Prez Boosts Aid Pledge - Vows city will get $21.3B downtown rescue package

By KENNETH R. BAZINET - Daily News Washington Bureau - WASHINGTON

President Bush surprised his critics yesterday by boosting his $20 billion aid package for New York City by an additional $1.3 billion, prompting an outpouring of gratitude from Democratic skeptics. "It's the absolute right position for our government to take," Bush said as he detailed his $21.3 billion rescue plan.

Pol pals Bush and Bloomberg promote the aid plan while fellow New York luminaries Clinton, Schumer and Pataki look on. Sen. Hillary Clinton (D-N.Y.), who had suggested the President might not fulfill the $20 billion pledge he made shortly after Sept. 11, gushed over his generosity. "I think all of us remember that famous newspaper headline back in the 1970s, when another President was asked to help New York City," she said, referring to a Daily News front page that read "Ford to City: Drop Dead." "Maybe tomorrow's headline will be, 'Bush to New York: Help is on the way,'" she said.

Rep. Charles Rangel (D-Harlem), a Democratic stalwart, added, "We were indeed fortunate to have President Bush at the helm at a time when America needed him the most." The lovefest in the White House Rose Garden was a far cry from the bitter accusations over Bush's willingness to keep his promise of $20 billion during an Oval Office meeting with Clinton and Sen. Chuck Schumer (D-N.Y.) on Sept. 13.

Democrats started worrying when they didn't get all the money at once. And Bush budget director Mitch Daniels seemed to confirm those fears when he suggested the amount would be cut back and lashed out at New York's "money-grubbing" tactics.

Daniels quickly ate his words, but the city's congressional delegation remained wary, even planning protests at Ground Zero. That changed yesterday.

'Everything We Asked For' "We got everything we asked for - we got it all," said Schumer, who worked behind the scenes with Bush's staff during the past week. "I've never seen that before."

About $10.3 billion has been appropriated by Congress. Most of the remaining funds will come from a Liberty Zone tax-relief plan for lower Manhattan and a supplemental budget appropriation that Congress will take up in the next few weeks.

A chunk of the new money will go to utilities such as Con Ed and Verizon to keep them from raising their rates to pay for repairs. Con Ed spokesman Michael Clendenin said, "Based on what has been announced, we expect that rate increases would not be necessary for the repairs and restoration of lower Manhattan."

Verizon spokesman John Bonomo said the money "goes a long way to making us whole." The package also would provide billions more to rebuild roads and rail lines in lower Manhattan and would provide funds for a Grand Central-like transit hub near Ground Zero. Mayor Bloomberg, who was present along with Gov. Pataki and the New York congressional delegation, painted the federal bailout as a potential jobs bill that could mean hiring 50,000 construction workers, saying the city "will take a decade or so to finish up the rebuilding." "This should quiet all the critics," said Rep. Vito Fossella (R-S.I.). Bush was all smiles, giving Clinton a warm welcome back to the White House and teasing Schumer over the nickname "Ellis," as in Ellis Island. "He calls me 'Ellis.' That's good, I think," Schumer said. "Today it is!" Bush retorted. President Bush's $21.4 Billion Aid Package for New York Money Already Approved

* Emergency funds for massive cleanup and to restore public facilities - $6.1 billion

* Loans and grants to businesses in lower Manhattan - $2.9 billion

* Crisis counseling, hospital reimbursements and other medical costs - $1.3 billion

Proposed Liberty Zone and Aid for Needy Families

* Bill needing congressional approval would grant tax incentives for businesses, including tax-exempt redevelopment bonds for lower Manhattan -$5.5 billion

* Temporary aid for needy families - $100 million

Additional Funds Proposed yesterday

* Increased emergency funding to repair subway and PATH facilities - $2.7 billion

* Federal transportation money to help plan and build a transit hub - like a Grand Central downtown - for PATH and subway trains - $1.8 billion

* Extra money for emergency repairs of roadways near Ground Zero - $167 million

* Community development funds to reimburse utilities - $750 million