Despite fears expressed by the governor that “We are running out of money,” it appears funding for a trio of important Hudson Valley business endeavors are safe for the 2008-2009 fiscal year budget approved April 9, but still working its way through scrutiny by budget officers.
Gov. David Paterson suggested earlier this month he may not release funding for some projects connected with some $500 million in state allocations for capital projects and member items approved by the state Legislature. But as of May 21, two key projects in the Hudson Valley had received clearance from the state Division of Budget, while a third project was still undergoing routine review, according to Errol Cockfield, the governor”™s press secretary.
Cockfield said that $1.25 million for the Marriot Pavilion at the Culinary Institute of America in Poughkeepsie and $250,000 for the Walkway over the Hudson also in Poughkeepsie, had received clearance by the state budget division. Those projects were among member items of state Sen. Stephen M. Saland of Poughkeepsie.
The $750,000 that would be spent for The Solar Energy Consortium in Kingston is still awaiting approval, according to Cockfield. That money is a member item of state Assemblyman Kevin Cahill of Kingston. “I have heard unofficial rumors, but I have not heard anything official,” said Cahill, who said he expected the money for the solar consortium would be forthcoming. “I assume the governor would notify me if there is a problem with releasing the funding,” he said.
Budget reconciliation is an annual rite in Albany and there is some $1.6 billion in capital spending approved in principle this year. Paterson has authorization for about $500 million in spending.
The state Senate last week released a list of capital project spending totaling some $220 million, while the state Assembly last month released its list of projects totaling some $245 million in spending. Each legislative chamber has $350 million in discretionary spending contained in the state”™s $121.7 billion budget for fiscal 2008-2009.
The budget was announced April 9. As required by law, it is balanced, at least on paper.
But almost immediately after announcing its passage, talk began of a looming $5 billion budget shortfall for next year, and Paterson ordered department commissioners and state officials to cut 3.5 percent from operating budgets in this fiscal year as a hedge against a weakening economy and prospective budget shortfalls next year.
Â
It was in that context that Paterson suggested he may withhold approval of some state spending initiatives. But thus far, no specific projects have been removed from the budget.
Jeffrey Gordon, spokesman for the state Division of Budget, said the money for Saland”™s member items was part of a package submitted earlier by the state Senate than the member items package submitted by the Assembly. He said the prospective spending is subject to review as part of routine oversight, adding, “I wouldn”™t want to speculate either way,” regarding whether the spending for the solar consortium would be approved or when.
Â
Â
