Brian Pacus
Crain's Business New York
10.09.20
Joe Biden's victory over President Donald J. Trump in the race for the presidency has important ramifications for New York City.
An infusion of federal funding, less antagonism from the White House and bipartisan compromise during a Biden administration could quicken the economic turnaround that the city desperately needs.
"A Biden administration has committed to infrastructure as a stimulus," said Carlo Scissura, president of the New York Building Congress. "It will be phenomenal for New York."
"It's a relief for New York taxpayers because there's a potential for the SALT [state and local tax deduction] to be reversed and because there will be a major stimulus allocation for cities and states," said Kathryn Wylde, CEO of the Partnership for New York City.
The certification of the presidential election is still weeks away, but Biden had enough votes in the Electoral College to be declared the winner on Saturday. There will be court challenges to any outcome, though, as Trump makes claims of voter fraud.
Biden, 77, would enter the White House as the oldest occupant to take office. Together with his vice president, Sen. Kamala Harris of California, Biden faces a collection of domestic challenges brought on by the pandemic and subsequent economic recession.
More than 230,000 Americans have died this year from Covid-19. Unemployment across the nation reached levels not seen since the Great Depression, though it has declined as more states have eased lockdown restrictions and opened back up.
The killing of George Floyd this past summer ignited long-simmering racial tensions that threaten the social fabric of many American cities. Though Biden has yet to say how he will solve all the country's problems, it's clear New York, which faces a $9 billion budget deficit and a transportation system on the brink of collapse, will gain much from his presidency.
"A Democratic administration … will help in terms of getting the necessary funding to support the deficits in New York created by the virus," said Jeffrey Levine, chairman of Douglaston Development. "Having a Democratic president will help blue states get back on their feet."
Senate Majority Leader Mitch McConnell, a Republican, signaled earlier last week that he is open to a stimulus package passing before the end of the year and, in a turnaround, said he would sign off on aid for cities hit hard by the pandemic, like New York.
"I think what helps the restaurant industry is anything that gets bipartisanship going," said Jeffrey Bank, CEO of Alicart Restaurant Group. "Clearly, Congress and the president couldn't make a deal, and everyone knows there needs to be more stimulus."
Bank said he is hopeful a Biden administration would be able to pass the Restaurants Act, a $120 billion federal grant that has bipartisan support in both houses of Congress.
Stimulus pledge
Biden has pledged to provide billions in stimulus money to states, municipalities and small businesses desperate for federal relief. New York City has been playing a game of chicken with its public workers for months, with Mayor Bill de Blasio saying he would lay off 22,000 city employees Oct. 1 if he didn't receive billions in federal aid or deficit financing authority from Albany. The layoffs never materialized, but the threat of cuts remained.
Special projects unique to New York could now get pushed over the finish line thanks to a Biden administration. Both the Amtrak Gateway tunnel beneath the Hudson River and the approval of congestion pricing by the Department of Transportation have languished under Trump.
"It will mean Gateway gets built, Second Avenue subway continues and the JFK and LaGuardia airport renovations get finished," Scissura said. "So many things will happen, and we're very excited about it."
Gov. Andrew Cuomo will also stand to benefit from a Biden presidency, as the two have known each other for years and worked closely on a handful of infrastructure projects when Biden served as vice president under Barack Obama.
Cuomo could join the administration or exert some influence on the presidency from Albany.
"It gives New York a lot more alliance with the nexus points of the incoming administration," said Bruce Gyory, a Democratic political consultant at Manatt, Phelps & Phillips. "New Yorkers tend to get high positions in Democratic administrations."
There is also talk that Rep. Hakeem Jeffries of New York's 8th Congressional District in Queens could emerge as a moderate candidate for speaker of the House, as many Democrats are disappointed with Speaker Nancy Pelosi's leadership following Election Day losses.
Which party will lead the U.S. Senate has yet to be determined. It looksd as though the Georgia Senate races would be decided in a January runoff. If Democrats ultimately prevail, New York Sen. Chuck Schumer would become majority leader and immediately hold the lever of power to help his home state.
Not everyone is rejoicing at the prospect of Democratic domination, however.
"You're going to see increased taxes, especially if there are majorities in the Congress," said Sen. Robb Ortt, Republican minority leader in the New York Senate. "I don't know if you're going to see a tangible benefit."
Biden's victory will be a huge relief for budget hawks in New York, such as Comptroller Thomas DiNapoli, who have advised against granting the $5 billion in borrowing authority to the city. It's not clear yet how big a relief package new Democratic leadership could put together, but some amount of the $12 billion in relief the MTA has requested to continue operations into next year will most certainly be included in any multitrillion-dollar effort.
"I think that the U.S. may develop a supportive urban policy along the lines of what we had in the 1970s that recognizes the economic importance of cities to the national economy," Wylde said. ■
https://www.crainsnewyork.com/politics/what-biden-presidency-means-new-york
