Infrastructure funding in New York encompasses the public and private resources used to build, maintain, and modernize the state and city’s essential physical assets. This page covers CBC’s work on the MTA capital program, NYCHA capital needs, state and local capital planning processes, environmental review reform, and strategies for financing public works.
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..
Exempting modest residential development from SEQR would make building housing cheaper and faster without additional costs to the government.
Exempting water facilities, parks, and resiliency retrofits from SEQR would reduce the cost of projects that improve the environment.
Imposing deadlines on State and local agencies to sign off on environmental reviews would ensure reasonable and predictable timelines and avoid the death spiral of mounting cost increases.
Prioritize state of good repair work on existing capital assets before using funds for expansion projects.
Re-tool the capital planning process to focus on assessing, prioritizing, and meeting infrastructure needs, rather than delivering political wins.
Identify and invest in cost-effective, core resiliency needs to protect New Yorkers and the economy from the impacts of climate change.
Ensure investments in the energy transition focus on cost-effective strategies that balance economic, affordability, and environmental needs.
Key Data
In June 2025, the CBC highlighted New York City's $111 billion five-year capital program, noting that the ten-year strategy for fiscal years 2026 through 2035 allocates 50% of capital spending to State of Good Repair and 26% to Program Expansion.
In March 2025, the CBC reported that the MTA's proposed $68.4 billion capital plan for 2025-2029 faced a $33.4 billion funding gap, which grew to $35.4 billion under the State's Executive Budget due to reduced city and state contributions.
In November 2024, the CBC noted that a proposed $9 congestion charge was designed to fully plug a $15 billion funding gap in the MTA's capital program.
In September 2024, the CBC reported that the MTA's $1.5 trillion in capital assets were in dire shape, with 39% of subway ventilation systems and 36% of substations in poor or marginal condition.
In September 2023, the CBC analyzed NYCHA's physical needs, finding that five-year capital investment needs had more than doubled since 2017 to $60 billion, or $373,000 per unit, while twenty-year needs reached $78 billion.
1963 was the year the original Penn Station began to be demolished. To many, it was a tragedy, demonstrating how steep the cost of progress can be. While the station that rose in its stead has in many ways exceeded expectations, it's past time for an overhaul. With the site's…
$11 billion is the amount the new Port Authority Bus Terminal is projected to cost, a quarter of PANYNJ's ten year capital plan and a keystone project for the region's travelers. It's still just a small piece of what the Port Authority -- and its new executive, Kathryn Garcia-- oversees.…
630,000 is the number of riders who travel through Penn Station every day—making it the busiest transportation hub in the nation. The catch? It was designed, reportedly, for just 200,000. Revitalizing Penn Station is a bit of a white whale for its many stakeholders, including three transit agencies, two states,…
Andy Byford is a transport professional whose career has spanned three continents over three decades. Today, he serves as Special Advisor to the Amtrak Board of Directors and is leading the effort to transform New York Penn Station. Andy joined London Underground in 1989 as a uniformed Station Foreman and…
Reforming the State Environmental Quality Review process would lower development costs for housing and infrastructure projects by reducing delays and regulatory burdens. By exempting specific types of projects and establishing firm deadlines for environmental reviews, the state can prevent significant cost escalations caused by lengthy approval timelines.
Recommendations related to Infrastructure Funding
Exempting modest residential development from SEQR would make building housing cheaper and faster without additional costs to the government.
Exempting water facilities, parks, and resiliency retrofits from SEQR would reduce the cost of projects that improve the environment.
Imposing deadlines on State and local agencies to sign off on environmental reviews would ensure reasonable and predictable timelines and avoid the death spiral of mounting cost increases.
Key Data
11 percent
— Local environmental review increases development costs for 500-unit projects by 11 percent.
$82,000 per unit
— Local environmental review increases development costs for 500-unit projects by $82,000 per unit.
10 percent
— Environmental review can increase costs by 10 percent even for modest, low-rise residential projects.
$35,000 per unit
— Environmental review cost escalation can add $35,000 per unit in cities like Rochester or Buffalo.
$40,000 per unit
— Environmental review cost escalation can add $40,000 per unit in the Mid-Hudson region.
$45,000 per unit
— Environmental review cost escalation can add $45,000 per unit on Long Island.
New York State must prioritize the maintenance of existing capital assets over new expansion projects to ensure long-term infrastructure reliability. Furthermore, the state should reform its capital planning process to focus on core resiliency needs and cost-effective energy transition strategies rather than political objectives.
Recommendations related to Infrastructure Funding
Prioritize state of good repair work on existing capital assets before using funds for expansion projects.
Re-tool the capital planning process to focus on assessing, prioritizing, and meeting infrastructure needs, rather than delivering political wins.
Identify and invest in cost-effective, core resiliency needs to protect New Yorkers and the economy from the impacts of climate change.
Ensure investments in the energy transition focus on cost-effective strategies that balance economic, affordability, and environmental needs.
Key Data
115,000
— Centerline miles of state and local roads supported by the State budget.
17,000
— Number of bridges supported by the State budget.
335,000
— Acres of parkland supported by the State budget.
Proposed legislation requiring prevailing wages for off-site construction would increase costs and delay delivery for public infrastructure projects. Off-site fabrication currently offers significant savings, such as reducing the cost of park restrooms from $3.5 million to $1 million per structure.
Recommendations related to Infrastructure Funding
The Governor should veto A2747A/S2536A to prevent the mandatory application of prevailing wage requirements to off-site custom fabrication of building components.
The State should allow the City and State to continue to use off-site custom fabrication without prevailing wages when it would reduce the time or cost of a capital project.
Key Data
20 percent to 50 percent
— Modular building can accelerate project delivery by this amount.
20 percent
— Modular building can reduce project costs by up to this amount.
$1 million
— Cost per structure for prefabricated public restrooms.
$3.5 million
— Cost per structure for typical park bathrooms built fully on-site.
30 percent
— Public subsidy threshold for projects to be classified as 'covered projects' under Section 220.
5
— Number of prefabricated public restrooms recently opened by the New York City Department of Parks and Recreation.
Extending the authorization of joint bidding on public works contracts allows for the simultaneous management of capital projects and utility relocation, which accelerates construction and reduces costs. This legislative action prevents the costly and inefficient process of private negotiations between contractors and utility companies that currently drives up capital expenses.
Recommendations related to Infrastructure Funding
The Governor should sign S8404/A8679 and S8405/A8678 to extend authorization of joint bidding on public works contracts in lower Manhattan and the rest of the city for one year.
New York City faces significant challenges with aging infrastructure that requires prioritizing the maintenance of roads, bridges, and buildings over grand public works to ensure long-term economic stability. Adopting standardized designs for these projects is essential to reduce costs and establish a reliable foundation for the city's future growth.
Recommendations related to Infrastructure Funding
Leaders must prioritize getting roads, bridges, and buildings into good shape to ensure a foundation for the future economy.
The city should choose standardized over customized designs for infrastructure projects to save money.
Smart Choices, Better Future Call to Action New York is at a critical juncture. Smart choices now build a better future for all New Yorkers. New York State and City should get their finances in order, deliver services that work, ensure New York is affordable and safe, and build infrastructure…
New York City's $111 billion five-year capital program faces scrutiny from mayoral candidates regarding its efficiency, prioritization, and long-term sustainability. Candidates propose various reforms to capital project delivery, including better contractor management, improved prioritization of spending, and targeted investments in infrastructure to address aging assets and climate resilience.
Recommendations related to Infrastructure Funding
Would you support legislation requiring mandatory deposits to the Revenue Stabilization Fund, also known as the Rainy Day Fund, when the economy is growing and limiting withdrawals to a recession or other short-term emergency?
Would you implement a Program to Eliminate the Gap/Savings Plan soon after taking office to rein in spending growth?
Would you implement a Citywide performance management system, akin to an agency-tailored version of CompStat?
Would you implement a program to hold City agencies accountable for retroactive contracts and late payments?
Would you propose comprehensive property tax reform by the end of your second year?
Would you support actions to reduce uniformed overtime, such as a hard overtime cap, the elimination of unlimited sick leave, or the exclusion of most overtime earnings from pension calculations?
Key Data
$111 billion
— The total value of the City's five-year capital program.
$1.2 billion
— The cost of the CityFHEPS housing voucher program in fiscal year 2025.
15%
— The threshold for debt service as a percentage of tax revenue that candidates are asked to keep capital spending below.
50%
— The current share of capital spending allocated to State of Good Repair in the Ten-Year Capital Strategy for Fiscal Years 2026-2035.
New York City's aging infrastructure requires smart, resilient capital investment to support future economic growth. The city must prioritize bringing existing assets to a state of good repair, overhauling capital spending to control costs, and investing in essential climate resilience and energy transitions.
Recommendations related to Infrastructure Funding
Fix what’s broken by bringing assets to a state of good repair.
Invest in essential climate resilience and a cost-effective energy transition that balances affordability, the environment, and the economy.
Overhaul capital spending by better managing assets and projects, fixing procurement, and controlling costs.
Avoid waste by choosing standardized over customized designs and avoiding new school construction when redistricting can solve the problem.
CBC's Andrew Rein was joined by NYC Director of City Planning Dan Garodnick and NYCEDC President & CEO Andrew Kimball for a wide-ranging discussion on job and population trends, housing affordability, and economic development in a time of uncertainty. Dan Garodnick is Director of the New York City Department of…
The Metropolitan Transportation Authority faces a $33.4 billion funding gap in its $68.4 billion 2025-2029 Capital Plan, requiring a balanced approach of increased state and city contributions, modest fare and toll hikes, and operational efficiencies. To ensure the system's reliability and state of good repair, the state must act quickly to secure funding while implementing accountability measures to control project costs and address fare evasion.
Recommendations related to Infrastructure Funding
The MTA and the State should focus the Capital Plan exclusively on Rebuild and Improve projects to shrink the funding gap.
The City and State should increase their contribution by $9.0 billion in pay-as-you-go (PAYGO) financing to support the capital plan.
The MTA should modestly increase fares, tolls, and vehicle registration fees to generate revenue to support a $6.8 billion investment.
The MTA should publish project plans, user-friendly capital project status reports, and regular updates on each asset group’s state of repair to ensure accountability.
The MTA should ensure labor provides the flexibility to generate at least $500 million in recurring operating budget savings to support planned 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
$68.4 billion
— The total size of the proposed 2025-2029 MTA Capital Plan.
$33.4 billion
— The funding gap remaining in the MTA's capital plan after identified funding.
$9.0 billion
— The proposed increase in City and State contributions via pay-as-you-go financing.
$6.8 billion
— The revenue generated by modestly increasing fares, tolls, and vehicle registration fees.
$500 million
— The amount of recurring operating budget savings labor should provide to support debt.
$8 billion
— The amount of operating-budget-backed debt that can be supported by labor savings.
$15 billion is the amount congestion pricing is expected to yield for MTA infrastructure investment—to bring trains, tracks, yards, and signals to a state of good repair, increase accessibility, and expand subway service. As congestion pricing is challenged by the Trump administration, this speaks to the larger question of the…
$35 billion is how much of the MTA's 5-year capital plan remains unfunded. Investing in the MTA’s crumbling infrastructure is one of the most important decisions Albany will make this year; New York's economy, quality of life, and the region's competitiveness depend on it. At a recent CBC event, MTA…
The proposed state budget misses an opportunity to improve long-term financial stability by prioritizing tax rebates over essential capital investments. Instead of spreading $3 billion on tax rebates, those funds could be used to pay cash for roads, bridges, and MTA infrastructure, reducing the need for costly borrowing.
Recommendations related to Infrastructure Funding
The State should use the $3 billion tax rebate to reduce ongoing costs by paying cash instead of borrowing for roads, bridges, or MTA infrastructure.
The State should develop a proposal to finance needed capital investment at the MTA, which is the most critical service making downstate more affordable.
Key Data
$3 billion
— The amount of the tax rebate that could be used to reduce ongoing costs by paying cash instead of borrowing for roads, bridges, or MTA infrastructure.
$16 billion is the estimated cost to build the new rail tunnel under the Hudson River. Decades of delays and funding spats ultimately led to the creation of the Gateway Development Commission, the bi-state entity responsible for making the tunnel a reality. Joining the podcast is Alicia Glen, co-Chair of…
80,000. That’s the number of additional new housing units the Adams’ Administration hopes will be developed over the next 15 years thanks to the City of Yes for Housing Opportunity. The City Council votes this week on Mayor Eric Adams’ plan to tackle the housing crisis. However, that is not…
Restarting congestion pricing provides a necessary mechanism to fund the MTA's current Capital Program and address the $15 billion funding gap. Ensuring the long-term sustainability of this financing requires a fair apportionment of costs across the region to avoid recurring tax increases.
Recommendations related to Infrastructure Funding
The Administration should share more details of the plan to ensure the $9 congestion charge fully plugs the $15 billion funding gap without slowing projects or using financing methods that stress the MTA’s budget.
The Governor should work with the Legislature to make wise choices on how to fund the needed investment in the MTA’s 2025-2029 Capital Plan while ensuring New York’s competitiveness.
The capital plan’s financing should be sustainable and fairly apportion the cost across the region and among riders, drivers, and taxpayers to avoid setting the stage for new tax increases every five years.
Key Data
$9
— The congestion charge amount proposed to help fund the MTA's current Capital Program.
$15 billion
— The funding gap in the MTA's current Capital Program that the congestion charge is intended to plug.
Congestion pricing serves as a vital funding mechanism to address the $15 billion shortfall in the Metropolitan Transportation Authority's current capital budget, supporting the maintenance and modernization of the regional transit system. By reducing excess congestion, which costs the region an estimated $20 billion annually, this initiative aims to improve mobility and transit efficiency while necessitating further efforts to curb fare evasion and optimize system priorities.
Recommendations related to Infrastructure Funding
The state should identify ways to increase efficiency in the transit system to address budget challenges.
The MTA should adjust priorities to reflect changing demands on the transit system.
The MTA should redouble efforts to dramatically reduce fare evasion, which stresses the budget and complicates capital investment financing.
The state should proceed with congestion pricing as a critical component of funding for the maintenance and modernization of the regional mass transit system.
Key Data
$20 billion
— Estimated annual cost of excess congestion in the region.
$15 billion
— Shortfall in the current capital budget of the Metropolitan Transportation Authority.
Karen Keogh serves as Secretary to the Governor of New York, the highest-ranking appointed position in state government. Kathryn Garcia serves as Director of State Operations and Infrastructure, where she oversees over 70 state agencies and authorities, including the MTA and Port Authority.
3 is the number of current and former Comptrollers who sat down to discuss the City and State's finances, economy, population loss and more. While jobs and tourism have recovered, New York continues to face challenges with hybrid work affecting downtowns and the office market, housing affordability, future budget gaps,…
The MTA's proposed 2025-2029 capital plan requires a sustainable long-term funding strategy, as the current $68 billion investment—rising to $96 billion with uncommitted projects—relies on uncertain financing sources. To ensure fiscal stability and avoid service risks, the state must unpause congestion pricing and address structural budget gaps that are projected to exceed $1 billion by 2027.
Recommendations related to Infrastructure Funding
The State should unpause congestion pricing and then identify a funding plan that is sustainable in the long run, ensures those who benefit pay their share, and does not harm New York’s competitiveness.
Critical state of repair projects should be front-loaded, or they may not be committed in the plan period given the extremely ambitious proposed pace of investment.
The State should thoroughly evaluate funding options to wisely identify financing that is sustainable, allocated among the many beneficiaries, and that does not harm New York’s competitiveness.
To fund more capital investment and stabilize the operating budget, the MTA will have to reduce fare evasion, and the labor unions should agree to operating changes that increase efficiency.
Key Data
$68 billion
— The size of the proposed MTA capital investment.
$96 billion
— The total investment amount when previously planned but not yet committed projects are included.
90 percent
— The portion of the proposed Capital Program focused on projects that rebuild and improve the system.
$8.6 billion
— The amount in proposed and previously planned expansion projects that diverts resources from essential rebuilding efforts.
$19 billion
— The amount the MTA would be committing annually under the proposed pace of investment.
68 percent
— The increase in annual commitment compared to the MTA’s prior $11.4 billion annual peak.
The Metropolitan Transportation Authority faces a massive capital financing gap, requiring a strategic focus on rebuilding and improving existing infrastructure rather than expanding the system. To address this, the state must right-size the 2025-2029 capital program to match commitment capacity, unpause congestion pricing, and improve operational efficiency to secure necessary funding.
Recommendations related to Infrastructure Funding
The MTA and the State should adopt at most a $62.4 billion 2025-2029 Capital Program, which is the maximum that can be committed over six years.
The MTA and the State should focus the capital program exclusively on projects to Rebuild and Improve the system, redirecting resources from expansion projects.
The MTA and the State should unpause congestion pricing, as any alternative merely reduces the options available to fund projects.
The MTA should increase productivity and reduce fare evasion to provide at least $1.5 billion in needed operating budget savings.
The MTA should ensure financing for the 2025-2029 Program is sustainable, allocated among stakeholders and beneficiaries region-wide, and allocated among drivers, riders, and taxpayers.
Key Data
$1.5 trillion
— Total value of the Metropolitan Transportation Authority's capital assets that are in dire shape.
$106.6 billion and $115.0 billion
— Estimated five-year cost of Rebuild and Improve projects.
$27.6 billion
— Projects from prior capital plans that will not be committed by the end of 2024.
$16.6 billion and $25.0 billion
— Rebuild and Improve Commitment Capacity Gap for the next Capital Program.
$1.5 billion
— Needed operating budget savings from increased productivity and reduced fare evasion.
New York City requires legislative approval to extend and expand procurement methods like joint bidding, design-build, and Construction Manager-Build to improve the efficiency and cost-effectiveness of public works projects. These reforms allow the city to select contractors based on value and experience rather than solely on the lowest bid, helping to accelerate critical infrastructure delivery.
Recommendations related to Infrastructure Funding
The Governor should sign A10401/S9709 and A10400/S9710 to extend authorization of joint bidding on public works contracts for one year.
The Governor should sign A10543/S9849 to authorize New York City to contract for capital projects using design-build and Construction Manager-Build (CM-Build) procurement to save time and money.
The state should enact future legislation to make joint bidding authorization permanent.
The state should expand or make permanent the legislation for capital project delivery in the future.
The Governor's pause on congestion pricing has created a $15 billion funding gap in the 2020-2024 Capital Program, necessitating a shift toward prioritizing critical infrastructure repairs. To ensure the system's stability, the state must end the pause on congestion pricing and develop a sustainable, fair financing plan for the 2025-2029 Capital Program.
Recommendations related to Infrastructure Funding
The State should say when the congestion pricing pause will end, preferably as soon as possible or by the end of the year, so projects continue smoothly.
The State should release any remaining funds it long ago committed to the MTA’s 2020-2024 capital program.
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, and is sized to be ambitious but achievable by the end of 2029 if perfectly executed.
The 2025-2029 capital program should include a sustainable, fair financing plan—one that apportions the non-federal share regionally and appropriately across drivers, riders, and taxpayers.
Key Data
$15 billion
— Financing hole opened in the 2020-2024 Capital Program by 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.
$1.5 trillion is the MTA’s total asset value—the trains, buses, yards, and stations...all the infrastructure moving New Yorkers round the clock. At a recent CBC event, MTA Chair and CEO Janno Lieber and President of Construction and Development Jamie Torres-Springer discussed congestion pricing, fare evasion, congestion pricing, state of good…
John (“Janno”) Lieber was confirmed as Chair and CEO of the Metropolitan Transportation Authority (MTA) in January 2022, following his nomination to that position by Gov. Kathy Hochul. Lieber has been serving as MTA Acting Chair and CEO since July 2021 and is the Authority’s 15th Chairperson since it was…
The Metropolitan Transportation Authority must prioritize maintaining existing infrastructure over system expansion to prevent network failure, while providing greater transparency regarding the costs and benefits of future projects. Policymakers and the public require detailed financial estimates for the next five years to properly evaluate investment tradeoffs and the feasibility of proposed improvements.
Recommendations related to Infrastructure Funding
The MTA should swiftly and wisely implement congestion pricing to support the current capital plan.
The MTA must ensure that keeping current assets in a state of good repair remains the paramount priority before expanding the system.
Before releasing the capital program, the MTA should publish an addendum that includes robust cost and benefit estimates for projects to rebuild and improve the system.
The MTA should include information about the first five years of the 20-year path in the proposed addendum.
The MTA should include the costs and impacts on services and long-run spending in the addendum if investments are fully or partially made.
Key Data
$40 billion
— The lower end of a hypothetical cost range for bringing the transit system to an adequate condition over the next five years.
$80 billion
— The higher end of a hypothetical cost range for bringing the transit system to an adequate condition over the next five years.
The Metropolitan Transportation Authority's Twenty-Year Needs Assessment fails to provide necessary cost and benefit estimates for critical infrastructure projects, leaving the public and policymakers without essential information to prioritize investments. An addendum is required to detail the financial requirements for the next 5 and 20 years to ensure the transit system reaches a state of good repair and to understand the consequences of partial investment.
Recommendations related to Infrastructure Funding
The MTA should develop and publish a TYNA addendum that includes robust cost and benefit estimates for rebuilding and renewing the transit system.
