The New York City Capital Commitment Plan outlines the City’s multi-year strategy for funding and executing infrastructure projects, including the construction and maintenance of public facilities, transportation systems, and housing. This page covers CBC’s work on capital planning and prioritization, debt capacity and borrowing limits, procurement and construction reform, the Metropolitan Transportation Authority’s capital program, and the New York City Housing Authority’s physical needs.
This page was created with AICBC Insights uses AI to group, analyze and present data and recommendations from CBC's publications. Always reference the cited sources to verify important details..
The MTA and the State should adopt at most a $62.4 billion 2025-2029 Capital Program to match the maximum amount that can be committed over six years.
The MTA should focus the capital program exclusively on projects to Rebuild and Improve the system, redirecting funds from expansion projects to stop deterioration.
The MTA and the State should unpause congestion pricing, as any alternative merely reduces the options available to fund projects in the 2025-2029 Capital Program.
The MTA should ensure financing for the 2025-2029 Program is sustainable, utilizing recurring revenue to support capital investment on a pay-as-you-go basis.
The MTA should increase productivity and reduce fare evasion to provide at least $1.5 billion in needed operating budget savings.
Key Data
As of December 2024, the September Capital Commitment Plan, covering fiscal years 2025 to 2028, totaled $86.7 billion. The most recent Ten-Year Capital Strategy, covering fiscal years 2024 to 2033, reached $164.8 billion.
As of September 2023, NYCHA's five-year capital needs total $60 billion, or $373,000 per unit, which is more than double the $29 billion estimated in 2017.
In February 2022, the City’s Adopted Capital Commitment Plan for fiscal years 2022 through 2025 totaled $80.4 billion, while the ten-year strategy through fiscal year 2031 was $147 billion.
Extending the authorization for joint bidding on public works contracts allows the City to bid capital projects and utility relocation work simultaneously, which accelerates project delivery and reduces construction costs. This process avoids the inefficiencies of private negotiations that often cause project delays and increase expenses for both the City and ratepayers.
Recommendations related to City Capital Commitment Plan
The Governor should sign S8404/A8679 and S8405/A8678, which extend authorization of joint bidding on public works contracts in lower Manhattan and in the rest of the city for one year.
New York City's capital needs, including a $164.8 billion ten-year strategy, are frequently hindered by costly delays and outdated procurement rules. Implementing joint bidding for capital projects and utility work can reduce these delays and costs, as evidenced by a significant reduction in utility-related construction lag.
Recommendations related to City Capital Commitment Plan
The state should enact legislation to permanently authorize joint bidding for public works contracts to ensure long-term efficiency.
New York City should continue to utilize joint bidding to coordinate public utility work on street construction projects, building on its twenty-year track record.
Key Data
$86.7 billion
— Total value of the September Capital Commitment Plan covering fiscal years 2025 to 2028.
$164.8 billion
— Total value of the most recent Ten-Year Capital Strategy covering fiscal years 2024 to 2033.
$4.3 million
— Additional cost added to each project due to 21 months of delay without joint bidding.
$1.0 million
— City revenue generated per project through joint bidding cost-sharing agreements.
28 months
— Average delay resulting from utility work for street construction projects bid under the traditional method.
7 months
— Average delay resulting from utility work for street construction projects bid using joint bidding.
The Metropolitan Transportation Authority faces a massive capital financing gap, with the cost to rebuild and improve its $1.5 trillion in assets estimated between $106.6 billion and $115.0 billion. To address this, the authority should limit its 2025-2029 capital program to $62.4 billion, prioritize essential repairs over expansion, and unpause congestion pricing to secure necessary funding.
Recommendations related to City Capital Commitment Plan
The MTA and the State should adopt at most a $62.4 billion 2025-2029 Capital Program to match the maximum amount that can be committed over six years.
The MTA should focus the capital program exclusively on projects to Rebuild and Improve the system, redirecting funds from expansion projects to stop deterioration.
The MTA and the State should unpause congestion pricing, as any alternative merely reduces the options available to fund projects in the 2025-2029 Capital Program.
The MTA should ensure financing for the 2025-2029 Program is sustainable, utilizing recurring revenue to support capital investment on a pay-as-you-go basis.
The MTA should increase productivity and reduce fare evasion to provide at least $1.5 billion in needed operating budget savings.
Key Data
$1.5 trillion
— The total value of the Metropolitan Transportation Authority’s capital assets, which are currently in dire shape.
$106.6 billion and $115.0 billion
— The estimated five-year cost for the MTA to rebuild and improve its system.
$27.6 billion
— The record amount of projects from prior capital plans that will not be committed by the end of 2024.
$62.4 billion
— The MTA's capacity for new capital investment over six years.
$16.6 billion and $25.0 billion
— The Rebuild and Improve Commitment Capacity Gap for the next Capital Program.
$700 million
— The amount of annual fare evasion that the MTA needs to reduce to help stabilize its budget.
The New York City Housing Authority faces a massive $60 billion capital need, with its current five-year capital plan funding only 14 percent of that requirement. To address these daunting physical conditions, the authority must prioritize converting units to Section 8 under the Permanent Affordability Commitment Together (PACT) program and the Preservation Trust while transforming into a more efficient property manager.
Recommendations related to City Capital Commitment Plan
Fix or replace deteriorating buildings with PACT and the Preservation Trust.
Improve management effectiveness and efficiency, and publicly track progress and impact.
Negotiate savings, boost productivity, and modernize property management through collective bargaining.
Overhaul the rent collection process to improve financial stability.
Key Data
$60 billion
— Total five-year capital needs for NYCHA developments.
$8.2 billion
— Size of NYCHA's five-year capital plan for 2024 to 2028.
14 percent
— Portion of NYCHA's five-year capital need covered by the current capital plan.
$511 million
— Amount of federal capital funds diverted in 2022 and 2023 to fill the operating budget gap.
$791 million
— The gap between public housing expenses and core operating income in 2023.
$373,000
— Capital need per unit across NYCHA developments.
