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Ronald Reagan Presidential Library
Digital Library Collections
This is a PDF of a folder from our textual
collections.
Collection: President, Office of the: Presidential
Briefing Papers: Records, 1981-1989
Folder Title: 01/14/1982 (Case File: 056753)
(2)
Box: 12
To see more digitized collections visit:
https://reaganlibrary.gov/archives/digital-library
To see all Ronald Reagan Presidential Library
inventories visit:
https://reaganlibrary.gov/document-collection
Contact a reference archivist at:
[email protected]
Citation Guidelines: https://reaganlibrary.gov/citing
A
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1
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE
BUDGET
OFFICE OF MANAGEMENT AND BUDGET
REPRESENT
AND
WASHINGTON, D.C. 20503
January 12, 1982
MEMORANDUM FOR: Lawrence A. Kudlow
FROM:
Revised Fact Sheet FR for New York
Justine Rodrigue
SUBJECT:
President Reagan's Economic Recovery Program will, if given
a chance, stop runaway inflation and revitalize the economy.
New York City and New York State will share in this
recovery:
-- Personal income in New York State is projected to
increase from $180 billion in 1980 to $336 billion in
1987, a net gain of $156 billion. 38%, or nearly $60
billion of this net gain, will take place in New York
City.
-- New York State wages and salaries are projected to
increase from $115 billion to $210 billion over this
period, a net gain of $95 billion. About $36 billion
will be earned in New York City.
- - Per capita personal income in New York State will
grow from $10,250 in 1980 to nearly $18,000 in 1987,
a net gain of $7,745.
-- In real terms (after adjusting for inflation) these
increases represent a 24 percent gain in personal
income, a 22 percent gain in wages and salaries, and
a 17 percent gain in per capita personal income.
-- The economic growth stimulated by this program will
add substantially to the state and local tax base in
New York and the rest of the nation.
NOTE: Assumes New York State and City constant 1980 (or
1979 share of U.S.
EXECUTIVE OFFICE OF THE PRESIDENT
2
OFFICE
OFFICE OF MANAGEMENT AND BUDGET
AND
WASHINGTON, D.C. 20503
January 12, 1982
MEMORANDUM FOR:
LARRY KUDLOW
FROM:
HAL STEINBERG VS
SUBJECT:
President's Trip to New York
The following information may be of use to the President for his
Thursday trip to New York. They are items of concern to New York
officials that have been relayed to me by the First Deputy Comptroller
and the former Deputy Mayor for Finance.
Financial Conditions
-- City projecting small surplus for Fiscal Year ending June 30,
1982; although surplus due in part to significant one-time
revenues, unusually low debt service costs for the year,
partial roll-over of prior year surplus.
-- Fiscal Year 1983 projects a budget gap - $800-900 million.
-- Major causes are slow-up in revenues due to a slow-down in
economy, impact of federal reductions, and expenditures rising
faster than revenues.
-- Mayor wants to eliminate gap with tax increase.
-- Independently elected Comptroller resisting, claiming that the
budget can be balanced by absorbing 10,000 slots in the normal
attrition of 14,000 (out of 175,000 payroll) and providing a
very small wage increase.
Capital needs
-- Major capital needs projected for the 1980's to replace the
heavy building program in the first part of this Century.
-- Comptroller study reports $40 billion capital needs; New York
City/OMB identifies $30 billion (water and sewer mains - $16
billion; mass transit - $10 billion; bridges).
-- 1983 capital budget of $2 billion requires $1 billion of
City funds.
-- High interest rates having a major adverse impact on the
ability to borrow long term.
2.1
THE WHITE HOUSE
WASHINGTON
Economic Statistics for New York City (most current available)
Unemployment Rate: December 1981 9.0%
November 1981 8.3%
(data from B.L.S..
Department of City & State Data 202/523-1001)
Inflation Rate:
November 1981 C.P.I. 267.8
down 0.1% from October 1981)
November 1980 to November 1981 the rate of
inflation was 9.4%
(data from B.L.S.. Department of Prices & Living Conditions
202/272-5160)
Major Current Construction:
Approximately 500 State and Federally assisted projects are under
construction. Major projects are defined as those in excess of
$2 million.
(Information from Phil Schroeder - Mayor's Office of Management
and Budget, 212/566-0516)
Crime Rate: For the first nine months of 1981
Murders: 1,318 Up 2%
Rapes:
3,042 Up 4%
Robberies: 79,458 Up 7.9%
Aggravated
Assaults: 33,605 No change
Total 117,423 Up 5.4%
(data from the Office of Crime Analysis, N.Y. City Police
Commissioner, 212/374-5076)
3
NY PRIVATE SECTOR INITIATIVES
NYCity Partnerships:
SUMMER JOBS FOR YOUTH
250 volunteers called
45,000 NYbusinesses and found 14,000 jobs for economically disadvantaged youth.
