Long Island

Senate Democrats Block Republican Effort To Include Funding For Construction Industry In Latest Budget Extender



April 13, 2010

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(New York, N.Y.)-Senate Democrats today unanimously blocked a Republican amendment to include much-needed construction funding in a budget extender bill expected to pass today, an effort to reverse the Governor’s recent decision to suspend payments for ongoing state-funded capital construction projects until a new state budget is in place.  The amendment did not include any new spending, but would have allowed existing construction projects to be funded from April 1-18.
                       
Without access to these monies, many contractors will be forced to suspend projects during the summer construction season and lay off workers.   Despite the Governor’s actions, the funding for these projects has already been appropriated and current law allows for them to be funded through September 15, 2010.  April 1, the deadline for approval of a new state budget, is also the beginning of the construction industry’s peak work season.  
       
“The Governor and legislative Democrats have made the hardworking men and women who repair and rebuild our highways, bridges and roads the first victims of the late State budget that they themselves are responsible for.  Let’s be clear - - Democrats should stop playing politics, do their jobs and get a budget in place.  But, in the absence of an enacted budget, rather than withholding payments necessary to allow important transportation projects to move forward, we should all work together to protect this vital industry from a looming disaster.  It’s unfortunate the Democrats chose to vote down our amendment,” Senate Republican Leader Dean G. Skelos said.

“With no new budget in place, any extender that we pass should have included funding for these contractors so they can continue to do business in New York, and complete the construction projects that are critical to our efforts to create jobs and stimulate our economy.  This is a critical issue facing Upstate New York and the entire State, and Senate Republicans are attempting to provide the leadership necessary to get a positive result,” Senator John DeFrancisco, the ranking Republican on the Senate Finance Committee, said.

Since April 2008, the state has lost nearly 322,000 jobs.  In February 2010, the state’s unemployment rate held steady at 8.8 percent.  The construction industry has been one of the hardest hit areas, as New York lost 33,400 construction jobs between February 2009 and February 2010, according to the state’s labor department.  

Senate Republicans first sounded the alarm about the Governor’s shortsighted decision to omit this funding from their initial budget extender, which was approved  on March 29.  In addition, Senator Skelos wrote a letter to the Governor on April 5, calling for the road and bridge investments to be included in any subsequent extender legislation.  

“While it’s one thing to delay funding for all new road and bridge projects in the absence of a budget agreement for the 2010-2011 state fiscal year, it’s quite another to, in effect, take unwarranted punitive actions that may halt capital projects that are already underway,” Senator Skelos wrote.  

According to Skelos, Democrats should immediately begin conference committees to allow rank-and-file lawmakers on both sides of the aisle to hammer out a budget in public, as required under the Budget Reform Act of 2007.

“Just like last year, New Yorkers are once again seeing the consequences of one-party, closed-door budget talks conducted in secret.  It’s time to shed some light on the process and move quickly to solve New York’s budget challenges,” Senator Skelos said.


 


 

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