DC 37 Executive Director Lillian Roberts went to Washington May 21 to demand a fair share of federal funding for New York City. Ms. Roberts, City Council Speaker Gifford Miller and others testified at a special hearing held in the nation’s capital by the City Council Committee on State and Federal Legislation.

They pressed for increased federal aid in many forms, including the plan that DC 37 and AFSCME have lobbied relentlessly for over the last two years. U.S. Sens. Charles Schumer and Olympia J. Snowe and

U.S. Rep Anthony Weiner introduced the $40 billion bipartisan proposal in the Senate and the House of Representatives.

“State governments alone have suffered through record budget deficits which are fast approaching the $200 billion-dollar mark,” Ms. Roberts said. “Cities and states are cutting vital services, including education, health care, criminal justice and more. Now is the time for the federal government to recognize this crisis and take immediate action to provide substantial fiscal relief to the states and cities.”

One week after the hearing, the union won a huge victory as Congress included $20 billion of federal fiscal relief to the states when it passed the Republican tax-cut legislation. However, the governor controls New York State’s $2 billion share; as PEP went to press, DC 37 was working to make sure the city’s priorities are considered.

The stimulus plan will provide crucial aid to a nation struggling to recover from an economic recession that has been under way since March 2001. More people than ever were struggling to make ends meet as unemployment topped 6 percent in April, reflecting the 2.7 million jobs lost nationwide in the last 26 months under the Bush administration. Despite fits and spurts, economic growth remains slow at best.

Economic stimulus plan
“New York State and City are in a terrible budget crisis,” Ms. Roberts said, pointing to Albany’s recent $11 billion budget gap and the city’s $3.8 billion deficit. These factors, she said, “threaten to undermine the very fabric of our daily life.”

Until the State Legislature provided a $2.7 billion aid package, Mayor Bloomberg was planning for 10,000 additional layoffs beginning July 1. Even with the aid, the city cut thousands of jobs in May and planned more for June. City, state and federal policies “are squeezing city services. We’ve noticed a precipitous drop in the quality of life,” Ms. Roberts continued. Higher rates of unemployment, homelessness and welfare enrollment are already evident.

“While Congress is focused on tax cuts to speed economic recovery, the traditional response to economic downturns has been to provide stimulus through additional spending,” Ms. Roberts continued. “Instead of huge tax cuts for a few wealthy individuals, we need urgent fiscal assistance for homeland security, Medicaid, health care, education and vital services,” she said.