30% of these jobs were at pay above the minimum wage.
The previous year
only 6000 jobs were available when run by the government.
Training Opportunities Program places 1,000 11th and 12th grade public
school students in high demand occupations in the private business. TOP
pays their salaries for 6 weeks, pays 50% of the student wage for the next
7-1/2 months.
Jobs For Westchester Residents:
Since 1974, the Westchester Chamber has
placed 400 disadvantaged Westchesterites in private sector employment, through
CETA, wages have been 50% subsidized for 60-80 days. The retention rate in
the last year was 86%.
Small Business Management Advisory & Employment Generating Program: White
Plains Chamber offers professional small business management consulting
to small and minority businesses to increase their capacity to retain and/or
hire disadvantaged job seekers. Served 18 small and minority businesses out
of 50 eligible businesses at a cost of $3,231 each. Results: 37 new full-time
and 8 new part-time positions for an annual payroll increase of $537,000.
in 1981. Same firms expect to add 216 full time and 46 part-time positions
or $2.2 million in payroll by Sept. 30, 1982.
U.S. Chamber
2
4.1
Private Sector Initiative Program - HHS Region II Activities
The Office of the Regional Director, HHS, has developed a multi-faceted plan to
implement the President's Private Sector Initiative Program in Region 11. The
activities focus on two areas, Fortune 500 companies whose corporate headquarters
are in the region, and foundations located in the metropolitan area.
The program calls for developing linkages between selected Fortune 500
companies, foundations and the public not-for-profit sector. Staff is developing a
presentation package which will delineate the intent and philosophy of the
initiative, describe the array of federal programs appropriate to the initiative, e.g.,
aging, head start,etc., and provide alternatives for participation. Concurrently,
staff is reviewing annual reports in order to determine which corporations and
foundations will be contacted during the first phase of the project. It is expected
that companies will be contacted by the middle of February.
In addition to the activities of the Office of the Regional Director, the Regional
Administrator, Office of Human Development Services (OHDS), during the past
year, has been engaged in a broad array of activities to foster increased interaction
between the public and private sectors in Region II. Some of the activites include:
April, 1981, OHDS co-sponsored a conference in Rochester, New York on
"Developing Public/Private Partnerships in Human Services." The
conference focused on identifying opportunities for future ventures and
discussing public/private experiences in human services. A similar
conference is being planned for New Jersey.
Regional staff were instrumental in obtaining staff and fiscal resources
from banking institutions in New York and New Jersey to conduct
management seminars for non-profit agencies. In New York, Chemical
Bank provided resources for a five-day seminar which addressed
management styles, fiscal controls, financing, marketing, etc.
Staff have worked with the Middlesex, New Jersey County Economic
Opportunity Corporation, the Middlesex County Employment and Training
Administration, and the Private Industry Council in implementing an
improved jobs transportation program aimed at getting more job
applicants and workers to new and expanding office and industrial parks
located outside the county's urban areas and off the scheduled routes of
public transportation providers.
Staff have been assisting the Middlesex County Economic Opportunity
Council and county of ficials to plan and implement coordination of human
service transportation activities in the county.
Dept of Health and Human Services
3
4.2
Volunteerism Initiative - HHS Region II
Under HHS auspices, a year-round volunteerism program, supported entirely by
federal employees, has been established. In December, a food drive called
"Harvest for the Hungry" was launched at 26 Federal Plaza in December. The
drive, which has as its goal the collection of canned goods, is being sponsored by a
different federal agency each month. Federal employees are donating part of their
lunch hour to staff the collection table and also are bringing in canned goods. The
food is being distributed through the Community Food Bank, an approved Second
Harvest Agency, in Newark, New Jersey. To date, over 700 cans of food have been
collected. There has been an excellent response from the workforce.
Dept of Health and Human Services
5
SUPARTMENT ANDURBAN AND URBAN * DEVELOPMENT OF OF HOUSING *
THE SECRETARY OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, D.C. 20410
January 12, 1982
MEMORANDUM FOR:
Craig L. Fuller, Deputy Assistant
to the President and Director of
the Office of Cabinet Administration
FROM:
Samuel R. Pierce, Jr.
