Deferred maintenance refers to the practice of postponing necessary repairs and upkeep for public infrastructure and housing, which often leads to higher long-term costs and accelerated physical deterioration. This page covers CBC’s work on the MTA’s capital planning and transit system repairs, NYCHA’s public housing capital needs, rent-stabilized housing conditions, infrastructure funding gaps, and strategies for improving capital project management.
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 Rent Guidelines Board should approve rent increases that, at a minimum, keep pace with inflation to prevent landlords from cutting back on maintenance.
The Rent Guidelines Board should augment its reports with more information on the physical and financial well-being of New York City’s housing stock.
The Rent Guidelines Board should augment the Mortgage Supply report to track building sales at a more granular level to better understand the marketplace for predominantly stabilized buildings.
A new Rent Guidelines Board report on building conditions should monitor the physical state of rent regulated stock.
The Rent Guidelines Board should ask the New York City Department of Finance or New York State Homes and Community Renewal to publish a building level file with the total number of rent stabilized units in each rental building in the City.
Key Data
In May 2025, the CBC highlighted that, based on the 2023 Housing and Vacancy Survey, pre-1974 rent-stabilized housing units averaged 1.76 maintenance deficiencies, which is 75% more deficiencies than post-1973 stabilized units and 79% more than market-rate units.
In March 2025, the CBC reported that the MTA's proposed five-year 2025-2029 Capital Plan included $68.4 billion of investments—with 95% supporting rebuilding and improving the system—but left a $33.4 billion funding gap.
In September 2024, the CBC reported that the MTA's $1.5 trillion in capital assets were severely deteriorated, with 39% of station ventilation systems, 36% of substations, and 24% of mainline signals in poor or marginal condition.
In March 2024, the CBC highlighted that NYCHA's five-year capital needs had ballooned to $60 billion (or $373,000 per unit), while its 20-year needs reached $78 billion (or $483,000 per unit).
According to a March 2024 report, NYCHA's 2023 Physical Needs Assessment revealed that almost one-third of its public housing units are at or close to the point where they cost less to build new than to repair, representing a six-fold increase from 2017.
Pre-1974 rent-stabilized housing units are increasingly falling into disrepair, with maintenance deficiencies 75 percent higher than newer stabilized units and 79 percent higher than market-rate units. To prevent a "death spiral" of deferred maintenance, the Rent Guidelines Board should ensure rent increases keep pace with inflation and improve public reporting on the physical and financial health of the city's housing stock.
Recommendations related to Deferred Maintenance
The Rent Guidelines Board should approve rent increases that, at a minimum, keep pace with inflation to prevent landlords from cutting back on maintenance.
The Rent Guidelines Board should augment its reports with more information on the physical and financial well-being of New York City’s housing stock.
The Rent Guidelines Board should augment the Mortgage Supply report to track building sales at a more granular level to better understand the marketplace for predominantly stabilized buildings.
A new Rent Guidelines Board report on building conditions should monitor the physical state of rent regulated stock.
The Rent Guidelines Board should ask the New York City Department of Finance or New York State Homes and Community Renewal to publish a building level file with the total number of rent stabilized units in each rental building in the City.
Key Data
1.76
— Average number of maintenance deficiencies found in pre-1974 rent stabilized units.
75 percent
— Increase in maintenance deficiencies in pre-1974 units compared to post-1973 stabilized units.
79 percent
— Increase in maintenance deficiencies in pre-1974 units compared to market rate units.
9 percent
— Decline in average net operating income for pre-1974 stabilized buildings outside core Manhattan between 2020 and 2023.
$1,250
— Estimated monthly operating costs per unit for a typical, well-run rent stabilized building.
$899.4 million
— Combined cost of Article 11 and 420-c property tax exemptions in fiscal year 2025.
The Metropolitan Transportation Authority faces a $33.4 billion funding gap in its $68.4 billion capital plan, which is essential for maintaining the system's $1.5 trillion in assets in a state of good repair. To address this, the state should prioritize "rebuild and improve" projects, increase city and state contributions, and implement reforms to ensure accountability and cost-effectiveness.
Recommendations related to Deferred Maintenance
The MTA and the State should focus the Capital Plan exclusively on Rebuild and Improve projects to address the system's state of good repair.
The State and City should increase their contribution by $9.0 billion in pay-as-you-go (PAYGO) financing to help close the funding gap.
The MTA should modestly increase fares, tolls, and vehicle registration fees to generate revenue for critical infrastructure investments.
The MTA must publish project plans, user-friendly capital project status reports, and regular updates on each asset group’s state of repair to ensure accountability.
Labor unions should provide the flexibility to generate at least $500 million in recurring operating budget savings to support necessary debt.
The State should require a study to identify any State or City laws or regulations that increase MTA capital costs.
The State should include provisions to catalyze action and provide tools to the District Attorneys, police and the MTA to dramatically turn the tide on fare evasion.
Key Data
$1.5 trillion
— The total value of the Metropolitan Transportation Authority’s assets that require massive investment to be maintained in a state of good repair.
$68.4 billion
— The size of the proposed 2025-2029 Capital Plan intended to rebuild and improve the transit system.
$33.4 billion
— The initial funding gap identified in the MTA's capital plan.
$35.4 billion
— The increased financing gap following the State Fiscal Year 2026 Executive Budget.
$9.0 billion
— The amount of additional pay-as-you-go (PAYGO) financing the City and State should contribute to the capital plan.
$500 million
— The amount of recurring operating budget savings labor should provide to support planned debt.
The MTA's proposed 2025-2029 capital plan requires trimming to a more achievable level, as current expansion projects divert necessary resources from essential system repairs. To ensure financial stability and reliable service, the state must unpause congestion pricing and develop a sustainable funding plan that does not rely on frequent tax increases.
Recommendations related to Deferred Maintenance
The MTA should trim the plan to a more achievable level to reduce the funding gap and prioritize essential rebuild and improve projects over expansion efforts.
If the plan is not trimmed, the MTA should at least transparently schedule essential rebuild and improve projects before expansion projects.
The State should unpause congestion pricing, as any alternative makes financing essential rebuild and improve projects harder.
The MTA must reduce fare evasion, and labor must be a partner to increase productivity, which are essential to stabilize the operating budget and provide the capacity to finance essential system repairs.
Key Data
$8.6 Billion
— Proposed and previously planned expansion projects that divert resources from essential rebuilding and improvement efforts.
$10 Billion
— Proposed amount in new MTA bonds that is not considered affordable.
$1 Billion
— The MTA’s structural budget gap that will be exceeded by the end of the decade.
15 percent
— Portion of an operating budget that is not fully funded, impacting the affordability of debt.
The Metropolitan Transportation Authority's $1.5 trillion in infrastructure assets are in poor condition, requiring a massive, focused investment to address critical maintenance needs rather than system expansion. To ensure the system's future, the state must right-size the 2025-2029 capital program, prioritize essential repairs, and secure sustainable, long-term funding sources.
Recommendations related to Deferred Maintenance
The MTA and the State should adopt at most a $62.4 billion 2025-2029 Capital Program to match the amount that can be committed over six years.
The MTA should focus the capital program exclusively on projects to Rebuild and Improve the system rather than diverting resources to expansion projects.
The State should unpause congestion pricing because any alternative merely reduces the options available to fund projects in the 2025-2029 Capital Program.
The MTA should increase productivity and reduce fare evasion to provide at least $1.5 billion in needed operating budget savings.
The MTA should use recurring revenue to support capital investment on a pay-as-you-go basis to ensure financing for the 2025-2029 program is sustainable.
Key Data
$1.5 trillion
— Total value of the Metropolitan Transportation Authority’s capital assets that are currently in dire shape.
$106.6 billion and $115.0 billion
— Estimated five-year cost of the Rebuild and Improve program.
$16.6 billion and $25.0 billion
— The Rebuild and Improve Commitment Capacity Gap for the next Capital Program.
$27.6 billion
— Value 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.
$52.9 billion
— Funding needed to finance the 2025-2029 Capital Program and previously planned projects.
The pause in congestion pricing has created a $15 Billion financing gap in the 2020-2024 Capital Program, threatening critical infrastructure projects. To address this, the focus must shift toward prioritizing essential system repairs and modernization over capacity expansion in the upcoming 2025-2029 capital plan.
Recommendations related to Deferred Maintenance
The MTA should focus on and commit to the most critical projects to rebuild and improve the system as quickly as possible.
The MTA should propose a 2025-2029 capital program that wholly prioritizes the most critical rebuild and improve projects.
The focus should be on using available funds to accelerate investment in state of good repair.
Investing in state of good repair and basic modernization should always be the top priority before capacity expansion.
Key Data
$15 Billion
— The financing hole opened in the 2020-2024 Capital Program due to the congestion pricing pause.
$60 billion is how much NYCHA plans to invest in its infrastructure over 5 years. Facing ongoing challenges such as budget gaps, weakening rent collection, and deteriorating physical conditions, NYCHA CEO Lisa Bova-Hiatt and Chair Jamie Rubin shared their strategies for managing the nation's largest public housing system.
NYCHA faces a massive $60 billion five-year capital need, with nearly one-third of units now costing less to build new than to repair due to rapid deterioration. To address these daunting physical conditions, the authority must prioritize converting units to Section 8 under PACT and the Preservation Trust while transforming its management operations.
Recommendations related to Deferred Maintenance
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.
Key Data
$60 billion
— NYCHA’s five-year capital needs total $60 billion, or $373,000 per unit.
$78 billion
— Twenty-year capital needs have reached $78 billion, or $483,000 per unit.
43 percent
— The 2023 New York City Housing and Vacancy Survey found that 43 percent of public housing residents surveyed reported three or more housing condition issues.
The New York City Housing Authority faces a massive $78 billion in twenty-year capital needs, with nearly one-third of its apartments nearing or exceeding the cost of new construction. To address this, the city and state must secure additional funding and streamline renovation processes to ensure the viability of future housing preservation projects.
Recommendations related to Deferred Maintenance
The State and City should seek to 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.
NYCHA and the City must identify additional subsidy sources to make projects financially feasible given rising interest rates and construction costs.
