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Capital Projects Bill Passes Senate
May 5th, 2010

A bill sponsored by Sen. Martin Dilan that would force the state to pay contractors who are working on state road and bridge projects passed the senate today.

Assemblyman Vito Lopez is sponsoring the bill in the assembly. If the bill passes that house and is signed into law the state would be required to pay contractors retroactively to March 31.

Paterson announced in April that he would freeze contractor’s pay until a new budget deal is reached. Contractors say the move is costing jobs and jeopardizing important repair projects. They have brought a suit against the state to try to get paid.

Here is the release from Dilan’s office:

Albany, N.Y.Today, the State Senate passed a measure sponsored by Senator Martin Malav Dilan (D-Brooklyn) that will assist New York construction crews in getting back to work on the states roads and bridges by authorizing the continued payment of all capital construction contracts.

New York made a commitment to contractors that come construction season the money would be there for them to conduct the work they agreed to do, said Senator Dilan, Chair of the Senate Transportation Committee. By honoring these contracts we not only meet the requirements by which we are legally bound, but also protect the public, employs its workforce and invest in critical transportation projects.

The legislation is sponsored in the Assembly by Assemblyman Vito Lopez, D-Brooklyn.

S.7686 makes all capital contracts binding liabilities, and requires they be honored. Since April 1, New York has operated without a budget, relying instead on emergency spending measures to pay its expenses. These liabilities have included the public employee payroll, social security contributions and aid to localities.

The first three budget extenders allocated funds toward projects funded solely through the American Recovery and Reinvestment Act. As each new extender came before the Senate, Senator Dilan asked that Governor David Paterson include all capital projects, whether funded through ARRA, Federal or State coffers. Just two weeks ago, capital project funding in New York was extended to federally funded capital projects.

But approximately 80 percent of these federally funded construction projects currently let by the New York State Department of Transportation require some form of state match in order to qualify for the remaining federal dollars.

Without the states match, the work, federal- or state-funded, will be delayed this construction season, and some larger projects may not get done at all, said Senator Dilan. This legislation is a vital step toward shoring up tens of thousands of construction jobs across the state.

The legislation awaits Assembly approval. Upon final passage, the measure will be effective immediately and cover liabilities dating retroactively to March 31, before the state budget expired.

By on May 5, 2010, 4:06 pm
In category: Albany,Eye on Albany,Transportation | 3 Comments »

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3 Responses to “Capital Projects Bill Passes Senate”

  1. Larry Littlefield Says:
    May 6th, 2010 at 9:05 am

    New York made a commitment to contractors” and members of public employee unions with seniority and senior citizens, and older generations have been and are unwilling to pay for it. They are entitled to everything, and owe nothing.

    Those coming after, and those with less power, owe everything and are entitled to nothing. The state legislators are the rear guard members of Geneation Greed, here to make sure they extract the last dime.

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