WTC Records Folder 0140 label, 2001

NYC 9/11 Public Portal Document

GOVERNOR PATAKI PROPOSES "REBUILD NY-RENEW AMERICA" PLAN TO HE.. Page 4 of 7

Accelerated Depreciation, Expanded Business Expense Deduction and Shortened Amortization for Business Expenses; Federally-Backed Sales Tax Exemption Investment Tax Credits for Equipment, Security Systems and Smart Buildings Technology Enhancements and; Resident Refundable Credit for Those Who Remain and Live in the Area.

Supporting Families and Dislocated Workers

The events of September 11th significantly exacerbated an economic slowdown that was already occurring nationwide. Tens of thousands of individuals are or soon will be unemployed, either as a direct result of the attacks or as an indirect result of its impact on the overall economy.

Nearly 377,000 workers in New York were impacted by the attacks, a number roughly equivalent to the population of the entire City of Atlanta. Almost 1,300 businesses were directly impacted. The President's proposals to extend unemployment benefits nationwide, provide grants for health insurance coverage, income supplementation and job training, and to provide assistance in accessing existing job search and training services will significantly mitigate this problem.

Under the Governor's plan, New York is also seeking Federal assistance to address the immediate needs of these workers including:

100 percent reimbursement for COBRA premiums: These grants would be provided to affected workers to cover COBRA continuation health coverage premiums for workers displaced as a direct result of the attacks. This would be an important step in providing financial stability for individuals displaced from their jobs as a result of the attacks. Under COBRA (the Consolidated Omnibus Budget Reconciliation Act of 1985), dislocated workers and their families can maintain their health coverage for a certain time period, but the cost is borne by the employee.

Support of the Unemployment Insurance Trust Fund: As a result of the terrorist attacks there are thousands more claims for unemployment insurance benefits than would normally be seen at this time of year. These claims are straining the Unemployment Insurance (UI) Trust Fund and, in turn, adding to the considerable after-shock the State's businesses are experiencing. The UI Trust Fund needs an immediate infusion of $260 million to cover the cost of unemployment insurance benefits that will be paid through December 31, to the thousands of workers who have lost their jobs due to the attack. Without Federal reimbursement of these changes, employers would be subject to unaffordable increases in UI costs. In addition, it is critical that the Federal Government act to provide extended Unemployment Insurance benefits beyond the 26 week period provided for under normal UI, and that it funds such benefits out of the Federal budget.

Workers' Compensation: A similar increase in workers compensation rates is also likely to be triggered due to payments made in relation to the terrorist attacks. New York State has made tremendous strides in lowering employer's workers compensation rates over the past several years, and the Federal Government should make special accommodations to prevent any increases in these rates due to the terrorist attacks. As the impact of the crisis ripples throughout the State, the amount of Federal funding will need to be increased to accommodate employers who provided services, products or otherwise relied on business activity generated in the immediate disaster area.

Disaster Unemployment Assistance Program: New York requests assurances that the Federal

http://a.www.state.ny.us/governor/press/yearO l /oct9_1 _01.htm 10/11/01 NYC-WTC 000136740