NYCHA's capital needs have doubled since 2017, with five-year requirements now totaling $60 billion and twenty-year needs reaching $78 billion. To address these immense costs, the City and State must identify additional funding sources and streamline renovation processes, as current plans—including the $1.5 billion in the Fiscal Year 2024 Executive Budget Capital Commitment Plan—will meet less than half of the projected needs.
Recommendations related to City Capital Commitment Plan
The State and City should streamline the renovation process as much as possible and not introduce additional steps that could delay it.
The City and State will need to tap additional sources of financing to help close future PACT and Preservation Trust deals.
NYCHA will need to raise additional sources of capital through infill development and phased redevelopment, where feasible, to support its capital program.
The City and State should make hard choices about how to allocate finite housing resources, such as Low Income Housing Tax Credits or tax-exempt bond volume caps, between NYCHA projects and other needs.
Key Data
$1.5 billion
— City capital subsidies included in the Fiscal Year 2024 Executive Budget Capital Commitment Plan for future PACT projects through fiscal year 2026.
$60 billion
— NYCHA's total investment needs over the next five years.
$78 billion
— NYCHA's total twenty-year investment needs.
$10 billion
— Capital needs addressed by NYCHA over the last five years.
$27.8 billion
— Increase in twenty-year needs attributed to higher than expected inflation.
$15.5 billion
— Increase in twenty-year needs attributed to a more accurate and appropriate scope of work.
New York City is projected to have $12.1 billion in debt capacity by the end of fiscal year 2026, making a proposed increase in borrowing authority premature. Instead of expanding debt limits, the City should focus on improving the planning, prioritization, and execution of its $95 billion five-year capital plan to ensure cost-effective investments.
Recommendations related to City Capital Commitment Plan
The State should reject the proposal to increase the New York City Transitional Finance Authority’s borrowing capacity that is outside of the City’s constitutional debt limit.
The City should improve its capital planning, prioritization, and execution to ensure that New Yorkers are provided with cost-effective, targeted capital investments before seeking an increase in the debt limit.
State leaders should only reconsider increasing the debt limit after the City has undertaken comprehensive efforts to improve its capital planning and execution and identified specific needs.
Key Data
$12.1 billion
— Projected debt capacity for New York City at the end of fiscal year 2026.
$95 billion
— Total value of the City's 5-year capital plan.
New York City's adopted capital commitment plan for fiscal years 2022 through 2025 totals $80.4 billion, with a ten-year strategy extending through 2031 amounting to $147 billion. The upcoming preliminary capital plan will clarify how the administration intends to adjust spending levels, timing, and resource allocation across various infrastructure and programmatic categories.
Key Data
$80.4 billion
— Total of the City’s Adopted Capital Commitment Plan for fiscal years 2022 through 2025.
$147 billion
— Total of the ten-year capital strategy through fiscal year 2031.
The Fiscal Year 2022 Adopted Capital Commitment Plan includes $4.6 billion in planned commitments for the New York City Housing Authority, representing a significant increase in city support to address over $40 billion in capital needs. To ensure these funds are used effectively, the city should implement procurement reforms, such as authorizing construction manager-build methods, and create a Preservation Trust to facilitate long-term repairs and financial stability.
Recommendations related to City Capital Commitment Plan
State lawmakers should act swiftly to grant NYCHA authorization to use construction manager-build or construction manager-at risk procurement methods.
NYCHA’s federal monitor, along with NYCHA and the City, should strongly advocate for HUD to grant waivers from restrictive federal public housing procurement rules.
City and State lawmakers should create the Preservation Trust to provide NYCHA with additional options to finance needed capital investment.
NYCHA must implement new organizational structures, quality controls, staffing plans, and accountability measures to operate like a modern and effective property management organization.
Key Data
$40 billion
— The total capital needs of NYCHA due to years of underinvestment, mismanagement, and cost inflation.
$4.6 billion
— Planned commitments for NYCHA in the Fiscal Year 2022 Adopted Capital Commitment Plan through fiscal year 2031.
$2.9 billion
— Planned commitments for NYCHA through fiscal year 2025.
$2.2 billion
— The amount the City was required by a settlement agreement to invest in NYCHA through fiscal year 2027.
$300 million
— City capital funding included in the Department of Housing Preservation and Development’s capital plan for PACT projects.
$150 million is the amount of capital funding NYC has committed toward the creation of a Center for Climate Solutions on Governors Island. Joining the podcast to discuss this and other plans for Governors Island is Alicia Glen, Chair of the Trust of Governors Island and the former Deputy Mayor…
The proposed Intro. 2186 reform package risks diminishing the usefulness of the Ten-Year Capital Strategy and Capital Commitment Plan by moving to a five-year update cycle and devolving budget planning authority. Instead of these changes, the City should focus on aligning capital planning with a comprehensive needs assessment, an assessment of affordability, and measurable goals to better prioritize investments.
Recommendations related to City Capital Commitment Plan
The City should ensure the Ten-Year Capital Strategy reflects how the City plans to prioritize investments given its overall needs and financial outlook.
The City should align the Ten-Year Capital Strategy with a comprehensive needs assessment, an assessment of affordability, and measurable goals and objectives.
The Mayor should retain the role of submitting a capital budget to the Council and the right to propose how to prioritize investments based on strategic planning documents.
The Mayor, through the Office of Management and Budget and mayoral agencies, should conduct and oversee the needs assessment process to balance citywide and community needs.
The City should implement improvements to the City’s asset management process without tying them to a wholesale revamping of the strategic planning process.
Key Data
78%
— Percentage of spending in the Preliminary Fiscal Year 2022 Ten-Year Capital Strategy allocated for state of good repair needs or programmatic replacement.
$92 Billion
— Amount of spending in the Preliminary Fiscal Year 2022 Ten-Year Capital Strategy dedicated to state of good repair needs or programmatic replacement.
less than a quarter
— Portion of the City’s capital plan represented by expansion projects.
The New York City Housing Authority faces a $31.8 billion five-year capital requirement, with current plans leaving an $8.4 billion funding gap. Additionally, housing programs account for $3,830 million of the city's $6,853 million in total tax expenditures for fiscal year 2019.
