§ 261. Apportionment and source of funds. Construction of highways
under this chapter shall proceed equitably among counties as far as
practicable, using as a basis the ratio that the unbuilt mileage in each
county bears to the total unbuilt mileage in the state, as herein
provided. The funds necessary to provide for the construction or
improvement of the highways designated in sections three hundred and
forty and three hundred and forty-one of this chapter shall be derived
from the proceeds of the sale of any bonds duly authorized for the
construction or improvement of highways, from funds contributed by act
of congress to the state of New York, for the construction of rural post
roads, from funds furnished by the counties, towns or other
municipalities as provided by this chapter, or from funds derived from
direct appropriations by the legislature.

The obligation of the state for any improvement provided in this
chapter, based on the engineer's estimate of the cost may be reduced
upon the award of a contract therefor at an amount under which the cost
to the state will be less than the original obligation.