The MTA should ensure the TYNA addendum includes cost and benefit estimates that are sufficiently disaggregated, identifies what should be invested in the next 5 and 20 years to bring the system to a state of good repair and normal replacement cycle, and identifies the impacts on services and long-run costs if those investments are only partially made.
Key Data
$20 billion
— The lower end of a hypothetical cost range for bringing the transit system to a state of good repair over the next five years.
$70 billion
— The higher end of a hypothetical cost range for bringing the transit system to a state of good repair over the next five years.
The New York City Housing Authority faces massive capital needs totaling $60 billion over the next five years, as inflation and expanded repair scopes have doubled the cost of rehabilitating public housing units since 2017. To address this shortfall, the city and state must identify additional funding sources and streamline renovation processes to ensure projects remain financially feasible.
Recommendations related to Infrastructure Funding
The State and City should seek to streamline the process as much as possible and not introduce additional steps that could delay the renovation process.
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.
Key Data
$60 billion
— NYCHA's investment needs over the next five years.
$78 billion
— Twenty-year investment needs for NYCHA.
$1.5 billion
— City capital subsidies for future PACT projects through fiscal year 2026.
$10 billion
— Capital needs addressed by NYCHA over the past five years.
$27.8 billion
— Increase in twenty-year needs caused by higher than expected inflation.
$15.5 billion
— Increase in twenty-year needs caused by a more accurate and appropriate scope of work.
The Metropolitan Transportation Authority's Twenty-Year Needs Assessment requires more comprehensive data and transparent analysis to effectively guide future capital investments and infrastructure funding. By providing detailed information on asset conditions, costs, and projected service needs, the agency can better prioritize projects and facilitate informed public debate.
Recommendations related to Infrastructure Funding
The MTA should include a complete accounting of the system’s current and potential future capacity needs in the Twenty-Year Needs Assessment without prematurely omitting any options.
The MTA should disaggregate data to the functional group and component level to appropriately prioritize projects and better inform public discussion.
The MTA should include data on asset condition, needs, cost, and improvement timeframes to achieve a state of good repair for each investment category.
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 based on projected economic changes and user behavior to ground long-term planning.
New York City's public housing authority faces a massive structural budget gap driven by rising costs and falling rent collections, necessitating over $40 billion in capital investment to address deteriorating infrastructure. Achieving long-term solvency requires implementing structural reforms, such as expanding the PACT program and the Preservation Trust, improving management efficiency, and overhauling rent collection processes, rather than relying on one-time bailouts.
Recommendations related to Infrastructure Funding
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 NYCHA's public housing units to a state of good repair.
$789 million
— The structural budget gap in 2022 between NYCHA's operating revenue and its public housing operating expenses.
$1,481
— NYCHA's monthly per-unit operating cost in 2022, which is double the average rent stabilized unit cost.
63 percent
— The rent collection rate in February 2023, which represents a new low compared to 90 percent pre-pandemic.
$152 million
— Total overtime spending in 2022, which increased 3 percent despite efforts to reduce it.
$500
— The gap between operating revenue and expenses per unit per month in 2022.
Kathryn Garcia serves as Director of State Operations and Infrastructure, where she oversees over 70 state agencies and authorities, including the MTA and Port Authority. Kathryn has over 14 years of government experience delivering services that New Yorkers rely on every day. Previously, she served as the Commissioner of the…
New York's climate goals require significant economic trade-offs, necessitating a careful evaluation of the costs and impacts of various mitigation strategies on the state's operating and capital budgets. Implementing a vehicle miles travelled fee offers a more reliable funding mechanism for transportation infrastructure than the current gasoline tax, while transit-oriented development and waste management reforms provide additional pathways to meet emissions targets.
Recommendations related to Infrastructure Funding
Implement a vehicle miles travelled (VMT) fee as a more reliable funding source than the gasoline tax to fund transportation infrastructure.
Increase housing density near public transit via transit-oriented development.
Reduce waste generation and improve waste collection through an extended producer responsibility program, a volume-based waste fee, and organic waste reduction.
Identify, publicize, and consider the impacts of various climate strategies on the State’s operating and capital budgets.
Key Data
40 percent
— The goal for reducing greenhouse gas (GHG) emissions by 2030 from 1990 levels.
85 percent
— The goal for reducing greenhouse gas (GHG) emissions by 2050 from 1990 levels.
Proposed legislation to limit toll collection enforcement and impose amnesty periods threatens critical revenue streams needed to maintain New York's transportation infrastructure. Diverting funds to cover these shortfalls or reducing collection efficiency risks underinvestment in essential roads, bridges, and transit assets.
Recommendations related to Infrastructure Funding
The Governor should veto A3801A/S3587C, the 'toll payer protection act,' which would limit the ability of State authorities to collect tolls by mail and impose penalties for non-payment.
The State should be working to improve collection of user fees on toll roads and bridges in order to support New York’s critically needed infrastructure.
Key Data
$2 billion
— Amount of general State revenue diverted to backfill the Thruway budget and fund capital projects when toll rates were frozen from 2016 to 2020.
83%
— Percentage of tolls on the NYS Thruway paid automatically via E-ZPass.
88%
— Percentage of tolls on PANYNJ crossings paid automatically via E-ZPass.
95%
— Percentage of tolls on MTA Bridge and Tunnel crossings paid automatically via E-ZPass.
$5
— Proposed penalty fee for non-payment of tolls after 30 days.
$25
— Proposed penalty fee for non-payment of tolls after 60 days.
Commissioner Aggarwala discussed the Adams administration’s plans to increase the city’s resilience, reduce greenhouse gas emissions, and strengthen the NYC Department of Environmental Protection (DEP). Rohit T. "Rit" Aggarwala is a widely recognized expert on urban sustainability, technology, and mobility, and, as Chief Climate Officer he oversees the administration’s environmental…
The Metropolitan Transportation Authority faces a significant backlog of uncommitted capital projects, with at least $12.0 billion in planned funding at risk or unaffordable, threatening its ability to maintain a state of good repair. To address these challenges, the authority must prioritize critical safety and maintenance projects, improve capital execution, and ensure realistic, transparent planning for future capital programs.
Recommendations related to Infrastructure Funding
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 prioritize projects based on criteria including safety, maintenance costs, 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 that incorporates projects from prior plans and current needs.
The MTA should increase the efficiency of operations to help eliminate the structural deficit, potentially creating capacity to issue debt for capital.
The MTA should continue to work with the federal and State governments to implement congestion pricing by 2023 to provide critical revenues.
The MTA should continue capital procurement improvements and reform to increase capacity and align unit costs with national and international standards.
The MTA should continue to improve capital execution to increase capacity, including Fastrack and partial- or full-line shutdowns to accelerate projects.
Key Data
$52.9 billion
— The amount of projects still uncommitted from the 2020-2024 and two prior five-year capital plans.
$7.1 billion
— The average annual capital commitments made by the MTA over the past six years.
$8.2 billion
— The forecasted annual capital commitments for 2022.
$30.2 billion
— The amount of projects that would still be uncommitted when the current plan period ends in 2024, assuming annual commitments increase 15 percent to the $8.2 billion target.
$12.0 billion
— The minimum amount of future planned capital financing that is at risk or unaffordable.
$11.5 billion
— The amount of planned spending and borrowing that is unaffordable due to the MTA’s structural deficit.
The Penn Station Area Civic and Land Use Improvement Project utilizes a financing framework involving payments in lieu of property taxes to fund street-level public realm improvements, transit upgrades, and station renovation. To ensure the project delivers maximum value, the state must maintain strict control over project scope, base tax abatements on economic growth, and provide transparent details regarding project timing and contingency planning.
Recommendations related to Infrastructure Funding
The scope of Penn Station renovation should be tightly controlled and focused on efficient and safe passenger flow, and the State and City should resist calls to add purely cosmetic or non-essential project elements.
Abatements should be based primarily on promoting economic growth to ensure the primary impetus for approving new development projects is to support the economic growth of the New York region.
This plan should not set a precedent for future rezonings or financings, as the City generally should lead rezonings within the central business district.
It would be beneficial if ESD provided additional details about the assumed timing of public capital projects, financing actions, and funding flows, as well as high-level contingency plans given the project’s uncertainties.
The State should continue to encourage denser development around station areas and consider intervening in local land use issues when local governments fail to enact appropriate transit-oriented development plans.
Key Data
10-year
— The City will receive “make-whole” payments based on a 10-year property tax lookback prior to construction.
3 percent
— The “make-whole” payments for the City will be escalated at 3 percent annually.
New York State added $1.6 billion in capital projects to the fiscal year 2023 budget without rigorous evaluation or public consideration, relying on lump sum appropriations and political deals. This practice undermines sound budgeting, lacks transparency, and risks exhausting the state's debt capacity by fiscal year 2027.
Recommendations related to Infrastructure Funding
The State should utilize a comprehensive capital planning process that identifies needs and project benefits, allocates funds to projects that meet the greatest needs and deliver value, reasonably specifies projects in appropriations, and provides transparency on the spending of previously appropriated lump sums.
Going forward, the Governor and Legislature should not authorize lump sum appropriations for capital projects or otherwise.
The Executive should report details of spending from existing lump sum appropriations, including the timing, amount, recipient, and purpose of awards from these pots.
Key Data
$1.6 billion
— Total amount of capital appropriations added to the fiscal year 2023 enacted budget that were not included in prior 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 the newly added capital projects that may be financed through bonds, consuming State debt capacity.
The proposed Penn Station Area General Project Plan aims to finance transit improvements through value capture, but faces significant risks regarding cost overruns and the diversion of local tax revenue. Ensuring the project's success requires detailed financial planning, cost control, and collaboration between the City and State to protect local decision-making authority.
Recommendations related to Infrastructure Funding
Before any financing plan is approved, the scope of work should be reasonably detailed, scrutinized, and streamlined as much as possible.
The State and the railroads should focus on improving safety, circulation, and functionality and doing so in the most cost-effective manner.
The State and the railroads should avoid costly, non-essential, cosmetic improvements and should not preclude the possibility of future capacity or service enhancements.
It is important to evaluate how the State will manage and mitigate the financing risks inherent to value capture projects, including who will be responsible for interest payments until revenue from new development comes online or who will be responsible for paying for cost overruns.
Ultimately, the Mayor and City Council should guide whether and how much of the City’s future property tax revenue should be dedicated to specific needs, such as a mass transit project, instead of other needs like public safety, education, or housing.
Key Data
$6 to $7 billion
— Estimated cost just for the renovation of Penn Station.
$12 billion-plus
— Estimated cost for the expansion of Penn Station.
Lorraine Grillo is the First Deputy Mayor of the City of New York, appointed by Mayor Eric Adams. Grillo's direct reports include Deputy Mayors for Economic and Workforce Development, Operations, Strategic Initiatives, and Human Services, as well as the Office of Management and Budget, Department of Finance, Chief Housing Officer,…
The potential public funding for a new Buffalo Bills stadium requires a rigorous, transparent analysis to ensure that the projected public benefits actually exceed the costs, as past economic development spending has often lacked such justification. Policymakers should quantify the incremental economic impacts of the stadium and ensure any subsidy is structured with private investment requirements and clawback provisions.
Recommendations related to Infrastructure Funding
As part of shaping any policy to publicly subsidize a capital investment, these impacts and their level should be quantified.
If a State subsidy is proposed, these impacts should be identified and used in a rigorous, transparent analysis that shows the incremental benefits will exceed the subsidy’s cost.
The State should transparently provide an analysis that identifies the benefits and full costs for any proposed subsidy.
The analysis should credibly identify the incremental economic and fiscal impacts attributable to a proposed subsidy and use them in conjunction with the length of time the subsidy would provide benefit to calculate a proposed subsidy’s value.
Any subsidy should be after private investment and include clawback provisions.
Key Data
$1 billion
— Potential public funding sought by the team's owners for new stadium construction.
$862 million
— Estimated cost to renovate the existing Highmark Stadium.
$1.4 billion to $1.7 billion
— Estimated cost range for constructing a new stadium.
$350 million
— Additional cost for a stadium in downtown Buffalo due to site acquisition.
$27 million
— Estimated annual fiscal impact in tax revenue generated by the presence of the Bills.
$385.8 million
— Estimated annual economic output generated by the Buffalo Bills.
2026 is the year the MTA will likely have spent all of its one-time COVID-19 federal aid, and when the MTA will have to address the estimated $2.5 billion annual structural operating deficit which that aid is now covering. At an event with CBC Trustees, MTA Chair and CEO Janno…
New York State should implement a comprehensive, long-term capital planning process to better manage its vast network of assets, including roads, bridges, and schools. By adopting benefit-cost analysis and effectively allocating federal infrastructure aid, the state can maximize the benefits of its capital projects and ensure maintenance needs are met.
Recommendations related to Infrastructure Funding
The State should improve its capital planning processes, broadly adopt benefit-cost analysis, better identify needs and resources, plan for maintenance and improvements, and continuously assess the progress of its work.
The State should identify, allocate, and implement the new federal infrastructure funds to maximize their benefits.
The State should expeditiously implement congestion pricing to generate $1 billion in net annual contributions for the MTA capital plan.
The State should help improve the New York City Housing Authority (NYCHA) by approving the proposed Preservation Trust and increasing financial support for capital-intensive public-private partnerships.
Key Data
one-sixth
— Federal funds make up one-sixth of total capital spending by the State.
$1 billion
— The congestion pricing program is expected to generate $1 billion in net annual contributions for the MTA capital plan.
$15 billion
— The MTA capital plan would support $15 billion in investment.
110,000
— The Preservation Trust would allow NYCHA to oversee the renovation of 110,000 public housing units.
New York State should enact legislation to improve transportation capital planning and reporting, as current processes rely on outdated, politically-negotiated strategies. Incorporating long-term, intermodal planning provisions into the state budget would ensure reliable infrastructure that supports economic development and public safety.
Recommendations related to Infrastructure Funding
The Governor should sign S199B/A4010B to improve capital planning and reporting for transportation infrastructure in New York State.
The State should add long-term, intermodal planning provisions to the transportation capital planning process through subsequent legislation.
If the bill is vetoed due to unfunded costs, its provisions and additional provisions for long-term, intermodal planning should be included in the fiscal year 2023 budget.
Key Data
$1 million
— The estimated unfunded cost of the 2019 bill A4880/S1673, which was vetoed by the governor.
The proposed Penn Station Area Civic and Land Use Improvement Project aims to fund station renovations through a value capture framework, but the plan currently lacks sufficient detail regarding financing, cost estimates, and the City's role. Policymakers must ensure the project is cost-effective and transparently negotiated between the State and the City to avoid fiscal risks and ensure the best use of public resources.
Recommendations related to Infrastructure Funding
The plan should avoid costly, non-essential cosmetic improvements and should not preclude the possibility of future capacity or service enhancements.
New York City should have a substantive role in the planning process and should be a partner that agrees to the use of tax revenue that would otherwise flow to the City’s general fund.
The public approval process should include broader discussions about financing risks and the most effective strategies for mitigating and managing those risks.
Empire State Development should provide additional information to answer questions regarding the scope of capital improvements and the estimated cost for each phase before proceeding with the General Project Plan.
Discretionary tax abatements for redevelopment projects in the district should be considered in context regarding broader economic conditions.
Key Data
$17 billion
— The estimated cost for the entire Penn Station project, including renovation, expansion, land acquisition, demolition, and public space improvements.
$6 to $7 billion
— The estimated cost for a scaled back renovation project without the proposed Penn South expansion.
$1.3 billion
— The amount included in the State’s Fiscal Year 2022 Enacted Budget for Penn Station-related projects.
50 percent
— The portion of the Gateway project funding anticipated to be covered by the federal government.
25 percent
— The portion of the Gateway project funding anticipated to be covered by New Jersey and New York respectively.
89 is the number of years since CBC's founding in 1932, which also makes the annual gala held on October 12, 2021 the 89th Annual Awards Dinner. This year’s Medal for High Civic Service winner was Department of Transportation Secretary Pete Buttigieg. CBC was fortunate to have Governor Kathy Hochul…
$150 million is the amount of capital funding NYC has committed toward the creation of a Center for Climate Solutions on Governors Island. Joining the podcast to discuss this and other plans for Governors Island is Alicia Glen, Chair of the Trust of Governors Island and the former Deputy Mayor…
The next New York City Comptroller will play a critical role not only in holding the next Administration and agencies accountable, investing and managing five pension funds with $248 billion in assets, and partnering in $13 billion City debt issuance, but also in spotlighting and promoting New York City’s fiscal…
Sarah Feinberg was appointed Interim President of New York City Transit in February 2020. Feinberg oversees the 48,000 person workforce of NYCT, as well as operations for New York City subways, buses, paratransit services, and the Staten Island Railway. Feinberg served as the Federal Railway Administrator from 2015 to 2017.…
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…
Managing the City’s fiscal crisis well will be a critically important duty of the next Mayor and a primary determinant of how the city survives the current crisis, and ultimately thrives in the future. Managing NYC’s Fiscal Crisis: A CBC Mayoral Candidate Forum featured a 10-minute conversation with each candidate,…
New York State's broadband expansion was supported by $500 million in government grants beginning in 2016 to incentivize private investment in high-speed internet infrastructure. This initiative prioritized projects capable of delivering service speeds of at least 100 mbps, excluding very remote areas.
Key Data
$500 million
— The amount of grants provided by the State’s New NY Broadband Program beginning in 2016 to support private investments in broadband infrastructure.
New York State should align its tax and spending policies with the Climate Leadership and Community Protection Act by eliminating subsidies for fossil fuel-dependent infrastructure and redirecting funds toward renewable energy investments. By modifying state aid for school buildings and transportation, as well as direct spending on public facilities, the state can accelerate the transition to a clean energy future while avoiding actions that undermine its climate goals.
Recommendations related to Infrastructure Funding
The State could limit the residential energy sales tax exemption only to zero emission fuels and renewable energy sources and target benefits to sources that support CLCPA goals.
The State could lower, or gradually eliminate, the sales tax exemptions on fossil fuel-based residential energy sources.
The State could consider eliminating exemptions for fossil-fuel based energy used for non-residential purposes, such as research and development.
The State could transition facilities away from fossil fuels wherever cost-effective and feasible when replacing any aging heating systems in existing facilities.
The State could accelerate the transition to clean fuel vehicles by purchasing electric vehicles and building vehicle charging infrastructure.
The State could consider not reimbursing the cost of installing fossil fuel dependent building infrastructure or vehicles in its economic development grants.
The State could use its aid actively to convert schools to renewable energy sources.
State aid could incentivize school districts to purchase zero-emission school buses and build the needed charging infrastructure.
Key Data
$800 million
— Annual tax exemptions provided by New York State that reduce the cost of consuming fossil fuels.
$200 million
— Amount spent by the State on utilities for public buildings in fiscal year 2019.
$3,207 million
— Current annual program costs for School Building Aid in New York State.
$1,990 million
— Current annual program costs for School Transportation Aid in New York State.
$1.8 billion
— Annual amount provided by the State in economic development grants to companies.
New York's state and local governments face acute fiscal stress due to the pandemic, requiring difficult choices regarding reserves, expenditure reductions, tax increases, asset sales, and borrowing. To manage these challenges, officials should prioritize essential infrastructure repairs while avoiding long-term debt for operating expenses to maintain fiscal health and intergenerational equity.
Recommendations related to Infrastructure Funding
The government should limit the use of rainy day funds by using no more than two-thirds of any rainy day fund in the first year to ensure resources remain available for future needs.
To protect essential services, officials should minimize the negative impact of capital budget cuts by making cuts to capital projects that are not for essential infrastructure or projects that can be safely postponed.
Governments should avoid long-term borrowing for operations because it violates the principle of intergenerational equity by requiring future taxpayers to pay for services consumed by current residents.
To ensure fiscal fairness, shifting costs in a manner that inappropriately burdens local jurisdictions for services that should be financed from the broadest possible tax base should be avoided.
When selling assets to raise resources, long-term harm is minimized if the assets sold are excess capacity or obsolete facilities, or if the assets could be effectively managed and financed by the private sector.
Key Data
$100 million
— Amount of capital spending avoided that saves about $6.5 million annually in debt service.
$6.5 million
— Annual savings in debt service achieved by avoiding $100 million of capital spending.
New York's transition to a net-zero carbon economy by 2050 requires significant infrastructure investments to manage increased electricity demand and transmission bottlenecks. Achieving these climate goals necessitates upgrading the state's energy systems, including transmission networks, distribution infrastructure, and building energy efficiency.
Recommendations related to Infrastructure Funding
The state should continue to advance the energy efficiency of buildings to lower electrical demand.
New York must rapidly deploy significantly more renewable power, while protecting existing carbon-free generation such as hydro power and bringing planned renewable resources online.
The state needs to modernize, optimize, and build-out the transmission system so that renewable energy quickly reaches the areas of heaviest use.
The state should upgrade local distribution networks to ensure customers receive reliable power.
The state must enable widespread use of energy storage combined with a focus on energy efficiency to ensure reliability, control costs, and manage demand.
Key Data
70%
— Target for renewable energy in New York State by 2030.
40 percent
— Required reduction in emissions from buildings over 25,000 square feet by 2030.
80 percent
— Required reduction in emissions from buildings by 2050 from 2005 levels.
25,000
— Square footage threshold for buildings subject to emissions reduction requirements.