Key Data
$31.8 billion
— NYCHA's 5-Year Capital Needs.
$15.8 billion
— Funding allocated in the 10-Year NYCHA 2.0 Plan.
$8.4 billion
— Unmet capital need in the NYCHA 2.0 Plan.
$6,853 million
— Total New York City Tax Expenditures in fiscal year 2019.
$3,830 million
— New York City Tax Expenditures allocated to Housing Programs in fiscal year 2019.
$29.6 billion
— New York City Property Tax revenue in fiscal year 2020.
The 10-year capital strategy has expanded by $12.8 billion to reach a total of $116.9 billion. This strategy requires more comprehensive planning and prioritization that emphasizes state of good repair projects to ensure long-term fiscal stability.
Recommendations related to City Capital Commitment Plan
The 10-year capital strategy could benefit from more comprehensive planning and prioritization focusing on state of good repair work.
Key Data
$12.8 billion
— Growth of the 10-year capital strategy from the Preliminary Budget.
$116.9 billion
— Total value of the 10-year capital strategy.
$1.25 billion
— Annual amount budgeted for contingency and capital reserve funds.
The New York City Charter should be amended to create a comprehensive capital inventory that includes all assets meeting financing eligibility criteria, while also refining the role of Borough Presidents to focus on identifying local needs rather than allocating capital budget funds. Additionally, capital planning requires greater rigor in needs assessments and adherence to project-based reporting requirements to ensure efficient and effective allocation of resources.
Recommendations related to City Capital Commitment Plan
The Charter should be amended to make the City’s capital inventory and needs assessment more comprehensive; that is, to include all assets that meet capital financing eligibility criteria, currently $35,000 and a five-year useful life, owned by an agency or authority that the City controls.
The Charter should be amended to focus the Borough Presidents’ roles on identifying borough-based needs and advising the Mayor and the City Council on how best to address those needs.
The Charter should be amended to eliminate the capital budget Borough President allocations.
Key Data
$35,000
— The minimum historical cost threshold for assets to be included in the City's **capital inventory and needs assessment**.
5 percent
— The portion of proposed **capital budget appropriations** currently allocated to Borough Presidents, which reduces efficient citywide allocation.
New York City's annual capital investments have grown significantly, reaching $11.8 billion in fiscal year 2018, yet tracking these projects remains difficult due to fragmented data and limited reporting. Implementing a comprehensive, accessible online database for all pending construction projects would improve transparency and allow for better oversight of the city's multi-billion dollar capital budget.
Recommendations related to City Capital Commitment Plan
The city should use the existing Capital Projects Dashboard as the basic platform for the new database to leverage existing data capabilities.
The legislation should require a broader scope of projects, a downloadable format, and up-to-date data to ensure the database is useful for analysis.
The database should include each project’s associated capital budget lines and project ID codes to allow for better linkage to budget documents.
The database should retain data on completed projects to facilitate retrospective assessments of performance.
The city should expand the database to include historical data on changes to each project’s budget rather than just initial and current values.
Key Data
$7.4 billion
— The amount the City committed in capital investments in fiscal year 2014.
$11.8 billion
— The amount the City committed in capital investments in fiscal year 2018.
$83.8 billion
— The forecasted capital commitments from fiscal years 2019 through 2023.
$25 million
— The current threshold for projects included in the existing Capital Projects Dashboard, which limits the scope of available data.
$10 billion
— The amount of the City's annual capital commitments that require greater oversight.
The MTA's capital investment plans have grown significantly, rising from $24,118 million in the 2010-2014 period to $33,270 million in the 2015-2019 period. The proposed $40 billion Fast Forward Plan aims to modernize signal systems, increase accessibility, and replace subway cars and buses over a ten-year horizon.
Recommendations related to City Capital Commitment Plan
The Fast Forward Plan prioritizes a modernized signal system on 5 lines during the first 5 years.
The plan includes 50 new accessible stations and 150 rehabilitated stations in the first 5 years.
The plan calls for 1,850 new and modified subway cars and 2,800 new buses in the first 5 years.
The plan prioritizes a modernized signal system on 6 additional lines during the following 5 years.
The plan includes 130 additional accessible stations and 150 rehabilitated stations in the following 5 years.
The plan calls for 3,000 new subway cars and 2,100 new buses in the following 5 years.
Key Data
$24,118 Million
— Total 5-year capital plan spending for 2010-2014.
$33,270 Million
— Total 5-year capital plan spending for 2015-2019.
$40 Billion
— Estimated cost of the Fast Forward Plan.
$11,672 Million
— Subway and bus capital spending in the 2010-2014 plan.
$17,118 Million
— Subway and bus capital spending in the 2015-2019 plan.
$11,259 Million
— 2019 operating expense and debt service for subway and buses.
New York City's capital plan is currently unrealistic and lacks clear priorities, relying entirely on borrowing rather than using current resources to fund infrastructure projects. To improve fiscal stability, the City should limit new bonded debt by focusing on critical infrastructure repairs and utilizing existing capital reserves for pay-as-you-go funding.
Recommendations related to City Capital Commitment Plan
New bonded debt should be limited by implementing a more realistic capital plan developed around specific priorities and predominantly focused on repairing critical infrastructure, ensuring safety, and expanding where investments make economic sense or can improve critical services.
Current year resources should be used to pay for part of the City’s capital investment.
The City should use the dedicated $250 million capital reserve as PAYGO capital to reduce the borrowing needed each year to finance the capital plan.
Key Data
$30.4 Billion
— The amount of City funds committed to capital projects between fiscal years 2014 and 2017.
$5.7 Billion
— The amount of capital commitments in fiscal year 2014.
$9.9 Billion
— The amount of capital commitments in fiscal year 2017.
$59.3 Billion
— The projected amount of additional City-funded capital commitments between fiscal years 2019 and 2022.
$135.8 Billion
— The projected amount of debt outstanding by fiscal year 2022.