SUBJECT:
Expanding Housing Opportunities
in New York
I am familiar with the above captioned subject, and
have had a brief discussion with David Rockefeller, during
which I indicated my interest in pursuing the matter further
at an appropriate time. There may be a proper role for the
Administration and this Department to play, depending, for
example, upon the nature and extent of private investment
in the ultimate program.
In view of the subject matter, i.e., expanding housing
opportunities for middle income residents of New York City, and
the very preliminary nature of the proposal at this time,
I suggest that the President's response be limited to the
following:
1. The proposal appears to have merit in that its
emphasis is upon significant private sector investment in
housing in New York City.
2. This Department is interested in exploring the
proposal further to determine the appropriate federal
government role, if any.
Dept of Housing and Urban Development
8
6
Status Report on Block Grant Programs
New York State
New York State has assumed responsibility for the following Block Grant Programs:
BLOCK GRANT PROGAM
FY 1982 FUNDS *
Social Services
$184,877,557
Alcohol, Drug Abuse and Mental Health
$ 40,836,000
Low Income Energy Assistance
$222,238,631
*Estimated Amount to be Awarded During
FY 1982
Dept of Health and Human Services
7
NEW YORK CITY LOAN GUARANTEE PROGRAM: STATUS REPORT
The Loan Guarantee Act of 1978 authorizes the Secretary of
the Treasury to guarantee up to $1.65 billion of City bonds. Its
objective is to provide the City with long-term capital financing
during the final years of its recovery from the 1975 fiscal crisis.
The Act makes issuance of the guarantees contingent upon the
City meeting a set of stringent conditions. These include a truly
balanced budget by its FY 1982 and maintaining that balance in the
future. The Act also provides that guarantees may be approved only
if adequate long-term financing is not obtainable by the City in the
private market or from other sources to meet its essential needs.
Last November, Treasury approved issuance of $300 million in
guarantees. The key determination reached in approving those guar-
antees was that there were reasonable grounds for concluding that,
if the City's request were not approved, there would be a shortfall
of at least $300 million in the City's sources of financing, which
would jeopardize the plan and impair investor confidence.
The City has scheduled the sale of the remaining $300 million
of guaranteed bonds for February 18, and Treasury is expecting to
receive a formal request for the guarantees by January 20.
As the City's recovery from the fiscal crisis proceeds, and it
is now nearly complete (the requirement for a balanced budget was
met in FY 1981, for example), it becomes increasingly difficult to
conclude that the statutory conditions for issuance of guarantees
are met.
The Act requires the City to prepare a four-year financing
plan defining its requirements and the sources of funding. It also
requires Treasury to evaluate each element of that plan before any
guarantees are approved. The Department's evaluation last November
suggested that as much as $300 million of the City's planned uses
of capital may not satisfy the Act's requirements. Since November,
the Financial Control Board and the Special Deputy State Controller
have determined that the City's capital spending may fall up to
$200 million short of the current plan's projections.
In light of the questionable elements of the City's current
plan identified last November and the new projections of capital
spending by the official State monitors of the City, it may be dif-
ficult to conclude in February--as in November--that the guarantees
are necessary to enable the City to meet its essential capital
needs. Should it not be possible to reach this conclusion, the Act
would not permit approval of the impending request for guarantees.
January 13, 1982
Dept of the Treasury
8
Immigration and Refugee Issues
The President should know that immigration is an issue
of some importance to the people of New York City. New York
has one of the largest Haitian and Cuban populations in the
country, as well as an extremely large population of illegal
aliens.
The New Yorkers will be pleased to know that the President
supports strong enforcement of our laws against illegal immi-
gration, and has demonstrated his resolve by directing the
U.S. Coast Guard to patrol the seas near Haiti for illegal
migrants. The Administration is also committed to a legislative
program which will deal realistically and humanely with illegal
aliens now here, including the granting of legal status to
qualified individuals.
Finally, the President should be reminded that at one
time, Fort Drum, a military installation in the Watertown area
of upstate New York, was under consideration for use as a
detention center for undocumented Haitian and Cuban aliens
currently detained elsewhere. Other arrangements have obviated
the current need to use Fort Drum, which is now being upgraded
as a military installation, but the need to use Fort Drum for
detention or related purposes may again arise.
Dept of State
9
NEW YORK CITY BRIEFING
Ellis Island/Statue of Liberty National Monuments
Secretary Watt and the National Park Service (NPS) are
implementing plans for innovative rehabilitation of these
historic structures, through a combination of private-sector
fundraising, new leasing authority (still requiring adequate
protection of NPS property), and minimum Federal investment.
