Senator Clinton's Letter to Governor George Pataki

May 22, 2003
The Honorable George E. Pataki
Governor
State of New York
State Capitol
Albany, New York 12224

Dear Governor Pataki:

Today, I learned that the House and Senate Conferees for the "Jobs and Growth Tax Act of 2003" have stripped a provision that would have provided $4 billion of the $10 billion in fiscal relief directly to localities. While I know that the Conferees are still considering other provisions of the state fiscal relief package, this action alone means that cities and counties across New York can no longer count on nearly $260 million in aid.

As you know, New York cities and counties are facing the worst budget crisis in a generation and they need this guaranteed local aid to cover homeland security costs, Medicaid, and education costs. I hope that this new provision does not mean cities like Buffalo, Rochester, and Binghamton and counties like Erie, Orange, and Westchester will not be void of the aid they need.

We have had a great success with the provision that provides $10 billion in Medicaid relief and I want to thank you for your ongoing support of this issue. Any FMAP increase will automatically result in some savings to local government. The State retains the discretion to pass through 40 percent of the remaining $10 billion, which the localities so desperately need. I urge you to take immediate steps to do so and send the nearly $260 million in fiscal relief directly to our cities and counties.

As you and I have discussed in the past, it is critical that these dollars make their way down to the local level as quickly as possible. During these difficult and dangerous times, we have to do everything that we can to avoid harmful cuts to services and to ensure our first responders have the training and equipment they need to do their jobs.

Last fall, I issued a report that showed how nearly 70 percent of cities and counties in New York had not received any homeland security funding. I want to work with you to develop a stronger and more efficient system that gets this critical funding into the hands of our local experts: our police officers, firefighters, and emergency personnel.

In the last several months, Congress has appropriated billions of dollars for local responsibilities that are to be funneled through the states. For instance, for FY 2003, Congress provided:

$100 million for high-threat urban areas, with an allocation of $25 million for New York City;
$566 million in block grants through the Office of Domestic Preparedness for equipment, training and planning, of which $28 million is available for New York communities;
$1.5 billion in funding for block grants and to protect critical infrastructure, of which New York communities are eligible for $70 million;
$700 million for high-threat urban areas, with $200 million for the Buffalo and New York City areas.

While I understand that a certain percentage of these resources can be retained by the State, I request an update on where the State is in the application process and how you plan to disperse this new homeland security funding to our cities and counties once you receive the funds from the federal government.

If the rest of the provisions in the $20 billion in state fiscal relief survive the Conferees' process, New York is set to receive almost $2 billion in much needed fiscal relief. This is great news for New York and it comes at a critical time. But I want to make sure that all of New York receives their fair share.

I urge you to act as swiftly as possible to get these much needed dollars to the local level. I look forward to working with you.

Sincerely yours,

Hillary Rodham Clinton