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Last month, Comptroller Alan Hevesi, a Democrat, put the kibosh on a proposed $2.9 billion borrowing – or loan – by the New York Thruway Authority, saying it would cost taxpayers $460 million in the long run, The Associated Press reported.
In retaliation, Republican Gov. George Pataki stopped handing out transportation contracts, saying the whole five-year, $17.9 billion bridge and road spending plan OK’d by state lawmakers and the governor had to be reworked without that money.
The new deal reached last week, delays payments to the final 15 years of the bonds, but are $1.7 billion less than before, The AP reported. It includes using $300 million in debt service reserve funds upfront for projects during the next five years.
The agreement puts planned projects back in motion.
The bonds agreed to by Pataki and Hevesi are separate from the $2.9 billion Transportation Bond Act that voters will decide on this November.
7/22/05-New York state has stopped handing out transportation contracts in response to the state comptroller’s decision last week to reject a proposed $2.9 billion borrowing – or loan – by the state Thruway Authority for highway and bridge work.
State Transportation Department officials told The Associated Press that Comptroller Alan Hevesi’s action led to the stoppage of $350 million in construction contracts throughout the state. The agency, led by Republican Gov. George Pataki, is also stopping the awarding of $200 million in contracts for rail and other work until the entire transportation plan can be reviewed.
The planned debt refinancing would have earmarked $1.3 billion for the state’s roads and bridges in the next five years by delaying principal payments until 2011.
However, Hevesi warned that under the plan the state would have to spend an additional $1.7 billion over the last 15 years of the bonds.
Hevesi, a Democrat, denied his action would cause any projects to be delayed or cancelled since the state still has five years to come up with an alternative source of money.
The planned savings was included as part of the five-year, $17.9 billion bridge and road spending plan OK’d by state lawmakers and the governor.