New York To Receive $31 Billion In Recovery Act Funds
Governor David A. Paterson today announced that New York will receive at least $31 billion in American Recovery and Reinvestment Act (ARRA) funds, part of $420 billion that will be appropriated to states and other recipients over the length of the federal stimulus program.
The Economic Recovery and Reinvestment Cabinet released the total in a report to the Governor on the use of stimulus funds in the State. It also noted that New York continues to apply for some of the $44 billion in additional funding available through competitive grants, which may increase the final allocation.
“Since President Obama and Congress authorized the American Recovery and Reinvestment Act last February, I have dedicated the full resources of the Governor’s office to maximizing our share of federal stimulus money. Thus far, we have spent the funds wisely and judiciously, and we will continue to do so,” Governor Paterson said. “Getting New Yorkers back to work is my number one priority, and we will use this money to redouble our efforts to create jobs and put our State on the road to fiscal recovery.”
As determined by Congress, the stimulus funds awarded to New York are distributed through three categories:
Infrastructure: New York will receive $3 billion for infrastructure projects, including $2.4 billion for transportation and about $571 million for clean water, drinking water and wastewater projects.
Aid to States and Localities: New York will receive $16 billion to support the State and county governments and school districts, including $11.1 billion for Medicaid and about $4.8 billion for education.
Aid to Individuals: New York will receive $6.7 billion in payments to individuals, including $3.9 billion in increased unemployment insurance, $1.3 billion in increased food stamps, $845 million in increased Social Security and Supplemental Security Income payments and $653 million in increased Pell grants to college students.
The remaining $5 billion targets a variety of projects, including housing, job training, health, energy and public safety.
The full report is available at: http://www.recovery.ny.gov/assets/documents/StimCabReport120409.pdf. A breakdown of the total stimulus funds is available at: http://recovery.ny.gov/DirectAid/aidnewyork.htm.
New York’s benefit from the ARRA funds exceeds the $31 billion tallied thus far, as the sum does not reflect the federal tax breaks for businesses and individuals. Estimates are not available for the impact on businesses, but individual New Yorkers will benefit from about $9 billion in reduced federal income tax withholding. Also, federal agencies have committed to spend at least $500 million directly in New York State.
Congress designated stimulus funds for many different programs with various specified purposes and rules. The Economic Recovery and Reinvestment Cabinet, State agencies and municipalities have been very successful in moving stimulus funds into our economy:
Highways and Bridges: The Governor’s Office has approved projects totaling effectively all of the total $1.12 billion allocated to New York. Projects worth $1.067 billion, or 95 percent, have been approved by the federal government and put out to bid. Work has started on 64 percent of the projects worth 60 percent of the funds.
New York and other northern states have a disadvantage compared to southern states in that outdoor construction has to stop for the winter. But all the projects will be approved by the federal government and all contracts will be in place so that work can start as soon as the weather permits next year, which is usually in April.
Mass Transit: The Metropolitan Transportation Authority (MTA) received $915 million in stimulus funds. Contracts have been signed for work covering 89 percent of the total and work has begun on 28 of the 30 contracts.
Housing: Governor Paterson played a key role in urging the federal government to allocate ARRA funds for Tax Credit Assistance Program (TCAP) funds, which will help jump start projects that had been stalled by the effects of the economic downturn. New York has awarded all of the $253 million in TCAP funds provided in ARRA. These awards will:
o Save 51 stalled affordable housing developments. Construction has already begun on 26 of these projects;
o Help to create or rehabilitate 4,734 units of affordable housing; and
o Generate $1 billion in direct economic activity (total development costs).
Weatherization: New York State will administer $394 million in Weatherization Assistance Program (WAP) funds. Contract agreements with some grantees were delayed due to new program requirements that prevailing wage be paid. Prevailing wage classifications for WAP workers were established by US DOL in September. Since then 66 of 67 contracts have been signed. A total of $48.2 million in funds has been expended.
Job Training: The State Labor Department received $169 million in Workers Investment Act (WIA) funding, of which $157 million has been obligated. There were 18,408 participants in training at the local level during the period from May through the end of August. In addition, $24.8 million of State WIA funds have been awarded in 218 contracts that will train more than 15,000 workers.
Clean Water: New York’s total award of $432 million for clean water has been distributed to 88 projects with total costs exceeding $610 million. The costs above the available stimulus funds will be financed through low-cost loans from the Clean Water State Revolving Fund. A substantial portion of the money is going to “green” projects designed to reduce the operating costs of water treatment plants.
“We are determined to ensure that all stimulus funds are committed to projects by the deadlines, so that New York does not lose money to other states. Indeed, all agencies managing stimulus funds have extra projects ready should more funds become available if other states do not meet the deadlines and lose some of their funds or from bid savings,” Governor Paterson said.
Topics: American Recovery and Reinvestment Act, Congress, economic development, economic growth, economic recovery, Economic Recovery and Reinvestment Cabinet, Economy, employment, Governance, jobs, New York, recovery act, stimulus, U.S., United States
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