Inflation’s Impact on ‘Core’ Projects Require Additional $800M in Budget

By JOHN JORDAN – December 2024

TARRYTOWN, NY—Rebuild New York Now warned that steps must be immediately taken to rectify the further deterioration of road and bridge quality and conditions in New York State.

In a letter sent to Gov. Kathy Hochul early this month, the broad-based coalition sounded the alarm that roadways are getting worse and the purchasing power of the transportation budget is diminishing.

The group seeks an additional $800 million for NYSDOT “Core” Projects in the FY2025-2026 Executive Budget.

The group also wants the state to adopt a formal 20-Year Needs Multi-Modal Assessment Process for NYSDOT to identify the continuing capital needs of the system—like the MTA. The new platform should capture and address future multi-modal NYSDOT needs and information should be publicly available.

The Construction Industry Council of Westchester & Hudson Valley, Inc., and the Building Contractors Association are leading members of the coalition and party to the letter sent to Gov. Hochul.  “To be clear, without an infusion of additional resources, critical projects will fall out of the NYSDOT capital plan because of the significant and cumulative impact of inflation and cost escalation. This will accelerate the already precipitous decline in the condition of New York’s roads and bridges,” the letter stated.

Rebuild New York Now also includes organized labor and business enterprises that represent more than 30,000 workers and their families with the common goal of investing in infrastructure to ensure the safety and economic health of New York State.

Rebuild New York Now officials reported that the justification for the increased funding and other recommendations comes from a recently-released NYSDOT road and bridge condition report.

Among the reports key findings:

  • All 11 NYSDOT regions reported declines in bridge conditions.
  • Seven of 11 NYSDOT regions experienced declines in pavement conditions.
  • An additional 138 bridges have transitioned from good to fair or poor condition.
  • An additional 630 lane miles maintained by NYSDOT have shifted from good to fair and poor condition, raising the statewide total in fair or poor condition to nearly 17,000 lane miles (more than 40%).
  • The total number of structures in fair or poor condition—based on federal criteria—is nearly 11,400 or 65%.
  • Overall investments in bridge safety assurance declined nearly 20% year-over-year.
  • Overall investments in pavement renewal have decreased by more than 31% year-over-year.

Overall NYSDOT Capital Investment Has Declined

The coalition related to the governor that the total NYSDOT Capital Plan spending has declined by nearly $200 million year-over-year.

“Compounding the decline in pavement and bridge conditions, nearly 40% of the $3.3 billion encumbered by NYSDOT from the Capital Plan last year was allocated to activities that did not improve system conditions,” Rebuild New York New noted.

The rising costs of construction materials and labor have also significantly eroded the purchasing power of the current NYSDOT Capital Plan. More than one year of the five-year capital plan has been vaporized by inflation. That means projects originally programmed within the budget will be deferred or canceled. As a result, the conditions of roads and bridges across New York will decline even further, coalition officials noted.

Exacerbating the infrastructure crisis in New York is the tremendous impact on costs caused by inflation. A 2024 report by the national transportation research organization TRIP concluded that poor road and bridge conditions cost motorists $36.7 billion annually—up to $3,697 per driver in some areas—due to vehicle damage, crashes and congestion. This “pothole tax” strains already overburdened families. Meanwhile, delaying repairs only increases costs exponentially.

“The decline of New York’s transportation infrastructure poses a serious risk to public safety and the state’s economic competitiveness,” said Jeff Loughlin, president of the Building & Construction Trades Council of Westchester & Putnam Counties, Inc., at a press conference in Montrose, NY on Dec. 4. He added that without sufficient funding in the FY2025-2026 budget, these challenges will only escalate. Along with other members of organized labor and construction leaders, he warned that higher costs for repairs will only diminish the quality of life for all New Yorkers.

“The $800-million increase in the NYSDOT Core Program is necessary to fill the gap caused by unprecedented inflation of over 25% in construction costs since 2022. Additionally, our Hudson Valley Region represented by NYSDOT Region 8 has the worst road and bridge conditions of any region in the state.”

— CIC Executive Director John T. Cooney, Jr.

“Hudson Valley Region 8 has the greatest number of lane miles and the greatest number of bridges of any region in the state, and yet the funding is not proportional. It is imperative that funding here be substantially increased. The poor conditions of our roads impact not just commerce, convenience and traveling comfort but more importantly safety for all motorists, including our first responders.”

— NYS Assemblymember Chris Burdick (D-93)

“We are starting to see progress with projects such as the repaving of Route 9A, but we are fighting against time as the rest of the state roads in this area continue to deteriorate. My office could clear a forest by printing out every complaint we receive about the state of the roads. Enough is enough!”

— NYS Assemblymember Dana Levenberg (D-95)

“Of the over 200 miles of roads within the Town of Cortlandt, many of the major thoroughfares are under the jurisdiction of New York State. These roads include Routes 6, 9 and 202. The Town Board of Cortlandt has endeavored to maintain and repave the roads under its control. However, we are reliant on the state to maintain these three major arteries.”

— Cortlandt Town Supervisor Dr. Richard Becker

“I stand with my colleagues and the Construction Industry Council to fight for much-needed investment in transportation funding. It is critical that the executive budget, and the adopted final budget, include increased capital funding to address the decline of our roads and to ensure the safety of those who travel in New York. NYSDOT Region 8, covering the lower Hudson Valley, has been underfunded for years and it is imperative that its funding is increased to the appropriate level.”

— NY State Senator Shelley B. Mayer (D-WF-37)

“Albany must prioritize significant and sustained investment in our infrastructure to ensure safe, reliable, and drivable roads for all. It’s time to deliver the resources our communities need to fix this long-standing issue and provide the quality infrastructure our region deserves.”

— NYS Assemblymember Matt Slater (D-94)

“Some of our roadways require constant repairs and annual paving…Our road and bridge assets are in such substantial decline that critical capital investments in our transportation infrastructure need to be increased to offset inflationary costs to keep our residents safe and protect our economic interests.”

— Operating Engineers Local 137 Business Manager Jeff Loughlin

“Our residents deserve a proportionate investment in our infrastructure. The situation we have here now, though, is dire, and requires a substantial investment in our transportation infrastructure.”

— NY State Senator Pete Harckham (D-40)

“For years now, the overall road and bridge conditions in New York State have been deteriorating—and in the Hudson Valley, our roads and bridges have been falling apart at a faster rate than those in the state as a whole.”             

— NYS Assemblymember MaryJane Shimsky (D-92)

“The roadway infrastructure, which serves as the lifeblood of the transportation network, is severely outdated and in dire need of major capital investments in New York State Region 8. It’s time for New York State to make a meaningful capital reinvestment into these roadways and associated infrastructure.”

— Briarcliff Manor Mayor Steven Vescio

“As we approach the 2025-26 legislative session and budget season, my conference remains firmly committed to investing in our state’s roadways and critical infrastructure. As reports show that Region 8 includes some of the poorest rated roads and bridges in the entirety of New York, we know that allocating funding and rallying support for projects in the region must be a top priority.”

— NY Senate Majority Leader Andrea Stewart-Cousins (D-WF-35)

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