For example, in an effort to save deteriorating immigration
buildings on Ellis, the NPS solicited proposals in mid-December
(1981) from private sources to preserve some of the structures
and convert them to appropriate private use.
Plans for the Statue of Liberty have not yet been publicly
announced, but involve a group of French businessmen who would
head up a fundraising effort in France and the U.S.
Ellis Island and Statue of Liberty rehabilitation are planned for
completion by 1986-the centennial of the statue's first lighting
for which a major celebration is being put together by private
citizens.
No major question or controversy seems to be involved at this
stage, but the President should be aware of these highly visible
projects exemplifying his philosophy of reliance on the private
sector to accomplish tasks that formerly would have been funded
primarily out of the Federal Budget.
Dept of the Interior
10
Guardian Angels
On December 30, a Newark policeman shot and killed
Frank Melvin, a Guardian Angel. Police assert the policeman
mistook Melvin for a burglar reaching for his gun; the Angels
allege that he was killed in cold blood because the police
dislike the Angels' crime prevention program. The shooting
occurred in Newark, but the Angels are based in New York where
Curtis Sliwa, their leader, resides. An inquiry is underway
by state officials. The FBI is conducting a preliminary inquiry --
not an investigation -- to determine if an investigation should
be opened. Sliwa and other members of the group, after
marching from New Jersey, met with Civil Rights chief Brad
Reynolds and Community Relations head Gil Pompa. The two
assured the Angels that the Department of Justice would conduct
an inquiry to determine if any civil rights violations occurred.
Dept of Justice
11
TIMES SQUARE HISTORIC PRESERVATION LITIGATION
Natural Resources Defense Council V. City of New
York involves a challenge to a decision by HUD to fund efforts
for a renewal of a portion of the Times Square area in New York
City. The suit was expanded in December to include a challenge
to actions taken by the Advisory Council on Historic Preservation
recommending the entry of a memorandum agreement under which
certain historic sites would be destroyed. The latter challenge
was premised on allegations of improper political influence.
In December the trial court declined to issue a
preliminary injunction sought by the plaintiffs on the basis
that the decision of the Advisory Council was precipitated on
improper political pressure. On January 6, 1982, the Court of
Appeals for the Second Circuit reversed that decision and
directed the trial court to enter a preliminary injunction.
The matter is now before the trial court.
The allegations involving improper political influence
arise from telephone calls which were made to the Advisory Council
by Lyn Nofziger and Joe Canzeri of the White House at the time the
matter was under consideration of the Council. According to our
best information, calls were made by those people but both they
and the recipients of the calls at the Council, Alexander Aldrich,
Council Chairman, and its Executive Director, Robert Garvey,
claim no pressure was asserted. The calls were designed to see
that the Council acted promptly on the matter before it.
Plaintiffs have been deposing Council staff members with respect
to the allegations. On January 7, 1982, plaintiffs noticed depo-
sitions of both Mr. Canzeri and Mr. Nofziger. The matter was
brought to the attention of White House counsel immediately. On
January 11, 1982, White House counsel advised trial counsel,
Gaines Gwathmey, Assistant United States Attorney for the Southern
District of New York, that it would make Mr. Nofziger and
Mr. Canzeri available at the White House for depositions on
January 19, 1982, for one-half hour each.
At a status conference with Judge Duffey on January 11,
the Court was apprised of the White House offer. The Court moved
the depositions to the White House but refused to limit the
depositions to one-half hour.
Dept of the Interior
12
WESTWAY LITIGATION
Two consolidated lawsuits have been filed in the U.S.
District Court for the Southern District of New York seeking to
halt the construction of the proposed West Side Highway Project
in New York City (Westway). The project will cost approximately
2 billion dollars of which 90% are federal funds. The project
will be constructed on a landfill in the Hudson River running
from the Battery up to approximately 42nd street, a distance of
4.6 miles creating approximately 113 new acres of land for resi-
dential and commercial development and 93 acres for a park to be
run by the State of New York. Construction time is approximately
ten years.
The first suit, Action For Rational Transit V. West
Side Highway Project challenges are raised under the Clean Air
and the National Environmental Policy Act. Plaintiffs allege
that the Federal Highway Administration failed to conform with
the New York State clean air implementation plan and that the
Environmental Impact Statement prepared by the Highway Adminis-
tration was deficient. In the second suit the Sierra Club is
challenging the Army Corps of Engineers on the permitting
associated with dredge and fill portions of the project. Again
the action is brought under the National Environmental Policy
Act and the Clean Water Act.
