DEP letter to FEMA outlining fund priorities for WTC recovery,

NYC 9/11 Public Portal Document

Summary of Needs

Given the available funding and designated uses of FEMA funds, we thought it made sense to outline our estimated uses of FEMA-appropriated funds. Our estimates are based on a total FEMA appropriation of $8.85 billion, which includes the $6.1 billion appropriated plus the $2.75 billion proposed supplemental appropriation. Attached to this document are schedules that provide further detail to the line items included in the chart found below.

Table 1: Uses of FEMA Appropriations

$ in millions

Total FEMA Appropriation $8,850

NYC costs Total Personal Services - Schedule 1 475 Total Other Than Personal Services - Schedule 1 1,050 NYC Revenue Loss - Table 2 650 Capital, incl DEP/DOT/OEM Replacement Infrastructure 425 Hazard Mitigation* 450 Insurance Costs 900 Increased Pension Liability __ 60 Total 4,010 * Estimated costs to NYC of hazard mitigation measures

Analysis of Needs

Immediate Needs

We estimate that September 11*^ imposed approximately $4.0 billion in costs on New York City (see Table 1 above). Of that, $1.5 billion is attributable to Personal Services and OTPS (Other Than Personal Services) costs (see attached Appendix A). Of the remainder, New York City’s most immediate need is $650 million to compensate for lost revenues (see Table 2 below).

This $650 million is but a fraction of the total tax revenue losses that the City experienced in the wake of September 11’\ The forecast for total tax revenues, as estimated by the City’s Office of Management and Budget, fell by more than $3.1 billion from August 2001 to April 2002 (detailed in Appendix B). The August 2001 forecast assumed a slow economy, but September 11’” exacerbated the downturn in New York City. Of course, in many cases it is difficult to separate the specific causes of the revenue decline, but 0MB has isolated three specific causes totaling $650 million that were clearly caused by the events of September 11*’’. Coincidentally, the $650 million happens to be the same amount as the WTC non-reimbursable costs incurred by New York City that have contributed to the City’s budget imbalance. The three specific causes of revenue loss are:

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