New York's ambitious greenhouse gas reduction goals require massive infrastructure investment, including an additional 94,000 Gwh of renewable energy by 2040 to meet projected demand. Achieving these targets cost-effectively necessitates prioritizing competitive market signals, retaining existing nuclear power, and expanding transmission capacity rather than relying solely on prescriptive mandates.
Recommendations related to Infrastructure Funding
Establish an economy-wide carbon pricing system to deliver effective price signals to energy consumers throughout the state.
Retain the use of nuclear energy to continue to obtain the benefits of carbon avoidance.
Look beyond the borders of New York State for low-cost, low-emissions energy supplies and for opportunities to cut global GHG emissions.
Avoid self-imposed constraints such as limiting gas pipeline capacity.
Promote broad transportation solutions that build on existing infrastructure.
Establish a prioritization system to pursue renewables that provide the greatest GHG reductions at lowest cost.
Key Data
$2.3 billion
— Annual increase in electricity costs if meeting the renewable target entirely with offshore wind.
8 and 12 percent
— Projected increase to New Yorkers' electric bills from offshore wind contracts.
55,600 Gwh
— Incremental renewable resources needed by 2030 to meet state goals.
$40.93/Mwh
— Fixed OREC price for the Empire offshore wind project in 2030.
94,000 Gwh
— Additional renewables needed by 2040 to meet decarbonization goals.
211,100 Gwh
— Total electric demand projected for New York by 2040.
The Metropolitan Transportation Authority's $54.8 billion 2020-2024 Capital Program is overly ambitious, as the agency is unlikely to commit the $70 billion in total planned projects within the five-year timeframe. To ensure fiscal stability and project success, the agency must prioritize impactful investments, provide transparent project schedules, and reconsider financing strategies that rely on volatile revenue sources and increase debt service pressure.
Recommendations related to Infrastructure Funding
The MTA should prioritize the most impactful projects and initiate those as soon as practicable to ensure the infrastructure reaches a state of good repair.
The MTA should provide the detail needed and present a five-year plan for investment so the MTA Board, oversight bodies, and the public can assess whether the capital program is appropriate and hold the MTA accountable.
Public officials must ensure that exemptions and credits to the central business district tolling charge are limited, so that the revenue promised is available to support the capital plan.
The MTA should consider the new real estate transfer taxes a source for pay-as-you-go capital projects rather than using this volatile revenue source to support debt.
Key Data
$54.8 billion
— The proposed 2020-2024 Capital Program budget.
$70 billion
— The total value of projects planned, including the new program and previous commitments.
$14 billion
— The annual commitment rate required to execute the capital plan and backlog in five years.
$1 billion
— The estimated annual revenue from central business district tolling intended to support $15 billion in bonds.
15.8 percent
— The portion of total operating spending currently comprised by debt service.
31 percent
— The forecasted growth in debt service from 2019 to 2023.
The MTA's proposed $54.8 billion 2020-2024 Capital Program is overly ambitious and lacks the necessary transparency and scheduling to ensure projects are completed effectively. To ensure financial stability and project success, the agency must prioritize high-impact investments, limit exemptions to new revenue streams, and reconsider using volatile real estate taxes to support long-term debt.
Recommendations related to Infrastructure Funding
The MTA should prioritize the most impactful projects and initiate those as soon as practicable.
The MTA should allocate its human and financial resources to the highest priority projects, and its capital plan documents should reflect these priorities by including, at minimum, the year in which the MTA plans to commit and complete each project.
The MTA should provide the detail needed and present a five-year plan for investment so the MTA Board, oversight bodies, and the public can assess whether it is appropriate and hold the MTA accountable for implementation.
The MTA and other public officials must ensure that exemptions and credits to the central business district tolling charge are limited, so that the revenue promised is available to support the plan.
Rather than using this volatile revenue source to support debt, the MTA should consider this a source for pay-as-you-go capital projects.
Key Data
$54.8 billion
— The total proposed cost of the 2020-2024 Capital Program.
$70 billion
— The total value of projects planned, including the $54.8 billion proposal and $15 billion in previously approved projects.
$6 billion
— The average annual capital project commitment rate from 2010 to 2018.
$13.6 billion
— The amount allocated to state of good repair projects in the 2020-2024 capital plan.
$1 billion
— The estimated annual revenue generated by central business district tolling.
$1 billion
— The projected cash shortfall in the operating budget over four years.
New York State's transportation capital planning process requires reform to move away from politically motivated budgeting and toward informed evaluations of resources and needs. Signing legislation like A4880/S1673 would mandate long-term planning, public hearings, and increased transparency regarding project delays and asset conditions to improve the state's lagging infrastructure.
Recommendations related to Infrastructure Funding
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 make public a summary of the inventory of assets, asset quality, recently completed projects, and performance relative to predetermined goals.
NYCHA's 2.0 plan aims to address a $32 billion capital need through public-private partnerships and development rights sales, but progress is threatened by funding uncertainties and political opposition. Without successful implementation, thousands of units annually risk falling into disrepair, exacerbating the authority's already significant maintenance backlog.
Recommendations related to Infrastructure Funding
Congress will need to increase or remove the cap on RAD conversions if NYCHA is to convert additional units in the future.
NYCHA’s federal monitor should work with the new Chair to identify changes to federal laws and regulations that would support NYCHA’s turnaround efforts.
Meaningful progress towards reaching a state of good repair will require fundamental shifts in property management practices, work rules, schedules, job responsibilities, and contracting.
Achieving efficient and effective property management requires collective bargaining reforms.
NYCHA’s ability to convert additional properties beyond its current pipeline will require additional financial support from the City and State, as well federal actions to make it easier to finance RAD conversions.
Key Data
$32 billion
— NYCHA's five-year capital need.
$24 billion
— Funding identified for capital repairs over 10 years.
62,000 units
— Long-term goal for PACT conversions.
4,000 units
— Number of units that could go without repairs each year without anticipated funding.
24 percent
— Increase in open work orders between December 2018 and July 31, 2019.
112 days
— Average time to complete repairs as of July 2019, up from 71 days.
The Metropolitan Transportation Authority's proposed $51.5 billion capital plan for 2020-2024 faces significant questions regarding its spending priorities, the authorization of $6 billion in combined state and city funding, and the agency's capacity to execute a plan 70 percent larger than its predecessor. Ensuring the plan's success requires a comprehensive needs assessment, secured financing commitments, and a rapid acceleration in project execution.
Recommendations related to Infrastructure Funding
The MTA must make public a comprehensive needs assessment to ensure the plan is spending money on the right things.
The MTA must secure the $3 billion in funding from New York State and $3 billion from New York City that the plan assumes.
The MTA must clarify how it will finance fully $9.8 billion in bonds and pay-as-you-go capital given its projected operating deficits.
The MTA must accelerate rapidly the pace to execute projects to successfully implement a plan that is 70 percent greater than the previous one.
Key Data
$51.5 billion
— Total investment proposed in the MTA's 2020-2024 capital plan.
$3 billion
— Funding assumed from New York State that has not yet been authorized.
$3 billion
— Funding assumed from New York City that has not yet been authorized.
$9.8 billion
— Amount in bonds and pay-as-you-go capital that the MTA must finance despite projected operating deficits.
70 percent
— The amount by which the proposed 2020-2024 capital plan exceeds the MTA's 2015-2019 capital plan.
65 percent
— The portion of the 2015-2019 capital plan that the MTA had committed as of June 2019.
The Metropolitan Transportation Authority faces significant financial requirements, with 2019 operating expenses and debt service totaling $17b and capital plans growing from $24,118 million in 2010-2014 to $33,270 million in 2015-2019. To support the 2020-2024 capital program, a new Central Business District tolling system will charge vehicles entering Manhattan at or south of 60th Street to generate $15 billion in funding.
Recommendations related to Infrastructure Funding
Vehicles entering Manhattan at or south of 60th Street will be charged a toll starting no sooner than Jan 1, 2021.
Tolls must be set to support $15 billion of the MTA's 2020-2024 capital program.
Tolls will be determined by the TBTA based on recommendations of a six-member Traffic Mobility Review Board.
Zone residents earning less than $60,000 will receive a personal income tax credit; emergency vehicles and others—to be determined—will be exempted.
Key Data
$17b
— Total 2019 operating expense and debt service for the MTA.
$15 billion
— Amount of the MTA's 2020-2024 capital program that must be supported by new tolling revenue.
$24,118 million
— Total 5-year capital plan spending for 2010-2014.
$33,270 million
— Total 5-year capital plan spending for 2015-2019.
$60,000
— Income threshold for zone residents to receive a personal income tax credit under the new tolling plan.
New York State is nearing its statutory debt limit, which restricts its ability to finance necessary infrastructure projects. To avoid hitting this ceiling, the state should prioritize capital spending on essential infrastructure investments rather than funding non-essential, local "pork-barrel" projects.
Recommendations related to Infrastructure Funding
The State should limit capital spending to investments justified on the basis of need or rate of return, particularly since it is approaching its statutory debt limit.
State debt should only be issued for capital investments that are justified by need for repair or service enhancement identified through a systematic evaluation of state needs.
If the State is going to add debt-funded capital appropriations, the additional spending should be limited to significant state infrastructure investments.
Absent an emergency, State spending should be allocated during the budget process, where state leaders can adequately consider priorities and tradeoffs.
The legislature should close out session without passing any capital pork.
Key Data
$1.4 billion
— Debt capacity available in fiscal year 2021.
$107 million
— Available debt capacity remaining by fiscal year 2024.
$1.9 billion
— Authorized amount for the State and Municipal (SAM) Facilities Program for small grants.
$157 million
— Reappropriation from 2008 for the New York State Capital Assistance Program.
$475 million
— Amount of SAM funding in the fiscal year 2019 budget.
1.28 cents is the amount New York collects in fuel taxes for every vehicle mile driven. A recent CBC report "Switching Gears" explored the implementation of an innovative approach to finance highway and bridge improvements: a vehicle-miles traveled fee. What’s a VMT, and how does it work? CBC's Patrick Orecki…
The Rockefeller Institute of Government and CBC hosted "Switching Gears: A New Way to Fund Transportation," a presentation and expert panel discussion on the vehicle-miles travel (VMT) fee. The event featured a presentation by CBC Senior Research Associate Patrick Orecki, which accompanied a CBC report released the same day, followed by a discussion…
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's transportation infrastructure faces significant funding shortfalls, with $2.1 billion in necessary repairs deferred annually, as traditional fuel taxes become less effective due to increased fuel efficiency and electric vehicles. Implementing a vehicle-miles traveled (VMT) fee offers a sustainable, user-pays solution to generate revenue for road and bridge maintenance while addressing the decoupling of highway use from fuel consumption.
Recommendations related to Infrastructure Funding
New York should phase in implementation in order to allow the public sector to build expertise in a new area of revenue generation.
New York should require commercial fleets to transition to a VMT fee.
New York should create a volunteer program for passenger vehicles to provide added insights into the implementation of a VMT for personal vehicles.
New York should provide a multiyear transition to yield the most benefits and allow ample time to establish the necessary infrastructure.
The State should maintain flexibility to accommodate new technology and not commit to a single, proprietary platform.
New York should establish rates that vary by type of vehicle and location to account for the negative effects of air pollution and traffic congestion.
The State should execute a clear and transparent rate-setting process so that motorists know how, when, and at what rate a VMT 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 and transit revenues and needed annual expenditures.
Key Data
$5.7 billion
— Approximately $5.7 billion annually is required for the State to achieve a state of good repair on its assets.
$2.1 billion
— 37 percent—$2.1 billion—of that necessary repair work is deferred.
51 percent
— Factors reduced the inflation-adjusted per-mile direct cost to motorists who travel on State roadways 51 percent since 1993.
123 billion miles
— In 2016 motorists traveled an estimated 123 billion miles in New York State.
1 cent
— An average per-mile fee of 1 cent could yield more than $1 billion annually.
$30 million
— The U.S. Department of Transportation awarded $30 million to support state-led efforts to explore user fee models to generate revenue.
New revenue streams, including congestion pricing, increased real estate transfer taxes, and sales tax intercepts, will be directed into a dedicated lockbox to finance $25 billion of the Metropolitan Transportation Authority's 2020-2024 capital projects. These funds are legally restricted to capital investments, ensuring they supplement rather than replace existing support for the transit system.
Key Data
$25 billion
— Total expected financing for MTA capital projects from the new revenue sources.
$1.685 billion
— Estimated annual yield from all new resources once the congestion tolling program is operational.
$1 billion
— Expected annual revenue generated by the congestion pricing program.
$365 million
— Expected annual revenue from the two newly enacted real estate transfer tax surcharges.
$15 billion
— Capital investment in the MTA's 2020-2024 Capital Plan supported by the congestion tolling program.
$100 million
— Amount the State is loaning to the Triborough Bridge and Tunnel Authority to cover initial implementation costs.
The New York State budget agreement introduces congestion pricing and new dedicated taxes to fund the Metropolitan Transportation Authority, aiming to improve transit infrastructure and reduce traffic. Additionally, the budget allocates $820 million to economic development capital spending and mandates the use of design-build contracting for projects exceeding $25 million to streamline capital project execution.
Recommendations related to Infrastructure Funding
With implementation details still to be determined, it is critical to limit fee exemptions in order to preserve projected revenues and traffic reduction.
The new revenues for the MTA should be accompanied by new efforts to improve efficiency and transparency at the MTA and to speed capital project execution through expanded use of design-build contracting.
Mandating design-build use on all projects greater than $25 million may be counterproductive on some projects, and requiring a waiver from the State Division of the Budget (DOB) is unnecessarily burdensome.
New revenues for the MTA should not replace resources already promised by the State.
Key Data
$820 million
— Allocated to economic development capital spending.
$25 million
— Threshold for mandating the use of design-build contracting on capital projects.
The NYC Ferry system requires high public subsidies, with per-ride costs significantly higher than other transit options, and plans for expansion will further increase these financial burdens. Officials should reevaluate the current pricing model and service strategy to ensure transportation funding is used more efficiently and effectively.
Recommendations related to Infrastructure Funding
City officials should reconsider the policy choices that contribute to the high subsidies before implementing any further expansion of ferry service.
Officials should evaluate options that would reduce the level of subsidy required to operate the ferry system.
The City should consider whether alternative uses would meet the city’s transportation needs more efficiently and more effectively.
The City should charge higher fares on weekends and for noncommuters to offset the cost of subsidies for daily commuters.
Dynamic pricing models could be implemented for long, low-productivity routes that require substantial subsidies and see demand spikes on weekends.
A different fare structure could mitigate the need to charter vessels or purchase larger boats.
Key Data
$10.73
— The per-ride operating subsidy for the NYC Ferry system.
$24.75
— The projected per-ride subsidy for the proposed Coney Island ferry route.
$56.7 million
— The total operating costs for the NYC Ferry in fiscal year 2018.
$638.5 million
— The total capital commitments for the NYC Ferry system as of February 2019.
22%
— The farebox operating ratio for the NYC Ferry in 2018, indicating the percentage of operating costs covered by fare revenue.
$48.6 million
— The annual debt service cost at full buildout of the ferry system.
New York's transportation infrastructure faces a significant funding shortfall, with current user fees failing to cover the costs of maintaining roads, bridges, and mass transit systems. To address this, the state should implement new revenue streams, such as congestion pricing and a vehicle-miles traveled (VMT) fee, to ensure long-term fiscal sustainability.
Recommendations related to Infrastructure Funding
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.
Long-term the State should shift away from fuel taxes toward a more sustainable VMT fee.
New York ought to prepare for the continued erosion of revenues, and it should consider user fees that supplement fuel taxes.
Increasing fuel taxes, vehicle fees, and toll rates to those of New York’s neighbors can raise significant sums in the short-term.
Agencies should strive to deliver public services as efficiently as possible.
Key Data
$3.6 billion
— Annual transportation revenues collected by New York State from motorist user fees.
17 percent
— Decrease in the amount of fuel tax per mile driven in New York since 1993.
$5.5 billion
— Cost of State of Good Repair (SGR) needs at NYSDOT in 2016.
18.5 percent
— Share of New York's National Highway System pavement considered 'Rough' or 'Very rough'.
10.5 percent
— Share of all state, local, and authority bridges in New York that were structurally deficient in 2017.
$1.2 billion
— Potential annual revenue generated by a vehicle-miles traveled (VMT) fee charged at a rate of 1 cent per mile.
New York State's economic development strategy requires a shift from costly, poorly designed tax breaks toward more targeted investments in regional strengths and workforce training. Improving economic outcomes also necessitates prioritizing infrastructure upgrades in central and downtown areas while enhancing transparency and evaluation of state-funded projects.
Recommendations related to Infrastructure Funding
The state should target infrastructure upgrades to facilitate economic activity and improve quality of life.
Policymakers should continue to improve central and downtown infrastructure that is not in good repair.
Regional Economic Development Councils should utilize infrastructure needs as a primary criterion for determining state funding awards.
Congestion pricing in Manhattan's central business district is proposed to manage traffic and generate revenue for mass transit improvements. The system should prioritize using toll revenues to support the Metropolitan Transportation Authority capital program and City-owned bridges while minimizing exemptions to ensure effectiveness.
Recommendations related to Infrastructure Funding
Toll rates should serve the dual goals of raising revenue and reducing peak hour vehicle entries to the central business district.
Exemptions or discounts to toll rates should be granted to emergency vehicles, vehicles already subject to a congestion charge—notably taxicabs and for-hire vehicles—and mass transit providers including non-MTA buses, but broader exemptions should be avoided.
Toll revenues should be used primarily to support the Metropolitan Transportation Authority (MTA) capital program, and a share of toll revenues should support City-owned bridges relied upon by toll payers to enter the congestion pricing zone.
Installing and operating equipment required for the system should be the responsibility of the MTA and be implemented in collaboration with the City of New York.
Authorizing legislation should include provisions to facilitate speedy creation of the system.
New York City should implement an online database for pending construction projects to improve transparency and oversight of the city's significant capital investments. Enhancing this database with historical budget data, project ID codes, and information on completed projects would facilitate better retrospective performance assessments and fiscal monitoring.
Recommendations related to Infrastructure Funding
The City should use the existing Capital Projects Dashboard as the basic platform for the new database.
The City should require a broader scope of projects, a downloadable format, and up-to-date data for the database.
The City should expand the database to include historical data on changes to each project’s budget, rather than just initial and current values.
The City should require the inclusion of each project’s associated capital budget lines and project ID codes to allow the database to be linked to budget documents.
The City should retain data on completed projects to allow for retrospective assessment of performance.
Key Data
$7.4 billion
— Annual capital commitments made by the City in fiscal year 2014.
$11.8 billion
— Annual capital commitments made by the City in fiscal year 2018.
$83.8 billion
— Forecasted capital commitments from fiscal years 2019 through 2023.
$25 million
— The current threshold for capital projects included in the existing Capital Projects Dashboard.
$10 billion
— The City's annual capital commitments that require greater oversight.
New York City's transit system faces significant capital needs, with the proposed $40 billion Fast Forward Plan aiming to modernize signals, improve accessibility, and replace aging rolling stock. These investments follow a trend of increasing capital spending, which rose from $24.118 billion in the 2010-2014 period to $33.270 billion in the 2015-2019 period.
Recommendations related to Infrastructure Funding
The Fast Forward Plan prioritizes the modernization of the signal system on 5 lines during the first 5 years.
The plan calls for the modernization of the signal system on 6 additional lines during the following 5 years.
To improve transit access, the plan includes the addition of 50 new accessible stations and 150 rehabilitated stations in the first 5 years.
The plan outlines the addition of 130 additional accessible stations and 150 rehabilitated stations in the following 5 years.
The plan includes the procurement of 1,850 new and modified subway cars and 2,800 new buses in the first 5 years.
The plan includes the procurement of 3,000 new subway cars and 2,100 new buses in the following 5 years.
Key Data
$17 billion
— Total 2019 operating expense and debt service for the transit system.
$24.118 billion
— Total 5-year capital plan spending for the 2010-2014 period.
$33.270 billion
— Total 5-year capital plan spending for the 2015-2019 period.
$40 billion
— Estimated cost of the Fast Forward Plan for transit improvements.
New York City's Ten-Year Capital Strategy has grown to an unrealistic $95.8 billion, necessitating a shift toward prioritizing essential infrastructure repairs over new initiatives. To ensure fiscal sustainability, the City must focus capital investments on bringing existing assets like roads, bridges, and schools to a state of good repair while justifying any new projects with clear returns on investment.
Recommendations related to Infrastructure Funding
The City should focus on priority projects and reduce the funding level in the upcoming Ten-Year Capital Strategy.
Capital investment should be focused on projects that repair and improve the assets upon which businesses and residents rely—roads, bridges, the water and sewer system, and public facilities such as schools—and bring them to a state of good repair (SGR).
New initiatives should only be included in the capital plan if they can be justified by a clear return on investment.
Key Data
$95.8 billion
— Size of the second Ten-Year Capital Strategy released under Mayor de Blasio.
$83.8 billion
— Size of the first Ten-Year Capital Strategy released under Mayor de Blasio.
$32 billion
— Capital needs for the New York City Housing Authority (NYCHA) over the next five years.
$24 billion
— Amount of capital funding identified over 10 years in the NYCHA 2.0 plan.
New York State's infrastructure network is aging and failing, requiring over $100 billion in new investment to meet current needs. To address this, the state should establish an Office of Infrastructure to coordinate planning, prioritize projects based on economic and resiliency goals, and explore alternative funding sources like congestion pricing.
