State officials in Albany last week scrambled to put in place the process whereby the state will distribute nearly $4 billion for New York infrastructure and energy projects included in the federal stimulus spending package recently approved by Congress. The governor”™s newly created economic cabinet will oversee who gets what in a state that listed 1,900 shovel-ready projects even before the stimulus package was approved.
Gov. David A. Paterson last week said a preliminary analysis of the American Recovery and Reinvestment Act, the massive economic-stimulus legislation sought by President Barack Obama, shows New York can expect to receive at least $24.6 billion over the next two years. In addition to infrastructure spending, that expected federal funding includes $14 billion in state fiscal relief that will partly offset the state”™s projected $13-billion deficit next year; $4.4 billion for health and human services; $2.1 billion for education and $107 million for public service programs.
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As job layoffs continue to rise statewide, New York will receive approximately $1.3 billion to pay for a 33-week expansion of unemployment benefits, to a total of 59 weeks, as well as provide additional weekly benefits through Dec. 31 this year instead of March 31.
The state”™s expected share is about 6.5 percent of the total federal spending package of $374.2 billion. It stands to receive 10 percent of total federal funding for states”™ fiscal relief. Its $3,971,000 in infrastructure funding is about 5 percent of federal infrastructure spending nationwide.
New York expects to receive $1,245,000 for mass-transit infrastructure projects and $1.12 billion for highway and bridge work. State officials could not be reached last week to comment on the state”™s apparent exclusion from a share of $9.3 billion nationally in federal funding for rail transportation projects, $1.3 billion for airport improvement projects, $1.5 billion for discretionary surface transportation projects and $7.2 billion to pay for broadband access and expansion projects. New York does stand to receive $450 million of a total $9 billion in federal funding for science facilities, research and instrumentation projects.
A spokeswoman for the governor last week said Albany officials had no specifics on the projects that will be funded.
The process of selecting from thousands of proposed projects around the state will be managed by a state Economic Recovery and Reinvestment Cabinet created this month by Gov. Paterson. Composed of top officials from 27 state agencies and the governor”™s senior staff members, the cabinet is headed by Timothy J. Gilchrist in his new position as senior adviser for infrastructure and transportation.
“These funds will allow critical infrastructure projects to progress at a time when state and local governments cannot move these projects forward alone,” Gilchrist said last week. “Now we must work with local officials to outline an aggressive agenda to ensure that the state utilizes these funds quickly and efficiently for job-creating projects with lasting value across the state.”
Gilchrist was not available for a scheduled interview with the Business Journal last week. Paterson”™s staff said project selection will be made by the relevant state agencies in consultation with the cabinet and based upon federal selection criteria outlined in the economic-stimulus law.
The legislation also includes $16.8 billion for energy efficiency and renewable energy projects and technologies, of which New York will receive $126 million through the state energy program and $31 million in alternative-energy block grants.
