Citing the economic downturn and the high cost of borrowing in the bond market, New York is looking to cut back on capital projects that were approved for the current fiscal year, Gov. David Paterson announced yesterday.

"The current financial crisis has restricted the access of many municipal issuers to the bond market, including those with strong credit ratings like New York State," Paterson said in a directive issued to state agency heads. "In light of the current market crisis and the potential risk to the state's finances, it is critical that we prioritize our new capital spending to focus on health and safety projects that address our state's most important infrastructure needs."

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