Contractors sue NYS over work freeze

ALBANY, N.Y. (WIVB) - New York State's fiscal crisis is dredging up more trouble in Albany. Contractors are slapping New York State with a major lawsuit.

A trade group representing construction companies accuses Governor Paterson of illegally freezing a billion dollars worth of infrastructure projects. The contractors claim the state breached contracts by withholding pay on work that has already begun. The Governor says the freeze is needed to keep cash flowing and avoid a government shutdown.

The state budget is more than 30 days overdue.