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Governor cites "severe cash flow difficulties," puts construction, school aid on hold

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All construction projects relying on money from New York State are now on hold. It's another repercussion of the state's late budget, and the looming $9-billion budget deficit.

NPR reports the Ft. Drum connector highway is among the hundreds of affected projects. It's unclear if work on the Crown Point Bridge will go ahead as scheduled. The state Dept of Transportation did not return NCPR's phone calls yesterday.

Paterson administration officials said all projects not paid entirely with federal economic stimulus funds will be delayed until the Legislature and the governor agree on a budget. The Governor's order also tells contractors on existing projects the state won't pay for any work after the start of the new fiscal year Thursday. The order exempts projects planned to address so-called "emergency health and safety needs" as certified by the Division of Budget.

The governor also announced a second delay in state school aid payments due today. Karen DeWitt has that story from Albany.

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Reported by

Karen DeWitt
NYS Capitol Correspondent

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