The MTA faces a significant challenge in restoring subway car reliability, requiring an estimated $9 billion in funding for new cars and retrofits that has not yet been identified. To return to previous high levels of reliability, leadership must prioritize these investments within the 2020-2024 capital program despite competition from other major infrastructure projects.
Recommendations related to City Capital Commitment Plan
MTA leaders should be prepared to make significant commitments to subway cars in the 2020-2024 capital program if it expects to return car reliability to its previous highpoint.
The Fast Forward plan must be funded in future capital plans and administered effectively to achieve anticipated results.
MTA leadership should increase significantly its commitment to subway cars in the 2020-2024 capital program to make the Fast Forward proposal a reality.
Key Data
$9 Billion
— Estimated cost relating to subway cars, of which only $1.2 billion is authorized in the current capital plan.
$8 Billion
— Amount that must be financed in future capital plans to cover the total subway car procurement cost.
$40 Billion
— Initial estimates of the entire Fast Forward program costs.
$1.8 Billion
— The Subway Action Plan (SAP) program cost to reverse declining performance and stabilize the system.
150,000 miles
— The agency's mean distance between car component failures (MDBF) goal.
New York City's capital plan has ballooned to $65.1 billion for fiscal years 2019 to 2022, an 87.5 percent increase from 2015 levels that raises concerns about the city's ability to implement projects cost-effectively. Rising debt service costs, projected to reach 12.9 percent of tax revenue by 2022, necessitate a reduction and refocusing of the capital plan on strategic priorities and state of good repair.
Recommendations related to City Capital Commitment Plan
The Capital Plan should be reduced and refocused on strategic priorities that emphasize state of good repair and maximize the return on investment for new projects.
Using current resources as “pay-go capital,” instead of borrowing, would allow the City to invest in its infrastructure without increasing long-term liabilities.
Key Data
$65.1 billion
— Capital spending for fiscal years 2019 to 2022 projected in the Executive Capital Commitment Plan.
$34.7 billion
— Capital spending in the Fiscal Year 2015 Executive Financial Plan.
87.5 percent
— Increase in the capital plan from fiscal year 2015 to fiscal year 2019.
$7.0 billion
— Debt service budgeted in fiscal year 2019.
11.6 percent
— Debt service as a percentage of tax revenue in fiscal year 2019.
$8.6 billion
— Projected debt service in fiscal year 2022.
New York City's five-year capital commitment plan has grown to approximately $82 billion, necessitating increased caution and scrutiny similar to that applied to the operating budget. Reforms to the city's capital planning and budgeting processes are essential to better track, evaluate, and manage these projects and the agencies responsible for them.
Recommendations related to City Capital Commitment Plan
Additions to the capital plan should be treated with the same caution and scrutiny as those to the operating budget.
Reforms to the city’s capital planning and budgeting processes should be part of the approval process for the capital commitment plan.
The city must generate more data to understand, track, and evaluate capital projects and the performance of agencies that manage them.
Key Data
$82 billion
— The size of the five-year capital commitment plan.
New York City's $79 billion Preliminary Capital Commitment Plan for Fiscal Years 2018 to 2022 is criticized for being unrealistic, front-loaded, and lacking accountability. The city needs to improve its capital planning by rightsizing investments, adopting realistic timelines, and implementing better performance metrics and procurement reforms.
Recommendations related to City Capital Commitment Plan
The City should make smart and targeted capital investments by treating additions to capital plans with the same caution and scrutiny as the operating budget.
The City should reflect realistic timelines in the capital plan to improve project coordination, budgeting, and monitoring.
The City should improve the City’s needs assessment by incorporating thorough needs assessments and aligning them more closely with the capital plan.
The capital planning process should incorporate life-cycle cost analysis that includes the cost of operating, maintaining, and ultimately replacing capital assets.
The City should add performance metrics to the capital plan to allow the City Council and other observers to measure the efficiency and effectiveness of capital investment.
The City should require the use of discrete project codes to replace lump sum codes that offer little transparency into how and where agencies plan to commit funds.
The City should pursue procurement reform, including the ability to use design-build and the repeal of Wicks Law, to reduce project costs and accelerate capital projects.
The City should use pay-go financing to offset the expected increase in borrowing costs as interest rates rise.
Key Data
$79 billion
— The Preliminary Capital Commitment Plan for Fiscal Years 2018 to 2022.
New York City's capital commitment plan is consistently front-loaded and overly ambitious, resulting in a significant buildup of unspent funds and a reliance on inaccurate projections. To improve transparency and oversight, the City must align its capital planning with realistic agency capacity and actual project priorities.
Recommendations related to City Capital Commitment Plan
The City should reduce the size of the capital commitment plan to force agencies to identify their capital priorities.
The commitment plan should reflect what agencies can reasonably commit and manage in a given year.
Reducing the size of the plan will prevent the buildup of excess appropriations and allow for better oversight of capital expenditures.
Eliminating the front-loading of planned commitments will allow for more accurate timing of future commitments.
Key Data
$69.6 billion
— Total capital commitments planned from fiscal year 2018 through fiscal year 2021.
$21.7 billion
— Amount of capital commitments planned for the first year of the fiscal year 2019 plan.
$1.7 billion
— Amount by which the current commitment plan exceeds the plan proposed one year prior.
$10.9 billion
— Actual capital commitments made during the previous fiscal year, despite a $20.0 billion projection.
54%
— Share of planned capital commitments actually achieved by the City in fiscal year 2017.
$30.6 billion
— Level of available appropriations in fiscal year 2017, despite a plan to commit only $17.1 billion.
New York City's capital planning process requires a more rigorous framework to manage assets and debt, as current practices lack transparency and clear prioritization. The next administration should implement a "fix it first" strategy, improve asset management, and adopt more cost-effective contracting methods to ensure long-term infrastructure sustainability.
Recommendations related to City Capital Commitment Plan
The next administration should enact clear guidelines or directives for performing routine maintenance and regular replacement of assets.
All city agencies and component units should undertake a comprehensive needs assessment that details the condition of major asset classes and the cost to fix those in disrepair.
The needs assessment should be used to develop a plan to achieve state of good repair.
