WTC Records Folder 0140 label, 2001

NYC 9/11 Public Portal Document

New York State Economic Recovery Plan Summary

The nation's economy has been weakening steadily over the past 15 months and prior to the events of September 11`h, was on the brink of recession. The nation's governors had taken steps over this period to prepare for the slowing economy. New York State has made record contributions to its rainy day fund, built up significant reserves and sought to control overall spending. New York City was also prepared to deal with the economic slowdown.

However, nobody was prepared to deal with the financial impact of the terrorist attacks, which have scarred our nation deeply and pushed the economy into further decline. To ensure that this economic setback is limited in its depth and duration, Congress and the President have already enacted two major funding packages -- a $4C billion emergency funding package to address the immediate response, rescue and security needs related to the terrorist attacks and a second, $15 billion package to assist the nation's airline industry. Congress has also agreed that a third major funding initiative of up to $75 billion in Federal fiscal year 2002 is necessary to further stimulate the national economy.

The first $40 billion emergency package was designed to address two primary needs: 1) to bolster the national defense, enhance national security and bring to justice the evil networks which planned and carried out the attacks; and 2) at least half of these emergency funds are specifically intended to provide for disaster recovery activities and assistance, including a down payment on costs related to redeveloping and rebuilding damaged and destroyed property and infrastructure in New York, Virginia and Pennsylvania. So far, the Federal government has released about $7 billion of the emergency funds, with just over two-thirds of the funds flowing to defense and national security functions. New York looks forward to working with Congress and the President to determine how the remaining emergency funds can be used in the most effective manner.

New York acknowledges and appreciates the Federal Government's efforts to date to fully fund the initial costs of this unprecedented attack on the nation. For the first time in history, the Federal government will provide 100 percent Federal reimburse- ment, through FEMA's Public Assistance Program, for costs related to emergency response, debris removal and for public infrastructure repair and rebuilding efforts. This assistance will cover search and rescue efforts, emergency care for victims and their families and the cost of other temporary activities and facilities necessary to stabilize the community. The program will fully fund repair to transportation infrastructure, utilities, and other public facilities, and the uninsured costs for reconstruction of destroyed buildings in the affected area.

NYC-WTC 000136761