Construction projects being put on hold
State officials say they've run out of money for construction projects around the state, at least for now. One of those projects is the Exit 6 Northway site. Our Erin Vannella talked to contractors and has more on what the delayed funding could mean for the project.
To view our videos, you need to
enable JavaScript. Learn how.
install Adobe Flash 9 or above. Install now.
Then come back here and refresh the page.
ALBANY, N.Y. -- Digging deep with empty pockets.
"We want to get the message out this is statewide, this is going to be 50,000 people worth of economic activity that's being toyed with down at the capital," said VP Association of General Contractors Steve Stallmer.
Starting Thursday and lasting a week, minimum, the state will temporarily cut funding to construction projects statewide. Department of Transportation officials say they have no money left for the work since no provisions were made for construction projects in the state's emergency spending plan. It's up to contractors, meanwhile to decide whether or not to continue construction.
"This is peak construction season in this region. Contractors are anxious to get back to their projects and I know the workers are anxious to start collecting those paychecks again," Stallmer said.
The Exit 6 Northway site is one such project affected. The site's contracting president Mark Galasso says a week of construction costs him $500,000. And should the funding cut stretch longer than six weeks, money would run out.
"About 300 people would get laid off, no choice," Galasso said "We don't work from December to April so we have our overhead costs from those months with no revenue coming in at the lowest point of cash flow so this hits the industry at the worst possible time"
For now, Galasso says the Exit 6 project will continue since the phase of construction planned to start April 5 is too big an item to stop. But his two other construction projects, one in Montgomery County and another in Orange County will have to wait for legislators.
"It's unfortunate that the powers that be are making working men and women suffer because they are incapable of getting their work done," Galasso said.
The DOT admits the temporary funding cut doesn't save the state money; it just buys them time to draft a new spending plan. State DOT officials ensure contractors will be paid, they're just not saying when.