Key Data
$60 billion
— Five-year investment needs for NYCHA properties.
$78 billion
— Twenty-year investment needs for NYCHA properties.
$373,000
— Five-year investment needs per unit.
$483,000
— Twenty-year investment needs per unit.
$1.5 billion
— City capital subsidies included in the Fiscal Year 2024 Executive Budget for future PACT projects.
$27.8 billion
— Increase in twenty-year needs attributed to higher than expected inflation.
The Metropolitan Transportation Authority's Twenty-Year Needs Assessment requires a more comprehensive and transparent approach to accurately identify and prioritize the transit system's capital requirements. By providing granular data on asset conditions and rigorous cost-benefit analyses, the agency can better ensure the system reaches a state of good repair and effectively serves the region.
Recommendations related to Deferred Maintenance
The MTA should include a complete accounting of the system’s current and potential future capacity needs to ensure all options are considered before prioritization.
The MTA should disaggregate data to the functional group and component level to better inform public discussion and project prioritization.
The MTA should include data on asset condition, needs, cost, and improvement timeframes to clearly define the path to achieving a state of good repair.
The MTA should detail all projects’ benefits and costs based on rigorous analysis, standard measures, and MTA goals to bring transparency to investment choices.
The MTA should provide clear and complete data on future transportation needs to ensure long-term planning is grounded in the best available information.
Decades of deferred maintenance have left the New York City Housing Authority with deteriorating buildings and a widening operating budget gap that threatens its long-term viability. To address these fiscal and operational challenges, the authority must implement structural reforms, including comprehensive building renovations and improved management practices, rather than relying on one-time subsidies.
Recommendations related to Deferred Maintenance
Fix or replace deteriorating buildings with Permanent Affordability Commitment Together (PACT) and the Preservation Trust.
Improve management effectiveness and efficiency, and publicly track progress and impacts.
Negotiate savings and increase productivity through collective bargaining.
Overhaul the rent collection process to ensure residents pay rent on time.
Key Data
$40 billion
— Estimated capital investment needed to bring public housing units to a state of good repair.
$789 million
— The 2022 structural budget gap between operating revenue and public housing operating expenses.
$1,481
— The monthly per-unit operating cost for public housing in 2022.
$152 million
— The total amount spent on overtime in 2022.
$546 million
— The amount spent on contract costs in 2022, representing a 12 percent increase.
$127 million
— The amount spent on supplies in 2022, representing a 23 percent increase.
The New York City Housing Authority faces significant financial instability due to declining rent collection rates and rising operating costs exacerbated by deferred maintenance. To ensure long-term viability and adequate living conditions, the authority must improve operational efficiency, increase capital investment through programs like the Preservation Trust, and implement structural reforms.
Recommendations related to Deferred Maintenance
NYCHA should fix its deteriorating buildings through the Rental Assistance Demonstration (RAD) and the Preservation Trust.
NYCHA should improve property management to better handle the maintenance of its housing stock.
NYCHA should increase productivity through collective bargaining changes in its labor agreements to improve maintenance operations.
The State should increase the Trust’s unit cap when needed to facilitate capital repairs.
The federal government should increase funding for Tenant Protection Vouchers and provide procurement flexibility to support capital investment.
Key Data
$450 million
— The amount of rent arrears accumulated by NYCHA.
90 percent
— The previous norm for NYCHA's rent collection rate.
65 percent
— The level below which NYCHA's rent collection rate has fallen.
59,811
— The number of households that requested rent decreases between March 2020 and February 2022.
35 percent
— The percentage of occupied units that requested rent decreases between March 2020 and February 2022.
$15 billion to $20 billion
— The State's massive structural deficit.
The New York City Housing Authority faces a structural budget gap driven by decades of deferred maintenance, which has led to deteriorating living conditions and rising operating costs. To achieve solvency, the authority must implement structural reforms, including improved property management and rent collection, rather than relying on unsustainable non-recurring revenue and subsidies.
Recommendations related to Deferred Maintenance
NYCHA should fix deteriorating buildings through the Rental Assistance Demonstration (RAD) program and the Preservation Trust.
The authority must improve property management to address operational inefficiencies.
NYCHA needs to boost rent collections to ensure adequate revenue for operations.
The authority should negotiate savings and increased productivity through collective bargaining.
Key Data
more than 90 percent
— of NYCHA units that would be so deteriorated by 2027 that it would be cheaper to build new units than to repair them.
$1,500
— average cost to operate NYCHA public housing per unit per month.
80 percent
— higher cost to operate NYCHA public housing compared to privately owned rent regulated buildings.
$546 million
— total spending on contracts, which increased 12 percent.
$152 million
— total overtime spending in 2022.
$454 million
— total accrued unpaid rent as of December 2022.
The Metropolitan Transportation Authority faces a significant backlog of uncommitted capital projects, with billions of dollars in planned work delayed or unaffordable, threatening the system's state of good repair. To address this, the authority must prioritize critical safety and maintenance projects, improve capital execution, and develop a realistic, transparent 2025-2029 capital plan.
Recommendations related to Deferred Maintenance
The MTA should publish a $22.8 billion to $25.4 billion plan that identifies projects that can be committed by 2024.
The MTA should focus on state of good repair, normal replacement, and system improvement projects.
The MTA should prioritize projects based on criteria such as safety, maintenance cost reduction, and contract packaging.
The MTA should publish the planned schedule for the remaining outstanding projects from the 2010-2024 capital plans.
The MTA should develop an ambitious and solidly financed 2025-2029 capital program incorporating projects from prior plans and current needs.
The MTA should increase the efficiency of operations to help eliminate the structural deficit.
The MTA should continue to work with the federal and State governments to implement congestion pricing by 2023.
The MTA should continue capital procurement improvements and reform to increase capacity.
The MTA should continue to improve capital execution to increase capacity, including Fastrack and shutdowns.
Key Data
$52.9 billion
— of projects still uncommitted from the 2020-2024 and two prior five-year capital plans.
$12.0 billion
— of future planned capital financing that is at risk or unaffordable.
$8.2 billion
— in forecasted annual capital commitments for 2022.
$7.1 billion
— average annual capital commitments over the past six years.
$22.8 billion
— estimated amount the MTA can commit by the end of the current capital plan.
$30.2 billion
— of projects that would still be uncommitted when the current plan period ends in 2024.
New York State's fiscal year 2023 budget included $1.6 billion in new capital spending that was not rigorously evaluated or included in initial budget proposals. This practice of using lump sum appropriations for political purposes undermines holistic capital planning, which should prioritize the maintenance of existing assets and critical infrastructure needs.
Recommendations related to Deferred Maintenance
The State should utilize a comprehensive capital planning process that prioritizes critical projects and invests capital spending in maintenance of existing assets and necessary expansions.
The State should stop using lump sum appropriations for capital projects, as they allow for ad hoc spending with limited oversight and undermine the prioritization of critical infrastructure needs.
The State should provide transparency on disbursements of existing lump sum pots by reporting details of spending, including the timing, amount, recipient, and purpose of awards to ensure accountability for capital spending.
Key Data
$1.6 billion
— Total capital appropriations added to the enacted fiscal year 2023 budget that were not included in initial proposals.
$920 million
— Amount of capital appropriations allocated in a few lump sums.
$656 million
— Amount of capital appropriations allocated for specific projects.
$418 million
— Portion of the Buffalo Bills Stadium funding that will be paid for with current money.
$1.2 billion
— Amount of these projects that may be financed through bonds, consuming State debt capacity.
The New York City Housing Authority faces a severe financial crisis characterized by rising operating costs, declining rent collection, and a massive backlog of capital needs that require urgent attention. To address these challenges and improve living conditions, the authority must secure approval for the Preservation Trust and implement significant labor productivity reforms to align expenses with industry standards.
Recommendations related to Deferred Maintenance
The City and State should approve the Preservation Trust, which has the potential to generate much needed capital investment and to deliver significant operating savings and productivity improvements.
NYCHA must implement labor productivity increases, which would bring operating costs in line with industry benchmarks and maximize the potential benefits of the Preservation Trust.
NYCHA, in collaboration with its federal monitor, HUD, and labor, needs to redouble efforts to boost productivity and bring operating costs closer to peer housing authorities and private property managers.
Key Data
$2.7 billion
— Public housing operating expenses in the 2022 adopted budget.
$1,300
— Projected monthly operating costs per unit in 2022.
$119 million
— Amount by which rental income fell below expectations in 2021 due to a falling collection rate.
$1.2 billion
— Total operating funds spent on HUD-mandated action plans since 2018.
$359 million
— Amount spent on HUD-mandated action plans in 2021 alone.
$735 million
— Projected rent collection for 2022 if the collection rate remains at 70 percent.
New York State's transportation infrastructure requires a more comprehensive, long-term capital planning process to effectively address the backlog of road and bridge deferred maintenance. Strategic allocation of federal and state funds, supported by benefit-cost analysis, is essential to maximize the value of these critical investments.
Recommendations related to Deferred Maintenance
The State should improve its capital planning processes by broadly adopting benefit-cost analysis.
The State should better identify needs and resources to prioritize transportation spending.
The State should plan for maintenance and improvements to address the backlog of deferred maintenance.
The State should continuously assess the progress of its work to ensure capital investments are effective.
The State should strategically identify, allocate, and spend the new federal funds along with added State funds to maximize their benefits.
Key Data
one-sixth
— The portion of total capital spending by the State currently made up of federal funds.
NYCHA faces over $40 billion in capital needs due to years of underinvestment, though recent efforts have increased city capital funding to $4.6 billion in the Fiscal Year 2022 plan. To address these long-term challenges, the city must implement procurement reforms and create a Preservation Trust to better finance and manage necessary repairs.
Recommendations related to Deferred Maintenance
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 for both its annual Section 9 subsidies and any additional federal funding.
City and State lawmakers should create the Preservation Trust, since it will provide NYCHA with additional options to finance needed capital investment.
Key Data
$40 billion
— NYCHA's total capital needs due to years of underinvestment, mismanagement, and cost inflation.
$4.6 billion
— Planned capital commitments for NYCHA in the Fiscal Year 2022 Adopted Capital Commitment Plan.
