New York Governor Paterson Calls For Restoration Of Local Highway Funding In State Budget

Says Many Town, County Projects Not Eligible for Federal Economic Recovery Funds; Creates Economic Recovery Website to Promote Efficiency, Transparency

February 17, 2009 -- New York Governor David A. Paterson today announced that the infusion of more than $1.1 billion in transportation funds to New York from the federal American Recovery and Reinvestment Act will allow the State to restore local highway funds originally proposed to be cut from the 2009-10 Executive Budget.

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The Governor has directed Budget Director Laura Anglin to work with the Legislature to determine how to reallocate the funding in the Highway and Bridge program and restore the Consolidated Highway Improvement Program (CHIP) funding to 2008-09 levels for towns, villages, counties and small cities. Many local highway and bridge projects are not eligible for federal transportation aid.

“The American Recovery and Reinvestment Act gives New York a unique opportunity to promote critical infrastructure projects across the State,” said Governor Paterson. “Because the infrastructure funds come with a ‘use-it or lose-it’ caveat, it is imperative we allocate these funds as quickly and efficiently as possible, to put people to work and create lasting value in our State. My Administration is aware of the challenges faced by local governments seeking federal aid, and because many important local projects are not eligible for these funds, I have asked my Budget Director to find a solution in the restoration of CHIP funding.”

The Governor also announced the State’s website for economic recovery: economicrecovery.ny.gov.

The website will serve as a guide to federal economic recovery funds, allowing users to submit proposals, track how the funds are spent and provide valuable information to local governments and organizations.

“I have stated from the start that transparency is paramount in this process,” said Governor Paterson. “Lawmakers and citizens will be able to track the use of these funds as we distribute them across project types and geographic areas.”

To prepare for these infrastructure funds, the Governor last week created the New York State Economic Recovery and Reinvestment Cabinet to manage the development of State and local infrastructure projects financed through these federal funds. The cabinet will begin meeting this week in the State Capitol.

Overall, New York, over the next two years, is expected to receive approximately $24.6 billion in federal funding through this legislation. This includes nearly $11 billion in increased Medicaid reimbursements, $2.5 billion for education spending restorations, nearly $4 billion for infrastructure and energy projects and $1.3 billion to continue the current 33-week expansion of unemployment benefits (to a total of 59 weeks).

Source: New York Governor