By Dave Gatton and Nate Roman
March 18, 2002

Nearly six months after the devastating attacks on the World Trade Center, President Bush announced March 7th that his administration was keeping its promise and then some, pledging more than $21.3 billion dollars in aid to help the city of New York.

"Right after the September 11th tragedy, I made a pledge to Senator Schumer and Senator Clinton, Governor Pataki, the whole delegation, that our government would commit at least $20 billion to help rebuild New York and to take care of the tragedy that befell that magnificent city," President Bush said. His remarks were made at a Rose Garden event with members of the New York delegation, including New York Mayor Michael R. Bloomberg, Governor George E. Pataki, Senators Hillary Rohdam Clinton and Charles E. Schumer, and Representative Charles B. Rangel.

"This is the right thing to do. It is the absolute right position for our government to take. It is essential that New York City come back and come back strong for the good of the entire nation," Bush said.

Soon after the attacks on September 11th , Bush promised New York lawmakers in an Oval Office visit that he would grant the $20 billion they asked for to help rebuild Lower Manhattan. However, in the six months since 9-11, some of New York's lawmakers have expressed concern that the administration might not keep its promise to the city. But after hearing of the presidents plan to send more that $21 billion in aid to New York, many lawmakers applauded Bush for his support.

"George Bush is a man of his word, and I think today certainly demonstrated that to anybody that still had a doubt," said Mayor Bloomberg, who cautioned that restoration of the city could take more than ten years.

"Mr. President, we say thank you," said Senator Clinton, "thank you for staying with us. Thank you for translating that promise into the specifics that have been presented to us today." Senator Clinton, Mayor Bloomberg, and Rep. Rangel were all featured speakers at the U. S. Conference of Mayors 70th Annual Winter Meeting, which was held in both Washington D.C. and New York City, from January 22nd —24th.

The assistance package includes $5.5 billion in tax credits and billions more in bonding authority and insurance funding to stimulate growth in the lower part of the city; $1.8 billion for a high-tech transportation downtown; $2.75 billion in new Federal Emergency Management Association money to help pay back the city and state for their costs incurred as a result of the attacks on the world Trade Center; and $750 million for utilities to make improvements without increasing rates.

Bloomberg Visits Washington After Bush's New York Appearance

New York City Mayor Michael Bloomberg visited Washington, D.C. last week to shore up support for the City's $21.5 billion federal aid package to help the city recover from the September 11th terrorist attacks.

Meeting with reporters at the National Press Club on March 13th, Bloomberg said, "I am not here to ask for more funds." Instead the mayor said his visit was designed to report to lawmakers on the city's progress and to pledge that federal funds would be spent wisely, with good accounting and sound results.

The mayor's visit came at a time when a handful of lawmakers had begun to question the level of funding for New York City. Bloomberg met with two such potential critics, Senator Don Nickles (OK) and Representative Sonny Callahan (AL). According to press reports, the mayor received reassurances that if the city spent its money responsibly, it would continue to receive congressional support.

To make his point, the mayor indicated that the clean up at ground zero was likely to be completed at a cost of $750 million, not the projected $2 billion. And he lauded the three credit-rating agencies for recently maintaining the City's bond rating, even in the midst of a $4.7 billion budget shortfall.

The mayor pledged to solve the budget crisis without raising taxes and by borrowing as little as possible. He plans to close the gap through $1.8 billion of budget cuts, a one-time $1.5 billion bond issue, state relief, and union concessions on pension and fringe benefits.

Bloomberg specifically told reporters that federal aid would be used only in responding to the clean up and economic fall out of September 11th, not in solving the city's budget deficits. The city would resort to layoffs only as a fallback to the original deficit reduction plan.

The mayor did propose nine actions the Federal government could make to help the city recover, including more flexible use of Community Development Block Grant funding, the federalization of city sponsored public housing units, and assistance in protection of foreign dignitaries.

He said he was particularly worried about the plight of small businesses near the ground zero, such as the small flower store owner who has no customers. "The larger organizations and businesses will recover," he said, "it's the small guy we have to worry about." $700 million of federal aid has gone to the Empire State Development Corporation to assist small businesses.

Rebuilding Ground Zero

In response to questions about the rebuilding of ground zero, the mayor said such deliberations must occur in the context of recovery efforts that are still ongoing at the site. "Just yesterday we recovered thirteen bodies, eleven firefighters," he told the audience. Over 25,000 people were evacuated from the two World Trade Towers before their collapse, and not a single serious injury has occurred during the clean up of the site.

The mayor said he envisions a mixed-use site with 24/7 activity and diverse businesses to shield the lower side of Manhattan from future economic downturns. In response to questions, he said he did not see anyone building a 110 story building at the site because it would not be "economically viable."

Before going to the Hill, the mayor said, "The best days of New York City are yet to come." "Restaurants are busy, not full, but busy. Broadway is coming back, roads are opening, the subway will be rebuilt by fall, the crime rate is down compared to a year ago."

Just three weeks after taking office on January 1, 2002, Mayor Bloomberg hosted the 2002 Winter Meeting of the U.S. Conference of Mayors in New York City, where the nation's mayors pledged their support for federal aid to help rebuild the City in light of the September 11 terrorist attacks.