$818 million
— Funding allocated to renovate roofs and combat mold within the Capital Commitment Plan.
39 percent
— The amount by which NYCHA's per-unit operating costs were higher than private sector costs in 2015.
800,000 is the approximate number of daily passengers who travel on Northeast Corridor trains. The only rail link that connects New York and New Jersey is through a 110-year-old tunnel under the Hudson River. The Biden administration has pledged to move forward the Gateway Program―the planned, phased expansion and renovation…
New York City's proposed capital planning reforms risk diminishing the usefulness of budget reports and failing to address the critical need for a comprehensive assessment of infrastructure upkeep. Instead of linking capital planning to land-use reform, the City should prioritize conducting a thorough capital needs assessment to better manage and fund the state of good repair for its assets.
Recommendations related to Deferred Maintenance
The City should conduct a comprehensive capital needs assessment that identifies its state of good repair needs.
The Ten-Year Capital Strategy should reflect how the City plans to prioritize investments given its overall needs and its financial outlook, aligned with a comprehensive needs assessment and an assessment of affordability.
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, a revamped AIMS report, or a newly conducted comprehensive physical needs assessment.
The Mayor, through the Office of Management and Budget and mayoral agencies, should conduct and oversee the needs assessment process.
Key Data
$92 billion
— Amount of spending in the Preliminary Fiscal Year 2022 Ten-Year Capital Strategy allocated for state of good repair needs or programmatic replacement.
78%
— Percentage of spending in the Preliminary Fiscal Year 2022 Ten-Year Capital Strategy dedicated to state of good repair needs or programmatic replacement.
NYCHA faces a precarious fiscal outlook as it struggles to manage a growing backlog of over 483,000 outstanding work orders and total repair needs exceeding $40 billion. The authority's ability to address these deferred maintenance issues is hampered by declining rent collection rates, reduced subsidies, and the immense costs associated with lead paint remediation.
Key Data
483,000
— The number of outstanding work orders at NYCHA in December 2020, representing a 40 percent increase from the previous year.
$40 billion
— The total estimated repair needs for NYCHA, encompassing lead contamination and other basic health, safety, and habitability issues.
$2.8 billion
— The estimated cost over 20 years to remediate and ultimately abate properties with lead paint.
$138 million
— The amount of new annual revenue required to fund in-unit lead remediation and abatement work.
27.6 days
— The average time to resolve non-emergency repairs in fiscal year 2020.
40 percent
— The increase in outstanding work orders in December 2020 compared to the same time the previous year.
The New York City Housing Authority's proposed Public Housing Preservation Trust aims to address immense capital needs by transferring a portion of its portfolio to a new funding stream, but its success depends on operational flexibility and financial transparency. To effectively preserve 110,000 units of deeply affordable housing, the legislation must avoid restrictive mandates on staffing and procurement that could inflate costs and hinder necessary repairs.
Recommendations related to Deferred Maintenance
The Trust legislation should be structured with enough flexibility so that the most cost-effective approaches and tools are available.
The Trust should publish detailed, timely data on both its past financial performance and its budget outlook to ensure adequate financial transparency and accountability.
Key Data
110,000
— Number of units of deeply affordable housing that the Trust would allow NYCHA to preserve.
New York City Housing Authority (NYCHA) faces a massive $8.4 billion gap in its capital plan, with 50% of its housing units currently at risk of needing significant repairs. Without intervention, the proportion of units requiring costly intervention is projected to reach 90% by 2040, highlighting the critical scale of deferred maintenance across the portfolio.
Key Data
$8.4 billion
— The amount of unmet capital funding need identified in the NYCHA 2.0 plan.
$31.8 billion
— The total five-year capital needs for NYCHA housing units.
50%
— The percentage of NYCHA housing units at risk of requiring significant capital intervention in 2018.
90%
— The projected percentage of NYCHA housing units at risk of requiring significant capital intervention by 2040.
New York State's transportation infrastructure planning requires reform to address the accumulation of deferred maintenance and the poor condition of roads and bridges relative to the rest of the nation. Enacting legislation to mandate long-term capital planning, transparency in project delays, and clear asset management strategies is essential to align spending with actual needs rather than political considerations.
Recommendations related to Deferred Maintenance
The Governor should sign A4880/S1673 to improve capital planning for transportation infrastructure in New York State.
The State Department of Transportation should develop a 20-year intermodal transportation capital plan.
The State Department of Transportation should develop a 5-year capital plan for transportation projects.
The State Department of Transportation should hold regional hearings on transportation capital planning.
The State Department of Transportation should biannually submit to the Governor and Legislature a list of current and planned transportation capital projects.
The State Department of Transportation should provide explanations of major delays and cost overruns on individual projects.
Subsequent legislation should require the Department of Transportation to outline goals and strategies for maintaining and improving transportation assets.
Subsequent legislation should require the Department of Transportation to make public a summary of the inventory of assets, asset quality, recently completed projects, and performance relative to predetermined goals.
90% is the share of NYCHA units that are at risk of no longer being cost effective to repair by 2027 at the current rate of deterioration. NYCHA released a plan to address this in December 2018. CBC Senior Research Associate Sean Campion joins the pod to discuss progress, the…
NYCHA's $31.8 billion five-year capital need remains largely unaddressed, as the "NYCHA 2.0" plan faces significant hurdles including stalled infill development, federal funding caps, and a growing backlog of repairs. Without increased cooperation from all levels of government and labor unions, the authority risks failing to renovate over 4,000 units annually, causing repair costs to continue rising.
Recommendations related to Deferred Maintenance
The federal monitor should work with the new Chair to identify changes to federal laws and regulations that would support NYCHA’s turnaround efforts.
The federal monitor should work to increase funding for federal operating and capital subsidies to address the authority's capital crisis.
The federal monitor should work to lift the federal prohibition on design-build and best value procurement for federally-funded capital projects.
The federal monitor should work to allow for more flexible use of federal capital and operating dollars to enable the reinvestment of operating savings into capital upgrades.
The City should allocate more of its robust capital budget for affordable housing to NYCHA to accelerate repairs and the ability to complete RAD deals.
Key Data
$31.8 billion
— Total five-year capital needs for NYCHA.
75,000
— Number of backlogged work orders NYCHA aims to close by 2021.
4,000
— Number of units that could go without repairs each year without anticipated funding.
$12.8 billion
— Funding generated from accelerating the pace of public-private partnerships under the PACT program.
$2 billion
— Funding generated from additional infill development.
$1 billion
— Funding generated from the sale of transferrable development rights.
It’s no secret New York’s roads are in dire need of repair, and now there are numbers to prove it. A new report by the Citizens Budget Commission says New York needs $5.7 billion to keep roads in “good repair.” Watch the original segment here .
New York State faces a significant funding gap for its transportation infrastructure, with approximately $2.1 billion in necessary repair work currently deferred annually. Implementing a vehicle-miles traveled (VMT) fee could provide a sustainable, user-pays revenue source to address these infrastructure needs and reduce the backlog of deferred maintenance.
Recommendations related to Deferred Maintenance
New York should phase in implementation of a vehicle-miles traveled fee to allow the public sector to build expertise and ensure a smooth rollout of the new revenue source.
The State should maintain flexibility to accommodate new technology by remaining technologically agnostic and not committing to a single, proprietary platform.
Policymakers should establish rates that vary by type of vehicle and location to ensure that heavier vehicles and urban travel, which contribute more to road wear and congestion, are charged appropriately.
The State should execute a clear and transparent rate-setting process so that motorists understand how, when, and at what rate the fee is being imposed.
New York should use the VMT fee as an addition to existing sources to help remedy the mismatch between available highway revenues and the annual expenditures needed to address deferred maintenance.
Key Data
$5.7 billion
— The annual investment required for the State to achieve a state of good repair on its assets.
37%
— The portion of necessary repair work on New York's roads and bridges that is currently deferred.
$2.1 billion
— The amount of necessary repair work on New York's roads and bridges that is currently deferred.
51%
— The reduction in the inflation-adjusted per-mile direct cost to motorists who travel on State roadways since 1993.
123 billion miles
— The estimated distance traveled by motorists in New York State in 2016.
$1 billion
— The potential annual revenue yield from an average per-mile fee of 1 cent.
New York City public housing faces a $32 billion repair backlog that threatens to render 90% of apartments irreparable within a decade if the status quo continues. To address this, the city should leverage underutilized land for mixed-income development, which could generate $3 billion in private capital to fund critical building repairs without displacing residents.
Recommendations related to Deferred Maintenance
The key to reaching the $3 billion potential is including sufficient market-rate units in any new development.
Elected officials and community members should support ambitious developments on NYCHA property that generates new housing and funding for NYCHA.
NYCHA and city officials can raise billions in private capital for repairs while maintaining public ownership and permanent affordability.
Key Data
$32 billion
— The amount required to repair NYCHA’s buildings and apartments over the next five years.
$3 billion
— The amount NYCHA can raise to repair its apartments by facilitating mixed-income development on underutilized land.
$469 million
— The funding needed over the next five years for developments at Holmes Towers, Cooper Park, Wyckoff Gardens, and LaGuardia.
$25 million
— The revenue a planned 50/50 project at Holmes Towers will raise.
90%
— The portion of NYCHA apartments that may not be worth repairing in a decade if the status quo continues.
New York's transportation infrastructure faces significant funding shortfalls, leading to the deferral of essential maintenance and leaving roads and bridges in poor condition. To address these deficits and ensure a state of good repair, the state should restructure motorist user charges, including implementing congestion pricing and exploring mileage-based user fees.
Recommendations related to Deferred Maintenance
The Governor and legislature should develop and advance a comprehensive proposal this year, one that raises sufficient revenues to reduce transportation funding shortfalls and to support additional mass transit service to meet the needs of those drivers who choose to switch modes.
New York ought to prepare for the continued erosion of revenues, and it should consider user fees that supplement fuel taxes.
Long-term the State should shift away from fuel taxes toward a more sustainable VMT fee.
Increasing current motorist user fees can yield significant resources but must be balanced with maintaining the state’s competitiveness.
The State needs to begin the thoughtful process to develop a VMT fee.