Recommendations related to Infrastructure Funding
Establish a New York State Office of Infrastructure to lead statewide infrastructure planning and serve as a clearinghouse for information.
The Office of Infrastructure should articulate a set of criteria to prioritize infrastructure investment, aligned with statewide policy objectives and needs.
The Office of Infrastructure should develop and conduct analytic assessments to balance State of Good Repair projects with transformative investments that expand capacity.
The Office of Infrastructure should maintain publicly available dashboards that track needs and project metrics such as cost and schedule across agencies and authorities.
The Office of Infrastructure should create a Center of Excellence to tackle cost drivers, assess project delivery methods, and facilitate knowledge sharing.
New York should pursue alternate funding sources, such as congestion pricing and value capture, to appropriately fund the State’s infrastructure needs.
Key Data
$100 billion
— Investment required to meet state infrastructure needs.
50%
— Infrastructure spending as a percentage of total state capital spending.
$16.8 billion
— Amount spent on transportation, utilities, and water/waste management in 2018.
$2.5 billion
— Amount invested in the Clean Water Infrastructure Act.
$4.7 billion
— Investment needed in the three NYC area airports.
$21 billion
— Amount the Resiliency Finance Corporation could raise over 20 years.
The Amazon HQ2 incentive package includes $180 million in public funding for infrastructure improvements in Long Island City, including sewer, water, school, and street projects. Furthermore, the deal diverts a portion of payments in lieu of property taxes (PILOTs) into a dedicated infrastructure fund for the surrounding neighborhood rather than directing all funds to the city's general budget.
Recommendations related to Infrastructure Funding
State capital funding is best invested in general infrastructure, not for the direct benefit of an individual company.
Amazon should pay the full value of the PILOT directly to the City rather than diverting some funds to the surrounding neighborhood.
Capital investment in growing areas of the city should go through the regular budgetary process.
Funding streams used to make economic development grants, like the State and Municipal Facilities Fund, should not circumvent oversight.
Key Data
$180 million
— Capital funding allocated for improvements to sewer and water systems, construction of a new school, street reconstruction, and open space improvements in Long Island City.
$475 million
— The amount by which the State and Municipal Facilities Program (SAM) grew in the Fiscal Year 2019 budget, which can be used for economic development and infrastructure projects.
$25 million
— The maximum amount of the Empire State Development capital grant allocated for costs of site preparation and infrastructure improvements.
The New York City Housing Authority faces $32 billion in capital needs, with nearly all properties requiring substantial rehabilitation to prevent widespread deterioration of its 176,000 units. To address this crisis, the city must integrate public housing into its broader affordable housing strategy, leverage underutilized land assets, and modernize operations to secure necessary funding and improve living conditions.
Recommendations related to Infrastructure Funding
The City should fully integrate NYCHA into its affordable housing strategy to shift unit distribution and funding toward preserving units for low-income households.
NYCHA should transition from being a landlord to an affordable housing steward by utilizing public-private partnerships like the Rental Assistance Demonstration program and transferring properties to nonprofit developers.
NYCHA should leverage underutilized land assets such as air rights and infill development to fund repairs and facilitate new construction.
NYCHA should improve operations and construction management by adopting modern property management standards, increasing private maintenance contracts, and utilizing design-build methods to save costs.
Key Data
$32 billion
— Total capital needs for the New York City Housing Authority.
$181,000
— Average cost per unit for substantial rehabilitation.
90 percent
— Portion of NYCHA’s 176,000 units that could deteriorate to the point of being no longer cost-effective to repair by 2027.
58 million
— Square feet of development rights controlled by NYCHA across the city.
$1.5 billion
— Potential funding that could be raised by selling 10 percent of NYCHA’s air rights.
$300 million to $600 million
— Goal set by NextGen NYCHA for raising funds from mixed income infill development.
Watch the original broadcast here . As Governor Cuomo's second term comes to a close, and voters decide whether to give him a third term, the Citizens Budget Commission is looking at how the state has fared over the past eight years. The group is it out with a new…
New York State has increased capital spending to $14.5 billion in fiscal year 2019, relying heavily on authority bonds and pay-as-you-go funds to finance transportation and economic development projects. While road surfaces have shown marginal improvement, the state's bridges remain in worse condition than the national average, and the Metropolitan Transportation Authority has experienced a significant decline in performance.
Key Data
$14.5 billion
— Projected capital spending in fiscal year 2019.
$7.8 billion
— Capital spending in fiscal year 2011.
$7.6 billion
— Projected capital spending funded by authority bonds in fiscal year 2019.
$4.4 billion
— Projected State pay-as-you-go funding in fiscal year 2019.
64%
— State-owned road surfaces rated as excellent or good in 2016.
11%
— Deck area on New York's bridges rated as poor.
3.1 miles is the length of the newly constructed Governor Mario M. Cuomo Bridge. At a cost of $4 billion dollars, the bridge was financed with debt, but no new tolls have been announced to repay it. CBC's Patrick Orecki explains why the toll may need to double from current…
New York City's capital spending has reached record levels, with $10 billion in committed work in fiscal year 2018 and projections for $59.3 billion in additional capital commitments through fiscal year 2022. To manage this growth, the city should shift toward pay-as-you-go funding for capital projects and implement a more realistic capital plan focused on repairing critical infrastructure.
Recommendations related to Infrastructure Funding
New bonded debt should be limited by implementing a more realistic capital plan developed around specific priorities and predominantly focused on repairing critical infrastructure, ensuring safety, and expanding where investments make economic sense or can improve critical services.
Current year resources should be used to pay for part of the City’s capital investment.
The City should use the dedicated capital reserve funds as PAYGO capital to reduce the borrowing needed each year to finance the capital plan.
Key Data
$30.4 billion
— City funds committed to capital projects between fiscal years 2014 and 2017.
$5.7 billion
— Capital commitments in fiscal year 2014.
$9.9 billion
— Capital commitments in fiscal year 2017.
$59.3 billion
— Projected City-funded capital commitments between fiscal years 2019 and 2022.
$135.8 billion
— Projected debt outstanding by fiscal year 2022.
$10 billion
— Committed capital work in fiscal year 2018.
$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…
The New York City subway system requires significant, yet currently unidentified, funding to replace aging cars and restore the fleet to a state of good repair. To return car reliability to previous highs, leadership must prioritize substantial investments in subway cars within the 2020-2024 capital program and ensure the effective, fully-funded implementation of modernization plans.
Recommendations related to Infrastructure Funding
MTA leadership should increase significantly its commitment to subway cars in the 2020-2024 capital program.
Full and timely implementation of Fast Forward is not a certainty; it must be funded in future capital plans and administered effectively to achieve anticipated results.
MTA leaders should be prepared to make significant commitments to subway cars in the 2020-2024 capital program if it expects to return car reliability to its previous highpoint.
Failure to prioritize subway car investments will place added pressure on the fleet’s maintenance and squander hard-fought gains in reliability.
Key Data
$9 billion
— The estimated cost relating to subway car modernization and replacement.
$8.3 billion
— The combined cost of R211s and additional cars required for the Fast Forward plan.
$5.5 billion
— The additional funding required to implement the Fast Forward plan to rectify the fleet's condition.
$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 in bringing the subway car fleet to a state of good repair between 1982 and 1991.
$2 billion
— The amount committed to overhaul more than 4,100 subway cars during the first two five-year capital programs.
The New York City Housing Authority faces a $32 billion capital needs crisis, with 90 percent of its housing units at risk of deteriorating beyond cost-effective repair by 2027. To address this, the authority must transition to an affordable housing steward model that integrates into the City's broader housing strategy, leverages underutilized land assets, and improves operational efficiency to secure its long-term viability.
Recommendations related to Infrastructure Funding
Fully integrate NYCHA into the City’s affordable housing strategy by providing NYCHA with one-third of the City’s planned capital commitments for affordable housing over the next five years.
Transition to an affordable housing steward that manages fewer buildings by increasing the pace of public-private partnerships to convert public housing units to the more stable Section 8 funding stream.
Tap underutilized land assets to fund repairs and facilitate redevelopment by selling air rights and allowing infill development on NYCHA campuses.
Improve operations and construction management to lower costs by decentralizing property management, modernizing collective bargaining agreements, and using more flexible procurement arrangements.
Key Data
$32 billion
— Estimated capital needs for NYCHA over the next five years.
90 percent
— Portion of NYCHA housing units at risk of deteriorating past the point at which they are cost-effective to repair by 2027.
39 percent
— Amount by which NYCHA’s costs of operations are higher than those of other landlords operating rent-stabilized buildings.
$1.5 billion
— Potential revenue from selling 10 percent of NYCHA’s air rights.
$1.4 billion
— Potential revenue from accelerating the pace of infill development to build an additional 10,000 units.
$7 billion
— Total additional capital needs that could be addressed over the next five years through the implementation of the report's recommendations.
The document provides a scorecard of various legislative proposals aimed at economic development, including several initiatives that address infrastructure projects such as microgrids, subway construction, and agricultural facility upgrades. These programs seek to mitigate the impact of infrastructure development on small businesses and support regional growth through targeted grants and loans.
New York State continues to allocate billions toward ineffective economic development programs that lack transparency and fail to produce significant job growth. Instead of funding these questionable projects, the state should prioritize investments in infrastructure, workforce development, and higher education to foster a more competitive economic environment.
Recommendations related to Infrastructure Funding
The state should prioritize investments in infrastructure, workforce development, and higher education to improve the ability to attract and retain employers.
Key Data
$122 million
— New appropriation for a New York State Capital Assistance Program for Transportation, Infrastructure, and Economic Development.
$300 million
— New appropriation for a High Technology Innovation and Economic Development Infrastructure Program.
A state budget proposal to fund the Metropolitan Transportation Authority by capturing property tax revenue through transportation improvement districts threatens to usurp local control over city tax dollars. Instead of broad, state-imposed mandates, infrastructure funding decisions should be made on a case-by-case basis by local elected officials to ensure transparency and accountability.
Recommendations related to Infrastructure Funding
Any value capture arrangement for infrastructure funding should be tailored to specific projects and circumstances.
The mayor and council should determine how the city’s property tax revenue is spent, rather than the governor and state Legislature, to maintain local control over infrastructure funding decisions.
Dedicating future tax revenue to a mass transit project should be a policy choice made by the city on a case-by-case basis to ensure transparency and accountability in infrastructure funding.
Key Data
50 percent
— The share of increased New York City property taxes within transportation improvement districts that the state proposal would capture for the Metropolitan Transportation Authority.
75 percent
— The share of increased property taxes that could be captured for future transportation improvement districts under the state proposal.
18 million square feet
— The amount of new office, residential, and retail space planned or built in the Hudson Yards area that would not have occurred without the No. 7 subway line extension.
New York City's $79 billion capital commitment plan is criticized for being unrealistic and lacking transparency, with calls to better align spending with actual infrastructure needs. The city should implement reforms like life-cycle cost analysis, procurement changes, and pay-go financing to improve project efficiency and fiscal responsibility.
Recommendations related to Infrastructure Funding
The City should make smart and targeted capital investments by treating additions to capital plans with the same caution as the operating budget and prioritizing critical infrastructure repairs.
The City should reflect realistic timelines in the capital plan to improve project coordination, budgeting, and monitoring while reducing the buildup of appropriations.
The City should improve the City's needs assessment by incorporating thorough assessments from the Departments of Transportation and Education and aligning them with the capital plan.
The City should incorporate life-cycle cost analysis into the capital planning process to account for the costs of operating, maintaining, and replacing capital assets.
The City should add performance metrics to the capital plan to allow the City Council and other observers to measure the efficiency and effectiveness of capital investment.
The City should require the use of discrete project codes to replace lump sum project codes, which offer little transparency into how and where agencies plan to commit funds.
The City should make actual spending on capital projects public to facilitate oversight and accountability by allowing observers to monitor the progress and total cost of individual projects.
The City should pursue procurement reform, including the ability to use design-build and the repeal of Wicks Law, to reduce project costs and accelerate capital projects.
The City should use pay-go financing to offset the expected increase in borrowing costs as interest rates rise.
Key Data
$79 billion
— The total value of the Preliminary Capital Commitment Plan for Fiscal Years 2018 to 2022.
$32.2 billion is the size of the 2017-2026 Capital Plan of the Port Authority of NY and NJ. This podcast features Port Authority Executive Director Rick Cotton, followed by a discussion on public-private partnerships, airport renovations, the fate of Gateway, and the 42nd Street bus terminal.
$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's economic development efforts, which cost $3.2 billion in 2016, should prioritize capital investments in neighborhood-level infrastructure rather than individual firm subsidies. Additionally, the city should shift its support for cultural, educational, and health sectors toward conduit financing to reduce direct capital investment requirements.
Recommendations related to Infrastructure Funding
The City should make capital investments in infrastructure to support job growth in underdeveloped neighborhoods.
Capital investment should be directed at establishing infrastructure to encourage job creation at the neighborhood level and should not be made for the benefit of individual firms.
Conduit financing should be the City’s main form of support for cultural, educational, and health sectors, rather than direct capital investment.
Key Data
$3.2 billion
— The annual cost of the City’s economic development efforts in 2016.
$548 million
— The value of discretionary tax benefits awarded by the City in 2016.
87 percent
— The portion of conduit debt issued since 2016 that was for the cultural, educational, and health sectors.
30 percent
— The share of conduit debt recipients located in Brooklyn since 2016.
16.2 percent
— The share of private employment in New York City located in Brooklyn as of 2016.
New York City's capital spending has reached unprecedented levels, yet the city lacks a comprehensive strategy for maintaining its aging infrastructure, leading to a high debt burden and inefficient project management. The next administration should adopt a "fix it first" approach, prioritize state of good repair projects, and implement more cost-effective contracting and asset management practices to ensure long-term fiscal responsibility.
Recommendations related to Infrastructure Funding
The next administration should enact clear guidelines or directives for performing routine maintenance and regular replacement of assets to prevent the state of good repair backlog from growing.
All city agencies and component units should undertake a comprehensive needs assessment that details the condition of major asset classes and the cost to fix those in disrepair.
The next administration should articulate a standard for keeping debt from becoming unaffordable.
The City should adopt a “fix it first” strategy, in which state of good repair projects receive priority at each agency.
The City should renew its Project Labor Agreements to reduce labor costs and improve managerial flexibility.
Key Data
$111 billion
— Total capital commitments registered since fiscal year 2003 through the current fiscal year.
79 percent
— Increase in the value of assets owned by New York City and its related public authorities since fiscal year 2002.
$100 billion
— City-related debt outstanding as of fiscal year 2014.
$6.4 billion
— State of good repair requirements reported in the Asset Information Management System in fiscal year 2014.
$3.2 billion
— Projected cost of completing the Croton Water Filtration Plant.
$3.2 billion -- how much New York City spent on economic development in 2016, including tax expenditures, operating costs, and capital spending. NYCEDC President and CEO James Patchett joins the podcast to discuss the City's development strategy, tax breaks, NYC Ferry and the BQX project.
The New York City Housing Authority faces a growing capital funding gap, with projected needs exceeding $25 billion as its aging housing stock requires substantial investment. To address this shortfall, the Authority has increasingly relied on alternative strategies, including public-private partnerships and federal rental assistance programs, to supplement limited federal capital subsidies.
Key Data
$16.5 billion
— Total cost of capital improvements identified in the 2011 Physical Needs Assessment for the 2012–2016 period.
$25 billion
— Estimated capital needs in the forthcoming Physical Needs Assessment, which far exceed available resources.
$3 billion
— Estimated damage caused to the NYCHA system by Superstorm Sandy.
$1.7 billion
— Total amount spent on capital improvements by NYCHA between 2012 and 2016.
$377 million
— Total capital grants contributed by New York City to NYCHA over the 2012–2016 plan period.
The Metropolitan Transportation Authority lacks a comprehensive, public assessment of its infrastructure's condition and the true cost of repairs, which hinders informed decision-making regarding necessary funding. Implementing a mandatory, regularly updated asset management report similar to the city's AIMS model would provide the transparency required to align investment with actual system needs rather than just available funds.
Recommendations related to Infrastructure Funding
The MTA should conduct and make public a full accounting of the mass transit system's condition and the costs needed to achieve a full state of good repair.
The governor's agenda for the coming legislative session should include mandating that an AIMS report be prepared and regularly updated by the MTA.
Congestion pricing is important and should be adopted, for environmental and business reasons as well as for the revenue it can provide.
Key Data
$1 billion
— Proposals floated recently by transit advocacy groups aim to generate $1 billion a year in revenue through congestion pricing.
Tax increment financing is a common economic development tool used to fund infrastructure projects by capturing future property tax revenue, but it carries significant risks if not properly managed. Governments should conduct rigorous due diligence, including 'but for' analyses and revenue projections, to ensure these projects are financially viable and truly necessary.
Recommendations related to Infrastructure Funding
Governments must ensure that the proposed development and property value appreciation would not occur in the absence of the TIF-funded capital project.
Policymakers should evaluate whether the investment will generate new economic activity rather than simply shifting existing businesses or retail spending from other areas.
Leaders must determine if the project's expected return on investment is strong enough to justify diverting revenue from other prospective needs.
Cities should test their revenue projections against a range of economic scenarios to ensure the district will generate sufficient revenue to repay debt service and other costs.
Governments should consider whether general obligation bonds are a better, less risky, and less costly option than TIF bonds.
Key Data
$3 billion
— The projected cost of the Hudson Yards project.
$359 million
— The amount New York City paid from its general fund to subsidize Hudson Yards’ interest payments.
$14 million
— The amount of TIF debt the Troy Downtown Development Authority in Michigan defaulted on.
$10 million
— The amount that a majority of Chicago's TIF districts raised and spent over a 13-year period.
$75.4 million
— The total outstanding Pilot Increment Financing (PIF) debt in New York as of June 2017.
$266 million
— The amount of capital cost overruns for the Hudson Yards project.
The Metropolitan Transportation Authority's 2018 budget faces significant uncertainty due to a lack of identified funding for the $1.5 billion Subway Action Plan, which could turn a projected $30 million surplus into a $498 million deficit. To maintain fiscal stability, the board must secure specific funding sources or implement commensurate spending reductions rather than relying on debt or reserve depletion.
Recommendations related to Infrastructure Funding
The board should not advance a budget without either funding sources identified to support the Subway Action Plan or commensurate reductions in other areas to maintain a cash balance.
In the event a portion of the expected funding is realized, those elements critical to improving the subway system’s infrastructure—and not initiatives primarily geared toward station appearances and customer communications—should be prioritized.
Without any new funding, the board should reject the 2018 budget as proposed.
Draining reserve funds and eschewing PAYGO capital for more debt should be avoided.
If the MTA intends to scale back the Subway Action Plan to match available funding, specific details need to be provided to enable the board to make an informed decision.
Key Data
$16.4 billion
— The total 2018 budget proposed by the Metropolitan Transportation Authority.
$1.5 billion
— The cost of the five-year Subway Action Plan to address equipment and infrastructure failures.
$428 million
— The amount budgeted for Subway Action Plan operating costs in 2018.
$498 million
— The projected end-of-year deficit if the Subway Action Plan is implemented without additional revenues.
$679 million
— The amount held in the Bridges and Tunnels Necessary Reconstruction Fund and the MTA Retiree Welfare Benefits Trust.
$1.3 billion
— The reduction in forecasted revenues for the 2017 to 2020 period due to downward revisions.
The financing of the new Mario M. Cuomo Bridge relies on future toll increases to cover approximately $2.9 billion in long-term debt service costs. To ensure equitable funding, the state should implement a toll increase specifically for the bridge rather than relying on systemwide hikes, while maintaining transparency regarding the necessary rate adjustments.
Recommendations related to Infrastructure Funding
Increasing the toll on the new Cuomo Bridge alone is the appropriate approach, and the new toll should cover all of the bridge’s debt and maintenance costs.
The freeze should be reconsidered and the Thruway Authority should increase tolls by the rate necessary to service the debt when the costs are payable.
There should also be transparency and public discussion on the toll increase now, as the bridge is opened for use.
The best approach would be to effectuate a toll increase that covers all of the increased debt service costs, when the asset begins serving users with the completion of the bridge.
Key Data
$2.9 billion
— The amount in loans and bonds that will need to be repaid for the bridge in the long term.
$10.61
— The potential toll for passenger vehicles based on current debt projections.
$174 million
— The average annual debt service costs for the bridge's loans and bonds.
24 percent
— The required increase on all Thruway tolls if the debt were funded systemwide.
$1.19
— The increase in the standard toll for the bridge if a systemwide toll hike were implemented.
New York State's transportation capital planning process lacks a cohesive, data-driven strategy, often relying on disjointed documents rather than objective assessments of infrastructure needs. To improve transparency and accountability, state officials should codify a formal, multi-step planning process in statute that links asset condition to project funding and provides regular status updates.
Recommendations related to Infrastructure Funding
State officials should codify in statute a process to formally set forth appropriate capital planning procedures for DOT assets.
The State should produce an update of the DOT’s capital program’s strategies and goals to outline the system's needs over the upcoming five-year period.
The State should conduct a needs assessment highlighting the condition of the assets and the projected costs associated with maintaining these assets and making other improvements.
The State should provide a proposed project list, with funding identified, which will accompany the Governor’s proposed budget to help elected officials negotiate funding levels.