The next mayor must focus on reducing the city’s high debt burden.
The administration should develop criteria for paying for some capital expenses from the operating budget.
The City should adopt a “fix it first” strategy, in which state of good repair projects receive priority at each agency.
The City should renew its Project Labor Agreements to reduce labor costs and improve managerial flexibility.
City leaders should advocate for changes to contracting rules that increase costs and impede efficient construction management, such as a repeal of Wicks Law.
Key Data
$111 billion
— Total capital commitments registered since fiscal year 2003, with an additional $20.9 billion authorized in the current fiscal year.
$100 billion
— City-related debt outstanding as of fiscal year 2014.
135 percent
— Increase in water and sewer fees since fiscal year 2003.
$3.2 billion
— Projected cost of the Croton Filtration Plant.
$366,142
— Total reported maintenance need in thousands for FY2014.
The New York City Housing Authority faces a massive capital funding gap, with its 2011 assessment identifying $16.5 billion in needs while its 2012-2016 capital plan totaled only $2.4 billion. To address this shortfall and the growing physical needs of its aging housing stock, the Authority has increasingly relied on alternative strategies like public-private partnerships and federal rental assistance programs.
Key Data
$16.5 billion
— The 2011 Physical Needs Assessment identified this amount in needed capital improvements for NYCHA between 2012 and 2016.
$25 billion
— The likely capital needs identified in the forthcoming Physical Needs Assessment, which dwarfs available resources.
$2.4 billion
— The total value of NYCHA's pre-Sandy 2012-2016 five-year capital plan, representing only 15 percent of identified needs.
$1.7 billion
— The amount NYCHA spent on capital improvements between 2012 and 2016, which met just 10 percent of its $16.5 billion need.
$3 billion
— The estimated damage caused to the NYCHA system by Superstorm Sandy.
$1.45 billion
— The total federal capital grants received by NYCHA over the 2012-2016 period, falling short of the anticipated $1.6 billion.
The School Construction Authority's $15.5 billion five-year capital plan should prioritize addressing overcrowding by better utilizing existing school space rather than building new capacity in districts with declining enrollment. Significant inefficiencies exist, such as spending $251 million on new seats in a district where enrollment is projected to drop by 44 percent, while thousands of students remain in overcrowded buildings elsewhere.
Recommendations related to City Capital Commitment Plan
The city should maximize the use of existing capacity by shifting students to different schools or moving schools to different buildings to alleviate crowding.
The city should target new capacity to areas with the highest need rather than constructing new capacity where it is less needed.
The city should alter school zone boundaries to match student enrollment to space across districts, even though it is politically difficult.
Key Data
$15.5 billion
— Total value of the School Construction Authority's amended five-year capital plan for fiscal years 2015 to 2019.
104,717
— Number of students over capacity in 785 overcrowded public school buildings.
46,000
— Number of seats of extra capacity available citywide.
$251 million
— Cost to fund more than 2,500 new seats in District 13, where enrollment is projected to drop by 44 percent.
46 percent
— Portion of school buildings that have unused capacity.
New York City's Ten-Year Capital Strategy, while highlighting administration priorities, suffers from unrealistic timelines that frontload spending and lacks clear programmatic indicators to measure progress. To improve accountability and transparency, the city must align planned commitments with actual execution capacity and better integrate existing needs assessments into its long-term planning.
Recommendations related to City Capital Commitment Plan
The City should release a September Commitment Plan that reflects a more realistic allocation of capital commitments over the first four years.
The Administration should incorporate rebalancing of capital commitments in future capital strategies.
The Strategy should clearly relate back to statements of needs so that the City and the public can determine whether or not planned capital investment is adequate.
The Strategy should include other benchmarks to measure progress toward the project’s completion.
The City should adjust its strategy to acknowledge more appropriate commitment levels at the end of the ten-year period.
AIMS should be improved to include assets owned by City-related public authorities.
Key Data
$95.8 Billion
— Total planned commitments in the Executive Ten-Year Capital Strategy for Fiscal Years 2018-2027.
$20.7 Billion
— Expected capital commitments in fiscal year 2018.
$51 Billion
— Amount of capital commitments dedicated to keeping assets in a state of good repair.
$20 Billion
— Amount dedicated toward programmatic replacement of water and sewer components, public building components, vehicles, and equipment.
$25 Billion
— Amount planned for new investments and expansions of the City’s infrastructure.
$1.4 Billion
— Commitments for the New York City Housing Authority in the 2018 Strategy.
The Port Authority of New York and New Jersey's $32 billion, 10-year capital plan lacks a transparent needs assessment and clear criteria for project selection, leading to potential inefficiencies and political allocation of resources. To improve the plan, the agency should prioritize state of good repair projects, implement rigorous benefit-to-cost analyses for expansions, and abandon the practice of dividing investments based on bi-state parity.
Recommendations related to City Capital Commitment Plan
The Port Authority should develop a publicly-available needs assessment that identifies spending necessary to bring facilities to a state of good repair.
The agency should establish a set of criteria for selecting enhancement and expansion projects that includes benefit-to-cost analyses.
The Port Authority should discard the use of bi-state parity to allocate capital resources between “New Jersey” projects and “New York” projects.
Key Data
$32 billion
— The total value of the Port Authority's 10-year capital plan.
$11.3 billion
— The amount of pay-as-you-go capital investment, representing 35 percent of the plan.
$3.5 billion
— The cash disbursement allocated for the replacement of the Bus Terminal through 2026.
$2.7 billion
— The amount allocated in support for the Gateway Project creating new trans-Hudson rail capacity.
$8.8 billion
— The total amount allocated for 'Renew' projects, which are often described as state of good repair (SGR) work.
$3.9 billion
— The estimated shortfall in SGR work, representing 30 percent of the total needed investment.
Tony Guida sits down with the CBC's Vice President, Maria Doulis, to discuss why New York City's mega-projects run over budget and how the public sector can build better.
The January capital commitment plan totaled $47.3 billion, yet it failed to account for increased commitments to the Metropolitan Transportation Authority, the third water tunnel, and the Mayor's housing program. Expanding this plan to address these needs and the extensive requirements of the New York City Housing Authority will inevitably increase the city's outstanding debt.
