WTC Records Folder 0140 label, 2001

NYC 9/11 Public Portal Document

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attacks with the necessary tools to reestablish the economic vitality of the community, restore economic self-sufficiency and ensure that the New York economy does not suffer disproportionately from the events of September 11.

The proposals included in the attached documents provide illustrative examples of how the Federal government can help the State and the City recover from the attacks, recognizing that further discussions will be required.

Supporting Families and Dislocated Workers

The terrorist attacks significantly exacerbated an ongoing nationwide economic slowdown. Tens of thousands of individuals are or soon will be unemployed, either as direct result of the attacks or as an indirect result of overall economic uncertainty. New York's workforce, however, has unquestionably experienced the most severe blow. Nearly 377,000 workers were impacted by the attacks, a number roughly equivalent to the population of the entire City of Atlanta. Nearly 1,300 businesses were directly impacted. President Bush'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 severe problem.

In addition, the Federal government should recognize the extraordinary fiscal jolt that a huge influx of unemployed, injured and dislocated workers will have on the State's Unemployment Insurance Trust Fund and workers compensation programs. Every effort should be made by the Federal government to ensure that the employers in states most directly impacted by the terrorist attacks are not subject to unnecessary increases in unemployment taxes or hikes in workers compensation rates due to the claims paid as a result of the terrorist attacks.

Providing Economic Restitution and Regenerating the State and City Economies

The destruction in lower Manhattan disrupted or eliminated revenue streams that support the day-to-day functions of the City and the State. The City and the State could experience combined revenue losses of as much as $12 billion over the next 18 months and both will require some form of unrestricted Federal aid to maintain vital public services. A combination of unrestricted aid in conjunction with changes in Federal formula allocations to the State, such as a temporary increase in the State's Federal Medical Assistance Percentage (FMAP) from 50 percent to 60 percent, are among the approaches which we ask the President and Congress to consider.

It is the intent of the City and the State to maintain the level of vital public services that existed prior to September 1 as required under State and City statutes, while also addressing the extraordinary needs in the wake of the terrorist attacks. The State believes that tax increases or providing further stress on the unemployment insurance system through worker layoffs is counterproductive at this point in time.

NYC-WTC 000136763