The DOT should reproduce its list of projects annually with each Executive Budget to enable the Legislature, relevant stakeholders, and the public to track projects.
The DOT should provide a status report on projects included in the enacted five-year capital plan to update the status of projects and compare progress relative to original goals.
Key Data
$4.9 billion
— Annual DOT capital expenses, representing the largest capital expense for the State of New York each year.
11.2 percent
— Percentage of bridges in New York State graded as structurally deficient.
$21 billion
— Total funding available for the 2016 through 2020 capital program.
$3 billion
— Amount of the 2016-2020 capital program allocated ambiguously to "statewide" projects.
$6.5 billion
— Amount of the 2016-2020 capital program left out of project lists entirely.
$2 billion
— Average annual amount of federal funding for state transportation and transit capital projects.
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 Metropolitan Transportation Authority should reallocate over $9 billion in uncommitted capital funds to prioritize subway repairs over system expansions, while shifting its funding model to rely more heavily on motorist fees rather than taxpayer subsidies. To ensure long-term financial stability, the agency should implement efficiencies like split shifts for workers and pursue congestion pricing or mileage-based user fees to increase motorist contributions.
Recommendations related to Infrastructure Funding
The MTA should re-task the $9.2 billion in uncommitted funds from the 2000-2014 period to accelerate the process of bringing the subway to a state of good repair.
Policymakers should pursue a funding framework that increases motorist cross-subsidies from drivers through bridge and tunnel tolls, fuel taxes, and license and registration fees.
The MTA should adopt a mileage-based user fee, also known as a vehicle-miles traveled tax, to better reflect the actual use of roads and bridges.
MTA management and the Transport Workers Union should pursue productivity savings, such as altering night shift differentials and using split shifts, to help cover the cost of added workers.
The MTA should prioritize capital improvements that would bring the subway system to a state of good repair over system expansions and enhancements.
Key Data
$9.2 billion
— Uncommitted funds from the 2000 to 2014 period that should be re-tasked to accelerate subway repairs.
$18 billion
— Unspent funds from the 2000 to 2014 period authorized for capital plans.
$4.8 billion
— Amount included in the 2015-2019 capital plan for system expansions.
$380 million
— New capital investments included in the MTA Chairman's stabilization plan.
$456 million
— Recurring operating costs in the stabilization plan, primarily for hiring new workers.
2,700
— Number of permanent new workers to be hired under the stabilization plan.
The New York City Housing Authority has improved its financial position through increased City and federal support, allowing it to address maintenance needs and stabilize operations. However, the authority must accelerate the implementation of its NextGen reforms and secure additional revenue streams to mitigate the risks posed by potential federal funding cuts.
Recommendations related to Infrastructure Funding
NYCHA should ease work rule restrictions in the upcoming collective bargaining negotiations to improve operational efficiency.
The Authority should come to an agreement for rent payment by non-profit tenants in NYCHA buildings to increase revenue for infrastructure maintenance.
NYCHA should support the proposal to raise parking fees to market rates to generate additional revenue for housing operations.
The Authority must lobby the federal government against onerous changes to public housing operating and capital subsidies that threaten infrastructure funding.
Key Data
$325 million
— Private funding for capital improvements leveraged through the first PACT transaction.
$100 million
— Private financing for renovations leveraged through a transaction with L+M Development Partners and BFC Partners.
$210 million
— Proposed reduction in the federal capital subsidy for public housing.
$360 million
— Total funds raised for NYCHA over 15 years through a transaction involving 874 Section 8 units.
This week's data point is 30 days - the period in which MTA New York City Transit will conduct a "top-to-bottom" review to identify changes necessary to improve its performance. CBC's Director of Infrastructure Studies Jamison Dague discusses underinvestment and how resources are being directed in the capital plan with…
The Metropolitan Transportation Authority's revised capital plan prioritizes expensive expansion projects over critical state of good repair needs, despite a 10 percent increase in total funding. This misallocation leaves essential infrastructure, such as signal modernization and rolling stock, significantly underfunded while relying on uncertain federal support for new projects.
Recommendations related to Infrastructure Funding
Future amendments should reprioritize funds for more appropriate state of good repair work and for the modernization of the subway’s aging signal system.
The MTA board should require more transparency of changes to the capital program to ensure public accountability.
The agency must emphasize what can be accomplished if capital funds are spent on state of good repair projects, existing system improvements, or both.
Board members and the public must remain engaged in the MTA’s capital planning process to ensure the region does not squander opportunities to reinvest.
Key Data
$29.5 billion
— The total value of the current five-year MTA capital plan following the addition of $2.8 billion in investments.
$20 billion
— The estimated size of New York City Transit's continuing needs in 2017 dollars.
$2.7 billion
— The amount of new capital commitments added in the May 2017 amendment for two system expansions.
60 percent
— The portion of continuing capital needs that will be met for signal malfunctions, rolling stock breakdowns, and power failures during the 2015-2019 period.
$2 billion
— The amount added to the capital plan for the Long Island Rail Road Expansion Project.
$700 million
— The amount added to the capital plan for Phase II of the Second Avenue Subway.
New York City's Ten-Year Capital Strategy, while demonstrating administration priorities, suffers from unrealistic timelines that frontload spending and lacks the programmatic indicators necessary to measure progress or ensure infrastructure is maintained in a state of good repair. The city should improve transparency by aligning its capital strategy with existing needs assessments and adopting more realistic, balanced commitment levels to ensure long-term infrastructure stability.
Recommendations related to Infrastructure Funding
The City should adjust its strategy to acknowledge more appropriate commitment levels at the end of the ten-year period.
The Strategy should clearly relate back to existing needs assessments so that the City and the public can determine whether or not planned capital investment is adequate.
The Administration should incorporate a more realistic allocation of capital commitments over the first four years into future capital strategies.
The Strategy should include benchmarks to measure progress toward the completion of projects that do not lend themselves to unit cost comparison.
The City should include programmatic indicators for future years within the Ten-Year Capital Strategy to improve accountability.
Key Data
$95.8 billion
— The total amount of planned commitments in the Executive Ten-Year Capital Strategy for Fiscal Years 2018-2027.
$51 billion
— The amount dedicated to keeping assets in a state of good repair within the Ten-Year Capital Strategy.
$20.7 billion
— The amount the City expects to commit in fiscal year 2018, which is a 145 percent increase over fiscal year 2016 actual commitments.
152 percent
— The growth in AIMS needs funding since fiscal year 2005.
26 percent
— The share of unfunded infrastructure needs in fiscal year 2017.
A 2017 survey of nearly 10,000 New York City residents identified infrastructure, including roads, bridges, and public transportation, as the most pressing issue requiring attention from the city government. While residents provided feedback on various services, 29.9% of respondents specifically highlighted infrastructure as a top priority for improvement.
Key Data
29.9%
— Proportion of survey respondents who identified infrastructure, including roads, bridges, and public transportation, as a top issue requiring attention from city government.
39.0%
— Overall percentage of residents who rated the maintenance of streets and roads as excellent or good.
54.5%
— Overall percentage of residents who rated subway services as excellent or good.
50.5%
— Overall percentage of residents who rated storm water drainage and sewer maintenance as excellent or good.
New York City's capital construction process for libraries and cultural institutions is plagued by excessive delays and costs, with median project durations exceeding four years and new construction costs reaching $930 per square foot. To address these inefficiencies, the city should implement systemic reforms such as adopting design-build contracting, establishing a fixed five-year capital program, and creating a Director of Libraries to oversee infrastructure investments.
Recommendations related to Infrastructure Funding
The mayor should convene a task force to examine the current capital construction approval and management system.
The city should leverage its existing Capital Projects Dashboard and expand it to systematically track the real costs and timelines of all capital construction projects.
The city should consider reducing OMB’s role in project approvals after the initial CP approval and institute frequent randomized audits instead.
DDC should work with other relevant departments to establish a common design review process and agree to achievable timetables for feedback and approval.
The city should fund an expanded agency-wide data and analytics team within DDC to develop and implement data analytics tools for capital construction management.
The city should develop a portal for prospective recipients of capital construction dollars to prequalify for discretionary capital funds.
The city council should adopt and fund a fixed five-year capital program, aligned with the city’s required ten-year capital strategy.
OMB should create a handbook providing an easy-to-understand summary of all capital eligibility rules and requirements.
The city should escalate its long-standing efforts to authorize design-build on appropriate capital construction projects.
City agencies should expand the use of pass-throughs for libraries and large cultural organizations.
Key Data
$930 per square foot
— The median cost for new library and cultural buildings in the sample.
1,550 days
— The median time it took for a capital project to be completed.
$1,272 per square foot
— The average cost for ground-up construction projects when managed by the city.
$641 per square foot
— The average cost for ground-up construction projects when managed by the New York Public Library.
$523 per square foot
— The average cost of construction for self-managed NYPL projects.
$883 per square foot
— The average cost of construction for DDC-managed NYPL projects.
New York State's emergency budget includes $2.5 billion for water infrastructure to maintain agency operations through May 31. While this temporary measure avoids a government shutdown, it creates uncertainty for local governments and school districts, underscoring the need for a more effective and accountable budget process.
Key Data
$2.5 billion
— allocated for water infrastructure in the New York State emergency budget
New York State's policy of achieving "parity" in transportation capital spending between mass transit and road infrastructure is an arbitrary and misguided approach that ignores actual system needs. Instead, capital programs should be determined by objective assessments of asset conditions and performance indicators to ensure funding is allocated where it is most required.
Recommendations related to Infrastructure Funding
The scale and content of each capital program should be rooted in an objective assessment of needs relating current asset conditions to a desired state of good repair and identifying priorities for system enhancements based on a comparison of projected performance indicators for prospective projects.
The MTA’s 20-year needs assessments and the DOT’s Transportation Asset Management Plan are useful starting points for constructing capital plans and should be enhanced and better utilized in future budget processes.
Key Data
$29.5 billion
— Total value of the MTA's five-year capital plan covering 2015 through 2019.
$21.2 billion
— Total spending for the DOT capital program covering five state fiscal years.
29%
— Portion of regional bridge and highway projects in the 2016-2020 DOT plan that will be located in New York City.
60%
— Portion of regional bridge and highway projects in the 2016-2020 DOT plan located in the MTA service region, including New York City, Long Island, and mid-Hudson counties.
1,956
— Total number of state bridges classified as structurally deficient and in need of serious repair.
71%
— Percentage of statewide travel on transit that occurs within New York City.
On February 22, 2017, New York State Budget Director Robert Mujica presented highlights from the New York State Executive Budget for Fiscal Year 2018 to the Citizens Budget Commission.
The Port Authority's $32 billion, 10-year capital plan lacks a transparent needs assessment and clear criteria for prioritizing projects, leading to potential underinvestment in state-of-good-repair work. Furthermore, the agency's reliance on bi-state parity for resource allocation often prioritizes political compromise over regional infrastructure needs and cost-benefit efficiency.
Recommendations related to Infrastructure Funding
The agency should develop a publicly-available needs assessment that identifies spending necessary to bring facilities to a state of good repair.
The agency should establish a set of criteria for selecting enhancement and expansion projects that includes benefit-to-cost analyses.
The agency should discard the use of bi-state parity to allocate capital resources between “New Jersey” projects and “New York” projects.
Key Data
$32 billion
— The total value of the Port Authority's 10-year capital plan.
$3.9 billion
— The estimated shortfall in state of good repair (SGR) work over the 10-year plan period.
$3.5 billion
— The cash disbursement allocated for the replacement of the Bus Terminal through 2026.
$11.3 billion
— The amount of pay-as-you-go capital investment derived from agency operating surpluses and reserves.
$1.7 billion
— The cost of the proposed PATH extension to the Newark AirTrain.
$377 million
— The amount added to the capital program to rehabilitate the current, obsolete AirTrain.
Governor Cuomo’s fiscal year 2018 executive budget proposals include significant capital investments, such as $10 billion for the transformation of JFK Airport and $2 billion for clean water infrastructure. These initiatives are part of a broader $15.5 billion spending plan that raises questions regarding the state's ability to close projected budget gaps and manage long-term fiscal sustainability.
Key Data
$10 Billion
— Proposed funding for the transformation of JFK Airport.
$2 Billion
— Proposed funding for clean water infrastructure projects.
$500 Million
— Proposed funding for the Buffalo Billion 2 initiative.
$220 Million
— Proposed funding for the Empire State Trail over three years.
$150 Million
— Proposed funding for the Woodbury Transit and Economic Development Hub.
$38 Million
— Proposed funding for the revitalization of Plattsburgh Airport.
New York's Regional Economic Development Councils have seen mixed results in employment growth, with 8 of 10 regions trailing job growth in neighboring states and the nation between 2010 and 2015. Consequently, the state should consider shifting focus from grant-based economic development toward broader strategies like infrastructure investment to more effectively benefit employers.
Recommendations related to Infrastructure Funding
Better results may be available through regulatory and tax reform, enhanced career and technical education, or infrastructure investment that benefit employers throughout the region or state.
This presentation, from the CBC panel discussion "The Berger Commission: 10 Years On," reviews how health care services in New York City have evolved since the New York State Commission on Health Care Facilities in the 21st Century, known as "The Berger Commission" issued its recommendations in 2006.
The Metropolitan Transportation Authority's 2017 preliminary budget relies on projected surpluses to fund $1.1 billion in capital investments, but faces significant long-term risks from expiring labor contracts, unfunded postemployment benefits, and potential declines in tax receipts. To ensure future financial stability and support necessary infrastructure projects, the agency must identify new revenue sources, such as increased tolls and vehicle fees, while better managing its existing liabilities.
Recommendations related to Infrastructure Funding
The MTA should prepare a plan to fund PAYGO capital contributions without exhausting cash balances.
The MTA should adjust financial projections to better reflect foreseeable risks.
The MTA should set aside additional resources for the agency’s OPEB trust fund.
The MTA should secure new sources of revenue, primarily from cross-subsidies from motor vehicle users.
The MTA should continue and intensify its efforts to identify and implement efficiencies.
Key Data
$15.5 billion
— The total amount the MTA expects to spend in its 2017 Preliminary Budget.
$1.1 billion
— The amount of pay-as-you-go (PAYGO) capital investments the MTA plans to make using projected surpluses and cash balances.
$113 million
— The adjusted cash deficit the agency projects for the year 2020.
$14 billion
— The total OPEB liability the MTA held as of March 31, 2016.
$608 million
— The amount listed in the financial plan as OPEB Current Payment for 2017.
$730 million
— The increase in labor spending for 2017, representing an 8.5 percent rise.
New York City's Access-A-Ride paratransit program is the most expensive in the nation, with costs projected to reach $646 million by 2020, largely due to high utilization and unit costs. To improve financial sustainability, the MTA should implement strategies such as shifting ambulatory trips to lower-cost providers, increasing the use of feeder services, and pursuing Medicaid reimbursement for non-emergency medical transportation.
Recommendations related to Infrastructure Funding
The MTA could shift trips to its broker car service (BCS) program, which uses a for-hire vehicle broker to complete trips using black cars and liveries, potentially saving up to $126 million annually by moving all ambulatory customers to the broker car service program.
The MTA could provide service more efficiently and improve the customer experience by offering a subsidy program that allows paratransit users the opportunity to use the City’s taxicab fleet and Transportation Network Companies like Uber and Lyft.
The MTA could offer feeder service, trips that connect users with accessible fixed-route stops rather than door-to-door service, in a greater number of appropriate situations to reduce the number of trips taken and lower the unit cost.
The MTA should revisit the policy of charging a higher fare, as doubling the fare could save as much as $184 million annually by reducing trips and increasing fare revenue.
The MTA should seek Medicaid reimbursement for non-emergency medical transportation to help defray the cost of paratransit service for eligible trips.
Key Data
$461 million
— The cost of the Access-A-Ride program in 2015.
$71
— The cost per trip for Access-A-Ride in 2014, the highest among 29 cities with paratransit programs providing at least one-half million rides annually.
$126 million
— The potential annual savings for the MTA if all ambulatory customers were moved to the broker car service program.
$184 million
— The potential annual savings from doubling paratransit fares by reducing trips and increasing fare revenue.
$646 million
— The projected total program expenses for Access-A-Ride in 2020.
144,000
— The number of disabled New Yorkers served by the Access-A-Ride program.
The City's financial plan includes $32.9 billion in new borrowing for capital investments between fiscal years 2016 and 2020, resulting in $85.2 billion in total outstanding debt. Additionally, the City has increased its funding commitment to the Metropolitan Transportation Authority's 2015-2019 Capital Plan from approximately $500 million to $2.5 billion.
Key Data
$32.9 billion
— New borrowing for capital investments planned between fiscal years 2016 and 2020.
$85.2 billion
— Total outstanding City debt projected at the end of fiscal year 2020.
$2.5 billion
— City's increased funding commitment to the MTA's 2015-2019 Capital Plan.
$500 million
— Original City funding commitment to the MTA's 2015-2019 Capital Plan.
Tony Guida sits down with the CBC's Vice President, Maria Doulis, to discuss why New York City's mega-projects run over budget and how the public sector can build better.
The fiscal year 2017 New York State budget includes a growing capital budget that funds various ad-hoc initiatives without a meaningful planning process. This capital spending includes significant allocations such as $1.3 Billion for nanotechnology and high-tech manufacturing subsidies, $1 Billion for the Jacob Javits Center expansion, and $300 Million for a Long Island research corridor.
Key Data
$1.3 Billion
— subsidies for nanotechnology and high-tech manufacturing included in the capital budget.
$1 Billion
— allocated for the Jacob Javits Center expansion.
$300 Million
— allocated for a research corridor on Long Island.
New York State should rely on user fees like tolls to fund the Thruway Authority rather than using bank settlement funds, which encourages excessive motor vehicle use and undermines long-term fiscal responsibility. The state should also remove the financial burden of the Canal Corporation from the Thruway Authority while continuing to cover the costs of policing the road.
Recommendations related to Infrastructure Funding
The Governor and the Legislature should make a U-turn in policy and return to a sounder approach to funding the Thruway Authority by relying on user fees rather than state subsidies.
The Legislature should concur with the proposal to remove the Canal Corporation from the Thruway Authority to save on operating losses and capital spending.
The Legislature should reject the proposal to require the Thruway Authority to pay for its own policing, which costs approximately $35 million annually.
The State should avoid allocating additional bank settlement funds in the 2016-2017 budget to subsidize the Thruway Authority.
Key Data
$2.3 billion
— The amount of State funds from bank settlements the Governor proposes to use to subsidize the New York State Thruway Authority.
$50 million
— The estimated annual operating losses the Thruway Authority would save by removing the Canal Corporation from its financial responsibility.
$35 million
— The approximate annual cost of policing the Thruway that the State should continue to cover rather than shifting the burden to the Authority.
$1.4 billion
— The total amount the Thruway spent on canal operations and capital from 1993 to 2015.
$209 million
— The amount of planned capital spending for the Canal Corporation that would be alleviated if the corporation were removed from the Thruway.
The Executive Budget's reliance on one-time settlement funds to subsidize highway toll freezes and road operations is fiscally imprudent and encourages excessive driving. Furthermore, the state should expand the use of public-private partnerships for infrastructure projects while rejecting new, redundant oversight entities for capital construction.
Recommendations related to Infrastructure Funding
The state should reject the use of settlement funds to support the operation of roads and bridges, such as underwriting highway toll freezes.
The state should extend the authority to pursue public-private partnerships for infrastructure projects to all State agencies and the City of New York.
The state should reject the proposed Thruway Toll Tax Credit, as it encourages additional driving and puts further stress on infrastructure.
The state should reject the creation of a new entity to review capital projects exceeding $50 million, as it creates an unnecessary layer of oversight.
Key Data
$700 million
— Amount directed to the Thruway Authority in the Executive Budget.
$340 million
— Amount allocated for a tax credit for Thruway tolls.
$50 million
— Threshold for capital projects that would be reviewed by the proposed New York Design and Construction Corporation.
$590 million
— Amount dedicated to capital housing projects from settlement funds.
New York City's aging bridge infrastructure requires significant investment, yet current project delivery is plagued by delays and cost overruns, with projects currently running 45 percent over budget. Granting the city authority to use "design-build" contracting, which bundles design and construction into a single contract, could improve efficiency and potentially save $2 billion over the next decade.
Recommendations related to Infrastructure Funding
State legislators should enable New York City to benefit from design-build contracting to improve infrastructure project delivery.
The legislature should honor the request to include design-build authority for the New York City Department of Transportation in the budget bills.
Key Data
$7.7 billion
— Planned spending on bridge work over the next 10 years.
45 percent
— The amount by which current bridge projects are over budget.
$2 billion
— Potential savings for the City over 10 years if design-build contracting is implemented.
80 years
— The median age for a City-owned bridge.
20 percent
— The cost increase of NYCDOT contracts due to design change orders in fiscal year 2015.
New York City's efforts to divert organic waste from landfills face significant financial and logistical hurdles, with citywide curbside collection potentially costing between $177 million and $251 million annually. To achieve environmental goals without prohibitive costs, the city should focus on targeted approaches like limiting curbside collection to efficient districts and utilizing in-sink food waste disposers in areas with adequate wastewater infrastructure.
Recommendations related to Infrastructure Funding
Expand curbside collections only where and when additional collection routes are not required.
