At a time when most states are announcing cutbacks in their annual budgets, and postponing or even eliminating new infrastructure projects, New York Governor David Patterson has announced that the state will seek federal funding for a new high speed rail line linking New York City with upstate New York.

The proposed high speed line is the first major rail development by the State of New York in more than 22 years, and is seen as a starting point toward connecting many metropolitan areas throughout the state with New York City. The proposed plan is expected to cost just shy of $11 billion, and would decrease travel time between cities substantially.

The high speed rail line is expected to operate consistently at 110 mph, and in key areas up to 150 mph. The line would carry passenger traffic, as well as freight. Importantly, the new high speed rail would also be America’s first all “green” rail line, with virtually no carbon emissions.

However, the ambitious new rail project comes at a time when the State of New York is struggling with a $14 billion deficit, and the governor freely admits the state does not currently have funds to initiate such an ambitious initiative. That’s where federal funding comes into play.

New York is among several states competing for over $9 billion in federal stimulus money to be used for high speed rail initiatives. Governor Patterson has stated that New York will apply for some of this stimulus help to help fund the new project, though at this time there is no guarantee the state will receive enough federal money to cover even half of the expenses associated with the new rail plan.

Obviously, New York taxpayers would have to make up the difference between any federal money received for the project, and the final cost for completing the new rail line. However, the entire project is expected to take 20 years to complete, so the annual cost per year could feasibly be absorbed by the states operating budget over time.

The New York State Department of Transportation says that the high-speed rail plan is important for the state’s future economic development, and that investing in the state’s infrastructure now will help to offset rising unemployment rates and bolster the state’s economy. It is estimated that as many as 12,000 jobs could be created by the new rail line.

While other states are also planning high speed rail service — most notably, California — the New York Project would be the most ambitious (and expensive) to date.

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