Key Data
$5.5 billion
— The cost of State of Good Repair (SGR) needs at NYSDOT in 2016, up from $4.2 billion in 2010.
one-third
— The portion of needed investments to bring statewide pavements to a state of good repair that NYSDOT deferred from 2010 to 2016.
10.5 percent
— The share of all state, local, and authority bridges in New York that were structurally deficient in 2017.
18.5 percent
— The portion of New York's share of the National Highway System with pavement considered 'Rough' or 'Very rough' in 2017, compared to 10.3 percent nationally.
The New York City Housing Authority faces severe physical deterioration that requires a federal monitor to enforce accountability, secure necessary funding, and implement operational reforms. Addressing this crisis necessitates aggressive advocacy for federal and state support, alongside labor contract modifications to improve workforce productivity and accelerate essential repairs.
Recommendations related to Deferred Maintenance
The monitor should establish ambitious yet achievable goals and implement a robust performance management system to assess progress while providing management the flexibility to drive change.
The monitor should be a strong advocate for changing federal policies to benefit NYCHA, including increasing funding for public housing operating and capital subsidies.
The monitor should press the State to release $450 million in appropriated capital repair funding and pass procurement reforms like extending design-build authority.
The monitor should utilize the NYCHA 2.0 strategic plan as the starting point for their work to avoid redundant studies and focus on gaps not previously studied.
The monitor should encourage the City to support the implementation of NYCHA 2.0 through the allocation of funding, fast-tracking permitting for infill projects, and creating a special district for air rights.
The monitor should push for labor reforms to improve workforce productivity, such as scheduling shifts on evenings and weekends and modifying agreements with skilled trades to reduce overtime.
Key Data
$2.2 Billion
— Amount of capital funding the City committed to NYCHA through 2027.
$972 Million
— Amount of expense funding the City committed to NYCHA through 2027.
66%
— Reduction in federal capital funding received by NYCHA in 2017 compared to 2002, adjusted for construction cost inflation.
$450 Million
— Amount appropriated by the New York State budget for NYCHA capital repairs that has not yet been released.
New York State's infrastructure is aging and requires over $100 billion in new investment, yet there is no comprehensive statewide effort to assess or prioritize these needs. Establishing a centralized office to coordinate planning, standardize project delivery, and identify sustainable funding sources is essential to address the backlog of repairs and modernize the state's critical assets.
Recommendations related to Deferred Maintenance
The Office should develop and conduct analytic assessments and prioritize appropriate investment in SOGR projects for existing assets, as well as consider lifetime maintenance costs for new investments.
To accurately determine the value of SOGR projects, a benefits/cost analysis should be performed on SOGR projects to determine the potential economic cost of not bringing assets to a state of good repair.
Industry-appropriate metrics, including intensity of asset use, should be used to determine if a sufficient investment in SOGR is being made.
Identifying these needs across all major infrastructure classes should be a key priority.
Analyzing metrics such as Mean Distance Between Failure (MDBF) and the grades roads receive over time would demonstrate whether sufficient investment is being made.
Key Data
$68 billion
— Estimated investment required by the MTA over the next 20 years to update and maintain the system.
8.5%
— Percentage of structurally deficient bridges in New York, compared to the national average of 5.3%.
$4.7 billion
— Investment needed in the three NYC area airports, 75% of which is for state of good repair (SOGR) projects.
145,697 miles
— New York City Transit's mean distance between failure (MDBF) in 2014.
122,090
— New York City Transit's mean distance between failure (MDBF) in September 2018.
The NYCHA 2.0 plan aims to address the severe deterioration of public housing by leveraging private funding and land assets to finance critical capital repairs. Success requires additional government support and labor union cooperation to streamline maintenance and repair processes.
Recommendations related to Deferred Maintenance
City, State, and Federal governments need to provide additional funding, statutory authority, and regulatory relief to ensure the feasibility of the PACT conversion plan to address capital repairs.
Labor leaders must work with NYCHA to ease work rules and salary structures to ensure basic repairs and maintenance are performed in a more timely and cost-effective manner.
Key Data
62,000
— Number of units added to the Permanent Affordability Commitment Together (PACT) initiative to speed up the pace of renovations.
The New York City Housing Authority faces $32 billion in capital needs, with nearly all properties requiring substantial rehabilitation and risking deterioration by 2027. To address this crisis, the city must integrate the authority into its broader affordable housing strategy, leverage underutilized land assets, and transition to a more efficient management model.
Recommendations related to Deferred Maintenance
The City should fully integrate NYCHA into its affordable housing strategy to shift unit distribution and potentially secure more than $1 billion for preservation.
NYCHA should transition from being a landlord to an affordable housing steward that manages fewer buildings by utilizing public-private partnerships and transferring properties to nonprofit developers.
NYCHA should leverage underutilized land assets to fund repairs and facilitate development, such as selling air rights or pursuing mixed-income infill development.
NYCHA should improve operations and construction management by aligning with modern property management standards, allowing work on evenings and weekends, and increasing the use of private maintenance contracts.
Key Data
$32 billion
— Total capital needs for the New York City Housing Authority, representing a nearly fivefold increase over the last decade.
$181,000
— Average cost per unit for the substantial rehabilitation required for nearly all of the authority's properties.
90 percent
— The portion of NYCHA’s 176,000 units that could deteriorate to the point of being no longer cost-effective to repair by 2027.
$1.5 billion
— Potential funding that could be raised by selling 10 percent of NYCHA’s air rights.
$300 million to $600 million
— The goal set by NextGen NYCHA for raising funds from mixed-income infill development.
90% is the share of NYCHA units CBC estimates may not be cost effective to repair by 2027 under the current trajectory of deterioration. NYCHA Interim Chair and CEO Stan Brezenoff joined CBC to discuss the policy and funding challenges facing NYCHA, and how he plans to tackle key areas…
NYCHA can generate revenue for critical building repairs by utilizing underused land for infill development, where the financial return depends on the ratio of market-rate to affordable housing units. Prioritizing developments with higher market-rate components maximizes the funds available to address the authority's significant capital needs.
Recommendations related to Deferred Maintenance
NYCHA should utilize infill development on underutilized land to generate revenue for necessary building repairs.
Policymakers should recognize that stricter requirements for affordable housing reduce the revenue available for capital improvements.
NYCHA should prioritize 80/20 infill development models to maximize the upfront payments received from private developers for repairs.
Key Data
$33 million
— Revenue yielded for NYCHA from an 80/20 infill development in a strong market.
$16 million
— Revenue yielded for NYCHA from an 80/20 infill development in a moderate market.
$9 million
— Revenue yielded for NYCHA from a 50/50 infill development in a strong market.
$4.5 million
— Revenue yielded for NYCHA from a 50/50 infill development in a moderate market.
$0
— Revenue yielded for NYCHA from a 100% affordable infill development.
New York City Housing Authority (NYCHA) apartments continue to suffer from poor physical conditions, with 41% of residents reporting broken plaster or peeling paint and 28% reporting heating breakdowns. Bringing these public housing units to a state of good repair is estimated to cost $32 Billion over the next five years, a necessary investment to prevent further deterioration.
Key Data
$32 Billion
— The estimated cost of bringing New York City's public housing units to a state of good repair over the next five years.
41%
— The share of NYCHA residents who reported broken plaster or peeling paint, the most commonly reported deficiency.
28%
— The share of NYCHA residents who reported heating breakdowns, an increase from 24% in 2014.
30%
— The share of NYCHA residents who reported water leaks, which grew from 28% in 2014.
9%
— The share of NYCHA residents who reported holes in floors, a rate much higher than residents in unregulated units.
$31.8 billion is the amount required to repair NYCHA's public housing units over the next five years. CBC Senior Research Associate Sean Campion discuss the findings and recommendations of CBC's recent report on NYCHA's capital needs and explains how NYCHA got into such a deep hole and and how it…
New York City's subway fleet requires an estimated $9 billion investment to restore it to a state of good repair, as previous cost-cutting measures and deferred maintenance led to a significant decline in car reliability. To reverse this trend and return to previous performance levels, leadership must prioritize substantial funding for subway car procurement and maintenance in the 2020-2024 capital program.
Recommendations related to Deferred Maintenance
MTA leadership should increase significantly its commitment to subway cars in the 2020-2024 capital program to ensure the fleet is restored to a state of good repair.
The agency must prioritize subway car investments to avoid placing added pressure on the fleet’s maintenance and squandering hard-fought gains in reliability.
The proposed modernization plan must be fully funded in future capital plans and administered effectively to achieve the anticipated results of restoring the fleet.
Key Data
$9 billion
— The estimated cost relating to subway cars that has not yet been identified.
150,000 miles
— The agency's goal for the mean distance between car component failures (MDBF).
112,208 miles
— The mean distance between car component failures (MDBF) in 2016, which fell below the agency's goal.
6,482 cars
— The total number of subway cars in the NYCT fleet.
$1.8 billion
— The cost of the Subway Action Plan (SAP) released in July 2017 to reverse declining performance.
$3.9 billion
— The amount invested between 1982 and 1991 to bring the subway car fleet to a state of good repair.
The New York City Housing Authority faces a $32 billion capital shortfall, with 90 percent of its housing units at risk of becoming too deteriorated to repair by 2027. To address this crisis, the agency must integrate into the city's broader affordable housing strategy, reduce its portfolio size, leverage underutilized land, and modernize its management and procurement practices.
Recommendations related to Deferred Maintenance
The City should fully integrate NYCHA into the City’s affordable housing strategy to better align unit distribution with the needs of extremely and very low-income households.
NYCHA should transition to an affordable housing steward that manages fewer buildings by increasing public-private partnerships and transferring or selling inefficient properties.
NYCHA should tap underutilized land assets to fund repairs and facilitate redevelopment by selling air rights and allowing infill development.
NYCHA should improve operations and construction management to lower costs by decentralizing property management, modernizing labor agreements, and utilizing more flexible procurement arrangements.
Key Data
$32 billion
— The amount of capital needs quantified for NYCHA over the next five years.
90 percent
— The portion of NYCHA’s housing units at risk of deteriorating past the point of cost-effective repair by 2027.
39 percent
— The amount by which NYCHA’s costs of operations are higher than those of other landlords operating rent-stabilized buildings.
