In a letter to Governor Paterson, Congressman Brian Higgins (NY-27) expressed outrage at New York State’s unnecessary suspension of construction contracts calling it a direct threat to New York’s delicate economic recovery at the worst possible time. 

“…The moratorium on contracts ignores the fact that 50% of the State’s transportation budget is derived from federal funding,” wrote Higgins, a former member of the House Transportation Committee and current member of the Committee on Ways and Means.  “It is bad enough that jobs and economic progress are held hostage to a state budget impasse; it is unacceptable that the millions in federal aid are held up as well.”

The move to defer contract payments effective April 1st is forcing construction contractors across the state to either continue work, pay employees and buy supplies without getting paid or stop work completely.  In published reports the New York State Department of Transportation has confirmed they have already received work stop notices.

The Congressman expressed concern that this is compromising an already short construction season for communities like WNY that experience more drastic climate changes.  In addition the decision to not initiate new construction contracts is further shutting down the job growth intended with federal transportation funding.

The halt in construction could delay contracts worth $412 million in Western New York and $6.2 billion statewide.  One of the significant local contracts being held up is the major waterfront transformation of Fuhrmann Boulevard along the Outer Harbor in Buffalo which received over $64 million in federal funding. 

“Every day in Congress I fight for more federal funding for WNY, especially high impact projects like the Outer Harbor Parkway, which creates jobs not only in its construction but by unlocking acres of inaccessible waterfront land to development,” said Higgins.  “This project is one of the many locally threatened by this moratorium despite the millions in federal funding my colleagues and I fought long and hard for.”

Gary Hill, owner of Union Concrete, responsible for construction of the Outer Harbor Parkway has, for now, decided to continue work on the project.  He is concerned that halting the job would result in health insurance and income problems for the hard working men and women who have just recently returned to work this spring. In addition he is proud of the transformation taking place in the area and feels strongly the project is “too important” to WNY.  It’s unclear however how long this local business can sustain the expense of construction.  Hill said without even counting materials, supporting employees and equipment alone is costing $20,000 to $25,000 per day. 

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Attached:

• Congressman Higgins’ Letter
• Photo (L-R): Union Concrete owner Gary Hill and Congressman Brian Higgins