The Metropolitan Transportation Authority (MTA) Capital Program is the multi-year investment plan for maintaining, upgrading, and expanding New York’s transit infrastructure, including subways, buses, and commuter rail. This page covers CBC’s work on capital planning and prioritization, sustainable funding strategies, fare and toll evasion, operational efficiencies, and federal aid.
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..
Refine and continue a multi-faceted approach to reducing fare and toll evasion, including improving enforcement, educating riders on the importance of fare payment, and better securing the transit system environment.
The MTA should publish data to show the cost-effectiveness of their interventions and tailor programs to ensure they are getting the maximum return on their investments to decrease fare evasion.
Accelerate rollout of new faregates funded in the 2025 to 2029 Capital Plan.
Accelerate the rollout of proof-of-payment to allow EAGLE Team inspectors to enforce fare payment on local and express buses without having to directly witness fare evasion.
Publish comprehensive and regular data on fare and toll evasion, including projected and target fare evasion rates.
Work with the City to assess the cost-effectiveness of deploying police officers to enforce fare payment.
Work with the City to assess the effectiveness of the Fair Fares Program and consider expansion.
Key Data
In April 2026, the CBCNY noted that signal modernization efforts involve spending $5.4 billion in the 2025-29 capital program and $5 billion in the 2020-24 program.
In December 2025, the CBCNY highlighted that the MTA expects $14 billion from the federal government to support its 2025-2029 Capital Plan, though this funding is considered at risk.
In December 2025, the CBCNY reported that terminating the congestion pricing program would cause the MTA to lose most of the revenue expected to finance $15 billion of the 2020-2024 Capital Plan.
In March 2025, the CBCNY noted that the MTA's proposed 2025-2029 Capital Plan had a $33.4 billion gap, which increased to $35.4 billion after the Executive Budget lowered City and State contributions by $1 billion each.
In September 2024, the CBCNY found that a record $27.6 billion of projects from prior capital plans would remain uncommitted by the end of 2024, including at least $5 billion for capacity expansion.
John (“Janno”) Lieber was confirmed as Chair and CEO of the Metropolitan Transportation Authority (MTA) in January 2022, following his nomination 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 founded in 1968.…
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…
Legislation requiring two crew members on New York City subway trains would hinder the Metropolitan Transportation Authority's ability to implement modern signal technology and operational efficiencies. Instead of mandating specific staffing levels, policymakers should prioritize forward-looking capital investments to improve service and build ridership.
Recommendations related to MTA Capital Program
We urge you to oppose S9586 (Parker) and A10706 (Chandler-Waterman), that would restrict the MTA’s use of one-person train operation (OTPO).
We hope you continue focusing on big picture questions like the MTA’s financial sustainability as it faces out-year budget gaps and federal funding challenges.
We look to you as proven champions of better transit to focus your efforts on forward-looking investments, not policies micromanaging subway staffing and operations.
Key Data
6%
— Percentage of 400 rail lines around the world that use two or more train operators.
$5.4 billion
— Amount allocated in the 2025-29 capital program to modernize subway signals.
$5.0 billion
— Amount allocated in the 2020-24 capital program to modernize subway signals.
The MTA's November 2025 Financial Plan shows near-term stability but masks a $1.1 billion structural budget gap in 2029, which is exacerbated by reliance on one-time revenues and risks like fare evasion and rising debt service. To ensure long-term fiscal health, the MTA must implement operational efficiencies, reduce fare evasion, and control paratransit costs while avoiding reliance on debt to fund operations.
Recommendations related to MTA Capital Program
Implement additional operating efficiencies in collaboration with labor by modifying work rules, increasing employee availability, and sharing the benefits of additional operational flexibility and higher productivity to cut costs while supporting competitive wages.
Continue to reduce fare evasion, which is on track to cost more than $900 million this year.
Collaborate with the City to improve uptake, assess the cost-effectiveness, and consider expanding Fair Fares NYC.
Reduce paratransit per-trip expenses by using the paratransit fleet and broker services strategically to ensure users are provided with the lowest-cost transportation option that meets their needs.
