Schumer: Tax relief is coming
The Daily Mail
Feb. 17, 2009

CATSKILL — Democratic Sen. Charles E. Schumer visited Catskill Monday to discuss the ways in which $5.3 million in direct budget relief will help struggling Greene County residents and business owners. The money is part of the economic recovery package, which will be signed by President Barack Obama, Schumer told an audience of County Legislators and county residents at the Greene County Office Building.

Schumer said he has heard New York state will lose an estimated 200,000 jobs within the next two years but that lawmakers in Washington, D.C. are prepared to help New Yorkers, and all Americans, keep money in their pockets.

Key components of the package, he said, will put money into taxpayers’ pockets by increasing Medicaid relief for the county, offering tax credits for those paying for college and helping major infrastructure projects get off the ground. And once New Yokers have more money to spend, they will feel more comfortable spending it.

“Right now, we need money in the economy, not sitting there, doing nothing,” he said.

Although the relief measures will be temporary, they will be stretched across two years in order to allay a downward economic spiral, he said.

According to Schumer’s office, Greene County will pay $9 million for Medicaid services this year. Wayne Speenburgh, chairman of the County Legislature, said that more than 20 percent of the county’s tax levy is used to cover Medicaid costs.

“It’s a huge burden,” Schumer said.

Schumer said he wrote a provision in the bill that ensures that Federal reimbursements for Medicaid spending would go directly to the state’s 62 counties.

“It will not go through the state. The state does not take a cut. The state can not delay it. It will be money directly for you,” he said.

Overall, $12.6 billion will return to the state over two years for Medicaid relief, he said, and county and municipal governments will begin to receive this money in April.

Schumer said the relief is designed to prevent the need for major tax increases and major layoffs.

Starting in March, he said, every family with an income less than $150,000 will receive a tax break of $800. The break will be reflected by the amount of taxes withheld from paychecks in a pay period.

He also championed a $2,500 tax credit in the package for families earning less than $160,000 and are paying a college tuition.

“It is expensive to go to college, but it would be a real shame if kids dropped out of college or did not go to college because their parents couldn’t afford it,” he said.

The package will also give money to schools, which, Schumer said, will help prevent layoffs. He said that there would be no state educational cuts and that the formula for funding last year will be the same as the formula used this year.

Schumer discussed how provisions in the package will help the county and municipalities develop and maintain the infrastructure. Projects he mentioned included the water and sewer system in the town of Cairo and the sidewalks in the town of Durham.

Half of the money would go to “shovel-ready” projects, which are projects that would be ready within 180 days. The rest of the money would be saved for projects that will be ready by the beginning of 2010.

Local governments will begin to receive money for “shovel-ready” projects in May or June of this year, Schumer said.

Speenburgh said after the conference he was glad that funding for infrastructure projects would be staggered, as this would allow municipalities more time to prepare project plans.

Schumer responded to a question posed by Jim Mulligan, of Greenville, about whether funding would be available for Internet and broadband service.

“It will create real jobs,” Mulligan said of the service expansion.

Schumer answered that the bill makes $7 billion available, by application, for such expansions, but that specific details still need to be settled.

Interim County Administrator Dan Frank asked Schumer whether the package will help first-time home buyers or stimulate automobile sales.

Schumer replied that first-time home buyers will receive a $7,500 tax credit.

A proposal in the bill allows automobile buyers to deduct the interest on a purchase, he said.

Schumer also said that Treasury Secretary Timothy Geithner will soon propose that the Federal government temporarily provide some guarantees for automobile and home loans.

Schumer said that although the package had very little support from Republicans — only three Republicans in the Senate and no Republicans in the House of Representatives voted for the bill — the two biggest amendments in the bill were proposed by Republicans.

He explained that House of Representatives is more partisan than the Senate, and whoever wins the special election for the 20th Congressional District seat on March 31 will have to work with both Republicans and Democrats.

Schumer endorsed Scott Murphy, the Democratic candidate for that seat, Monday morning in Clifton Park.

He said that Americans come together during difficult times.

“It’s time to get serious. It’s time to roll up your sleeves and do something, and that’s what I hope will happen,” he said.