$1.5 billion
— The potential revenue from selling 10 percent of NYCHA’s air rights.
$1.4 billion
— The potential revenue from accelerating infill development to build an additional 10,000 units.
$7 billion
— The total amount of capital needs that could be addressed over the next five years through the proposed recommendations.
New York City's $79 billion capital commitment plan requires better management to ensure critical infrastructure is repaired and assets are maintained rather than falling into disrepair. Implementing life-cycle cost analysis and improving asset management systems are essential steps to prioritize necessary repairs and ensure the safety of city facilities.
Recommendations related to Deferred Maintenance
The City’s capital dollars should be directed to repairing its critical infrastructure, ensuring its buildings and facilities are safe, and expanding where it makes sense to improve services.
The capital planning process should include a life-cycle cost analysis that incorporates the cost of operating, maintaining, and ultimately replacing capital assets.
The City should improve the Asset Management Information System (AIMS) to capture the full universe of City assets and align with the categories in the Ten-Year Capital Strategy to better identify maintenance needs.
Key Data
$79 billion
— The total value of the Preliminary Capital Commitment Plan for Fiscal Years 2018 to 2022, which the City must better manage to address critical infrastructure repairs.
$418 million is the amount Governor Andrew Cuomo wants New York City to commit to the Subway Action Plan, the emergency plan to address repairs to the distressed subway system. Politico NY senior reporter Dana Rubinstein discusses this and other pressing transit issues.
New York City lacks a comprehensive, citywide policy for routine asset maintenance, leading to a growing backlog of 'state of good repair' needs that are often addressed only after assets fail. To address this, the city should implement clear maintenance guidelines, conduct comprehensive needs assessments, and adopt a 'fix it first' strategy that prioritizes essential repairs over new expansion projects.
Recommendations related to Deferred Maintenance
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 needs assessment should be used to develop a plan to achieve state of good repair, including a detailed timeline with four-year and ten-year goals.
The City should adopt a 'fix it first' strategy, in which state of good repair projects receive priority at each agency.
Seventy percent of the next Ten-Year Capital Strategy should be dedicated to state of good repair work until 70 percent of the state of good repair backlog is eradicated.
The City should renew its Project Labor Agreements to reduce labor costs and improve managerial flexibility.
City leaders should advocate for a repeal of Wicks Law to allow for more efficient construction management.
Key Data
$6.4 billion
— State of good repair requirements in fiscal year 2014.
41 percent
— The share of state of good repair need funded in 2004.
$13 billion
— Unmet needs identified by NYCHA's most recent Physical Needs Assessments.
20 percent
— Share of water mains that are at least 100 years old.
31 percent
— Percentage of school capital improvement projects completed late.
66 percent
— Total share of stated maintenance needs funded from the expense budget in FY2014.
New York City's public housing system faces a massive backlog of capital needs, with estimates likely exceeding $25 billion, driven by years of underinvestment and deferred maintenance. To address this, the housing authority is increasingly relying on alternative strategies like public-private partnerships and rental voucher conversions to secure necessary funding for repairs.
Key Data
$25 billion
— Likely capital needs identified in the forthcoming Physical Needs Assessment.
$16.5 billion
— Total cost of capital improvements identified in the 2011 Physical Needs Assessment.
$3 billion
— Estimated damage to the housing system caused by Superstorm Sandy.
$1.7 billion
— Amount spent on capital improvements between 2012 and 2016.
$1.45 billion
— Federal capital grants received by the housing authority between 2012 and 2016.
$377 million
— City capital grants contributed to the housing authority over the 2012-2016 plan period.
New York State's transportation capital planning process lacks a data-driven, strategic approach, often resulting in disjointed projects that are not properly prioritized based on asset condition or need. To ensure infrastructure is maintained effectively, the State should codify a formal, transparent capital planning process that links asset condition to costs and establishes clear, measurable goals.
Recommendations related to Deferred Maintenance
State officials should codify in statute a process to formally set forth appropriate capital planning procedures for DOT assets.
The State should conduct a needs assessment highlighting the condition of the assets and the projected costs associated with maintaining them.
The State should provide an update of the DOT’s capital program’s strategies and goals to outline the system's objectives over the upcoming five-year period.
The State should produce a proposed project list with funding identified to accompany the Governor’s proposed budget.
The State should publish an enacted capital plan and project list that includes all costs contained in the State’s enacted Financial Plan.
The DOT should reproduce its list of projects annually with each Executive Budget to enable the Legislature and public to track progress.
The State should issue a status report on projects included in the enacted five-year capital plan to compare implementation progress relative to original goals.
Key Data
11.2 percent
— The portion of New York State bridges currently graded as structurally deficient.
$21 billion
— The total funding available for the 2016 through 2020 capital program.
$3 billion
— The amount of capital program funding allocated ambiguously to 'statewide' projects.
$6.5 billion
— The amount of capital program funding left out of project lists entirely.
$130 million
— Additional capital funding added in the fiscal year 2018 budget for projects outlined by legislative leaders.
$4.9 billion
— The amount of annual disbursements for the Department of Transportation's capital expenses.
This week's data point is $17 billion - the capital needs for rehabilitating the nation's largest housing authority. NYCHA Chair and CEO Shola Olatoye joins the podcast to discuss strategies for addressing these capital needs and to review progress implementing NextGenNYCHA, its strategic plan.
The New York City subway system suffers from long-term underinvestment, with capital programs prioritizing new expansions over the critical repairs needed to maintain a state of good repair. To address this, the transit agency should reallocate existing uncommitted funds toward infrastructure restoration and adopt a new funding model that relies more heavily on motorist fees and congestion pricing rather than increasing the burden on taxpayers.
Recommendations related to Deferred Maintenance
The MTA should re-task uncommitted funds from previous and current capital programs to work that can accelerate the process of bringing the subway to a state of good repair.
Policymakers should pursue a different funding framework that recognizes three types of revenue to support mass transit: fares, tax subsidies, and motorist cross-subsidies.
The MTA should seek additional motor vehicle use charges, such as tolling the City’s East River Bridges or the adoption of a more-comprehensive congestion pricing system, to cross-subsidize transit.
The agency should adopt a mileage-based user fee, also known as a vehicle-miles traveled tax, which would better reflect the actual use of roads and bridges.
The MTA and its workforce should more aggressively pursue efficiencies at the agency, such as altering night shift differentials and using split shifts, to make the stabilization plan self-sustaining.
Key Data
$16.1 billion
— The amount listed in the 20-year needs assessment for continuing subway infrastructure needs.
$12.7 billion
— The amount included in the originally approved 2015-2019 capital plan for state of good repair and normal replacement investments.
39 percent
— The shortfall in investment targets for subway signals and communications systems.
57 percent
— The shortfall in investment targets for line equipment such as ventilators, pumps, and tunnel lighting.
$18 billion
— The amount of authorized capital funds from the 2000 to 2014 period that remains unspent.
$9.2 billion
— The amount of authorized capital funds from the 2000 to 2014 period that remains uncommitted to construction projects.
The Metropolitan Transportation Authority's Enhanced Station Initiative prioritizes cosmetic upgrades like LED lighting and new signage over critical structural repairs, diverting nearly $1 billion in capital funds away from essential component projects. This shift in strategy raises concerns about whether these aesthetic improvements are a prudent use of resources given the system's urgent need for reliable infrastructure and state of good repair maintenance.
Recommendations related to Deferred Maintenance
The MTA should reexamine whether the enhancement of 32 stations is worth the trade-off against other capital needs as part of its 60-day review.
The agency must evaluate whether future riders will be better off waiting out delays at enhanced stations compared to receiving necessary investments in the signal system and other state of good repair work to ensure safe and reliable operations.
Key Data
$1.1 billion
— Amount added to the 2015-2019 capital plan for subway station projects, bringing the total to $4 billion.
$921 million
— Total funding allocated for the Enhanced Station Initiative in the 2015-2019 capital program.
$37 million
— Average cost per station for the Enhanced Station Initiative.
$22 million
— Average cost per station for renewal projects not part of the Enhanced Station Initiative.
$47 million
— Reduction in funding for station renewals to offset the Enhanced Station Initiative.
$45 million
— Reduction in funding for station component projects to offset the Enhanced Station Initiative.
The MTA faces declining service reliability and performance due to inadequate capital investment and aging infrastructure, with current funding levels falling significantly short of the agency's long-term needs. Despite having billions in authorized capital projects, the agency has struggled to commit and spend funds efficiently, leaving critical modernization and repair efforts stalled.
Recommendations related to Deferred Maintenance
Leaders should prioritize those investments needed to restore the system and enhance capacity in the most cost-effective manner as the MTA reevaluates the current capital program and looks to the 2020-2024 plan.
A more transparent process should be pursued so that the public may hold the board responsible for distributing limited capital dollars wisely.
To modernize the system, these investments should be accelerated to the maximum extent possible.
Key Data
28 percent
— Decline in the 12-month rolling average for the mean-distance-between-failure of subway cars since January 2013.
less than two-thirds
— Funding for New York City Transit’s existing infrastructure relative to what is needed over the next five years.
$33 billion
— Amount of capital investments authorized but remaining uncommitted as of March 2017.
$17 billion
— Unspent funds from previous capital plans, representing more than one-fifth of previously approved investments.
New York City's Ten-Year Capital Strategy lacks the necessary transparency and programmatic indicators to effectively determine if the city is adequately addressing its infrastructure needs and deferred maintenance. The current planning process relies on unrealistic timelines and fails to clearly link capital spending to the actual condition of assets, risking long-term underinvestment in critical infrastructure.
Recommendations related to Deferred Maintenance
The Ten-Year Capital Strategy should clearly relate back to agency needs assessments so that the City and the public can determine whether or not planned capital investment is adequate.
The Asset Information Management System (AIMS) should be improved to include assets owned by City-related public authorities.
The City should include programmatic indicators for future years in the Ten-Year Capital Strategy to better measure progress.
The Administration should incorporate more realistic allocation over the first four years in future capital strategies.
The City should release a commitment plan that reflects a more realistic allocation of capital spending over the first four years.
Key Data
$51 billion
— Amount of planned 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.