Consider encouraging use of in-sink disposers in select neighborhoods with adequate wastewater treatment plant infrastructure and capacity to reduce garbage collection.
Municipal leaders should understand that unless residential trash collection costs are reduced by fundamentally altering collection routes and practices, new program costs will greatly overwhelm any potential savings from landfill reduction.
The City should collaborate with the City Council to ensure high levels of residential usage for organics diversion programs.
The City should open all or some residential waste collection to a competition in which private carters could bid on routes to reduce costs.
Key Data
$177 million to $251 million
— Annual cost of citywide curbside organics collection.
88,000
— New truck-shifts needed each year for citywide curbside collection.
1.8 million tons
— Annual amount of organic waste generated in New York City.
$4 million
— Annual savings from implementing in-sink disposers in four specific districts.
176,000 tons
— Available annual capacity for composting facilities within 150 miles.
12 percent to 26 percent
— Range of capture rates for organic waste in the residential pilot.
NY1 Governor Cuomo said he wants an additional mile-and-a-half of track built to create a rail link between La Guardia Airport and Willets Point in Queens.
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 reallocate funding from new expansion projects to essential repairs, enhance project management to reduce costs, and leverage public-private partnerships.
Recommendations related to Infrastructure Funding
The MTA should reallocate available capital funds from new expansion projects to state of good repair work to accelerate station improvements.
The agency should improve the management of station projects to lower costs and permit more progress with available funds.
The MTA should experiment with new models of public-private partnerships at selected stations to secure additional capital and implement projects more efficiently.
The agency should identify opportunities for introducing station conservancies to marshal resources to rehabilitate and maintain stations on an ongoing basis.
Key Data
467
— Total number of subway stations requiring rehabilitation and repair.
15,275
— Total number of structural components in the subway system.
3,195
— Number of structural components, or 21 percent, that will not be in a state of good repair after the 2010-2014 capital plan.
$5.5 billion
— Amount allocated for expansion projects across the mass transit system in the proposed 2015-2019 capital plan.
$1.3 billion
— Amount allocated for projects to improve station components in the proposed 2015-2019 capital plan.
$997 million
— Amount allocated for investments in elevators, escalators, and accessibility improvements in the proposed 2015-2019 capital plan.
The Metropolitan Transportation Authority faces a persistent backlog in maintaining subway stations in a state of good repair, with current capital plans failing to address the deterioration of thousands of structural components. To improve outcomes, the agency should shift funding from expansion projects to essential repairs, enhance project management to control costs, and leverage public-private partnerships to secure additional capital.
Recommendations related to Infrastructure Funding
The MTA should reallocate available capital funds from new expansion projects to state of good repair work.
The agency should improve the management of station projects to lower costs and permit more progress with available funds.
The MTA should experiment with new models of public-private partnerships at selected stations to secure additional capital and implement projects more efficiently.
The agency should identify opportunities for introducing station conservancies to help rehabilitate and maintain stations.
The MTA should invite private partners into station-related public-private partnerships to enhance progress toward a state of good repair.
Key Data
15,275
— Total number of structural components in the subway system.
21%
— Share of structural components that will not be in a state of good repair after the completion of the 2010-2014 capital plan.
$5.5 billion
— Total funding allocated for expansion projects across the mass transit system in the proposed 2015-2019 capital plan.
$1.3 billion
— Total funding for station component work in the proposed 2015-2019 capital plan.
$43 million
— Cost per station for ADA accessibility projects in the proposed capital plan.
The MTA capital plan faces a significant funding gap, and rather than debating city versus state contributions, the focus should shift to increasing revenue from motor vehicle cross-subsidies. A "50-25-25" funding model—relying on fares, tax subsidies, and motor vehicle fees—is proposed, with long-term reliance on a vehicle-miles-traveled (VMT) tax and immediate implementation of congestion pricing and tolling policies.
Recommendations related to Infrastructure Funding
The Citizens Budget Commission recommends that drivers cover more than twice that proportion of the costs.
The public debate over funding from the City or the State should be replaced by a discussion of how to generate more funding for the MTA from motor vehicle cross-subsidies - with '50-25-25' the best model.
Over the long term there should be a VMT tax, which could also fund transportation infrastructure state-wide.
More immediate funding should come from enhanced tolling policies, including East River bridge tolls and other congestion pricing mechanisms, or higher vehicle registration fees.
Key Data
$29.8 billion
— Size of the MTA capital plan.
$9.8 billion
— Reduced funding gap for the MTA capital plan.
73 percent
— Share of the $1.3 billion regional payroll tax paid by New York City employers.
48 percent
— Portion of MTA transit services funding provided by fares.
40 percent
— Portion of MTA transit services funding provided by tax subsidies.
12 percent
— Portion of MTA transit services funding provided by motor vehicle cross-subsidies.
The Metropolitan Transportation Authority's 2015-2019 capital plan faces a $9.8 billion funding gap, requiring a shift away from debating City versus State contributions toward more sustainable revenue sources. Increasing funding through motor vehicle cross-subsidies, such as congestion pricing or vehicle-miles traveled fees, is necessary to address the plan's shortfall and long-term infrastructure needs.
Recommendations related to Infrastructure Funding
The details of which projects will utilize alternative project delivery methods should be specified in the revised plan.
City, State, and MTA leaders should drop the “City/State” frame of reference and develop a concrete plan to put the necessary funding in place.
The MTA should increase funding from motor vehicle cross-subsidies to offset negative externalities like traffic congestion.
In the longer term, the state should implement a vehicle-miles traveled fee system to fund transportation infrastructure.
More immediate funding should come from East River bridge tolls and other congestion pricing mechanisms or higher vehicle registration fees.
Key Data
$2.2 billion
— Estimated savings from efficiencies in the MTA capital plan.
$9.8 billion
— Funding gap in the MTA capital plan that leaders are debating how to apportion.
$580 million
— Annual amount New York City taxpayers fund in operating and capital support to the MTA.
$4.2 billion
— Amount of the nearly $6 billion allocated to the MTA from state-authorized regional and statewide taxes that is funded by New York City.
73 percent
— Portion of the MTA’s $1.3 billion regional payroll tax paid by New York City firms.
48 percent, 40 percent, and 12 percent
— Current funding breakdown for MTA transit services from fares, tax subsidies, and motor vehicle cross-subsidies, respectively.
Brooklyn Independent Media The Mayor's Executive Budget, which leaves unanswered how billions of dollars in much-needed transit improvements will be funded. The MTA is preparing its capital plan through 2019 which will determine the system's future condition.
The Metropolitan Transportation Authority requires over $14 billion annually to operate, with funding currently derived from a mix of fares, tolls, and various taxes. To ensure a sustainable financial future, the system should restructure its revenue model to rely on specific percentages from transit users, motorists, and tax subsidies to cover operating costs and necessary capital investments.
Recommendations related to Infrastructure Funding
Mass transit users should pay fares sufficient to cover 45 to 50 percent of the operating costs of those services.
The cost of road infrastructure—bridges and tunnels in the MTA’s case—ought to be borne entirely by motorists.
Motor vehicle user fees should generate a surplus large enough to cover 20 to 25 percent of the cost of mass transit services to help compensate for the negative externalities of vehicle use.
Tax subsidies to mass transit should comprise 25 to 30 percent of the operating costs and also fund “catch up” capital investments needed to bring the system to a state of good repair.
Key Data
$14 billion
— Annual operating cost of the MTA system.
$5.7 billion
— Annual revenue generated by the fare box.
$1.7 billion
— Annual revenue generated by tolls on MTA bridges and tunnels.
$16.6 billion
— Estimated 2018 funding requirement for mass transit services, excluding Bridges and Tunnels.
$2.1 billion
— Projected unfunded deficit for mass transit services in 2018.
New York City's $83.8 billion Ten-Year Capital Strategy lacks sufficient information to justify investments and threatens to exacerbate the city's already high debt burden. To ensure fiscal responsibility, the city must require improved reporting on the rationale and performance goals of capital spending while limiting the budget to clearly defined projects with demonstrable benefits.
Recommendations related to Infrastructure Funding
The City should incorporate information from agency assessments to clearly spell out how much of state of good repair needs will be addressed by the proposed investments, and how quickly.
The City should provide specificity for OneNYC investments before dollars are appropriated.
The City should provide performance metrics and timelines with milestones to assess spending.
The City should ensure operating costs or savings are considered and incorporated in the operating budget.
The Council should require improved reporting on the rationale for and performance goals of capital spending.
The Council should limit the capital budget to clearly defined projects with demonstrable benefits.
Key Data
$83.8 billion
— Total value of the Ten-Year Capital Strategy for Fiscal Years 2016 to 2025.
$100 billion
— Amount of debt currently outstanding for the City.
$30 billion
— Amount of new debt the City will issue in the next four years to support the capital plan.
$7.7 billion
— Projected annual debt service by fiscal year 2019.
8 percent
— Debt outstanding in fiscal year 2016 as a percentage of the City’s real property values.
13 percent
— Debt outstanding in fiscal year 2016 as a percentage of the City's personal income.
New York City taxpayers already provide $4.5 billion annually to the Metropolitan Transportation Authority, significantly more than the $2.1 billion contributed by taxpayers outside the city. To address the agency's funding needs, the state should implement user charges on motor vehicles, such as a vehicle-miles traveled tax, rather than relying further on city tax revenue.
Recommendations related to Infrastructure Funding
The MTA should raise necessary funds through user charges on motor vehicles.
The MTA should increase funding contributions from motorists to support transit needs.
New York should implement a vehicle-miles traveled (VMT) tax to provide a fiscal foundation for future highway and mass transit investments.
Key Data
$1 billion
— MTA's annual future budget hole.
$100 million
— Current City annual contribution to the MTA capital plan.
$300 million
— Proposed City annual contribution to the MTA capital plan.
$5.4 billion
— MTA's annual revenues from state-authorized taxes.
$4.5 billion
— Total annual contribution from New York City taxpayers to the MTA.
$2.1 billion
— Total annual contribution from taxpayers outside the city to the MTA.
New York City's Ten-Year Capital Strategy requires greater transparency regarding affordability, integration with OneNYC infrastructure goals, and specific performance metrics to justify its $67.7 billion preliminary commitment. The plan must clearly outline how proposed investments will address the city's state of good repair needs and provide benchmarks for debt sustainability.
Recommendations related to Infrastructure Funding
The City should establish clear benchmarks to determine the affordability of its capital investments given that debt is already high.
Each agency should describe how its capital spending plans advance the goals of OneNYC, and funding for specific OneNYC infrastructure initiatives should be clearly identified.
Agency plans should be accompanied by information on per-unit costs and performance targets to allow for the assessment of priorities.
The Strategy should incorporate information from asset assessments and clearly spell out how much of state of good repair needs will be addressed by the proposed investments, and how quickly.
Key Data
$67.7 billion
— Total capital commitments in the preliminary version of the Ten-Year Capital Strategy.
$14 billion
— Amount by which the Preliminary Strategy exceeded the previous ten-year plan.
8 percent
— Debt supported directly by City tax dollars as a percentage of real property values.
5 percent
— Affordability benchmark for debt supported directly by City tax dollars.
$100 billion
— Amount of debt outstanding already surpassed by the City.
New York faces significant unfunded capital needs in its transportation and transit infrastructure, requiring comprehensive financing plans to address major projects like the Tappan Zee Bridge replacement and the Metropolitan Transportation Authority's five-year capital plan. To ensure these investments provide a long-term return for taxpayers, the state must adopt a more rigorous framework for evaluating the cost-benefit of proposed infrastructure spending.
Recommendations related to Infrastructure Funding
The state should accompany potential high-yield investments with comprehensive financing plans to address the full cost of the Tappan Zee Bridge replacement and the hole in the MTA’s full five-year capital plan.
New York should develop and adopt a stronger framework to evaluate proposed investments relative to return on investment.
Key Data
$1.3 billion
— Allocated to the Thruway Authority for transportation and transit infrastructure needs.
$750 million
— Allocated for other bridge and road projects.
$400 million
— Allocated to the Metropolitan Transportation Authority for its Access to Penn Station project and for parking and development near commuter rail stations.
New York State's economic development spending grew to an estimated $8.1 billion by 2014, with significant portions directed toward capital projects and tax expenditures that lack sufficient accountability and evidence-based targeting. To improve cost-effectiveness, the state should standardize performance metrics, coordinate investments with regional strategies, and require comprehensive disclosure to allow for a proper weighing of project costs and benefits.
Recommendations related to Infrastructure Funding
All investments should be coordinated and aligned to regional strategies.
Performance metrics should be standardized for all programs and across all regions.
More comprehensive disclosure requirements should be put in place so that the costs and benefits of each project can be weighed.
All programs should be reevaluated for effectiveness before existing programs are increased or new ones are added.
The framework for designing and evaluating economic development programs identified by CBC in 2011 should be utilized.
Key Data
$8.1 billion
— Annual economic development investments in 2014.
$1.9 billion
— Proposed new capital appropriations for Empire State Development in the fiscal year 2016 Executive Budget.
$1.3 billion
— Total capital spending on Tech Valley projects from 2010 to 2014.
$550 million
— Total stadium investments over the 2010-2014 period.
$762 million
— Debt service for economic development and housing in fiscal year 2014.
$2.9 billion
— Total amount awarded to Regional Economic Development Councils from 2011 through 2014.
The Port Authority of New York and New Jersey should repurpose underutilized Brooklyn port facilities that currently generate significant financial losses. Converting these 105 acres for community development could save $29 million annually while creating thousands of housing units and jobs.
Recommendations related to Infrastructure Funding
The Port Authority should repurpose the Brooklyn and Red Hook port facilities to reduce losses and spending.
The Port Authority should close the two underutilized facilities to redirect funds to other regional priorities.
The Port Authority should engage the community in envisioning how the property could best be used for housing, commercial space, schools, and parks.
Key Data
$82 million
— The amount of money the Port Authority of New York and New Jersey lost in 2013.
$29 million
— The amount of money the Port Authority would save annually by 2029 if the facilities were repurposed.
105 acres
— The total size of the facilities that could be made available for development.
$205,718
— The loss per acre produced by the Brooklyn facility in 2013.
$184,788
— The loss per acre produced by the Red Hook facility in 2013.
2,500
— The number of jobs the site could yield if repurposed.
The FY2016 Executive Budget allocates $1.7 billion to the Thruway Authority and the MTA, though these investments are considered insufficient to address the massive capital needs of both entities. Additionally, the budget proposes making design-build permanent, a procurement method that previously saved 27 percent on Department of Transportation projects.
Recommendations related to Infrastructure Funding
The Governor should continue to champion the use of design-build as a proven tool for reducing construction costs.
Viable capital plans must be developed for the Thruway Authority and the MTA to ensure the proposed allocation of $1.7 billion pays off.
Viable financing plans are imperative for the MTA and Thruway Authority to address the gigantic holes in their capital plans.
Key Data
$1.7 billion
— Proposed allocation to the Thruway Authority and the MTA from bank settlement proceeds.
27 percent
— Savings achieved on Department of Transportation projects using the design-build procurement method.
$1.3 billion
— Proposed funding from bank settlements for the Thruway Authority for the new Tappan Zee Bridge and other needs.
$400 million
— Proposed funding for the MTA for Penn Station Access and parking and development at suburban stations.
$750 million
— Additional capital appropriations added to the State's five-year capital plan for the MTA for FY2018 to FY2020.
The Governor's FY 2016 budget proposal includes significant funding for transportation and transit infrastructure, such as the Tappan Zee Bridge replacement and the Metropolitan Transportation Authority's capital plan, utilizing bank settlement proceeds. The $1.5 billion allocated for economic development would be more effectively invested in addressing the state's pressing infrastructure needs.
Recommendations related to Infrastructure Funding
The $1.5 billion in one-time settlement funds, in particular, would be better invested in infrastructure needs.
It is important not to allow design-build authority to permanently lapse.
Key Data
$3.9 billion
— The financing plan shortfall for the Tappan Zee Bridge replacement.
$32 billion
— The proposed capital plan of the Metropolitan Transportation Authority (MTA).
$1.3 billion
— The amount of bank settlement proceeds allocated to the Thruway Authority for the new bridge.
$750 million
— The amount allocated in the State’s five-year capital plan for bridge and road projects.
$400 million
— The amount of one-time funds from bank settlements proposed for the Access to Penn Station project and for parking and development near commuter rail stations.
$750 million
— The additional capital commitments to the MTA extended from fiscal year 2017 to 2020.
The Port Authority's maritime ports consistently run deficits, requiring subsidies from other business lines, and are projected to continue doing so without policy changes. To achieve fiscal sustainability, the Port Authority should repurpose underutilized facilities and support changes to collective bargaining agreements to lower labor costs and improve competitiveness.
Recommendations related to Infrastructure Funding
The Port Authority should identify excess capacity at facilities with low productivity and convert them to higher uses.
The Port Authority should increase potential revenue from terminal leases as they come up for renewal by supporting terminal operators in efforts to increase productivity through collective bargaining.
The Port Authority should close and repurpose obsolete and underperforming facilities like Brooklyn and Red Hook.
The Port Authority should support changes to collective bargaining agreements to lower costs driven by staffing arrangements for groups of workers that service ships and move cargo.
The Port Authority should eliminate cash payments and port-specific assessments for container royalties to lower costs.
Key Data
$107 million
— Projected annual deficit for Port Commerce in 2029.
$82 million
— 2013 loss for Port Commerce.
$354 million
— Estimated container royalties paid by carriers for New York-New Jersey terminals in 2013.
$300 million
— Potential cost reduction from eliminating cash payments and port-specific assessments.
$29 million
— Projected annual savings by 2029 from closing Brooklyn and Red Hook facilities.
$2.8 billion
— Total capital plan commitment for projects affecting Port Commerce from 2014-2023.
New York State's $5 billion windfall from bank settlements should be directed toward high-priority investments like environmental and transportation infrastructure that improve long-term fiscal health rather than recurring costs. To maximize these funds, officials should prioritize projects with clear economic benefits, adopt formal allocation processes for infrastructure banks, and extend design-build procurement authority to reduce project costs.
Recommendations related to Infrastructure Funding
The State should prioritize investments in environmental and transportation infrastructure to improve long-term fiscal health.
State leaders should prioritize infrastructure projects that address documented needs and increase the state’s economic competitiveness.
If an infrastructure bank is endowed, the State should adopt clear criteria and a formal allocation process.
State leaders should use the opportunity presented by a special session to extend design-build procurement authority.
Key Data
$5 billion
— The amount of the windfall from bank settlements available for potential state investment.
almost 40 percent
— The amount of the state’s pavement that is in fair or poor condition.
27 percent
— The reduction in project costs achieved by the Department of Transportation using design-build procurement.
$138 billion
— The total of the State’s annual budget, providing context for the size of the $5 billion windfall.
The Metropolitan Transportation Authority faces a $15 billion funding gap for its $32 billion capital plan, which requires a balanced approach involving public subsidies, fare increases, and increased contributions from motorists. Implementing a "25-50-25" funding model—relying on tax subsidies, user fares, and cross-subsidies from drivers—would provide a sustainable path to maintain and modernize the transit system.
Recommendations related to Infrastructure Funding
Better planning and greater transparency should precede investments in new expansions.
The MTA should adopt a "25-50-25" approach for funding, where public subsidies cover one-quarter of costs, mass transit fares cover one-half, and motorists' user charges cover one-quarter.
The MTA should implement modest fare increases to bring fares closer to the 50 percent target.
The MTA should increase the motor vehicle users' cross-subsidy, potentially through the Move New York plan, to reach its 25 percent target.
Key Data
$13.5 billion
— MTA spending in 2014.
$32 billion
— Total investments in the MTA's capital plan.
$15 billion
— The funding gap in the MTA's capital plan.
$1.6 billion
— Annual increase in funding from the payroll mobility tax.
$2.75
— Projected single-ride subway fare by 2016.
$167 to $293
— Annual increased costs for motorists under the Move New York plan.
The MTA's 2015-2019 capital plan faces a $15.2 billion funding gap and fails to adequately prioritize essential infrastructure repairs or modernize signal systems. Instead of committing to new, costly expansion projects without clear benefits, the agency should focus on establishing explicit criteria for project selection and accelerating the implementation of critical system upgrades.
Recommendations related to Infrastructure Funding
The MTA should revise its capital plan to make sufficient progress in bringing aged infrastructure to a state of good repair.
The MTA should accelerate the modernization of signal and communication systems in the subways.
The MTA should postpone commitment to new expansion projects until an improved planning process is established and used to assess multiple potential projects.
The MTA should establish explicit criteria for selecting priority projects and consider evidence regarding how well potential investments meet these criteria.
The MTA should rethink the management of large-scale projects to promote more effective implementation.
Key Data
$32 billion
— Total investment amount called for in the MTA's 2015-2019 capital plan.
$15.2 billion
— The unfunded gap remaining in the MTA's 2015-2019 capital plan.
$5.4 billion
— Total shortfall in funding for major asset categories compared to the needs assessment.
$10.8 billion
— Current estimated cost of the East Side Access project, which was originally approved at $6.3 billion.
$743 million
— Amount committed to the Penn Station Access project, which the report deems premature.
$815 million
— Amount by which funds designated for communication and signals at NYCT were reduced from the needs assessment to the adopted plan.
