Albany, NY – A planned federal stimulus package will likely include at least $8.2 billion aid for education and health care for New York.
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Sen. Chuck Schumer (D-N.Y.) and Gov. Paterson said the funding, on top of the $5 billion expected in additional health care money, will help the state deal with its fiscal crisis in the short term.
The education component, which would be in the form of a grant and distributed by the state, should help schools avoid massive layoffs, program cuts or tax increases, said Schumer.
The federal package will also increase federal spending for infrastructure projects, such as transportation and water, by undisclosed amounts, Schumer said at a news conference in Albany.
Additional federal aid “gives the state some breathing room” and “is going to alleviate some of the pain significantly,” Schumer said.
New York faces a record $15.4 billion deficit by March 31, 2010, as layoffs and losses on Wall Street reduce tax collections.
The governor said he hopes the federal package will also help eliminate the need for much of the $4 billion in taxes and fees he proposed in his 2009-10 budget plan.
“This is not a handout, it’s a hand-back,” Gov. David Paterson, a Democrat, said at the news conference. He said the state sent $86.9 billion more to the federal government last year than it received in aid.
Schumer said he is hopeful the package will be sent to the new President’s desk by Feb. 13.
All that money is for Public Schools.
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