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News Link • Economy - Economics USA

New York state asks Washington to cover all storm costs

• By Edith Honan and Susan Cornwell
Governor Andrew Cuomo said he is asking fellow Democrat, President Barack Obama, to pay 100 percent of the estimated $6 billion bill, at a time that state and local government budgets remain constrained by a weak economic recovery.

That would be a significant change from last year when the federal government covered about 75 percent of the $1.2 billion cost paid by New York to clean up after storm Irene hit the region.

The two U.S. senators from neighboring New Jersey, the other state hit hardest by the storm, also asked that the federal government cover more than the usual share of the cost, given the size of the disaster and the financially strapped local coffers.

"Recent storms in New Jersey have already placed a significant burden on our state and local governments, which have been forced to pay for disaster response and will need federal assistance for recovery from Hurricane Sandy," Senator Frank Lautenberg and Senator Robert Menendez, both Democrats, wrote in a letter to Obama. 

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