December 10, 2009
BINGHAMTON -- The New York State comptroller is looking into how Southern Tier municipalities are spending economic stimulus dollars, and he says local towns and counties are putting them to good use.
Thomas DiNapoli says ten local governments across the Southern Tier properly bid for highway projects paid for with money from the American Recovery and Reinvestment Act.
Infrastructure has been a huge piece of the economic stimulus pie. In New York State, a little more than $1 billion is allocated to highway projects. And as far as DiNapoli is concerned, municipalities in our area that requested stimulus funding went about it the right way.
“We want people in our state to be sure that when this money has been designated to New York and we've gotten it, that it didn't disappear or was spent in ways which couldn't be accounted for,” said DiNapoli.
The local governments DiNapoli audited appropriately awarded road resurfacing projects to the lowest responsible bidders. They include Schuyler County, Steuben County, Yates County, the Village of Arkport, and the City of Corning.
In Corning, $22,000 is going to repave West Third Street, $19,000 for East Third Street, and $89,000 for West William Street.
But the mood at DiNapoli's "good news" press conference Thursday quickly changed with talk of the state's deficit.
“We’re still in a very difficult situation as far as cash flow right now, and we may not be able to make all the payments due in December, which means we may have to look at options including deferring some of those payments,” said DiNapoli.
DiNapoli estimates the state's deficit will reach $4 billion by March 31 -- the end of the fiscal year.
That's more than the governor's estimation of $3.2 billion.
“Those who would take the position this problem going to correct itself are wrong. The governor, I think, has been right to say we have a gap that's not going away, and I think our numbers reinforce that message as well,” said DiNapoli.
DiNapoli estimates the state could save $765 million if more local governments start sharing services.
USEFUL LINKS
Read the comptroller's audit