Inflation is eroding New York’s infrastructure spending power

New York state’s infrastructure spending is higher than expected on multiple projects due to inflation. Additionally, a recent report out by the state comptroller found that the condition of one in 10 local bridges in New York is rated poor.

At the same time, the Citizens Budget Commission is projecting outyear budget gaps ranging from $5 billion in fiscal year 2026 to $9.9 billion in fiscal year 2028.

None of this is good news for roads and bridges that New Yorkers use every day, according to Mike Elmendorf, president and CEO of Associated General Contractors of New York State, and Ron Epstein, president and CEO of the NY Construction Materials Association.

Elmendorf and Epstein told Capital Tonight that the state’s spending power has been eroded by $4.4 billion, which is a large chunk of the state’s $33 billion, five-year Department of Transportation (DOT) Capital Plan.

A DOT spokesman sent a statement to Capital Tonight saying that the agency remains committed to projects outlined in that plan.

“Inflationary pressures impact all capital plans and the New York State Department of Transportation continually monitors financial conditions as cost factors fluctuate from year to year and region to region,” the statement read. “However, NYSDOT remains fully committed to meeting the obligations called for under the current, historic $33 billion, five-year capital plan.”

Elmendorf said the state needs to come up with more funding for roads and bridges.

“If you want to do what you said you were going to do over the course of this five-year plan, and you want to arrest the decline of road and bridge conditions across New York, you need to invest,” he said.