$5.3 billion
— Total AIMS needs funding as of fiscal year 2017.
$1.8 billion
— Outstanding need remaining for capital assets.
152%
— Growth in AIMS needs funding since fiscal year 2005.
26%
— Share of unfunded needs in fiscal year 2017.
New York City's capital construction process for libraries and cultural institutions is plagued by excessive delays and high costs, with the median project taking over four years to complete and new buildings costing a staggering $930 per square foot. To address these inefficiencies, the report calls for systemic reforms, including streamlining agency approvals, improving data tracking, and expanding the ability of institutions to self-manage their own capital projects.
Recommendations related to Deferred Maintenance
Create a task force to review and reform the capital construction process.
Start systematically tracking capital project costs and timelines.
Streamline project approval practices and reduce redundancies between OMB and DDC.
Simplify the design review process at DDC.
Strengthen DDC’s data analytics team to inform smarter decision-making.
Institute a process for nonprofits to prequalify for discretionary capital funds.
Establish dependable funding for capital construction projects, including routine state-of-good-repair investments.
Standardize and disseminate capital eligibility rules and requirements.
Allow appropriate capital projects to be contracted through a design-build process.
Expand the use of self-managed projects.
Key Data
$930
— median cost per square foot for new library and cultural buildings in the sample.
1,550 days
— median time it took for a capital project to be completed.
$523
— average cost per square foot for new NYPL branches managed by the library itself.
$883
— average cost per square foot for new NYPL branches managed by the DDC.
$1,272
— average cost per square foot for ground-up construction projects managed by the city.
$641
— average cost per square foot for ground-up construction projects managed by the New York Public Library.
The Port Authority's 10-year capital plan lacks a comprehensive, publicly-available needs assessment to identify necessary spending for maintaining a state of good repair, leading to an estimated $3.9 billion shortfall in essential infrastructure work. By relying on political bi-state parity rather than rigorous benefit-to-cost analyses, the agency risks underinvesting in critical assets and prioritizing projects with questionable long-term value.
Recommendations related to Deferred Maintenance
Develop a publicly-available needs assessment that identifies spending necessary to bring facilities to a state of good repair.
Establish a set of criteria for selecting enhancement and expansion projects that includes benefit-to-cost analyses.
Discard the use of bi-state parity to allocate capital resources between “New Jersey” projects and “New York” projects.
Conduct a component-by-component survey of assets to assess whether the agency’s planned SGR investment is adequate.
Prioritize maintaining safe and efficient facilities over political horse-trading.
Key Data
$8.8 billion
— The total amount allocated for 'Renew' projects, often described as state of good repair (SGR) work, in the 10-year capital plan.
$12.7 billion
— The estimated total 10-year depreciation of Port Authority assets from 2017 to 2026.
$3.9 billion
— The estimated shortfall in state of good repair (SGR) work, representing 30 percent of the total needed investment.
$377 million
— The amount added to the capital program to rehabilitate the current, obsolete Newark AirTrain due to systematic underinvestment.
New York City's aging bridge infrastructure, with a median age of 80 years, faces significant maintenance challenges, including 82 structurally deficient bridges and 494 that are functionally obsolete. To address these issues and reduce project delays and cost overruns, the city should be granted statutory authority to use "design-build" contracting, a method that could save up to $2 billion over the next decade.
Recommendations related to Deferred Maintenance
State legislators should enable New York City to benefit from the design-build approach to complete infrastructure projects in a cost-effective manner.
The legislature should include design-build authority for the New York City Department of Transportation in the budget bills to help address the city's bridge maintenance challenges.
Key Data
789
— Number of bridges in New York City that require consistent investment for maintenance and rehabilitation.
$7.7 billion
— Amount New York City plans to spend on bridge projects over the next 10 years.
82
— Number of City-owned bridges classified as structurally deficient due to significant defects.
494
— Number of functionally obsolete bridges that are safe but do not meet modern design standards.
45 percent
— The extent to which current bridge projects are over budget.
$2 billion
— Potential savings for the City over 10 years if design-build contracting is utilized.
NY1 At close to $30 billion, the MTA is about to get handed a record sum of money to maintain and expand a transit system that's showing wear and tear from record ridership, but riders shouldn't expect quick fixes.
NY1 A new report urges the Metropolitan Transportation Authority to pick up the pace on making station repairs throughout a system that's more than a century old and to look for new ways to fund the work.
The Metropolitan Transportation Authority struggles to maintain subway stations in a state of good repair, with current capital plans failing to address the backlog of deteriorating structural components. To improve progress, the agency should shift funding from expansion projects to maintenance, enhance project management to reduce cost overruns, and leverage public-private partnerships to secure additional capital.
Recommendations related to Deferred Maintenance
The MTA should reallocate available capital funds from new expansion projects to state of good repair work to accelerate station improvements.
The agency must improve the management of station projects to avoid delays and cost overruns, allowing more work to be completed with existing funds.
The MTA should identify opportunities for introducing station conservancies and inviting private partners into public-private partnerships to secure additional capital and implement projects more efficiently.
Key Data
$5.5 billion
— Total amount included in the proposed 2015-2019 capital plan for expansion projects across the mass transit system.
21 percent
— Share of structural components that will not be in a state of good repair after completion of projects in the 2010-2014 plan.
$1,338 million
— Amount in the proposed 2015-2019 capital plan allocated for projects to improve station components.
467
— Total number of subway stations that require rehabilitation and repair to reach a state of good repair.
$210 million
— Value of subway station improvements included in the 2014 agreement with the developer of One Vanderbilt.
280
— Average number of structural components mitigated per year under the current pace of work in the 2010-2014 plan.
New York City's subway system faces a persistent backlog of repairs, with 21 percent of structural components failing to meet a state of good repair despite billions in capital spending. To address this, the transit authority should prioritize maintenance over expansion projects, improve project management to reduce cost overruns, and leverage public-private partnerships to secure additional funding.
Recommendations related to Deferred Maintenance
The agency should reallocate capital funds from new expansion projects to state of good repair work to accelerate station improvements.
The MTA should improve the management of station projects to lower costs and permit more progress with available funds.
The agency should experiment with new models of public-private partnerships at selected stations to secure additional capital and implement projects more efficiently.
The MTA should prioritize maintenance over expansion projects to ensure existing assets are brought to a state of good repair.
The agency should identify opportunities for introducing station conservancies to marshal resources for ongoing rehabilitation and maintenance.
Key Data
21 percent
— The share of the system's 15,275 structural components that will not be in a state of good repair after the completion of the 2010-2014 capital plan.
$5.5 billion
— The amount allocated for expansion projects across the mass transit system in the proposed 2015-2019 capital plan.
$1.3 billion
— The amount allocated for projects to improve station components in the proposed 2015-2019 capital plan.
$997 million
— The amount allocated for investments in elevators, escalators, and accessibility improvements in the proposed 2015-2019 capital plan.
467
— The total number of subway stations that require rehabilitation and repair to maintain a state of good repair.
$139 million
— The amount that could be redeployed to station work if project management improvements yielded a 10 percent savings on budgeted commitments.
New York City's ten-year capital strategy lacks the necessary transparency and needs assessment to determine if infrastructure investments will effectively address the city's state of good repair requirements. Furthermore, the city's reliance on borrowing to fund these projects creates a high debt burden that threatens to crowd out other essential operating budget expenditures.
Recommendations related to Deferred Maintenance
The Strategy should incorporate information from those assessments and clearly spell out how much of state of good repair needs will be addressed by the proposed investments, and how quickly.
The Council should require improved reporting on the rationale for and performance goals of capital spending and should limit the capital budget to clearly defined projects with demonstrable benefits.
Investments should be undertaken based on clear analysis that demonstrates increased economic activity, improved operating efficiency, or enhanced service delivery.
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 held by the City.
$7.7 billion
— Projected annual debt service cost by fiscal year 2019.
41 percent
— Growth in debt service since fiscal year 2005.
40 percent
— Projected growth in debt service by fiscal year 2019.
17 percent
— Projected growth of all other city operating expenditures in the same time period.
The City's Ten-Year Capital Strategy must provide greater transparency regarding how it addresses the city's infrastructure backlog and state of good repair needs. By incorporating asset condition assessments, the plan should clearly define the scope and timeline for necessary repairs to neighborhood assets like streets, playgrounds, and libraries.
Recommendations related to Deferred Maintenance
The Strategy should incorporate information from asset condition assessments and clearly spell out how much of state of good repair needs will be addressed by the proposed investments, and how quickly.
The Metropolitan Transportation Authority faces significant financial instability, characterized by recurring deficits and a massive backlog of deferred maintenance that leaves many facilities in need of repair. To address these challenges, a new financing strategy is required that balances costs among transit riders, motorists, and taxpayers, while prioritizing capital investments to restore the system to a state of good repair.
Recommendations related to Deferred Maintenance
The MTA should stop running large deficits and lower its future debt burden by funding regular replacement needs with operating revenues rather than borrowing.
The cost of bridge and tunnel facilities should be funded entirely through user fees paid by motorists.
User fees paid by motorists should also generate a surplus large enough to cover approximately one-quarter of the cost of providing mass transit services.
Mass transit users should pay fares sufficient to cover approximately one-half the operating cost of those services.
State and local subsidies to mass transit should cover at least one-quarter of the operating cost of those services and fund 'catch-up' capital investments needed to bring the system to a state of good repair.
Key Data
$17.8 billion
— Cumulative unfunded liability for Other Post-Employment Benefits as of the end of 2011.
$2 billion
— Current annual depreciation at the MTA, which represents the day-to-day decrease in the value of assets.
$32 billion
— MTA debt outstanding in 2011, which increased from $14 billion in 2000.
35 percent
— Portion of capital spending from 1982 to 2009 devoted to state of good repair projects.
$3.6 billion
— Total cost overruns for five major MTA capital projects.
The Metropolitan Transportation Authority's capital plan fails to adequately address the need to bring aged infrastructure to a state of good repair, leaving many assets in need of renovation. Instead of prioritizing these critical repairs, the plan allocates significant funding to network expansions without sufficient planning or capacity.