United States District Judge Thomas Greisa has already
ruled in the Government's favor on all claims in the Action for
Rational Transit suit and on a number of claims in the Sierra
Club suit including the transit trade-in issue. He has set a
trial, however, on the issue of Westway's impact on Hudson River
fisheries, especially on the striped bass population. The trial
will begin on January 19th and include testimony from experts,
and officials of the Corps of Engineers, National Marine Fisheries
Service of the Department of Commerce, Fish and Wildlife Service
of the Department of Interior, and perhaps the Environmental
Protection Agency.
We expect a ruling by the end of February or early
March. The State has set a schedule with the first construction
phase to start in the early spring.
Dept of the Interior
13
NEW YORK CITY MASS TRANSIT ISSUES
The Administration supports use of Federal mass transit funding for
rehabilitation of existing systems rather than for operating subsidies or
development of new mass transit systems. This policy is beneficial to
New York, because New York has one of the oldest subway systems in the
country and that system is in a serious state of disrepair. This is
demonstrated by the fact that New York's percentage of the total UMTA
budget is increasing.
The Administration plans to phase out mass transit operating subsidies by
1985 because operating costs should not be the responsibility of Federal
taxpayers, the subsidies have driven up costs, and have caused
artificially low fares.
New York City currently receives about $175 million per year from the
Federal government which can be used for operating assistance. This is
less than 10% of the transit authority's budget. The likely loss of this
money between now and 1985 has not led to major New York opposition to
the Administration's mass transit policy for these reasons:
-- Federal operating subsidies are a small percentage of the MTA's
(Metropolitan Transit Authority's) operating budget,
-- the City will continue to receive Federal capital subsidies, and
-- there is a major capital initiative for mass transit in New York
City.
The Transit Authority is implementing a five year capital plan to raise
and use $7.4 billion. The State has enacted new taxes and bonding
authority that form the basis of the MTA's capital program. This will
fund a major rehabilitation of New York's transit facility. Very
roughly, 10% to 20% of these funds will be Federal (about $200 to $300
million per year). Federal funds will be used to rehabilitate subway and
commuter rail right of ways, structures, signals, power sources, etc.
The Transit Authority is also taking advantage of the new leverage
leasing tax law. This provision allows tax write offs for purchase of
transit equipment. From one transaction in 1981, New York will obtain
over $100 million under this new tax provision. New Yorks hopes to use
leverage leasing to buy over $2 billion of equipment in the next 5 years.
The provision is expected to reduce the City's cost of capital
acquisition and rehabilitation by 10 to 20%.
The 5 year plan combined with the benefits of leverage leasing will allow
MTA to raise fares and effectively compensate for the withdrawal of
Federal operating assistance.
UMTA Grants to New York City (dollars in millions)
1981
1982
1983
Operating Grants
180
150*
80*
Capital Grants
400
370*
300*
Total
580
520*
380*
*Much of UMTA funding is discretionary and therefore difficult to
receive. predict. These are our best estimates of what New York City will
AIR TRAFFIC AT METROPOLITAN AREA AIRPORTS
14
The Air Traffic Controller workforce at the three metropolitan area airports
(JFK International, Newark and LaGuardia) was reduced by approximately 93% as
a result of the PATCO strike. However, staffing levels have now reached 90%
of the pre-strike level by utilizing staff personnel, military, and new hires.
The military controllers are being gradually phased-out as the new hires
become qualified.
Currently, the volume of air traffic handled is approximately 80% of the
pre-strike level.
Traffic delays are encountered daily at the three metropolitan area airports.
New York is not unique in this respect. National quota flow programs to other
busy airports (i.e., Dallas-Fort Worth, Chicago and Houston) cause some delays.
The FAA Headquarters imposed pro rata reduction and the General Aviation Reserva-
tion system has alleviated some of the delays. A typical day would indicate
delays of 45 minutes or less incurred by some 20 to 40 aircraft at the three
metropolitan area airports.
Dept of Transportation
15
NEW YORK
NORTHEAST CORRIDOR IMPROVEMENT PROJECT
The Northeast Corridor Improvement Project is a $2.19 billion program
to revitalize passenger rail service between Washington and Boston.
A total of $138 million will be spent for New York.
Major projects include:
New York Pennsylvania Station ($6 million) - In process.
New York Equipment Service Facility ($8 million) - Planned for 1983.
North and East River Tunnels under the Hudson and East Rivers
($19 million) - In process.
Major track and bridge improvements ($46 million) - In process.
Work will be completed in 1985.