Continue biennial fare and toll increases and consider tying them to year-over-year expense growth instead of a flat 4 percent.
Key Data
$1.1 billion
— The MTA's underlying structural budget gap in 2029, representing the difference between recurring revenues and recurring expenses.
$900 million
— The estimated amount sapped from the MTA budget in 2025 due to high levels of fare evasion.
$14.0 billion
— The amount the MTA expects from the federal government to support the 2025-2029 Capital Plan.
$15.0 billion
— The amount of revenue the MTA expected to finance the 2020-2024 Capital Plan via the congestion pricing program.
$250 million
— The amount of recurring operating efficiencies the MTA plans to identify annually by 2029.
$3.5 billion
— The projected debt service expenses for the MTA in 2029.
Fare evasion costs the transit system approximately $1 billion annually, threatening its fiscal stability and ability to fund necessary capital projects. To address this, the transit authority should continue its multi-faceted enforcement approach, accelerate the rollout of new faregates and proof-of-payment systems, and improve data transparency regarding evasion and enforcement effectiveness.
Recommendations related to MTA Capital Program
Refine and continue a multi-faceted approach to reducing fare and toll evasion, including improving enforcement, educating riders on the importance of fare payment, and better securing the transit system environment.
The MTA should publish data to show the cost-effectiveness of their interventions and tailor programs to ensure they are getting the maximum return on their investments to decrease fare evasion.
Accelerate rollout of new faregates funded in the 2025 to 2029 Capital Plan.
Accelerate the rollout of proof-of-payment to allow EAGLE Team inspectors to enforce fare payment on local and express buses without having to directly witness fare evasion.
Publish comprehensive and regular data on fare and toll evasion, including projected and target fare evasion rates.
Work with the City to assess the cost-effectiveness of deploying police officers to enforce fare payment.
Work with the City to assess the effectiveness of the Fair Fares Program and consider expansion.
Key Data
$1 billion
— Estimated cost of fare and toll evasion to the MTA in 2024.
$800 million
— The MTA's structural operating budget gap.
330
— Number of subway fares evaded every minute during 2024.
710
— Number of bus fares evaded every minute during 2024.
14 percent
— Subway fare evasion rate in the first quarter of 2024.
10 percent
— Subway fare evasion rate in the first quarter of 2025.
The state budget includes funding for necessary capital investments in the MTA, though the reliance on the payroll mobility tax to cover these costs is criticized. A broader distribution of funding responsibilities among riders, drivers, and taxpayers is suggested to improve economic competitiveness.
Recommendations related to MTA Capital Program
The State should spread the cost of MTA capital funding more broadly among riders, drivers, and taxpayers rather than relying solely on the payroll mobility tax.
The Metropolitan Transportation Authority relies on federal resources for a significant portion of its capital investment, with $14 billion in federal funding included in its 2025-2029 Capital Plan. Any reduction in this federal support, alongside risks to the $15 billion in funding expected from congestion pricing, threatens the system's ability to maintain essential infrastructure and daily operations.
Key Data
20.1 percent to 29.5 percent
— Range of federal funds' share of the last three MTA five-year capital plans.
$27.3 billion
— Total federal funding for the last three MTA five-year capital plans over 15 years.
$14 billion
— Federal funding included in the MTA's 2025-2029 Capital Plan.
$15 billion
— Funding for the 2020-2024 Capital Plan expected from congestion pricing.
New York State lawmakers are urged to prioritize fiscal sustainability in the upcoming budget, which includes ensuring the MTA capital investment is funded fairly. This approach aims to avoid excessive spending growth and prepare for potential federal funding reductions.
Recommendations related to MTA Capital Program
The budget should fairly fund MTA capital investment.
New York faces a funding gap of over $30 billion for necessary transit capital investments, with an additional $16 billion required to fully fund the plan. To address this, state and city contributions must increase, alongside fare and toll adjustments, labor savings, and efforts to combat fare evasion.
Recommendations related to MTA Capital Program
Focus capital investment exclusively on projects to repair and improve the system.
