Printer-friendly Version

FOR IMMEDIATE RELEASE: January 22, 2009

IN THE FIRST WEEK OF THE NEW OBAMA ADMINISTRATION: SCHUMER DISCUSSES NEW OBAMA ADMINISTRATION, CONGRESS & ITS EFFECT ON UPSTATE NY; ADDRESSES PRESIDENTIAL INAUGURATION AND PRESIDENT OBAMA'S SPEECH

Schumer Outlined Issues Such as the Federal Economic Stimulus Package, Aid to New York State & Localities, Law Enforcement, Health Care, Education, And More

U.S. Senator Charles E. Schumer today discussed the new Obama Administration and the new Congress’ agenda and outlined the effect it could have on Upstate New York. Schumer said there are critical challenges ahead, including the economic and housing crisis, rising crime in Upstate cities, and ailing health care and education programs, and discussed how the Obama Administration is working to address these issues. Schumer also discussed in detail the federal economic stimulus package, one of the first priorities of the new administration and Congress. Schumer said he is pushing for direct aid to New York State and its localities to help ease budget gaps and help to stave off property taxes; as well as his push for education funding for New York State. 

“We made history on Tuesday when Barack Obama raised his right hand to take the oath of office as the first African-American president and when he laid out an ambitious agenda for change. This is the kind of change that only happens once in a generation and I am excited to get to work on an ambitious agenda that focuses on bringing government back as an ally of the middle class. President Obama is focused on making health care and college costs more affordable, improving our schools and crafting a 21^st Century energy policy.

“One of our first orders of business will be the new economic stimulus package. Everyone - from New York State, to its localities, to its families - is feeling the economic pinch right now and it’s time for the federal government to step up to the plate. We have to do something to help ease our budget gaps and stave off property tax hikes and the economic stimulus package will be just what the doctored ordered.”         

The economic downturn has strained New York State county, state and school budgets alike. While state budget concerns have been well publicized, counties have also been faced with huge budget gaps and have been forced to raise local property taxes and make severe budget cuts. At the same time, the downturn has triggered declines in tax revenue that inhibit states’ and counties’ ability to meet rising Medicaid program costs as enrollment spikes during economic hard times. Additionally, school budgets are so strained that many schools are at risk of massive teacher layoffs and programmatic cuts. New York State also has an ailing water, sewer and transportation infrastructure system that is in dire need of repair.

Schumer today said that the Obama Administration and the new Congress will work to alleviate these problems, and said that one of the first orders of business will be the new federal economic stimulus package that is currently being crafted in Congress. Schumer said the measure, which could be as large as $850 billion dollars, would include billions of dollars that would go toward alleviating the dramatic crunch facing state and local budgets. From large cities like New York City to smaller municipalities in Upstate New York, many local governments are considering or have already imposed significant property tax hikes to close historic budget gaps. Schumer said that the last thing New York homeowners can afford during these difficult times is jump in already sky high property taxes.

Schumer is pushing for funding that would be used to upgrade water, sewer and transportation infrastructure and for direct injections of aid to New York State through FMAP and investments in education. Schumer stressed, however, that this money will only alleviate but not eliminate the tough choices state and local officials have to make in order to get their fiscal houses in order. In addition to helping to prevent property tax hikes, programmatic cuts and massive teacher layoffs, this funding would create thousands of new jobs and help the state’s ailing infrastructure systems.

Schumer outlined several components of the economic stimulus package that he has made strong pushes for:

• Direct Budget Relief to the State and Localities:

Since the enactment of the Medicaid program in 1966, counties in New York State have been required to share in the costs of services. New York is one of seventeen states where local governments share with the state in Medicaid participation. New York and North Carolina are the two states where local government pays the highest percentage. Counties are mandated by the state to contribute approximately $7 billion annually or about 32 percent of the non-federal share of the State's Medicaid Program.

Schumer has called for an $80 - $100 billion temporary boost for the Federal Medical Assistance Percentage (FMAP) in the economic stimulus plan, and, under his plan, New York State counties and localities would directly receive millions in direct budget relief. Schumer's legislative provision will ensure counties receive their share of the FMAP relief for their Medicaid programs. Without this provision, the entire increase in FMAP could go to the state, providing no direct relief to the counties. Sending federal dollars directly to the counties will help stimulate local economies, creating jobs and finance the purchase of medical supplies and services that are greatly needed by Upstate New Yorkers. Numerous studies have estimated that federal Medicaid payments have a strong positive impact on state and local economies. Additionally, it will prevent already high property tax rates from skyrocketing even higher.

• Investments in Education:

Schumer outlined his push with Governor Paterson to create a new education stabilization fund that could be included in the economic stimulus package and could send billions in direct education aid to both states and localities to ease pressure on school budgets that are facing massive cuts as the economy tumbles. A flexible education block grant would provide New York State with much needed fiscal relief, and mitigate the need for cuts to vital education programs. There are many different funding mechanisms that may be included in the stimulus package to deliver money to states and localities, but said that under any of the plans, Schumer will push for New York State schools to receive billions of dollars.

• Infrastructure:

The next economic stimulus package is expected to deliver billions – hundreds of millions of which could go to New York State - of new federal dollars to upgrade infrastructure projects, including fixing deteriorating water-sewer systems, roads, highways and bridges; ailing school facilities and boosting green businesses. Schumer today said that all of the projects spurred by the next economic stimulus package should go hand in hand with environmental efforts, producing hundreds of green jobs and giving a significant boost to local green businesses. Schumer said that as the nation works to wean itself off foreign sources of energy, we must invest in domestic infrastructure that allows the country to harness domestic and renewable sources of energy – and create jobs. A new focus on building solar panels, wind farms, fuel-efficient cars, and more alternative energy technologies will boost local jobs, businesses and the economy.

• Mass Transit Funding:

Schumer is pushing to include billions in funding solely devoted to maintaining and upgrading mass transit systems. This funding would be in addition to funding for highways, roads and bridges and would help to kick start long stalled mass transit projects that are shovel-ready in New York State.

• A New, Quadrupled College Tuition Tax Credit

Schumer is fighting for his bill to quadruple the value of the current college tuition tax benefits to pass as part of the economic stimulus package. The bill is a new approach and a major change to the current college tuition tax benefit. The new credit could save middle class families up to $2,500 on their taxes per student each year. Schumer said today there is a good chance that this credit could pass with the economic stimulus package. If so, middle class families across Upstate New York could use the new tax credit as soon as this tax year for returns filed next year. Schumer said the savings is needed now more than ever as the economic downturn takes its toll on middle class families and tuition costs skyrocket.

# # #

###