Lupardo Warns That Governor Paterson’s Withholding of Construction Funds Puts Local Jobs and Projects at Risk

Assemblywoman Donna Lupardo (D-Endwell) today denounced Governor David Paterson’s exclusion of payments for road and other capital projects in his emergency appropriations legislation, breaking almost 500 contracts statewide. The governor froze construction spending as of April 1 for any new or ongoing projects, saying he had to do so to conserve cash and keep the state solvent.

“While I understand the governor’s frustration with a lack of a budget agreement, he should not be taking it out on contractors and their employees,” said Lupardo, a member of the Transportation Committee. “I have been hearing from constituents and businesses that are very upset and concerned about job losses.”

Historically, when the budget has been late, capital project spending has been included in the emergency extender bills. The governor’s actions not only delay payments, but also risk delaying the completion of projects before the winter.

“Even if the Legislature were to amend the governor’s bills to include the money for these projects, he would not be required to spend it,” said Lupardo. “With no set time for the governor to release any of these funds, it is possible that work zones could be left abandoned and workers left unemployed for undetermined lengths of time.”

The state Department of Transportation (DOT) has warned contractors that payment for any construction done after March 31 is not guaranteed. Projects funded with federal stimulus money are not affected by the construction spending freeze.