Dept of Transportation
1/13/82
16
AGRICULTURE BRIEFING
Distribution of Excess Commodity Cheese
New York program is slowly progressing. Initial distributions
of the 2.4 million pound allotment is expected on February 8, 1982.
National School Lunch Program
As a result of recent legislation requiring the inclusion of
social security numbers of free and reduced-price applications,
New York City experienced some difficulty in getting applications
for such meals returned to school officials (see attached).
Approximately 100,000 fewer applications than last year have been
approved.
Supplemental Feeding Program for Women, Infants, and Children (WIC)
The FY 1981 WIC grant for New York City totaled $43 million with
101,000 participants monthly. A New York Times editorial on
January 8, 1982 suggested this program be spared Federal budget cuts.
The program currently has waiting lists for participation at most
local agencies in the city.
Food Stamp Program
New York City has taken major initiatives to reduce program abuse.
In September 1981, a total of $48.5 million in food stamps were
issued to 479,000 households representing 1.2 million persons.
Administrative costs of operating the program in New York City
approximates $75 million, half of which is Federal.
Dept of Agriculture
17
SUBJECT:
Transfer of Surplus Federal Properties
to New York for Correctional Use
New York's prison system is critically overcrowded. The
situation was recently aggravated when federal district judge
Morris Lasker ordered the state system to accept all inmates
in New York City's Rikers Island facility as soon as they
became eligible for state custody.
As part of the Administration's program of transferring
suitable surplus federal properties to states and localities
for correctional use, the Attorney General intervened with
the General Services Administration (GSA) to urge transfer
of the surplus Watertown Air Force Station to New York for
use as a prison. The transfer was announced jointly by the
Department and GSA last September. The Watertown facility
contains several dormitories and housing units as well as a
dining hall, and is thus eminently well suited for conversion
to correctional use. New York plans to house over 200 medium
security inmates at Watertown, beginning in the early spring
of this year.
Since-the situation in New York remains serious even
with the Watertown transfer, the Associate Attorney General
has recently written to GSA to urge transfer to New York of
the Lockport Air Force Station, an 80 acre site containing
69 buildings. A decision by GSA is expected shortly.
Dept of Justice
18.1
January 12, 1982
Assistance to New York City
Community Development Block Grants
NOTE: The 1983 budget will propose the same budget authority as
provided in 1982 -- $3,456 million.
1979 (act.)
$241.3 million
1980 (act.)
$259.9 million
1981 (act.)
$254.8 million
1982 (est.)
$221.6 million
The Community Development Block Grant (CDBG) program provides grants to
units of local government for locally determined and implemented
community and economic development projects, principally for the
benefit of lower-income persons. Entitlement cities, such as New York
City, receive CDBG funds by a formula allocation method. A very large
portion of these funds (about 30% on a nationwide basis) are estimated
to be used for housing rehabilitation. Hence, of the Federal CDBG
funds New York City received, it is estimated that New York City spent
$72 million in 1979, $78 million in 1980, and $76 million in 1981 on
housing rehabilitation -- a total of $226 million in three years.
Urban Development Action Grants
NOTE: The 1983 budget will propose the same budget authority as
provided in 1982 -- $440 million.
1979 (act.)
$9.4 million
1980 (act.)
$8.3 million
1981 (act.)
$53.9 million
1982 (est.)
$9.1 million to date; estimated total for the year
unavailable; dependent on relative merits of competing
applications.
The Urban Development Action Grant program provides competitive grants
to units of local government. These grants are used in conjunction
with other public and private funds to promote locally designed and
implemented economic development projects in distressed areas.
Office of Management and Budget
18.2
2
Rehabilitation Loan Fund
NOTE: This program is proposed for termination in 1983.
1979 (act.)
$7.2 million
1980 (act.)
$4.6 million
1981 (act.)
$4.0 million
1982 (est.)
unavailable
Rehabilitation Loan Fund resources are allocated to units of local
government for the rehabilitation of single-family and multi-family
housing units. The average term is 20 years and the average interest
rate is 3 percent.
Urban Homesteading
NOTE: The 1983 budget will propose $9 million in budget authority --
an amount estimated to continue the 1982 program level.
Twenty-nine properties have been transferred to New York City and
rehabilitated in an effort to promote neighborhood revitalization and
provide housing opportunities for lower- and middle-income families.
The Urban Homesteading program transfers HUD, VA, and Farmers' Home
properties to participating cities for use in approved and locally
administered homesteading programs.
Section 108 Community Development Loan Guarantees
NOTE: This program is proposed for a 50% reduction in 1982 and
termination in 1983.
New York City has received no loan guarantees through this program.
