Section 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  determines  that  the
  need  for  the  project  results  substantially  from actions undertaken
  pursuant to section ten of this chapter. Except for individual  projects
  where  the  non-federal  share of a federally aided municipal project is
  less than five thousand dollars, no state or local shares  of  municipal
  streets  and  highways  projects shall be payable from the non-fiduciary
  funds of the capital projects budget of the department. 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 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