Key Data
$47.3 billion
— The total value of the January capital commitment plan.
New York City plans to spend $7.7 billion on bridge infrastructure over the next decade, yet current project delivery is hampered by delays and cost overruns, with existing projects currently 45 percent over budget. Granting the city statutory authority to use design-build contracting could streamline project delivery and potentially save $2 billion over the next 10 years.
Recommendations related to City Capital Commitment Plan
State legislators should enable New York City to benefit from design-build contracting to improve infrastructure project delivery.
The New York State Legislature should include design-build authority for the New York City Department of Transportation in the budget bills.
Key Data
$7.7 billion
— Planned spending on New York City bridges over the next 10 years.
45 percent
— The amount by which current bridge projects are over budget.
$2 billion
— Potential savings over 10 years if the City realizes savings on par with the State's experience using design-build.
20 percent
— The increase in New York City Department of Transportation contract costs due to design change orders in fiscal year 2015.
40 days
— The average processing time for change orders.
$4.6 billion
— Amount committed to New York City bridges since 2006.
The MTA's revised five-year capital plan appropriately reduces funding for Phase Two of the Second Avenue Subway from $1.5 Billion to $535 Million to reflect current financial constraints and construction realities. Prioritizing the maintenance of existing subway services over new projects ensures that reliable service and safety are maintained for the millions of daily riders.
Recommendations related to City Capital Commitment Plan
The MTA Board should move forward with the revised five-year capital plan as is.
The MTA should prioritize keeping existing services in a state of good repair over pushing new projects.
The MTA should acknowledge the reality of construction delays by moving construction work into the next five-year plan.
Key Data
$1.5 Billion
— Original allocation for Phase Two of the new Second Avenue Subway.
$535 Million
— Revised allocation for Phase Two of the new Second Avenue Subway.
$3 Billion
— Amount cut from the initial $32 Billion MTA capital plan.
$1.0 Billion
— Amount scheduled for construction work in 2019 under the initial proposal.
$420 Million
— Funding for planning and design in 2015 and 2016.
The Ten-Year Capital Strategy for fiscal years 2016 to 2025 totals $83.8 billion, yet it lacks sufficient information to justify these investments and contributes to the city's already high debt burden. The city should require improved reporting on the rationale and performance goals for capital spending while limiting the budget to clearly defined projects with demonstrable benefits.
Recommendations related to City Capital Commitment Plan
The Council should require improved reporting on the rationale for and performance goals of capital spending.
The Council should limit the capital budget to clearly defined projects with demonstrable benefits.
The Strategy should incorporate information from agency assessments and clearly spell out how much of state of good repair needs will be addressed by the proposed investments.
The city should provide specificity for new OneNYC investments, including supporting cost-benefit analysis, before dollars are appropriated.
The city should consider and incorporate operating costs or savings into the capital planning or budgeting process to avoid underfunding maintenance.
Key Data
$83.8 billion
— Total value of the Ten-Year Capital Strategy for fiscal years 2016 to 2025.
$100 billion
— Amount of debt outstanding for the City.
$30 billion
— Increase in the Ten-Year Strategy from the prior 2014 release.
8 percent
— Debt outstanding in fiscal year 2016 as a percentage of the City's real property values.
13 percent
— Debt outstanding in fiscal year 2016 as a percentage of personal income.
$7.7 billion
— Projected annual debt service by fiscal year 2019.
New York State's $4 billion in legal settlements offers an opportunity to fund critical infrastructure needs, including accelerating state-of-good-repair projects for transportation and transit systems. Utilizing these funds for pay-as-you-go capital investments would address a portion of the $174 billion in identified capital needs across state agencies without incurring additional debt service.
Recommendations related to City Capital Commitment Plan
The state should increase pay-as-you-go capital investments to accelerate reaching state-of-good-repair for key assets in the transportation and transit systems without borrowing.
Key Data
$174 billion
— Total 10-year statewide capital needs across 47 state agencies and public authorities.
$118 billion
— Portion of the 10-year capital plan dedicated to state-of-good-repair projects to bring assets to an acceptable condition.
200
— Number of the city's 468 subway stations that could be renovated using settlement funds.
New York City's economic development strategy has relied heavily on increasing capital spending, which grew from $275 million in 2002 to $751 million in 2012, alongside significant use of tax expenditures and conduit financing. To improve future performance, the city should prioritize infrastructure investments in areas with job growth potential, enhance transparency in discretionary benefit awards, and reform as-of-right tax programs to ensure they are cost-effective.
Recommendations related to City Capital Commitment Plan
The next administration should use capital investments to enhance infrastructure in neighborhoods with job growth potential.
The city should encourage growth in the cultural, medical and educational sectors by enhancing access to capital through conduit financing.
The city must continue reform of as-of-right tax expenditure programs to make them more cost-effective.
The city should establish clearer standards for awarding discretionary tax expenditure benefits.
The city should continue rezoning and expand special mixed use districts to facilitate diversified job growth in areas currently limited to industrial use.
The city should better manage the Economic Development Corporation by focusing on job creation and enhancing transparency.
Key Data
$751 million
— Capital spending on economic development in fiscal year 2012.
$275 million
— Capital spending on economic development in fiscal year 2002.
$3.0 billion
— Total local investment expected for the Hudson Yards project.
$280 million
— Amount spent on the Hudson Yards project in fiscal year 2012.
$9.2 billion
— Total face value of 226 projects supported by conduit financing between 2002 and 2012.
New York City's capital planning process requires significant reform to address the lack of transparent prioritization, inadequate maintenance of existing assets, and a heavy reliance on debt financing. The next administration should implement a "fix it first" strategy, establish clear investment standards, and adopt more cost-effective contracting practices to ensure long-term infrastructure sustainability.
Recommendations related to City Capital Commitment Plan
The next administration should enact clear guidelines or directives for performing routine maintenance and regular replacement of assets to prevent the state of good repair backlog from growing.
