§ 80-b. Construction or improvement by the department of
transportation partly at municipal expense. 1. In connection with the
undertaking of any project for which the commissioner is authorized to
use moneys of the federal government pursuant to the provisions of
subdivision thirty-four-a of section ten and section eighty of this
chapter to assure the effective discharge of state responsibilities with
respect to regional transportation needs, on highways, roads, streets,
bicycle paths or pedestrian paths that are not on the state highway
system, the commissioner shall submit such project to the governing body
or bodies of the affected municipality or municipalities together with
estimates of costs thereof. If such project includes a municipal
project, as that term is defined in accordance with article thirteen of
the transportation law, the state share of such municipal project shall
also be included. If such project includes a project affecting a
highway, road, street, bicycle path or pedestrian path not on the state
highway system, the state share shall be equal to eighty percent of the
difference between the total project cost and the federal assistance,
provided, however, the commissioner may increase the state share to an
amount equal to one hundred percent of the difference between the total
project cost and the federal assistance where he or she determines that
the need for the project results substantially from actions undertaken
pursuant to section ten of this chapter. No such project shall proceed
without the approval of the governing body of a municipality. Such
governing body may request the commissioner to undertake the provision
of such project. If the commissioner agrees to such undertaking he or
she shall notify the local governing body which shall appropriate
sufficient moneys to pay the estimated amount of the municipal share.
Such moneys shall be deposited with the state comptroller who is
authorized to receive and accept the same for the purposes of such
project, subject to the draft or requisition of the commissioner. When
the work of such project has been completed, the commissioner shall
render to the governing body of such municipality an itemized statement
showing in full (a) the amount of money that has been deposited by such
municipality with the state comptroller as hereinbefore provided, and
(b) all disbursements made pursuant to this section for such project.
Any surplus moneys shall be paid to such municipality on the warrant of
the comptroller on vouchers therefor approved by the commissioner. When
the work of such project has been completed and it is determined by the
commissioner that the amount of the cost to be borne by the municipality
is in excess of the amount deposited by such municipality with the state
comptroller, the commissioner shall then notify the municipality of the
deficiency of funds. The municipality shall then within ninety days of
the receipt of such notice, pay such amount to the state comptroller.
For purposes of this section, the term "municipality" shall include a
city, county, town, village or two or more of the foregoing acting
jointly.

2. For each fiscal year set out in the schedule hereinbelow amounts
shall be distributed pursuant to annual appropriation from the dedicated
highway and bridge trust fund or by authorization by the legislature for
the state share of municipal street and highway capital projects in an
amount set out in such schedule for the corresponding state fiscal year:
State Fiscal Year Appropriation
1993-94 $45,000,000
1994-95 $35,000,000
1995-96 $45,000,000
1996-97 $35,000,000