What’s in the Stimulus Plan for NYC?

New York’s City Council held a hearing to discuss what to do with the money the city will receive from the stimulus plan.

WHAT’S THE PLAN? Thomas White, Jr. (right), the head of the City Council`s Economic Development Committee, asks for details on how the federal stimulus package will benefit New York at a Council Meeting on Monday. Christine Lin/The Epoch Times

NEW YORK—With the stimulus package on the verge of passing in the Senate in some form or another, the City Council’s Committee on Economic Development held a hearing Monday to discuss what New York could do with the money it will receive from the plan.

Up first to testify was Jeffrey Kay, director of the Mayor’s Office of Operations. Kay fielded questions from committee members about the amount the City is expected to receive, what projects it has on the table, and how much each project might be allotted. But it soon became obvious that the specifics aren’t yet clear.

Unlike other cities, New York has not come up with a short list of projects to execute once funds are received. What the Office of Operations does have is an internal list of $5.5 billion worth of shovel-ready projects—ones that could be begun in under 180 days— that could be selected to receive funding, according to Kay. They are waiting on details regarding dollar amount, time frame, and eligibility requirements before moving forward.

The bill is expected to arrive on the President’s desk by next week after the House and Senate negotiate the contents of the package. Kay estimates that his office will have allocations sorted out the week following the bill’s signing.

The Mayor’s Suggestions

Mayor Michael Bloomberg issued a report outlining his suggestions on how to spend stimulus dollars. In “Federal Economic Recovery Bill: Priorities for the City of New York,” Bloomberg listed public infrastructure as the top priority, followed by supporting municipal budgets, credit markets, job training, and social service programs.

The City has been engaged in talks with the President’s team to encourage a few points be adopted. To make sure that the funds be absorbed into the economy as quickly as possible, the Mayor says they should be provided directly to local governments. For maximum flexibility, he proposes that monies be distributed through the Community Development Block Grant (CDBG) to fund a variety of local community development programs. He also emphasized green infrastructure and accountability to make sure funds are not misappropriated.

The House’s version of the stimulus package is more favorable to States and localities than the Senate’s version, which offers $40 billion fewer in that area.

Please see “Stimulus Package May be Finalized Tuesday” for a breakdown and comparison of the two proposed stimulus packages.