Daily News from New York, New York • 21

DAY 7 '-VJ 1 -fiC f'': j-i4 iA fir' If jv 'f u. By PETE DONOHUE, ELIZABETH HAYS and BRIAN HARMON DAILY NEWS STAFF WRITERS In the air, on the street and below ground, the signs of war and a heightened fear of terrorism are unavoidable in New York. Army Black Hawk helicopters hover above the city, employers are scrambling to develop battle plans against chemical and biological attacks, and police are stopping tourists from taking pictures inside Penn Station. "It's scary. It's like they have inside information," Simon Ja-cobsen, 35, a Wall Street investment banker, said of the unarmed Black Hawk flyovers that are part of a round-the-clock air patrol over New York.

As Jacobsen confessed his fears of terrorism, six city cops in battle gear stood nearby, in front of the New York Stock Exchange. They carried rifles across their chests. New Yorkers, still jittery from the horrors of the World Trade Center attack 18 months ago, are coping with intelligence agency warnings that say the city faces a special danger of terrorism because of the war against Iraq. Mayor Bloomberg said air patrols may help calm nervous New Yorkers, though he downplayed the risk of terrorism Sen. Chuck Schumer said he didn't know whether to "laugh or cry" when he learned Bush set aside only $50 million for high-risk cities.

"There's less money in the President's proposal for New York than there is for Turkey or Pakistan," said Schumer, who is spearheading an effort to get 10.8 billion in homeland security funding. "I find that amazing." Gordon Johndroe, a spokesman for the Department of Homeland Security, said New York will receive a "substantial amount" of funding. "It's premature to attack a proposal before the check has been delivered," he said. With Joe Mahoney and Bill Egbert, from the sky. "I personally don't think there is any threat of an aerial strike," Bloomberg said to reporters in Greenwich Village.

"On the other hand, I didn't think there was a threat of airplanes going into the World Trade Center on 911. "Is there a real risk? I don't think so, but that doesn't mean you don't take precautions," he added. For instance, subway riders, already accustomed to seeing more cops and National Guard personnel, are being put on special alert. Signs headlined, "If you see something, say something" ask straphangers to report any suspicious activity. Transit Authority officials told workers in a memo Friday to be on alert for photographers taking pictures of sites that normally wouldn't make a tourist's photo album including subway tunnels, emergency exits, bridges and transit buildings.

"Law enforcement would tell you terrorists like to case out their locations," a transit source said. "We just want to make sure no one is trying to case us." Security forum for execs Police speaking to some of the city's top corporate leaders at a security seminar yesterday in midtown warned that most companies are woefully unprepared to deal with a terrorist assault. "That truck that pulls up in front of your facility is as dangerous as the handbag coming in," said NYPD Inspector Thomas Graham, the top cop for planning the evacuation of the city in case of a terrorist attack. "We X- ray the handbag but we pay no attention to the truck just sitting on our perimeter." Graham said employees must know how to evacuate their offices, security personnel should understand how their ventilation systems work and that buildings need safe rooms without windows. With Melissa Grace til" ..1 I NYPO Emergency Service Unit officers patrol with high-powered rifles yesterday.

VoitlI sWedl fteirow tads MICHAEL SCHWARTZ Exactly how much New York will get has not been resolved. "I don't think we'll get as much as I think we should get," Mayor Bloomberg said. "But the practical reality is we will get more than most and maybe the most of any city certainly we deserve it." A City Hall aide said the amount of money Bush proposed is not "exactly what we're looking for," but the mayor believes it's best not to "bite the hand that feeds him." The White House did set aside $50 million for cities, such as New York, that face the greatest risk of a terrorist attack. But even if New York got all of that, it would need much more. I outside New York Stock Exchange Ms: Hon By MICHAEL SAUL i DAILY MEWS CITY HALL BUREAU President Bush's $75 billion war bill set aside $4.25 billion for homeland security but not nearly enough of it will wind up in New York, state officials charged yesterday.

Slightly more than half the $4.25 billion will go to federal programs. The rest will go to cities and states for terrorism preparedness and prevention. The feds will distribute the money to cities and states through a formula yet to be determined, but it is expected to factor in an area's risk and population. "The allocation formula that's been proposed is unfair to New York," said Gov. Pataki in his sharpest rebuke of the White House following criticism that he has been sort on requesting aid.

"We're a unique state and a unique city, which is why we were attacked on Sept. 11," Pataki said while visiting in the Bronx with friends and family members of U.S. troops. "We're a symbol of all that's good in America, and, as such, we're far more prone to be attacked by those who despise our freedom than other parts of the country." New York State is spending $7.5 million a week in wartime security. That's on top of the $5 million New York City is plowing through each week into war-related security.

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