Archives of the Mayor's Press Office

FOR IMMEDIATE RELEASE Release #072-00
Wednesday, February 23, 2000

Release #072-00

Contact: Sunny Mindel// Michael Anton (212) 788-2958



MAYOR GIULIANI URGES FEDERAL GOVERNMENT TO
HELP NEW YORK CITY ADDRESS OIL CRISIS

Requests HUD Aid for the Housing Authority Asks IRS to Raise Reimbursement Rate for Gasoline

Mayor Giuliani today called on the federal government to do more to address the steep rise in oil prices that has caused heating oil, gasoline and diesel prices to increase sharply in recent weeks. Specifically, the Mayor is requesting that the Department of Housing and Urban Development (HUD) reimburse the City Housing Authority for $38 million in excess energy costs, and he is asking the Internal Revenue Service (IRS) to raise the reimbursement rate for gasoline by 5 cents per mile.

"The City of New York is doing what it can to help people offset the spike in oil prices caused by the OPEC monopoly," Mayor Giuliani said. "But ultimately, there's only so much the City can do. The federal government is much better able to address this crisis. But so far, the Clinton Administration has done much too little, much too late. Even members of the Administration agree. Just last week, Energy Secretary Bill Richardson admitted that the Clinton Administration had been 'caught napping' by this crisis. It's past time for the President to wake up and feel New Yorkers' pain."

Because of the oil crisis, the New York City Housing Authority projects it will have to pay $38,710,00 this year in excess energy costs. HUD regulations allow the City to request a mid-year adjustment in the aid the Housing Authority receives from the federal government. The Mayor announced that Housing Authority Chairman John Martinez will formally request HUD to reimburse the City for the excess costs.

"I have every expectation that the federal government will honor this request," the Mayor said. "The purpose of mid-year adjustments is to address crises like the one we're currently suffering."

The Mayor also announced that he is asking the IRS to increase the per mile reimbursement rate by 5 cents per mile, from 32.5 cents per mile to 37.5 cents per mile, for automobile usage on-the-job.

"At current levels, the gasoline reimbursement rates don't reflect reality," the Mayor said. "Costs have risen so sharply, so fast, that people will not be reimbursed for the real amount they're paying for gasoline. And for many hard working people, the low reimbursement rate means they're effectively being taxed on money that is not income."

The Mayor added, "I again call on the President to release a small portion of America's Strategic Petroleum Reserve. Just a small sale of oil-as little as 2% of the Reserve-would increase supply enough to drive down oil prices, reducing the cost of heating oil, gasoline, and diesel fuel. And-what's important-it would do so without subsidizing OPEC. Releasing the Reserves is a way to help Americans without enriching the profiteers who created this crisis in the first place."


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