All city agencies and component units should undertake a comprehensive needs assessment that details the condition of major asset classes and the cost to fix those in disrepair.
The next administration should articulate a standard for keeping debt from becoming unaffordable to reduce the city's high debt burden.
The City should adopt a “fix it first” strategy, in which state of good repair projects receive priority at each agency.
The City should renew its Project Labor Agreements to reduce labor costs and improve managerial flexibility.
Key Data
$90.2 billion
— worth of capital commitments were registered since fiscal year 2003.
79 percent
— increase in the value of assets owned by New York City and its related public authorities since fiscal year 2002.
$100 billion
— surpassed in City-related debt outstanding, which has grown 80 percent since fiscal year 2002.
$6.4 billion
— in state of good repair requirements in fiscal year 2014, up from $4.6 billion in fiscal year 2002.
$750,000
— average cost of a design change order in fiscal year 2013.
New York City's Ten-Year Capital Strategy proposes $53.7 billion in infrastructure investments, yet it faces significant challenges regarding the adequacy of funding for existing asset repairs and the city's high, growing debt burden. The next administration must navigate difficult trade-offs between maintaining critical infrastructure, addressing climate resiliency, and managing debt affordability to ensure fiscal stability.
Recommendations related to City Capital Commitment Plan
The next mayor must make difficult trade-offs between competing priorities while ensuring the city’s debt does not become unaffordable.
Future proposals for making the city more resilient in the face of threats from climate change will need to be incorporated into the city’s long-term capital agenda.
The next mayor will have to determine a level of long-term capital investment that takes into account the city’s already high debt burden.
The city must balance spending on existing assets and making new investments that can improve services and economic activity.
Key Data
$54 billion
— Total infrastructure investments planned in Mayor Michael Bloomberg’s Ten-Year Capital Strategy.
$53.7 billion
— Total capital commitments proposed in the Strategy for Fiscal Years 2014-2023.
$24.5 billion
— Funding devoted to rehabilitating schools, repairing bridges, repaving roads and bringing other assets to a state of good repair.
$13.5 billion
— Funding for upgrading equipment and replacing old water and sewer infrastructure and vehicles.
$13.6 billion
— Expansion spending on new assets and large-scale capital improvements.
$6.4 billion
— Needs for state of good repair work in 2014.
Despite multiple rounds of announced cuts to the capital budget since 2008, actual spending commitments have continued to rise, reaching a record high of over $12 billion in fiscal year 2011. The failure to implement fiscal austerity in the infrastructure agenda contrasts sharply with the operating budget, necessitating a more disciplined approach to establishing capital priorities.
Recommendations related to City Capital Commitment Plan
The Mayor must become more determined about establishing priorities in the capital budget the way he has for the operating budget.
The city must impose fiscal austerity on the infrastructure agenda to address the growing levels of capital commitments.
Key Data
$12 billion
— Projected commitments for fiscal year 2011, marking a new record high.
$12.2 billion
— Average yearly capital commitments since the Mayor began cutting the capital plan.
26 percent
— Increase in average yearly commitments compared to the period between fiscal years 2006 and 2008.
$38.9 billion
— The commitment plan for fiscal years 2009-2012 following a 20 percent reduction.
$26.2 billion
— The commitment plan for fiscal years 2010-2013.
New York City's infrastructure faces a $5.6 billion backlog in necessary repairs, yet the capital budget only allocates about half of the required funding to address these needs. To prevent minor maintenance issues from escalating into costly capital projects, the city must prioritize full funding for routine maintenance and develop a long-term strategy to bring all assets to a state of good repair.
Recommendations related to City Capital Commitment Plan
The city should make full funding of maintenance requirements an explicit priority.
The city should use the AIMS condition assessments as the starting point for developing the next 10-year capital plan.
The city should develop a strategy for upgrading all assets to a state of good repair.
The city should consider a reasonable time-horizon for upgrading each class of assets and identify specific steps to make progress against those goals.
Key Data
$5.6 billion
— The estimated need for state of good repair work for existing facilities.
36 percent
— The increase in the estimated cost of needed repairs since 2000.
$2.9 billion
— The funding allocated for AIMS capital work in fiscal year 2011.
53 percent
— The portion of required funding provided for AIMS capital work in fiscal year 2011.
70 percent
— The portion of maintenance needs funded in the operating budget across all facilities.
$1.2 billion
— The annual amount of capital program funding that, if devoted to state of good repair between 2006 and 2009, would have eradicated the identified need.
New York City's capital planning process requires modernization to better manage its vast infrastructure, as current strategies often underestimate costs and lack clear objectives for maintaining assets in a state of good repair. By institutionalizing long-term planning, linking maintenance to operating budgets, and requiring rigorous economic analysis for expansion projects, the city can ensure more efficient and transparent use of public funds.
Recommendations related to City Capital Commitment Plan
The City should institutionalize the PlaNYC approach by establishing the Office of Long-Term Planning and Sustainability as a mayoral office and revising the City Charter.
The City should develop a systematic plan to eliminate deferred maintenance and bring all its capital assets to a state of good repair.
The City should place all its capital assets on regular replacement cycles and fund their replacement with operating revenues, not from the capital budget.
Expansion projects should be clearly explained and justified with data that demonstrates economic and other benefits, or a high rate of return on the investment of public funds.
The City should expand the Asset Information Management System (AIMS) report to cover all capital assets and integrate the condition assessments of major capital asset systems into a comprehensive reporting structure.
Key Data
$83.7 billion
— The total capital investments called for in the recently adopted Ten-Year Capital Strategy.
$33 billion
— The amount by which capital spending was underestimated over the last six years (2004-2009).
$5.4 billion
— The estimated cost to achieve a state of good repair for assets covered by the AIMS report for fiscal year 2008.
$2.8 billion
— The funding gap for maintenance and repairs identified in the AIMS report for fiscal year 2008.
$60.5 billion
— The total value of capital assets under direct or indirect control of the City government.
$3.18 billion
— The total estimated cost of rehabilitating the East River Bridges.