The proposed $2 billion Smart Schools Bond Act should be rejected because it lacks a statewide needs assessment and would push the state dangerously close to its statutory debt cap. Instead of funding unproven technology initiatives, the state should prioritize borrowing capacity for critical infrastructure needs that have documented, high-priority requirements.
Recommendations related to Infrastructure Funding
New Yorkers should reject the Smart Schools Bond Act.
The borrowing capacity remaining under the debt cap should be reserved for these high-priority investments, not used to fund yet unjustified one-time technology purchases.
Before $2 billion is committed, a statewide needs assessment should be conducted.
Any list of capital needs to be funded with state-supported debt should be established through the new statewide capital planning process.
Other high priority capital needs that have a proven return on investment should take precedence.
Key Data
$2 billion
— The total amount of general obligation bonds authorized by the Smart Schools Bond Act to fund educational technology equipment and other capital projects.
4 percent
— The statutory debt cap limit on state-supported debt as a percentage of personal income.
$174 billion
— The total capital needs identified in the state's 10-Year Capital Plan for 48 state agencies and authorities.
$89 billion
— The estimated state and local infrastructure funding shortfall over the next 20 years, according to a December 2012 State Comptroller report.
$366 million
— The projected unused debt capacity in fiscal year 2016-17 if the Smart Schools Bond Act passes.
$2.9 billion
— The amount of debt authorized by the 2005 Rebuild and Renew Transportation Bond Act.
The PATH rail system faces growing annual deficits that are currently covered by bridge and tunnel toll cross-subsidies, a model that is unsustainable and inequitable. To improve fiscal viability, the system should adopt a more balanced funding structure that includes passenger fares, tax subsidies, and reduced reliance on cross-subsidies, potentially involving a governance transfer to New Jersey Transit.
Recommendations related to Infrastructure Funding
PATH should adopt a consistent funding structure that shares the cost of operating the transit system among all who benefit.
Auto user fees should pay for the facilities available to drivers.
Motorists’ tolls and fees should also generate a surplus large enough to cover a share of the cost of providing mass transit services.
Mass transit users should pay fares sufficient to cover a share of the cost of those services.
State and local tax subsidies to mass transit should cover a share of the cost of those services.
Implementing the recommended changes in financing for PATH could be accompanied by a shift in governance authority and operational responsibility for the rail lines to NJT.
Key Data
$487 million
— Projected annual deficit for PATH in 2018.
$383 million
— PATH's annual deficit in 2013.
$3.9 billion
— Estimated cost of the new terminal and related amenities.
$1.5 billion
— Expected cost of the project to extend PATH to the Newark Airport AirTrain.
$1.2 billion
— Annual government subsidies received by NJT in 2013.
$2.2 billion
— Total estimated value of damage to PANYNJ facilities from Superstorm Sandy.
The New York State Department of Transportation faces significant challenges that require a comprehensive needs assessment to determine the resources necessary for implementing a capital plan. This assessment is essential for addressing the agency's infrastructure requirements and long-term planning.
The New York City Department of Environmental Protection's budget profile and the governance of the city's water and sewer system are examined. The financial and operational framework for these essential city services is detailed.
New York State is set to receive over $4 billion in legal settlements, which should be used to reduce long-term debt, address unfunded liabilities, and increase capital investments. These funds offer a unique opportunity to improve the state's financial health and infrastructure without relying on borrowing.
Recommendations related to Infrastructure Funding
The state should use settlement funds to increase pay-as-you-go capital investments to accelerate reaching a state-of-good-repair for key transportation and transit assets without borrowing.
The state should utilize funds to fund renovations at about 200 of the city's 468 subway stations to improve transit infrastructure.
The state should make one-time investments in physical assets or information-technology systems that provide multiyear benefits rather than using funds for short-term purposes.
Key Data
$174 billion
— 10-year statewide capital plan detailing capital needs across 47 state agencies and public authorities.
$118 billion
— Portion of the 10-year statewide capital plan dedicated to state-of-good-repair projects to bring assets to an acceptable condition.
$4 billion
— Total amount of settlement funds from large financial institutions available to the state.
$52.2 billion
— Total amount of New York state's long-term debt.
$231 million
— Annual savings from paying off $4 billion of 30-year bonds with 4% interest.
$6.9 billion
— Total savings from paying off $4 billion of 30-year bonds with 4% interest.
The Port Authority of New York and New Jersey has made progress in adopting budget reforms, yet it still lacks transparent, project-specific funding sources and independent oversight for its capital investments. While the agency maintains a $780 million surplus for capital projects, it must improve its long-term strategy and public reporting to ensure infrastructure investments are effectively managed and prioritized.
Recommendations related to Infrastructure Funding
The Port Authority should base its capital strategy on a professional assessment of needed investment to maintain a state of good repair and accommodate long-term demand trends.
The agency should adopt an explicit policy for financing capital investments using a mix of debt and pay-as-you-go (PAYGO) sources.
The Port Authority must indicate specific sources of funding for each individual capital investment.
The agency should report quarterly on the status of each capital project relative to scheduled milestones and planned costs.
The Port Authority should use independent engineering consultants to monitor major capital projects and report findings to the board and the public.
Key Data
$780 million
— The amount of surplus funds available in the adopted budget for capital investment.
The PATH rail system faces growing financial deficits that burden the Port Authority, necessitating a transfer of operations to New Jersey Transit and a restructuring of its funding model. Implementing new revenue sources, such as tax subsidies and increased fares, would allow the Port Authority to redirect resources toward other critical regional transportation infrastructure.
Recommendations related to Infrastructure Funding
Responsibility for running PATH should be shifted to New Jersey Transit.
The system should adopt a '50-25-25' funding approach drawing 50 percent of needed revenue from fares, 25 percent from tax subsidies, and 25 percent from cross-subsidies.
Alternatively, an 'equal shares' funding approach should be implemented to draw one-third of the needed revenue from each of the three sources.
The system should increase fares beyond current plans to support the new funding models.
It is time to transfer PATH operations from the Port Authority to New Jersey Transit.
Key Data
$383 million
— The 2013 operating deficit for the PATH rail system.
$387 million
— The projected 2014 operating deficit for the PATH rail system.
$1.96
— The average fare revenue per ride in 2013.
$175 million
— The subsidy required for the '50-25-25' funding formula in 2018.
$233 million
— The subsidy required for the 'equal shares' funding approach in 2018.
$12.50
— The scheduled EZ-Pass, round-trip, peak-hour toll on Port Authority bridges and tunnels in 2018.
New York has successfully utilized design-build procurement to accelerate infrastructure repairs and reduce project costs by 27 percent, with over $171 million in contracts already completed. To address pressing infrastructure needs, the state should continue and expand the use of these procurement methods and public-private partnerships for future capital projects.
Recommendations related to Infrastructure Funding
New York should continue, and preferably expand, its ability to capture the benefits of P3 approaches.
The full proposal made by the Governor regarding the extension of design-build procurement should be in the adopted budget.
Key Data
$171.2 million
— Value of completed contracts using design-build procurement in New York.
$750 to $850 million
— Value of design-build contracts currently in process.
42 months
— Acceleration of the planned completion of repair on the Kosciuszko Bridge.
27 percent
— Estimated reduction in costs on projects awarded pursuant to design-build.
$12 billion
— Planned highway and bridge construction projects over the next five years.
New York City's capital planning and spending during the Bloomberg administration resulted in significant investment in infrastructure, yet left the city with a high debt burden and insufficient maintenance for critical assets. The next administration should adopt a "fix it first" strategy, improve asset management, and implement clearer investment standards to ensure long-term fiscal responsibility and infrastructure quality.
Recommendations related to Infrastructure Funding
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 City should adopt a “fix it first” strategy, in which state of good repair projects receive priority at each agency.
The administration should develop criteria for paying for some capital expenses from the operating budget to keep the long-run debt burden manageable.
City leaders should advocate for changes to contracting rules, including a repeal of Wicks Law and the expansion of the city’s toolbox for effective contracting.
Key Data
$111 billion
— Total capital commitments registered since fiscal year 2003 plus additional authorized in the current fiscal year.
$100 billion
— Amount of debt outstanding for the City.
$6.4 billion
— State of good repair requirements in fiscal year 2014.
$3.2 billion
— Projected cost of the Croton Filtration Plant, more than double the original cost.
$300 million
— Estimated capital budget savings over four years from Project Labor Agreements.
$4.5 billion
— Stated funding gap for the resiliency and mitigation plan.
New York City's capital spending on economic development projects grew significantly from $275 million in fiscal year 2002 to $751 million in fiscal year 2012, with major investments directed toward infrastructure like the Hudson Yards project. While these investments have spurred private activity, future policy should prioritize infrastructure in neighborhoods with high growth potential and improve the transparency and cost-effectiveness of economic development tools.
Recommendations related to Infrastructure Funding
Use capital investments to enhance infrastructure in neighborhoods with job growth potential.
Encourage growth in the cultural, medical and educational sectors by enhancing access to capital through conduit financing.
Continue reform of as-of-right tax expenditure programs to make them more cost-effective.
Establish clearer standards for awarding discretionary tax expenditure benefits.
Continue rezoning and expand special mixed use districts to facilitate diversified job growth in areas currently limited to industrial use.
Better manage the Economic Development Corporation by focusing on job creation and enhancing transparency.
Key Data
$751 million
— Capital spending on economic development in fiscal year 2012.
$275 million
— Capital spending on economic development in fiscal year 2002.
$9.2 billion
— Total face value of 226 projects supported by conduit financing between fiscal years 2002 and 2012.
$3.0 billion
— Total expected local investment for the Hudson Yards infrastructure project.
$57 million
— Amount spent by the Economic Development Corporation for the Parks Department.
$48 million
— Amount from the Sanitation Department used to help a private firm build a recycling facility.
New York State's first 10-year statewide capital plan commits $174 billion to infrastructure projects, but the plan requires better data on asset conditions, a clearer financing strategy, and improved project-level tracking to be truly effective. Establishing a framework to assess the affordability of these investments and standardizing reporting across agencies will ensure the state can better prioritize and manage its long-term infrastructure needs.
Recommendations related to Infrastructure Funding
The next version of the plan should include better information about asset condition and the match-up between planned levels of state of good repair (SOGR) spending and need.
The state should develop an improved financing plan that addresses the issue of affordability.
The state should provide better project-level data to facilitate project tracking.
The state should set condition improvement targets and provide estimates of the cost of achieving the desired improvement for infrastructure assets.
The state should reconcile differences and standardize the approach to commitments versus financing and disbursements in future capital plans.
Key Data
$174 billion
— Total planned investment commitments across eight broad sectors in the 10-year statewide capital plan.
$113 billion
— Amount of the plan committed to transportation, representing 65 percent of the total.
$117.8 billion
— Total investment allocated for State of Good Repair (SOGR) projects.
$95.4 billion
— Total assets net of depreciation reported by New York State in fiscal year 2012.
$180.3 billion
— Total debt outstanding for the agencies and authorities included in the plan for fiscal years ending in 2011-12.
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.
New York City's ten-year capital strategy proposes $53.7 billion in infrastructure investments, yet the city faces a high and growing debt burden that limits its ability to fund necessary repairs and climate resiliency projects. The next administration must navigate these fiscal constraints by making difficult trade-offs between maintaining existing assets and pursuing new capital improvements.
Recommendations related to Infrastructure Funding
The next mayor will have to make difficult trade-offs between competing priorities while ensuring the city’s debt does not become unaffordable.
The next Mayor will have to determine a level of long-term capital investment that takes into account the city’s already high debt burden.
Proposals from the Economic Development Corporation regarding resiliency will need to be incorporated into the city’s long-term capital agenda.
Key Data
$53.7 billion
— Total capital commitments proposed in the Ten-Year Capital Strategy for Fiscal Years 2014-2023.
$24.5 billion
— Funding devoted to rehabilitating schools, repairing bridges, repaving roads, and bringing other assets to a state of good repair.
$13.5 billion
— Funding for upgrading equipment and replacing old water and sewer infrastructure and vehicles for sanitation, fire, and police services.
$13.6 billion
— Expansion spending on new assets and large-scale capital improvements.
$67.9 billion
— City debt outstanding in fiscal year 2013.
$75.5 billion
— Projected city debt by fiscal year 2017.
The Metropolitan Transportation Authority faces recurring deficits and inadequate capital investment, necessitating a new financing policy to ensure long-term fiscal stability and system maintenance. A proposed '25-50-25' formula suggests allocating costs among motorists, transit riders, and tax subsidies to create a more equitable and sustainable funding structure.
Recommendations related to Infrastructure Funding
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.
The MTA should stop running large deficits and lower its future debt burden by funding regular replacement needs with operating revenues rather than borrowing.
Key Data
$17.1 billion
— Annual operating and financing expenditures of the MTA’s agencies budgeted for 2012.
$3.6 billion
— Projected deficit for the MTA in 2016.
$17.8 billion
— Cumulative unfunded OPEB liability as of the end of 2011.
$39 billion
— Projected MTA debt outstanding in 2015.
$2.6 billion
— Additional annual revenue the 25-50-25 policy would provide by 2016.
$16.8 billion
— Total investment represented by five 'megaprojects' with cost overruns of more than $3.6 billion.
New York City spends over $2 billion annually to dispose of its garbage, with a significant portion of this waste exported to out-of-state landfills at a cost of $95 per ton. Shifting to local waste-to-energy facilities could save taxpayers $119 million annually and reduce greenhouse gas emissions by 35 percent.
Recommendations related to Infrastructure Funding
The City should foster the construction of waste-to-energy plants sited and designed for city needs and should partner with owners of existing facilities within the region to expand their capacity and willingness to process New York City’s waste.
The City should employ a combination of financial incentives and streamlined recycling rules to further reduce landfilling.
The City should stick to its plan and reinvigorate the recycling program by touting the expansion and the simplification of recycling rules.
The City should pursue strategies to bring this number down through policies aimed at less waste generation and more recycling.
Municipal leaders should give high priority to managing it in a way that is fiscally and environmentally sound.
Key Data
$2 billion
— Annual cost in tax dollars for New York City to throw out its garbage.
$300 million
— Annual cost of disposing of the garbage, usually in out-of-state landfills.
$95 per ton
— Cost for the three million tons of garbage the City exports to landfills.
679,000 metric tons
— Annual greenhouse gas emissions generated by the waste New York City sends to landfills.
$119 million
— Annual savings if new and expanded facilities accommodate two million tons of New York City waste.
$2 billion
— Present value savings over 30 years if new and expanded facilities accommodate two million tons of New York City waste.
The Metropolitan Transportation Authority faces a significant debt burden, with debt service costs consuming a large portion of its revenue and projected to rise, necessitating careful management of debt refunding to avoid placing unfair financial burdens on future riders and taxpayers. To ensure fiscal responsibility, the agency should prioritize straightforward, high-to-low interest rate refunding strategies that generate genuine long-term savings rather than utilizing 'back-loaded' or 'stretched' debt structures that merely defer costs.
Recommendations related to Infrastructure Funding
The MTA should follow guidelines that promote the greatest total savings and prevent the unfair passing of costs onto future taxpayers and straphangers.
The MTA board should not seek any exemptions from the State Comptroller’s guidelines, which prohibit stretching of debt and require nominal dollar savings in debt service.
The MTA should pursue a timely, appropriately structured refunding of current debt to take advantage of falling interest rates rather than relying on strategies that increase long-term costs.
The MTA should avoid 'back-loaded' or 'stretched' refunding practices that juggle the timing of debt service costs to lower short-term outlays at the expense of future riders and taxpayers.
Key Data
$32 billion
— The amount of long-term debt outstanding for the Metropolitan Transportation Authority.
$2.1 billion
— The cost of debt service for the MTA in 2012.
$2.6 billion
— The projected debt service cost for the MTA by 2015.
$7 billion
— The amount of outstanding debt MTA leaders are considering for a large-scale refunding.
$39 billion
— The projected amount of outstanding debt the MTA will have by 2015.
$14,000
— The amount of debt for each worker commuting daily into New York's central business district.
New York City's water and sewer system currently pays an arbitrary rental fee to the city treasury that has grown from $102 million in 2003 to $234 million in the current fiscal year. Establishing a more transparent, service-based method for calculating this rent would improve legitimacy, though it would likely not result in lower costs for water customers.
Recommendations related to Infrastructure Funding
The City should adopt a payment of City-funded GO debt service plus payment for services rendered by the City to the water and sewer system as a more appropriate method for setting the rent.
The Water Board could make a rental payment equivalent to what it would pay in City property taxes under the rate charged utilities.
The Water Board could make a rental payment equivalent to what it would pay under the utilities business income tax.
The Water Board could make a rental payment equivalent to what it would pay for property and utilities business income taxes combined, as other utilities do.
Policymakers should establish a better justified basis for setting the rent that is rooted in a logic more closely tied to the value of the City’s services.
Key Data
$234 million
— The rental payment made by the water and sewer system to the City treasury in the current fiscal year.
$30 billion
— Total capital investment authorized to expand, improve, and maintain the water and sewer system since 1985.
$12.1 billion
— Projected capital commitment for the water and sewer system over the next ten years.
$73.8 million
— Amount paid by the Water Board to the City in fiscal year 2011 for judgments, claims, and street cleaning services.
$15 billion
— Value of real property assets held by the water system that could be subject to property taxes.
$229.7 million
— The increase in rent that would have occurred in fiscal year 2011 under a property tax approach.
The state's agreement to authorize design-build procurement for infrastructure projects offers a more efficient way to deliver and maintain public facilities compared to conventional methods. While this reform is part of a tax package generating $1.9 billion in annual revenue, it specifically targets improved project speed and long-term facility condition.
Recommendations related to Infrastructure Funding
New York should authorize design-build procurement practices for infrastructure projects to deliver facilities more speedily than conventional procurement.
New York should combine design-build procurement with longer-term maintenance contracts to lock-in commitments to keep facilities in better condition.
Public-private partnerships offer a viable mechanism for New York to improve infrastructure management by leveraging private sector expertise for design, construction, and long-term maintenance. By focusing on life-cycle efficiencies and utilizing models like availability payments, the state can address critical maintenance backlogs in bridges, schools, and public facilities without relying solely on user-fee-generating projects.
Recommendations related to Infrastructure Funding
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.
PPPs are well-suited to revenue-generating facilities, but user fees are not essential for a PPP.
PPPs need not be limited to large facilities; smaller assets can work, as well.
New York’s leaders should give high priority to assets that are currently in poor condition and have a history of poor maintenance.
The public sector must enhance its management capacity in order for PPPs to be successful.
Key Data
$509 billion
— Total value of 1,109 PPP projects launched globally between 1985 and 2007.
$24.3 billion
— 22-year cumulative value of PPP projects in the United States.
$281 billion
— Estimated annual spending by the public sector on infrastructure in the United States.
$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.
$1.6 trillion
— Investment estimated by the American Society of Civil Engineers as necessary in the next five years to bring U.S. infrastructure to a good condition.
New York City's waste management system costs approximately $4 billion annually, with significant inefficiencies in collection and disposal methods that drain taxpayer resources. By shifting toward waste-to-energy facilities and improving recycling and collection efficiency, the city could achieve substantial budgetary savings and environmental benefits.
Recommendations related to Infrastructure Funding
New York City should test the effectiveness of “pay to throw” fees for collection and the tax on plastic bags to signal the fiscal and environmental cost of waste management.
The Department of Sanitation should aggressively pursue new options to send garbage to expanded or newly constructed waste-to-energy facilities within the city or region.
The Department of Sanitation management should work cooperatively with the Uniformed Sanitationmen’s Association to reverse the trend of rising collection costs.
New York should end wasteful waste management practices by generating less garbage, recycling more of it, collecting it more efficiently, and disposing of it in cheaper and more environmentally friendly ways.
Key Data
$4 billion
— The annual cost of solid waste management for New Yorkers.
$208 per ton
— The current regulated cap on fees charged by private haulers.
$440 per ton
— The average cost of collecting and disposing of waste by the Department of Sanitation.
$575 per ton
— The cost for handling recycled material.
$392 per ton
— The cost for collection and disposal of non-recycled materials.
$65 per ton
— The fee charged by the Newark facility to process municipal waste.
New York City can leverage public-private partnerships to address infrastructure maintenance backlogs by bundling smaller assets like schools and parks into larger, more attractive investment packages. While the city has successfully utilized these partnerships for major projects like the $1.4bn Terminal Four at JFK Airport and a $20m annual street furniture contract, expanding this model to smaller-scale infrastructure remains a key opportunity.
Recommendations related to Infrastructure Funding
The city should move toward negotiating agreements that bundle together several schools or small parks to attract private investment.
New York 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 New York City receives from Cemusa for the design, construction, and maintenance of street furniture.
5,800
— The number of miles of streets and highways in New York City.
1,000
— The number of public school buildings in New York City.
3,200
— The number of bus shelters in New York City.
New York City's fiscal strategy relies on unsustainable growth in health insurance, pension, and debt service costs, which threatens funding for essential services and infrastructure. To ensure long-term stability, the city must reform these major expenses and prioritize capital spending on critical infrastructure like schools and roads over non-essential economic development projects.
Recommendations related to Infrastructure Funding
The Mayor and City Council should make slowing the growth of debt service a higher priority by downsizing the capital budget.
Resources should be directed toward the rehabilitation of essential infrastructure, like schools, roads, bridges, water mains and sewer pipes.
