New York Gov. David Paterson called for an $800 billion federal stimulus package to help the states in a letter to the incoming administration of President-elect Barack Obama released yesterday.
Paterson said $300 billion of that should go for infrastructure projects and that New York has 1,922 infrastructure projects totaling $11.7 billion that could be started within 180 days, including $3.66 billion of transportation projects.
"You have courageously proposed an ambitious economic recovery package that will help states and working families in fiscal distress while making the largest investment in our national infrastructure in generations," Paterson wrote. "Indeed, any economic recovery package must be bold enough to not only have an economic impact, but also a psychological impact."
Paterson also called for $500 billion to be used to help fund government assistance programs like Medicaid and for education block grants.
Paterson's wish list for transportation funding includes $1.83 billion for highways and bridges, $1.5 billion for the cash-strapped New York Metropolitan Transportation Authority, $220 million for bus replacement, $110 million for aviation projects, and $41 million for rail projects.
Paterson also asked for the package to include longer-term projects that could begin construction within 24 months and for funding for projects like the stalled Moynihan Station project in Manhattan and the Access to the Region's Core tunnel between Manhattan and New Jersey.
The state identified 92 wastewater infrastructure projects totaling $1.35 billion that are ready to go, Paterson said. Applications for those projects have already been submitted to the New York State Environmental Facilities Corp., which sells bonds against its clean water state revolving fund, which comprises federal and state funds.
In the area of education, New York has more than $3.6 billion of K-12 and higher-education projects that could use the stimulus funds, Paterson said.
Paterson also called for changes to the low-income housing tax credit program to make it more appealing to investors. Developers of affordable housing sell the credits to help finance their developments, but low demand has depressed the value of those credits, requiring gap financing to get projects done.
Democratic U.S. Sen. Charles Schumer said yesterday that the proposed stimulus package being drawn up by the Obama transition team and congressional leaders was expected to include $80 billion to $100 billion of additional Federal Medical Assistance Percentage funds, or FMAP, which is the federal matching program for state Medicaid programs.
The increased aid could save New York $5 billion a year over two years, Schumer said, and help it close a $13.7 billion budget gap in fiscal 2010.
