NYC-WTC_000195490

NYC 9/11 Public Portal Document

FEDERAL AND STATE AGENDA

■ OVERVIEW

The Federal and State agenda for 2002-05 is designed to control the growth of costly mandated programs and produce savings for the City and State governments. In total, this program saves the City $150 million annually At for 2002-05. In addition, the City expects to receive $75 million of 1996 State Clean Water/Clean Air Bond Act ft: funds in 2002 as reimbursement for costs associated with the closure of the Fresh Kills landfill in Staten Island.

FEDERAL OVERVIEW

New York City continues to send more tax dollars to Washington than it receives in Federal spending. According to “The Federal Budget and the States,” a report released annually by the John F. Kennedy School of Government at llarvard University, in 1999 New York State's balance of payments deficit with Washington was estimated to be approximately $16 billion, with New York City the source Of (half of that deficit. With the Federal budget surplus expected to grow to almost $900 billion by Federal Fiscal Year 2011, the Federal government must address this imbalance. ' i \

i The City’s request for fairness in Federal spending focuses on three main proposals: full reimbursement for the protection of government officials and foreign dignitaries, an increased Federal share of Medicaid for children and funding for emerging public health crises. ' I® Full Reimbursementfor the Protection of Government Officials atvi Foreign Dignitaries

I The City takes extraordinary security measures for the protection of foreign missions and officials year-round, including such events as the 55'“ General Assembly of the United Nations and the Millenium Summit of Heads of State and Heads of Government, which were both held in New York City in September 2000. Thousands of heads of state and dignitaries from around the world were in New York City for these events, costing the City an it? estimated $26 million for added security and logistical support. Although the State Department reimburses the City a miniihal amount for police overtime, there are numerous other costs associated with these security activities for which the City should be reimbursed. For example, the State Department fails to reimburse the City for I Emergency; Medical Services personnel arid equipment, even when they are requested by the Secret Service. Furthermore, the City bears additional costs for security measures provided by the Fire Departmenl, the Department of Transportation and the Departnient of Sanitation that are not reimbursed by the Federal government. The distinctions made by the State Departmertt when denying reimbursement do not reflect the actual cost to New York City Of providing extraordinary security in connection with international events.

Increase in Medicaid Funding for Children

New York City, which has 67 percent of the statewide population of children who are on Medicaid, will spend more than $500 million on this prograin to cover children this year. In addition, the City has undertaken HealthStat, which is a comprehensive Outreach and education program to enroll children and families in health care insurance plans. The City is seeking fiscal i/elief from the Federal government in the form of an increased Federal Medical Assistance Percentage (FMAP) for children. The City urges Congress to increase the FMAP rate for children in tt New York City from 50 percent, the statutory floor under Federal law, to 55 percent. City savings in 2002 are ■estimated at $48 million, assuming an effective date of October 1,2001. Full annual savings rise to $60 million in 2003. This initiative would complement the extremely successful Child Health Plus program in New York State and would help to rectify the City’s relatively low matching percentage compared to other states where the FMAP averages 61 percent. !

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