Recommendations related to Deferred Maintenance
The MTA must prioritize bringing aged infrastructure to a state of good repair rather than focusing on network expansion.
The MTA should ensure that better planning and greater transparency precede investments in new system expansions.
The MTA needs to accelerate the schedule for adopting Communications-Based Train Control (CBTC) to modernize signal and communication systems.
Key Data
$1 trillion
— The value of the MTA's physical assets requiring maintenance and enhancement.
$32 billion
— The total investment amount in the MTA's capital plan.
$15 billion
— The funding gap identified in the MTA's capital plan.
$5.5 billion
— The amount allocated to projects that would expand the network.
$2.6 billion
— The cost overruns on the East Side Access project.
The MTA's 2015-2019 capital plan fails to adequately address the backlog of deferred maintenance, leaving critical infrastructure in need of repair while prioritizing new expansion projects without clear justification. The plan's slow pace of modernization for signal and communication systems, combined with a lack of transparent planning, risks long-term service reliability and safety.
Recommendations related to Deferred Maintenance
The MTA should embrace this more ambitious schedule for Communications-Based Train Control (CBTC) installation and provide the necessary funding in the 2015-2019 plan.
A prudent course for the MTA would be to postpone commitment to new expansion projects until an improved planning process is established and used to assess multiple potential projects.
Explicit criteria should be established for selecting priority projects and evidence should be considered as to how well a range of potential investments meet these criteria.
Attention should be given to rethinking the management of large-scale projects, especially those for expansion and for improvements in the signal and communication systems, to promote more effective implementation.
Key Data
$5.4 billion
— total shortfall in funding for asset categories compared to the needs assessment.
$2.7 billion
— shortfall in funding for New York City Transit assets.
$1.1 billion
— shortfall in funding for Long Island Rail Road assets.
$1.6 billion
— shortfall in funding for Metro-North Railroad assets.
$815 million
— reduction in funds designated for communication and signals at New York City Transit from the needs assessment to the adopted plan.
$10.8 billion
— current estimated cost of the East Side Access project, which was originally approved in 2000 at a cost of $6.3 billion.
New York State should utilize a $4 billion legal settlement to address its $118 billion in state-of-good-repair capital needs, which would allow for critical infrastructure improvements without incurring new debt. By prioritizing pay-as-you-go funding for these projects, the state can effectively tackle its backlog of deferred maintenance while avoiding the long-term costs associated with borrowing.
Recommendations related to Deferred Maintenance
The state should increase pay-as-you-go capital investments to address the $118 billion in state-of-good-repair projects needed to bring assets to an acceptable condition.
Settlement funds should be used to accelerate reaching state-of-good-repair for key assets in the transportation and transit systems.
The state should utilize settlement funds to pay for infrastructure investments that cannot be supported by borrowing against user fees or other dedicated revenue streams.
Key Data
$174 billion
— Total capital needs across 47 state agencies and public authorities detailed in the 10-year statewide capital plan.
$118 billion
— Amount of capital needs 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 capital planning has historically lacked a comprehensive, citywide policy for routine asset maintenance, leading to a growing backlog of repairs and reliance on ad-hoc, emergency fixes. To address this, the city must implement clear maintenance guidelines, conduct comprehensive needs assessments, and prioritize "state of good repair" projects to ensure infrastructure longevity and fiscal responsibility.
Recommendations related to Deferred Maintenance
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 needs assessment should be used to develop a plan to achieve state of good repair, including a detailed timeline with four-year and ten-year goals.
The City should adopt a 'fix it first' strategy, in which state of good repair projects receive priority at each agency.
Seventy percent of the next Ten-Year Capital Strategy should be dedicated to state of good repair work until 70 percent of the state of good repair backlog is eradicated.
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, such as a repeal of Wicks Law and an expansion of the city’s toolbox for effective contracting.
Key Data
$6.4 billion
— The amount of state of good repair requirements in fiscal year 2014, as reported in the Asset Information Management System.
41 percent
— The low share of state of good repair needs funded in 2004.
$13 billion
— The amount of unmet needs identified by the New York City Housing Authority's most recent Physical Needs Assessments through 2015.
66%
— The total share of stated maintenance needs funded from the expense budget across all city agencies in fiscal year 2014.
20 percent
— The share of all water main miles that are at least 100 years old.
31 percent
— The percentage of school capital improvement projects that are completed late.
New York State's 10-year capital plan allocates $117.8 billion toward State of Good Repair projects to address infrastructure needs, yet the plan lacks sufficient detail on specific project conditions and costs. To improve accountability and infrastructure management, the state must establish clearer assessment frameworks, set specific condition improvement targets, and provide project-level data for tracking progress.
Recommendations related to Deferred Maintenance
The State should provide better information about asset condition and the match-up between planned levels of state of good repair (SOGR) spending and need.
Information on the estimated cost of reaching state of good repair (SOGR) over the period of investment is needed for every asset.
Assets should be classified as major or minor according to criteria that include the dollar value of the asset and a priority score that reflects its importance to the region.
The State should set condition improvement targets and provide estimates of the cost of achieving the desired improvement for its infrastructure assets.
Future Statewide Plans should include information that allows the user to 'roll down' to project-specific information to assess performance.
Key Data
$117.8 billion
— The amount allocated for State of Good Repair (SOGR) projects in the 10-year statewide capital plan.
$89.2 billion
— The portion of the $117.8 billion SOGR allocation dedicated specifically to transportation.
$1.2 billion
— The amount spent to maintain highways and bridges in fiscal year 2012, compared to an estimated need of $891 million.
$12.1 billion
— The total maintenance spending from fiscal year 2003 to fiscal year 2012, compared to an estimated need of $10.7 billion.
NY1 The head of the Metropolitan Transportation Authority warns that subway tubes flooded during Hurricane Sandy likely still need repairs on equipment damaged by saltwater.
The Metropolitan Transportation Authority faces significant challenges in maintaining its infrastructure, with a large portion of capital spending historically required just to address past deferred maintenance and normal replacement needs. To achieve a state of good repair and fiscal stability, the system requires a new financing model that prioritizes funding regular replacement with operating revenues rather than relying on debt.
Recommendations related to Deferred Maintenance
The MTA should stop running large deficits and lower its future debt burden by funding regular replacement needs with operating revenues rather than borrowing.
State and local tax subsidies to mass transit should cover at least one-quarter of the operating cost of those services and fund “catch-up” capital investments needed to bring the system to a state of good repair.
The MTA should adopt the 25-50-25 formula to allocate the costs of operating and maintaining the MTA among fares, tolls, and tax subsidies.
The MTA should continue to evaluate and expand the FASTRACK program, which shuts down subway lines for extended blocks of time to accelerate state of good repair work.
Key Data
$79.8 billion
— Total capital investments authorized from 1982 through 2009.
35%
— Portion of capital spending devoted to state of good repair projects.
67%
— Combined total of capital spending devoted to bringing assets to and keeping assets in a state of good repair.
$2 billion
— Current annual depreciation at the MTA.
$3.6 billion
— Cost overruns on five major MTA capital projects.
The MTA faces severe financial instability, with projected deficits reaching $2.7 billion this year and continuing to grow, necessitating fare increases and service adjustments to ensure long-term viability. While recent cash surpluses were announced, they ignore critical capital repair and replacement needs, highlighting the urgent requirement for a sustainable fiscal strategy to prevent a deteriorating transit system.
Recommendations related to Deferred Maintenance
Periodic, predictable fare increases along with continued belt-tightening, including a trimmed service schedule, are unavoidable elements of a sensible solution.
The $29.5 million going for service restorations should be better justified.
Adjustments can be made to deploy buses in accord with shifting usage patterns.
Key Data
$2.7 billion
— Estimated deficit in the current year using appropriate accounting principles.
$1.8 billion
— Potential annual revenue loss if the payroll mobility tax decision is sustained.
$136 million
— Combined loss to the 2013 and 2015 deficits caused by delaying planned fare hikes.
The Metropolitan Transportation Authority faces significant financial constraints, with projected deficits and delayed capital plans threatening the system's 'state of good repair.' To avoid further service cuts or fare hikes, the authority must prioritize operational efficiency and implement wage agreements that do not exceed inflation.
Recommendations related to Deferred Maintenance
The MTA should implement work rule changes to increase operational efficiency, ensuring that public resources are used in the most cost-effective manner possible.
The arbitration award should include work rules changes that allow for the accelerated installation of clear partitions for buses to improve safety.
Any wage increases should be funded by additional productivity concessions or added employee responsibility for health insurance costs to avoid further service reductions.
Key Data
$720 million
— Projected savings in 2012 from the MTA's top-to-bottom efficiency program.
$1.4 billion
— Total revenue expected to be raised from fare increases by 2015.
$256.4 million
— Projected budget gap in 2014 if an award along the lines of projected inflation is enacted.
Public-private partnerships (PPPs) offer a potential solution to the chronic neglect of public infrastructure by incentivizing long-term maintenance and efficiency through life-cycle management. By shifting responsibility for design, construction, and maintenance to private partners, governments can address significant maintenance backlogs, such as the $3.2 billion and $1.7 billion identified for New York's public university systems.
Recommendations related to Deferred Maintenance
PPPs should be focused on achieving efficiencies in the life cycle costs of facilities and ensuring their long-term maintenance at standards higher than typically achieved by direct public sector operation.
New York’s leaders should give high priority to assets that are currently in poor condition and have a history of poor maintenance.
A group of planned new schools and/or school renovation projects should be considered for a PPP modeled on the British experience with 'strategic partnerships,' in which local governments forge a long-term relationship with private partners to create a strategic framework for building or renovating a number of smaller capital assets with similar specifications.
A group of parks in need of improvements could be packaged for a suitable PPP.
PPPs could be used to renovate some currently deficient educational facilities and keep them well maintained for the expected lifecycle.
Key Data
$3.2 billion
— Critical maintenance backlog identified for the City University of New York.
$1.7 billion
— Critical maintenance backlog identified for the State University of New York.
$1.6 trillion
— Investment necessary in the next five years to bring the nation’s infrastructure to a good condition.
$10.1 billion
— Funding needed over 12 years to address all critical dams.