Whether or not New York City might receive a loan guarantee in 1982
depends on the competitiveness of its application (if it applies) and
the total resources provided.
Section 108 Loan Guarantees are made on a competitive basis to
entitlement cities (such as New York City) so as to provide cities with
large, up-front community development funds. These funds may be used
for land acquisition and improvements to publicly owned property. The
Federal Financing Bank serves as the lending source for these loan
guarantees, charging an interest rate of the Treasury rate plus
one-eighth. Future CDBG awards are used to guarantee repayment.
Office of Management and Budget
18.3
3
Neighborhood Reinvestment Corporation
NOTE: The 1983 Budget will propose a funding increase for this
Corporation from $13.9 million in 1982 to $15.5 million in 1983.
Neighborhood Housing Services:
With the help of the Federally supported Neighborhood Reinvestment
Corporation, Neighborhood Housing Services (NHS) programs are now
helping to revitalize seven neighborhoods in New York City.
Boroughs
Neighborhoods
Brooklyn
East Flatbush
Kensington/Windsor Terrace
Bronx
Williambridge/Wakefield
Soundview
Staten Island
West Brigton
Queens
Laurelton
Jamaica
The Neighborhood Reinvestment Corporation has contributed grant funds to
NHS and Community Development Block Grant Funds have been committed
through the City of New York. However, far away the largest
contributions will come from private businesses and financial
institutions. In New York City, over a million dollars a year will be
raised by the business community to support this seven-neighborhood
effort, resulting in more than $80 million in reinvestment in those
neighborhoods over the next five or six years. The reason NHS works is
because it is a partnership of the neighborhood residents themseleves,
the private sector and local government. 45,000 families will benefit
from this effort in New York City.
Apartment Improvement Program:
The Neighborhood Reinvestment Corporation has also established two
Apartment Improvement Programs in NYC; one in the Northwest Bronx and
the other in the Pelham Parkway area. Two new AIP programs are being
contemplated in the borough of Queens. These programs involve a
partnership among building owners, tenants, local government and
lenders. The AIP program produces physically rehabilitated and
financially restructured buildings which result in a better quality of
life for the residents and a reasonable return for the owners.
Other Activities:
The Neighborhood Reinvestment Corporation has also participated with the
Northwest Bronx Community and Clergy Coalition in developing an arson
prevention program to help stabilize the Bronx neighborhoods in which
the AIP program is operating.
Office of Management and Budget
C
MEMORANDUM
THE WHITE HOUSE
WASHINGTON
January 13, 1982
INFORMATION
MEMORANDUM FOR THE PRESIDENT
FROM:
ED ROLLINS/PAUL RUSSO
SUBJECT: NEW YORK - POLITICAL OVERVIEW
I. SUMMARY
New York will be one the the key states in the 1982
Elections.
Democrat Governor Hugh Carey's bid for a third term
in the Gubernatorial Race will provide the Republicans an
excellent opportunity to take control of the second largest
state in the nation, and the largest electoral block in the
East.
The other major statewide race is Democrat Senator
Daniel Patrick Moynihan's bid for reelection. While Moynihan's
position seems somewhat more secure than Governor Carey's, the
Republicans should be able to put up a strong enough fight to
keep Moynihan campaigning at home, instead of out on the
hustings for other Democrat candidates.
New York will lose five U.S. House Members due to
reapportionment. With the state's delegation reduced to 34,
New York's numerical strength, as a proportion of the whole
House, will be at its weakest point in history. Therefore, a
strong effort will be required just to retain the seventeen
MEMORANDUM FOR THE PRESIDENT - PAGE 2
Republican seats we now hold.
The New York Republican State Committee will need to
raise a great deal of money to compete successfully in this
high-cost media state. A Presidential Fund-raiser is under
consideration to help erase the State Committee's current
debt, and contribute to funding its 1982 campaign effort.
Considering the significant position of "The Empire
State" in the National political equation, we will have to
put a good deal of emphasis on New York as a part of the
overall 1982 Campaign.
II. ELECTED OFFICIALS
GOVERNOR - Hugh Carey - Democrat - Elected in 1974
SENATOR - Daniel Patrick Moynihan - Democrat - Elected in 1976
SENATOR - Alfonse D'Amato - Republican - Elected in 1980
U.S. HOUSE OF REPRESENTATIVES - 17 Republicans 22 Democrats
III. REPUBLICAN PARTY OFFICIALS
REPUBLICAN STATE CHAIRMAN - George Clark, Jr.