Non-essential expenses, such as economic development projects, should be postponed or reassessed to ensure that a strong economic justification for undertaking each project exists.
Key Data
$11 billion
— Spending on health insurance, pension contributions, and debt service totaled $11 billion in 2005.
$23.1 billion
— Spending on health insurance, pension contributions, and debt service is expected to reach $23.1 billion in 2015.
$4.8 billion
— The financial plan shows a budget gap of $4.8 billion in fiscal year 2013.
New York State must address the unfunded capital requirements for the MTA and broader transportation infrastructure, which remain unaddressed as of early 2012. Securing a stable funding source for these critical systems is essential for the state's long-term fiscal health and infrastructure maintenance.
Recommendations related to Infrastructure Funding
It is time to figure out how to fund the pressing capital needs of the MTA and the rest of the State's transportation infrastructure.
New York City's capital budget commitments have reached record highs despite multiple rounds of announced cuts, as unfinished projects are continuously rolled over and new initiatives are added to the infrastructure agenda. To control these costs, the city must apply the same rigorous prioritization to its capital budget that it currently uses for its operating budget.
Recommendations related to Infrastructure Funding
The Mayor must become more determined about establishing priorities in the capital budget the way he has for the operating budget.
Key Data
$38.9 billion
— The commitment plan for fiscal years 2009-2012 after a 20 percent reduction.
$26.2 billion
— The total commitment plan for fiscal years 2010-2013.
$12 billion
— Projected 2011 commitments, which represent a new record high.
$12.2 billion
— Average yearly commitments since the Mayor began cutting the capital plan.
$1.3 billion
— Commitments for parks in fiscal year 2011.
New York City's infrastructure faces a significant maintenance backlog, with nearly $5.6 billion required to bring assets to a state of good repair while current capital budgets cover only about half of these needs. Neglecting routine maintenance and failing to prioritize repair funding has caused repair costs to rise by 36 percent since 2000, necessitating a more strategic, long-term approach to asset management.
Recommendations related to Infrastructure Funding
The city should make full funding of maintenance requirements an explicit priority to prevent minor repairs from becoming costly capital projects.
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 city 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, which is just 53 percent of what is required.
40 percent
— The portion of required funding allocated for transportation assets, specifically streets and highways.
70 percent
— The portion of maintenance needs currently funded in the operating budget across all facilities.
New York City's capital planning process needs significant reform to better manage its vast infrastructure assets, as current practices often lack clear condition assessments and fail to prioritize maintenance. The city should adopt a more strategic, long-term approach that links capital spending to asset replacement cycles and requires rigorous economic justification for new expansion projects.
Recommendations related to Infrastructure Funding
The City should extend the PlaNYC approach to a broader range of public infrastructure to ensure a more comprehensive and strategic long-term planning process.
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 and fund their replacement with operating revenues, rather than relying on borrowing.
Expansion projects should be clearly explained and justified with data that demonstrates economic and other benefits, or a high rate of return on the investment of public funds.
The City should expand the Asset Information Management System (AIMS) report to cover all capital assets and integrate the condition assessments of major capital asset systems into a comprehensive reporting structure.
Key Data
$83.7 billion
— Total capital investments called for in the Ten-Year Capital Strategy.
$24 billion
— Total cost of new expansion projects planned for the next ten years.
$60.5 billion
— Total value of capital assets controlled by the New York City government.
$38.3 billion
— Total value of capital assets controlled by the Metropolitan Transportation Authority.
$7,829 million
— Total value of Port Authority of New York and New Jersey capital assets in New York City.
$3.0 billion
— Investment in Hudson Yards, the only expansion project with a stated cost.
New York City committed over $63 billion to capital projects between fiscal years 2002 and 2009, significantly increasing the value of city-owned assets while improving infrastructure like bridges, schools, and parks. However, substantial maintenance backlogs persist, with $5.6 billion in capital work required to bring surveyed assets to a state of good repair, a need that remains largely underfunded.
Key Data
$63.4 billion
— Total capital commitments made by New York City from fiscal year 2002 through fiscal year 2009.
$5.6 billion
— Amount of capital work needed to bring surveyed city assets to a state of good repair according to the most recent AIMS report.
$2.8 billion
— Funding allocated for AIMS capital work in the last fiscal year, which represents approximately half of the required amount.
$2.3 billion
— Depreciation expense for City-owned assets recorded in fiscal year 2009.
New York City's rapidly growing debt service, driven by an expanding capital program, necessitates significant reductions in capital spending to maintain fiscal stability. To control these costs, the city must prioritize essential infrastructure repairs like roads and bridges while eliminating non-essential economic development projects.
Recommendations related to Infrastructure Funding
A downsized capital program will be necessary if the Mayor is serious about restraining debt service growth.
The same belt-tightening that has occurred with the operating budget should apply to the capital budget, as well.
Cuts should be made starting in fiscal year 2011, and should be made with an eye toward abandoning non-essential items, including over $1.0 billion in economic development projects, and preserving key priorities such as repairs of essential infrastructure like roads, bridges, water mains and sewer pipes.
Smarter, more targeted investment will also produce real savings in debt service by the end of the Mayor's term.
Key Data
$38.6 billion
— Capital commitments for fiscal years 2006 to 2009.
$24.8 billion
— Capital commitments for fiscal years 2002 to 2005.
$5.2 billion
— Debt service in the current fiscal year, representing 12.4 percent of all city-funded spending.
$6.5 billion
— Total debt service including $1.3 billion in costs serviced by the Water Authority.
$14.5 billion
— Expected capital commitments in fiscal year 2010.
$36.3 billion
— Updated commitment plan for fiscal years 2010-2013.
The MTA's proposed 2010-2014 capital plan outlines $28 billion in investments but identifies only $18 billion in funding, leaving a significant gap that threatens the system's state of good repair. To address this, the plan should be downsized to realistic capacity levels, priorities should shift toward critical infrastructure repair, and additional revenue must be sourced from riders and auto-users.
Recommendations related to Infrastructure Funding
The MTA should commit to greater transparency in informing the public about the status of its capital projects.
The MTA should improve its capacity to manage mega-projects and improvements in signaling and communications systems.
The capital program should be amended using a pragmatic approach: the size of the plan should be downsized to reflect a realistic assessment of what can be accomplished.
Planning for the capital plan should be tied more directly to the needs assessment, and priorities should be altered in favor of achieving a state of good repair.
More funds can and should be raised from the farebox and from auto-users to support the capital program and operating needs.
Key Data
$28 billion
— Total investments outlined in the proposed 2010-2014 MTA capital plan.
$18 billion
— Funding sources identified for the proposed 2010-2014 MTA capital plan.
$10 billion
— Funding gap existing for the full five-year period of the capital plan.
$130 billion
— Adjusted needs estimate for the 20-year period for the transit system.
90 percent
— Amount the cost of the Fulton Street Transit Center is above the initial estimate.
24 percent
— Amount the cost of the South Ferry Terminal is above the initial estimate.
New York City must prioritize the maintenance of essential infrastructure like sewers, roads, bridges, and schools while sacrificing less critical economic development projects to manage its capital budget. Reducing the city's reliance on borrowing is necessary to prevent debt service from consuming a larger portion of the operating budget.
Recommendations related to Infrastructure Funding
The City should continue to invest in the maintenance of sewers, roads, bridges and schools.
A smarter, rather than bigger, capital budget will focus on better use and maintenance of existing assets rather than ambitious plans for expansion.
The City also needs to borrow less money and reduce the amount of debt service paid out of its operating budget.
Current capital plans for less essential undertakings, such as poorly justified economic development projects, will have to be sacrificed.
Key Data
$6.5 billion
— Projected interest on the debt by 2013.
9%
— The portion of the budget that interest on the debt will consume by 2013.
The Metropolitan Transportation Authority's capital plans for infrastructure projects are plagued by significant delays, cost overruns, and a lack of transparent, consistent reporting, making it difficult for the public to track progress. Future capital plans must be based on realistic assessments of what can be accomplished and include improved management information systems to ensure accountability.
Recommendations related to Infrastructure Funding
The MTA should commit to an improved management information system for tracking capital projects and to greater transparency in informing the public about the status of its capital projects.
The MTA should improve its capacity to manage mega-projects and improvements in signaling and communications systems.
The next five-year plan should be based on a realistic assessment of what can be accomplished.
Key Data
$18.6 billion
— Total cost of the 798 capital projects examined by the report.
$28.1 billion
— Proposed total commitments for the 2010-2014 capital plan.
$5.7 billion
— Proposed allocation for mega-projects in the 2010-2014 capital plan.
$2.8 billion
— Proposed allocation for signaling and communications improvements in the 2010-2014 capital plan.
90 percent
— Cost increase of the Fulton Street Transit Center above the initial estimate.
35 percent
— Cost increase for the Automatic Train Supervision project.
A coalition of organizations advocates for a mobility tax to fund the MTA's long-term capital needs, insisting that revenue should only support operating costs in the first year if accompanied by an 8% fare and toll increase. Following the first year, the group demands that all mobility tax revenue be dedicated exclusively to the MTA's capital program and debt service.
Recommendations related to Infrastructure Funding
Revenues generated by the mobility tax during the first year in which it is collected may be used to support the operating needs of the MTA, provided, however, that such revenues may only be used for this purpose if toll and fare increases of at least 8% relative to their current levels are in effect during this time.
Revenues generated by the mobility tax after the first year in which it is collected shall be used exclusively to support new borrowing and direct expenses related to the MTA's capital program and the debt service associated with the MTA's current portfolio of expansion projects.
Key Data
8%
— The minimum level of toll and fare increases required to justify using mobility tax revenue for MTA operating needs during the first year.
Public-private partnerships offer a viable strategy for managing infrastructure by leveraging private sector expertise to improve design, construction, and long-term maintenance. These arrangements can enhance efficiency and asset quality, provided they are structured to avoid short-term budgetary fixes and ensure proper public oversight.
Recommendations related to Infrastructure Funding
Public-private partnerships 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 focus on assets that are in poor condition and have a history of poor maintenance when considering public-private partnerships.
Public-private partnerships need not be limited to large facilities; smaller assets can work as well when several similar assets are grouped together for a partnership with a single private partner.
Large up-front payments should be avoided, as the temptations to use the proceeds for political expedient purposes or short-term budgetary balance, rather than for infrastructure investment, are too great.
Public-private partnerships are well-suited to revenue-generating facilities, but user fees are not essential for a public-private partnership.
Key Data
$1.8 Billion
— Contract to build the Airtrain from Kennedy Airport to the Jamaica Station of the Long Island Rail Road.
20-year
— Partnership to rebuild and operate JFK Airport Terminal Four.
20-year
— Partnership with Cemusa, Inc. for the design, construction and maintenance of street furniture.
Public-private partnerships offer a mechanism to improve infrastructure management by focusing on long-term lifecycle costs and maintenance standards rather than just initial construction. While not a source of new money, these arrangements can help New York address critical maintenance backlogs in facilities like bridges, schools, and public universities by leveraging private sector expertise and efficiency.
Recommendations related to Infrastructure Funding
State and local entities should initiate PPPs as pilot programs to serve as benchmarks for project delivery times and maintenance standards.
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 PPPs.
The public sector must develop an enhanced capacity for contract design, performance measurement and monitoring in order for PPPs to be successful.
Public officials should decide the extent to which they share labor concerns and, if willing to sacrifice some benefits, provide protections such as guaranteeing the hiring of displaced workers.
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' to mitigate transaction costs.
Key Data
$3.2 billion
— Critical maintenance backlog for the City University of New York.
$1.7 billion
— Critical maintenance backlog for the State University of New York.
$1.8 billion
— Contract value for the Airtrain project from JFK International Airport to Jamaica Station.
$1.4 billion
— Total cost of rebuilding JFK Terminal Four.
$999 million
— Total value of the 20-year partnership with Cemusa, Inc. for street furniture.
$900 million
— Value of partnerships for waste-to-energy plants in Babylon and Hempstead.
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 currently fragmented and lacks a systematic approach to maintaining its $60.5 billion in assets, with many projects lacking clear economic justification. To ensure long-term infrastructure viability, the city must institutionalize comprehensive planning, fund asset replacement through operating revenues rather than borrowing, and prioritize projects based on rigorous economic analysis.
Recommendations related to Infrastructure Funding
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 and fund their replacement with operating revenues, not from the capital budget.
Expansion projects should be clearly explained and justified with data that demonstrates economic and other benefits, or a high rate of return on the investment of public funds.
A vibrant future for New York requires that the PLANYC effort be institutionalized and expanded in scope.
Key Data
$60.5 billion
— Total value of City-controlled capital assets.
$83.7 billion
— Total capital investments called for in the Ten-Year Capital Strategy.
$23 billion
— Total cost of planned expansion projects for the next ten years.
$18.4 billion
— Asset value of the water and sewer system.
$11.8 billion
— Asset value of public school buildings.
New York City's park system requires a more strategic approach to funding and management to ensure all neighborhoods have access to well-maintained facilities, particularly as the city expands its green infrastructure. The report advocates for shifting routine maintenance costs into the operating budget, creating stronger incentives for revenue generation, and establishing consistent, transparent guidelines for partnerships with nonprofit organizations.
Recommendations related to Infrastructure Funding
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 within municipal government.
Bring all parks to an acceptable condition by targeting new resources to those with the greatest need.
Improve the quality and productivity in parks maintenance and operations by establishing measures of park use and unit costs.
Encourage preventive maintenance and longer periods of usefulness by funding routine repairs and replacements in the operating budget.
Make the relationships between the DPR and its nonprofit partner organizations more transparent and consistent with core guidelines.
Key Data
$780 million
— Total City funds for DPR facilities in fiscal year 2006.
$394 million
— Amount needed to bring major DPR assets to a state of good repair in fiscal year 2007.
$63 million
— Net amount devoted by conservancies to services in the parks annually.
$81 million
— Total revenue generated by the DPR in fiscal year 2006.
$1,075.9 million
— Total capital funding for PlaNYC 2030 parks initiatives (FY 2008-2017).
$246 million
— Capital expenditures for DPR in fiscal year 2006.
New York's public authorities currently hold $166 billion in outstanding debt, a significant portion of the $227 billion total debt issued by state and local governments. To address this, the state should implement constitutional debt limits, require voter approval for new borrowing, and mandate comprehensive, multi-year capital planning to ensure fiscal responsibility.
Recommendations related to Infrastructure Funding
New York should adopt a new constitutional limit that would apply to all state-supported debt, including any debt issued by authorities, to ensure affordability.
The state should require voter approval for any new debt issued by authorities.
The state should limit debt to true capital purposes.
The governor and budget director should be responsible for preparing a comprehensive, multi-year capital plan that includes state agencies and authorities.
The governor and budget director should be responsible for timely and transparent analyses of the feasibility of state authority projects.
The Public Authorities Control Board, which has not been doing its job adequately, ought to be abolished.
Each local industrial-development authority should select among private parties based on criteria established in advance and in response to competitive proposals.
Key Data
$166 billion
— Total outstanding debt of state public authorities.
$227 billion
— Total outstanding debt issued by New York state and local governments and their authorities.
$4 billion
— Amount of 'back door' debt, representing 9% of the $45 billion in state-supported debt.
$45 billion
— Total amount of state-supported debt.
583
— Total number of public authorities in New York.
474
— Number of public authorities accountable to local officials.
New York State relies heavily on public authorities to finance infrastructure and other services, but this has led to excessive debt and insufficient oversight. To address these issues, the state should implement comprehensive constitutional debt limits, improve capital planning and project feasibility reviews, and enhance the transparency and governance of these entities.
Recommendations related to Infrastructure Funding
Eliminate the misuse of authorities’ debt powers by setting comprehensive constitutional limits on the amount of State-supported and City-supported debt that can be issued by the State of New York and by the City of New York.
Improve the oversight of non-State-funded authority debt by replacing the PACB review process with more comprehensive capital planning and project feasibility studies subject to professional, transparent review.
Improve the effective use of tax-exempt conduit debt by requiring more explicit advance allocation of its purposes and more competition among private entities for its benefits.
Make authorities more accountable through more complete and accessible reporting of financial and other information.
Enhance the governance of authorities through greater independence and professionalism among board members.
Key Data
$227 billion
— Total estimated debt of state and local governments and their authorities in New York.
$106 billion
— Combined total debt issued by the State directly and by authorities accountable to the State at the end of fiscal year 2005.
$78.2 billion
— Combined total debt issued by the City of New York and by authorities accountable to the City.
$45 billion
— Amount of State-supported debt.
$56 billion
— Amount of project revenue backed debt.
The New York-New Jersey metropolitan region's transportation system requires a more comprehensive, regional approach to financing that relies less on unpredictable subsidies and more on appropriate user fees. By establishing a new regional policy board and dedicating user fees to cover operating costs and necessary infrastructure maintenance, the region can ensure its transportation network remains competitive and well-maintained.
Recommendations related to Infrastructure Funding
To ensure sound transportation financing in the region, the governors of New York and New Jersey should create a new entity with authority to set and enforce policies and priorities.
The region’s transportation agencies should have sufficient resources to meet all necessary operating expenses.
Motor vehicle user fees should be dedicated to transportation agencies for two purposes: to cover the operating costs of roads and bridges; to cover one-quarter of the operating costs of mass transit.
Mass transit riders should pay a fare sufficient to cover one-half the transit agencies’ operating costs.
The same financing principles should be used to generate new capital for improvements and expansion.
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.
Key Data
$13 billion
— Combined annual operating expenditures of the 25 transportation agencies in the New York-New Jersey metropolitan area.
$1.2 billion
— Total mass transit operating deficit in the region in 2001.
39 percent
— Portion of urban roads in New York that are in unacceptable condition.
37 percent
— Portion of bridges in both New York and New Jersey that are structurally deficient or obsolete.
$5.7 billion
— Total user fees collected from auto users in the region.
$3.7 billion
— Average annual MTA capital commitments from 2000 through 2003.
The City's five-year $36 billion capital plan could be significantly more effective if existing facilities like schools were used more intensively and assets were better maintained. Additionally, the plan would benefit from repealing the Wicks Law and establishing stricter limits on borrowing to manage the 8 percent annual growth in debt service payments.
Recommendations related to Infrastructure Funding
The City should use existing facilities, such as schools, more intensively to meet capital needs.
The City should better maintain its assets to improve the effectiveness of its capital plan.
The City should work to repeal the burdensome Wicks Law to better meet capital needs.
The City should set effective limits on borrowing to improve its capital plan.
Key Data
$36 Billion
— The value of the City's five-year capital plan.
8 percent
— The annual growth rate of debt service payments over the next four years.
New York State and New York City face significant challenges in balancing the need for public infrastructure investment with the burden of rising debt levels. This report proposes a new framework for assessing debt affordability and recommends establishing independent debt policy committees and amending constitutional limits to ensure sustainable long-term fiscal health.
Recommendations related to Infrastructure Funding
New York State's elected leaders should bring the State's debt burden below the danger zone threshold identified in this report, and New York City's leaders should keep their debt below the relevant danger zone threshold.
New York City and New York State should create Debt Policy Committees to recommend long-run debt strategies and annual debt issuance limits.
The State Constitution should be amended to establish new limits on State and City debt.
New York State should develop a new plan to lower its outstanding debt.
The new limits should be made more sensible by replacing the existing constraints with an approach based on that developed in this report.
Key Data
$35.8 billion
— State debt outstanding at the end of the 1999 fiscal year.
$46.8 billion
— City debt outstanding at the end of the 1999 fiscal year.
$43.0 billion
— Projected State-supported debt for fiscal year 2005.
$44.3 billion
— Projected City debt for the 2004 fiscal year.
$1.2 billion
— Total cost of annual debt service on $26.9 billion in outstanding appropriation-backed debt over the next 30 years.
$29.2 billion
— Recommended State-supported debt threshold for 1997.
New York's transportation infrastructure, while extensive, faces significant challenges in achieving a state of good repair, with a multi-billion dollar funding gap identified for both highway and mass transit systems. To maintain competitiveness, the city must address these maintenance needs while simultaneously evaluating the necessity of new capacity projects and improving operational efficiency.
Recommendations related to Infrastructure Funding
New York’s leaders should address how to improve transit system efficiency and ridership.
New York’s leaders should determine how rapidly to achieve a state of good repair for the existing infrastructure.
New York’s leaders should evaluate how much new mass transit capacity is necessary.
An initiative aimed at identifying modern human resource measures could help enhance New York’s future competitiveness.
Experiments with higher fares at the busiest time could identify effective ways to shift some ridership to the less crowded hours.
Key Data
$12.2 billion
— Estimated funding needed for New York City highways over the ten-year period spanning fiscal years 1998 to 2007.
$8.1 billion
— Amount allocated by the City for highway infrastructure over the ten-year period spanning fiscal years 1998 to 2007.
$20.4 billion
— Estimated funding needed to achieve and maintain a state of good repair for facilities operated by the Transit Authority as of 1998.
$9.7 billion
— Portion of the $10.7 billion mass transit capital budget gap accounted for by line structures, signals, line equipment, and stations and communications.
35,000 people per hour
— Projected increase in capacity from the new LIRR connection to Grand Central Terminal.
1,440 passengers
— Seating capacity of each 12-car train on the new LIRR connection.
No results for your current filters. Manually edit your filters, or
clear the filters.
Share Feedback
Give a star rating, write a comment of at least 10 words, or both.