New York City faces significant infrastructure maintenance backlogs that require innovative financing solutions to address. By utilizing public-private partnerships to bundle smaller assets like schools and parks, the city can effectively upgrade problematic infrastructure while bypassing traditional municipal debt limits.
Recommendations related to Deferred Maintenance
The city should move toward negotiating agreements that bundle together several schools or small parks.
The city should harness best practices to apply public-private partnerships to assets of a smaller scale, notably schools, parks, and bridges.
Key Data
$1.4bn
— The value of the deal negotiated by the Port Authority of New York and New Jersey for Terminal Four at John F. Kennedy International Airport.
$20m
— The annual payments provided by Cemusa to the city in exchange for the design, construction, and maintenance of street furniture.
5,800
— The number of miles of streets and highways that New York City relies on to operate.
New York City faces a $5.6 billion backlog in infrastructure repairs, with funding for necessary maintenance consistently falling short of requirements. To address this, the city must prioritize full funding for routine maintenance and utilize asset condition assessments to create a strategic, long-term plan for upgrading public infrastructure.
Recommendations related to Deferred Maintenance
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 cost of needed 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 allocated for AIMS capital work in fiscal year 2011.
70 percent
— The portion of maintenance needs currently funded in the operating budget across all facilities.
$1.2 billion
— The annual amount 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 lacks a comprehensive strategy for maintaining assets in a state of good repair, often relying on borrowing rather than operating revenues for routine replacements. The City should implement a systematic plan to assess all capital assets and establish dedicated funding cycles to eliminate deferred maintenance and ensure long-term infrastructure viability.
Recommendations related to Deferred Maintenance
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.
The City should place all its capital assets on regular replacement cycles according to their useful lives.
The City should allocate funds in its operating budget for regular replacement to eliminate the need for costly borrowing.
New, large capital projects should be selected based on a clear set of priorities rooted in the ability to provide a higher or more efficient level of service.
The City should expand the AIMS report to cover all capital assets and integrate the condition assessments of major capital asset systems into a comprehensive reporting structure.
Key Data
$5.4 billion
— Estimated cost to achieve a state of good repair for assets covered by the fiscal year 2008 AIMS report.
$2.8 billion
— The funding gap for achieving a state of good repair for assets covered by the AIMS report.
$4.9 billion
— Estimated annual depreciation of the City's major assets based on replacement cost in fiscal year 2007.
$3.0 billion
— Reported depreciation of the City's major assets based on historical cost in fiscal year 2007.
$23 billion
— Total cost of planned expansion projects for the next ten years.
New York City's capital spending has significantly increased the value of city-owned assets, yet a substantial maintenance backlog persists, with $5.6 billion in capital work required to bring surveyed assets to a state of good repair. Despite record-level investments, funding for these necessary repairs has consistently fallen short, leaving nearly half of the required maintenance work unfunded.
Key Data
$5.6 billion
— Capital work needed to bring surveyed assets to a state of good repair.
$4.1 billion
— Needed capital repairs in fiscal year 2000.
$2.8 billion
— Funding for AIMS capital work in the last fiscal year.
36 percent
— Increase in the cost of needed repairs since fiscal year 2000.
49 percent
— The portion of needed work that constitutes the current funding gap.
New York's infrastructure, including bridges, schools, and university facilities, faces significant deterioration and maintenance backlogs, with billions of dollars required to bring these assets into a state of good repair. Public-private partnerships offer a potential mechanism to address these needs by incentivizing efficient, long-term maintenance and lifecycle management that often exceeds the performance of direct public sector oversight.
Recommendations related to Deferred Maintenance
State and local entities should focus on achieving efficiencies in the life cycle costs of facilities and ensuring their long-term maintenance at standards higher than typically achieved by direct public sector operation.
New York’s leaders should give high priority to assets that are currently in poor condition and have a history of poor maintenance when selecting opportunities for effective public-private partnerships.
In most cases, public-private partnerships should be initiated as pilot programs and viewed as benchmarks for project delivery times and maintenance standards.
The City Department of Parks should adapt its existing monitoring system to contractual provisions for financial incentives and penalties in the management of parks.
Public officials should develop an enhanced capacity for contract design, performance measurement and monitoring to ensure the success of public-private partnerships.
Key Data
$1.6 trillion
— Estimated investment necessary in the next five years to bring the nation’s infrastructure to a good condition.
$3.2 billion
— Critical maintenance backlog identified for the City University of New York system.
$1.7 billion
— Critical maintenance backlog identified for the State University of New York system.
$10.1 billion
— Funding needed over 12 years to address all critical dams.
6,650
— Number of bridges in New York State that are functionally obsolete or structurally deficient.
$220 billion
— Minimum annual investment needed through 2035 to maintain and improve all modes of surface transportation.
A Panel Discussion A forum discussion on the efficacy of New York City's infrastructure plan and what steps it should take to ensure that current infrastructure is kept in a state of good repair. Mayor Michael Bloomberg delivers the keynote speech and CBC President Carol Kellermann gives the presentation on…
New York City's capital planning process is fragmented and fails to adequately prioritize the maintenance of existing infrastructure, leading to significant funding gaps. To address this, the city must implement a systematic plan to bring assets to a state of good repair and fund regular replacements through operating budgets rather than relying on debt.
Recommendations related to Deferred Maintenance
The City should then develop a systematic plan to eliminate deferred maintenance and bring all its capital assets and infrastructure systems to a state of good repair.
The City should place all its capital assets on regular replacement cycles according to their useful lives.
The City also should allocate funds in its operating budget for regular replacement.
New, large capital projects should be selected based on a clear set of priorities rooted in the ability to provide a higher or more efficient level of service, or in terms of providing a high rate of return on the investment of public funds.
Key Data
$5.4 billion
— 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 achieving a state of good repair, representing the difference between needed investment and planned spending.
$3.0 billion
— Depreciation of the City's major assets based on historical cost in fiscal year 2007.
$4.9 billion
— Estimated depreciation of the City's major assets when based on replacement cost in fiscal year 2007.
$6.5 billion
— Unanticipated revenues in fiscal year 2007 that could have been used to fully absorb replacement costs.
New York City's park system requires a shift toward funding routine maintenance through the operating budget rather than relying on borrowed capital funds, which currently incentivizes neglect of preventive care. To address persistent maintenance issues and inequities, the city should also implement more transparent partnerships with nonprofit organizations and establish objective standards for park use and efficiency.
Recommendations related to Deferred Maintenance
Create a stronger incentive for increasing concessions and other earned revenues by dividing growth in these revenues between the City’s general fund and a new fund dedicated to parks improvements.
Institutionalize responsibility for strategic planning for parks.
Bring all parks to an acceptable condition.
Improve productivity in parks maintenance and operations.
Encourage preventive maintenance and longer periods of usefulness by funding routine repairs and replacements in the operating budget.
Make the relationships between DPR and its nonprofit partner organizations more transparent and consistent with core guidelines.
Key Data
$394 million
— Amount needed to bring major DPR assets to a state of good repair in fiscal year 2007.
$44 million
— Amount the City funded in fiscal year 2007 to bring all covered facilities to a state of good repair.
$81 million
— Total revenue generated by the DPR in fiscal year 2006.
$48.1 million
— Revenue from concessions in fiscal year 2006.
$64.9 million
— Earned revenues in fiscal year 2006.
$40.7 million
— Earned revenues generated in the top 12 parks in fiscal year 2006.
The New York region's transportation infrastructure suffers from significant neglect, with 39 percent of urban roads in New York and 29 percent in New Jersey in unacceptable condition, while 37 percent of bridges in both states are structurally deficient or obsolete. To address this, the region must accelerate the elimination of the maintenance backlog within the next ten years, financing these efforts through general fund appropriations rather than relying on current users to pay for past neglect.
Recommendations related to Deferred Maintenance
The existing backlog in maintenance and repairs caused by a history of under-funding and neglect should be eliminated at an accelerated pace and be financed by general fund appropriations.
An effort should be made to achieve a state of good repair for transportation facilities within the next ten years.
State leaders should take responsibility for dealing with their predecessors’ bad judgment, and exercise leadership in raising the funds for restoring transportation infrastructure to a state of good repair.
The governors of New York and New Jersey should create a new entity with authority to set and enforce regional transportation policies and priorities to ensure sound financing.
The region’s transportation agencies should have sufficient resources to meet all necessary operating expenses to prevent future neglect.
Key Data
39%
— Percentage of urban roads in New York that are in unacceptable condition.
29%
— Percentage of urban roads in New Jersey that are in unacceptable condition.
37%
— Percentage of bridges in both New York and New Jersey that are structurally deficient or obsolete.
2019
— Year by which the MTA expects to reach a state of good repair.
2025
— Year by which mass transit lines in New Jersey will require for completion of all rehabilitation and improvement projects.
New York City faces a multi-billion dollar shortfall in funding required to bring its aging highway and mass transit infrastructure to a state of good repair. Current capital plans for both road maintenance and transit facilities fall significantly short of the estimated costs needed to address these critical infrastructure needs over the next decade.
Recommendations related to Deferred Maintenance
New York's leaders should address how rapidly to achieve a state of good repair for the existing infrastructure.
Transit leaders should learn from the operations of other systems to identify modern human resource measures that could help enhance future competitiveness.
Efforts to increase ridership should focus on off-peak hours to reduce average costs per passenger.
New York's leaders should address how to improve transit system efficiency and ridership.
Modernized signaling and train control systems should be explored as a cost-effective way to expand rush-hour capacity.
Key Data
$12.2 billion
— Estimated cost 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 highway and related facilities over the ten-year period spanning fiscal years 1998 to 2007, leaving a more than $4 billion gap.
$5.3 billion
— Estimated cost for road resurfacing and reconstruction work required by the City over the ten-year period.
$2.4 billion
— Funding gap for road resurfacing and reconstruction work over the ten-year period, as the City's capital plan provides less than $2.9 billion.
$20.4 billion
— Estimated amount needed to achieve and maintain a state of good repair for facilities operated by the Transit Authority as of 1998.
$9.7 billion
— Funding gap in four capital budget categories—line structures, signals, line equipment, and stations and communications—out of a total $10.7 billion gap.
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