REPUBLICAN NATIONAL COMMITTEEMAN - Richard M. Rosenbaum
REPUBLICAN NATIONAL COMMITTEEWOMAN - Eunice B. Whittlesey
IV. DISCUSSION
A. THE GUBERNATORIAL RACE - 1982:
Democrat Governor Hugh Carey is seen as a highly
vulnerable target for defeat in his bid for a third term.
Although Congressman Jack Kemp announced that he would not
be a Gubernatorial candidate, four major Republican
MEMORANDUM FOR THE PRESIDENT - PAGE 3
contenders have entered the race for a chance to knock
off Carey in the Fall. The leading Republican candidates
are:
JAMES EMERY- Minority Leader of the State Assembly,
he has wide support among his fellow State Legislators.
LEWIS LEHRMAN- Chairman of the Board of the Rite-Aide
Corporation. Lehrman is expected to pour much of his
own money into the race, and will likely be the
Conservatives Party's candidate in November.
EDWARD "NED" REGAN- State Comptroller, the only
state-wide elected Republican in Albany.
RICHARD ROSENBAUM- Former Republican State Chairman,
and current Republican National Committeeman;he has
backing from the remnants of Governor Rockefeller's
Organization.
State Republican Chairman George Clark has openly
expressed his support of Ned Regan for the Nomination,
and has made telephone calls to the County Chairmen urging
them to also support Regan. A controversy developed last
week among the candidates regarding the President's political
position in the Gubernatorial Primary. Lyn Nofziger sent a
telegram to George Clark stating the President's longstanding
policy that he "will remain neutral in all primary races
involving non-incumbents." A copy of the telegram was sent to
each of the fifty Republican State Chairmen.
B. THE U.S. SENATE RACE - 1982:
Former U.S. Representative Bruce Caputo, an early Reagan
supporter, is the only announced candidate for the Republican
Nomination to run against Democrat Senator Daniel Patrick
Moynihan. A Moynihan-Caputo Race in the Fall would be a
MEMORANDUM FOR THE PRESIDENT - PAGE 4
definite uphill struggle for the Republican, but hopefully,
Caputo will be a strong enough candidate to keep Moynihan
in New York campaigning on his own behalf, instead of
for other Democrats throughout the Nation.
C. THE U.S. HOUSE RACES - 1982:
The U.S. House races in New York will require a very
strong Republican effort. At least seven Republican incumbents
are considered to be facing some degree of difficulty in
their reelection bids. These seven endangered members were
all first elected to Congress in 1978 or 1980. They are:
William Carney - First District
Greg Carman - Third District
John LeBoutillier - Sixth District
Guy Molinari - Seventeenth District
William Green - Eighteenth District
George Wortley - Thirty-Second District
Gary Lee - Thirty-Third District
On the other side of the coin, at least seven incumbent
Democrats are in vulnerable positions. Therefore, the final
alignment of New York's 34 Member Congressional Delegation
is still very much in doubt.
NEW YORK - MISCELLANEOUS
POPULATION-
17,748,000
NICKNAME-
THE EMPIRE STATE
MOTTO-
EVER UPWARD
MEMORANDUM FOR THE PRESIDENT - PAGE 5
NOTE:
NEW JERSEY'S NEW GOVERNOR
Across the Hudson River from New York, Republican Tom Kean
will be sworn in as New Jersey's new Governor on Tuesday, January 19,
1982.
D
THE WHITE HOUSE
WASHINGTON
January 13, 1982
MEETING WITH NEW YORK PARTNERSHIP
DATE: January 14, 1982
LOCATION: Waldorf Astoria Hotel
TIME:
FROM: JAMES S. ROSEBUSH
I. PURPOSE
To speak to the New York Partnership on Private
Sector Initiatives
II. BACKGROUND
New York Partnership is the premier community alliance
to encourage private sector leadership in addressing
community problems
III. PARTICIPANTS
New York Partnership leadership
IV. PRESS PLAN
V. SEQUENCE OF EVENTS
Focus
11:45 AM James Rosebush will bring to the suite for a
brief welcome: David Rockefeller (founder of the Part-
nership and host of the luncheon) Bud Staley (Retired
President of New York Telephone and Jobs Task Force
leader) and Bill Verity, Chairman, President's Task
Force on Private Sector Initiatives
11:47 AM Rosebush will bring seven students into the
suite. These students, led by Lisa Flower were placed
in jobs by the Partnership last summer. Lisa Flower,
will present you with a Partnership Tee-shirt. You
will have a informal conversation with them about their
jobs last summer. This meeting will last for eight
minutes at which time the students will depart and
you will proceed to the VIP reception.