Construction Outlook

Construction Outlook Update
January 2010

Little stimulus money spent on new york city transportation projects in 2009



State Comptroller Reports $857,000 Spent as of January 15, Despite Approvals for up to $1.57 Billion


Despite initial approvals for $1.57 billion in capital spending on New York City transportation projects as part of the American Recovery and Reinvestment Act (ARRA), a New York Building Congress analysis indicates that very little of these federal stimulus funds have been spent to date.

According to data supplied by the office of New York State Comptroller Thomas P. DiNapoli, which is the official source for information on stimulus spending Statewide, just $857,000 was spent on New York City transportation projects as of January 15, 2010. The $857,000 in City transportation spending represents just 0.1 percent of the nearly $704 million spent on transportation projects Statewide to date, though more funds are obligated in contracts awarded and jobs in progress.

As a supplement to the Comptroller's stimulus accounting, the Building Congress reached out to officials at the three transportation agencies that have been approved for stimulus funding the New York State Department of Transportation (NYSDOT), the Metropolitan Transportation Authority (MTA) and the New York City Department of Transportation (NYCDOT).

The MTA and NYCDOT reported stimulus-related expenditures totaling $36.7 million between the two agencies, while NYSDOT indicated that the Comptroller's figures do not capture additional capital spending that is ongoing but has yet to be submitted for federal reimbursement.

NYSDOT
According to the State Comptroller, which adheres to the accounting standards set forth by the Government Accounting Standards Board, nearly all of the $857,000 in transportation sector expenditures thus far has been made by the New York State Department of Transportation (NYSDOT); more than three-quarters of which was for the expansion and upgrading of Park & Ride facilities in Staten Island ($674,000).

NYSDOT officials point out, however, that construction work can be done for many months before bills are submitted for payment and thus are not reflected in the State Comptroller's current accounting. Consequently, other measures, such as obligation of funding and jobs created, more completely quantify the impact of stimulus funding. NYSDOT did not provide figures for ongoing ARRA related work that may be reflected in future spending numbers.

MTA
According to the State Comptroller's figures, the MTA has spent $39,000 of stimulus funds on a bridge replacement on South First Avenue over the MetroNorth Railroad. Approximately $10.9 million is earmarked for this project.

At the end of 2009, no federal stimulus money had been spent on the two MTA projects slated to receive the most ARRA funds; the Fulton Street Transit Center, which is expected to receive $423 million, and the Second Avenue Subway, which has been approved for $276 million.

According to MTA, the agency has been allocated a total of $1.075 billion in ARRA funds and has awarded contracts worth $886 million. However, the MTA acknowledges that just $14 million has been spent to date.

NYCDOT
The Comptroller's figures indicate that the NYCDOT has yet to begin spending federal stimulus money, though a contract has been awarded for a $4.3 million rehabilitation of the Greenpoint Avenue Bridge for which $2.5 million in stimulus funds has been allotted.

According to NYCDOT, however, through Dec 2009, the Agency has spent more than $16 million (out of $175 million allotted) on replacement of the 60-year-old bus ramps at the St. George Ferry terminal on Staten Island, and over $6.7 million (out of $46 million) for the Staten Island Ferry Asset Maintenance/Dry-Docking project. In addition, five ARRA-funded bridge projects should start showing expenditures by the end of this quarter.

Work has not begun, nor have contracts been awarded, for NYCDOT rehabilitation work on and around the Brooklyn Bridge and the Bruckner Expressway, or for several other ARRA-funded transportation projects, according to the Stimulus Tracker found on the City's website, NYC.gov.

Transportation Spending Lagging
Comptroller DiNapoli's figures show that, of the $1.6 billion total ARRA spending in New York City in 2009, less than one percent was dedicated to transportation projects. Aside from the bulk of spending, which was allocated to unemployment insurance benefits of New York City residents, the significant other outlays were for Education ($37 million), Housing (nearly $13 million), and Energy & Environment ($10 million).

"As New York City nears the first anniversary of federal stimulus legislation, we remain greatly concerned about the slow pace of capital spending on transportation projects," said New York Building Congress President Richard T. Anderson. "Virtually all of the stimulus money spent and received to date has been devoted to programs designed to lessen the impact of the economic downturn on individuals, bolster the operating budgets of local governments, or fund small-scale construction projects. While such spending is important, it does little to stimulate the broader economy, create new jobs and prepare the region for renewed growth."

He added, "We applaud public officials' recent efforts to get many more projects underway and strongly support the drive to craft a second jobs bill in Congress that will focus on infrastructure improvements. Still, the slow pace of project delivery, relative to many other States, is not helping New York's case for additional stimulus funding. We encourage New York's elected and agency officials, including our Congressional delegation, to redouble their efforts to get money flowing quickly to transportation projects that are approved and shovel-ready."

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