New York City committed $63.4 billion to capital projects between fiscal years 2002 and 2009, significantly expanding the value of city-owned assets while focusing on education, environmental protection, and transportation. Despite this investment, a $2.8 billion funding gap persists for necessary infrastructure repairs, as the city struggles to maintain a state of good repair for assets like roads and water mains.
Key Data
$63.4 billion
— Total capital commitments made by New York City through the end of fiscal year 2009.
$5.6 billion
— Amount of capital work needed to bring surveyed assets to a state of good repair according to the AIMS report.
$2.8 billion
— Funding allocated for AIMS capital work in the last fiscal year, representing approximately half of the required amount.
$2.3 billion
— Depreciation expense for City-owned assets recorded in fiscal year 2009.
$33.9 billion
— Value of capital assets owned by New York City in 2009, compared to $18.7 billion in 2002.
56 percent
— Portion of short-term milestones identified in the PLANYC infrastructure and sustainability agenda that have been completed.
The Metropolitan Transportation Authority's capital projects frequently face significant delays and cost overruns, often due to inadequate reporting and overly ambitious planning. To address these issues, the agency must improve its management information systems, enhance its capacity to manage complex projects, and develop more realistic future capital plans based on actual capacity.
Recommendations related to City Capital Commitment Plan
The MTA should commit to an improved management information system for tracking capital projects and to greater transparency in informing the public about the status of its capital projects.
The MTA should improve its capacity to manage mega-projects and improvements in signaling and communications systems.
The next five-year plan should be based on a realistic assessment of what can be accomplished.
Key Data
$18.6 billion
— Total estimated cost of the 798 projects examined by the commission.
$28.1 billion
— Proposed capital plan total for the 2010-2014 period.
$5.7 billion
— Amount allocated for mega-projects in the proposed 2010-2014 capital plan.
$2.8 billion
— Amount allocated for signaling and communications improvements in the proposed 2010-2014 capital plan.
$4.8 billion
— Value of projects from the 2000-2004 plan that had not reached the expected stage by the end of the plan period.
90 percent
— Cost increase of the Fulton Street Transit Center relative to the initial estimate.
New York City's capital planning process requires significant reform to effectively support the long-term goals of PlaNYC, as current practices suffer from limited condition assessments and a lack of clear justification for expansion projects. The city should institutionalize a more comprehensive planning approach, establish systematic maintenance schedules, and fund asset replacements through operating revenues rather than debt.
Recommendations related to City Capital Commitment Plan
The City should place all its capital assets on regular replacement cycles and fund their replacement with operating revenues, not from the capital budget.
Expansion projects should be clearly explained and justified with data that demonstrates economic and other benefits, or a high rate of return on the investment of public funds.
The City should improve its needs assessments, and develop a systematic plan or timetable for bringing all capital assets to a state of good repair.
A vibrant future for New York requires that this type of long-term, strategic planning effort be institutionalized and expanded in scope.
Key Data
$83.7 billion
— Total planned capital investments over the next ten years as called for by the recently adopted Ten-Year Capital Strategy.
$33 billion
— Amount by which capital spending was underestimated over the last six years, representing a 128 percent underestimation.
$60.5 billion
— Total value of capital assets controlled by the New York City government.
$24 billion
— Total value of new capital investments to be pursued by the City in the next ten years.
The City's capital plan for fiscal years 2005 to 2008 increases average annual spending to $9.1 billion, up from $6.0 billion in the previous four-year period. To mitigate the resulting burdensome debt service, the City should utilize its operating surplus to pay off outstanding debt and seek exemptions from the Wicks Law to reduce construction costs.
Recommendations related to City Capital Commitment Plan
The City should reduce its capital budget to lower future debt service obligations.
The City should pay off outstanding debt using the large operating surplus accumulated in fiscal year 2005.
The City should advocate for the repeal of, or exemption of more projects from, the State's Wicks Law to reduce construction costs.
Key Data
$9.1 billion
— Average annual capital spending in the fiscal years 2005 to 2008 plan.
$6.0 billion
— Average annual capital spending for the four-year period prior to 2005.
$4.2 billion
— Average annual capital spending for the fiscal year 1997 to 2000 period.
10 percent
— Estimated increase in capital costs for projects affected by the Wicks Law.
$3 billion
— Estimated surplus the City will have in the current year.
$2.0 billion
— Amount added to the City's debt by deficit financing used after September 11th, 2001.
New York City's transportation infrastructure requires significant investment to reach a state of good repair, with a projected $10.7 billion gap for mass transit and a $4 billion gap for highways over the 1998-2007 period. Addressing these needs while balancing the demand for new capacity will require strategic financial decisions regarding infrastructure maintenance and potential new funding sources.
Recommendations related to City Capital Commitment Plan
New York’s leaders should address three key issues: (1) How to improve transit system efficiency and ridership; (2) How rapidly to achieve a state of good repair for the existing infrastructure; (3) How much new mass transit capacity is necessary.
New York’s leaders should decide whether new capacity should be financed by deferring repair of existing systems or through new funding raised by taxes, higher fares or other means.
An initiative aimed at identifying modern human resource measures could help enhance New York’s future competitiveness.
Experiments with higher fares at the busiest time could identify effective ways to shift some ridership to the less crowded hours.
The initiative to shift ridership could be made even more effective if employers were encouraged to cooperate by facilitating flexible working hours.
Key Data
$12.2 billion
— Estimated amount needed for New York City highways and related facilities over the ten-year period spanning fiscal years 1998 to 2007.
$8.1 billion
— Amount allocated by the City for New York City highways and related facilities over the ten-year period spanning fiscal years 1998 to 2007.
$20.4 billion
— Estimated amount needed to achieve and maintain a state of good repair for facilities operated by the Transit Authority.
$10.7 billion
— The total gap in the Transit Authority's capital budget for achieving a state of good repair.
$4 billion
— The gap between the estimated need and the City's allocation for highway maintenance over the ten-year period spanning fiscal years 1998 to 2007.
$30 billion
— Total amount invested in New York's rail transportation systems in 1998 dollars since the early 1980s.
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