New York State Budget Approved

A $142 billion budget for New York State approved Tuesday night devotes billions toward infrastructure enhancements.

The 2015-16 fiscal plan directs $5.4 billion in bank settlement funds toward economic initiatives including capital projects.

The budget, which capped spending growth at 2% for the fifth straight year, invests $1.3 billion in the New York State Thruway system to keep tolls down while also addressing maintenance initiatives and supporting construction of a new Tappan Zee Bridge, according to Gov. Andrew Cuomo.

 

More than a quarter of the financial settlements are earmarked toward Cuomo's proposed Upstate Revitalization Initiative that will involve seven regions competing for funds that would strengthen "critical infrastructure" while also growing tourism. Cuomo has also set a goal of setting up statewide high-speed broadband access by the end of 2018 with $500 million directed toward accomplishing this feat.

"This $142 billion budget is the most meaningful that we have agreed to in many years, not because of what we are spending but because of how we are spending it," said Cuomo in a statement. "We are not just maintaining services and the status quo with this budget. We are investing in a new future for our state."

Other capital-related items from financial settlement monies addressed in Cuomo's budget include:

"$400 million over four years to support debt restructuring and capital projects for healthcare systems throughout the state.

"$250 million to build new Metro North train stations in the Bronx, Co-op City, Morris Park, Parkchester and Hunts Point

"$150 million for undetermined economic development and infrastructure projects on Long Island that will be approved by the Empire State Development Corp.

"$50 million to transform the New York State Fairgrounds into a "premier multi-use facility."

"$40 million for the Port of Oswego to link with the Port of New York and create additional intermodal rail yards in Syracuse and Binghamton.

Cuomo also announced that the new budget plan will also involve spending $1 billion to make infrastructure improvements in hospitals throughout the state including $700 million in capital funding for central and east Brooklyn. An additional $50 million is also included to help municipalities repair and rehabilitate local roads and bridges impacted by recent winter storms.

New York lawmakers agreed to make a maximum allowable deposit estimated at more than $300 million to the state's rainy day reserves designed for unforeseen future budget emergencies.

New York State is rated AA-plus by Standard & Poor's, Fitch Ratings and Kroll Bond Rating Agency . The state is rated Aa1 by Moody's Investors Service.

For reprint and licensing requests for this article, click here.
Transportation industry New York
MORE FROM BOND BUYER