Guv to release federal funds for construction

ALBANY - Gov. David A. Paterson announced Thursday the release of some federal money for construction projects that has been held up by the late state budget.

While still refusing to allocate state funds for building projects, Paterson said he now would permit use of federal funds. The necessary authorizations will be included in emergency spending bills to be considered by the Legislature on Monday. The bills keep state government running on a one-week basis while negotiations continue over the 2010-11 budget.

Nearly 350 road and bridge projects statewide are affected including replacement of the Roslyn viaduct, and work on Meadowbrook Parkway, Route 25 in Brookhaven and traffic signals throughout Long Island.

The amount of the released funds couldn't be determined yesterday.

"There are projects that I'm realizing are federally funded and they are not related to the stimulus money and I think perhaps we can resume those projects," Paterson told WBEN radio in Buffalo. Construction paid for with federal stimulus dollars hasn't been impacted by the funding hiatus instituted by the governor after the April 1 budget deadline came and went.

Republicans in the State Senate have tried twice to amend emergency spending bills to release the construction dollars. The Assembly GOP also made an attempt earlier this week.

For the past three weeks, Paterson has withheld the money to increase pressure on lawmakers to agree on a budget for the cash-strapped state.

Last week, the Long Island Contractors' Association and others filed a lawsuit, saying the funding suspension led to job losses and financial hardship at construction companies.

Senate Republicans Thursday criticized Paterson's release of funds for only about 20 percent of 600 projects. They said most of the money would go to New York City.

Sen. Owen Johnson (R-West Babylon) said, "It's not enough that the governor has handpicked a few projects to get funding; he should let all of them proceed immediately."