Over the past year, many states experienced budget crises that threaten public works spending and, in some cases, caused entire project shut downs. In Pennsylvania, a stalemate over the budget for Fiscal Year 2016-2017 lasted almost nine months, causing companies and non-profit grant recipients who had contracts with the Commonwealth to suspend their services or temporarily close. In New Jersey, Governor Christie and the legislature deadlocked over taxes, including an increase to the gas tax that would fund the Transportation Trust Fund (“TTF”). As a result, Governor Christie issued Executive Order No. 20, which shut down all construction projects funded by the TTF that were not “absolutely essential for the protection of the health, safety, and welfare” of New Jersey citizens. The Executive Order was issued on June 30, 2016, a list of projects subject to shut down was published on July 6, 2016 and the projects were shut down by July 8, 2016. Continue Reading State Budget Problems Threatening Public Construction Projects: 5 Key Points to Remember
Brian A. Lawton is a Partner in the Firm’s Pittsburgh office. He delivers skilled and practical legal guidance to businesses of all sizes. The industries Brian serves run the gamut of oil and gas, manufacturing, distributing, construction, professional services, and banking.