impacts from that hurricane.
  This is an issue vital to New York's future. We need the Governor to 
speak up in support of this bill, and to call on the President for the 
administration's support as well.
  The Governor finally recognized that the Bush plan for homeland 
security funds would hurt New York, now we need him to stand up for New 
York on the issue of full recovery from 9/11.

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