Increase the State contribution by $7 billion, primarily by shifting funds from lower impact programs, and increase the City contribution by $2 billion.
Modestly increase fares, tolls, and vehicle registration fees, dedicating them to support $6.8 billion in bonds.
Ensure labor provides the flexibility to implement $500 million in recurring operating savings to support the planned level of MTA borrowing.
Turn the tide on fare evasion.
Key Data
$30 billion
— The funding gap for the MTA's capital investment needs.
$7 billion
— The recommended increase in the State contribution to the MTA capital plan.
$2 billion
— The recommended increase in the City contribution to the MTA capital plan.
$6.8 billion
— The amount of bonds to be supported by modest increases in fares, tolls, and vehicle registration fees.
$500 million
— The amount of recurring operating savings to be implemented through labor flexibility.
$16 billion
— The additional funding needed for the Capital Plan beyond the initial proposals.
New York State's current budget proposals fail to adequately fund the Metropolitan Transportation Authority's five-year capital plan, threatening the long-term viability of the region's transit infrastructure. A sustainable funding strategy is required that fairly distributes costs among drivers, riders, and taxpayers while prioritizing fiscal responsibility and transparency.
Recommendations related to MTA Capital Program
Enact a plan that funds MTA capital investment sustainably and fairly—broadly allocating the cost across beneficiaries.
Prioritize a plan that is sustainable and shared among drivers, riders, and taxpayers across the region and state.
Use new tax increases as an absolute last resort for the MTA capital program.
Tie new funding to additional accountability and transparency measures.
Support actions to reduce fare evasion and increase productivity through negotiations with unions to shore up the MTA’s operating budget.
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, policymakers must prioritize rebuilding projects and implement accountability measures to manage costs and stabilize the operating budget.
Recommendations related to MTA Capital Program
The MTA and the State should focus the Capital Plan exclusively on Rebuild and Improve projects.
The City and State should increase their contribution by $9.0 billion in pay-as-you-go (PAYGO) financing.
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, regular updates on each asset group’s state of repair, and a joint study on comparative capital project costs.
Labor should provide the flexibility to generate at least $500 million in recurring operating budget savings needed to support $8 billion of the planned operating-budget-backed 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
— Size of the proposed 2025-2029 Capital Plan investments.
$33.4 billion
— Initial funding gap identified in the MTA's capital plan.
$9.0 billion
— Proposed increase in City and State contribution in pay-as-you-go financing.
$1.5 trillion
— Total value of the Metropolitan Transportation Authority's assets requiring investment.
$14.0 billion
— Expected federal aid to the capital plan.
$500 million
— Recurring operating budget savings needed from labor to support planned debt.
New York's legislative leaders have failed to present a plan to fund essential state of good repair investments for the 2025-2029 MTA Capital Program. Establishing a transparent and well-structured funding strategy is necessary to avoid a disservice to the public.
Recommendations related to MTA Capital Program
Legislative leaders should propose a plan to fund critical state of good repair investments in the MTA 2025-2029 Capital Program.
$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…
The federal revocation of New York's congestion pricing program threatens to delay or leave unfunded billions of dollars in critical transit investments. This decision risks undermining the regional economy and increasing the likelihood of service disruptions and outages across the transit system.
$252 billion is the Governor Kathy Hochul’s New York State Executive Budget for Fiscal Year 2026. How much does it matter that New York State and its localities are already #1 in taxes and #2 in spending nationwide? On today’s episode we talk with New York State’s Budget Director, Blake…
$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…
Visit our Flickr page for photos of the event - https://flic.kr/s/aHBqjBZZfn . 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…
The Governor's State of the State address failed to include a proposal to address the $33 billion funding gap in the MTA's capital plan. State leaders must prioritize investing in essential transit infrastructure and ensure that drivers, riders, and taxpayers contribute their fair share to maintain the system.
Recommendations related to MTA Capital Program
State leaders must fill the $33 billion hole in the MTA’s capital plan.
State leaders have the responsibility to invest in trains, tracks and signals so the system does not crumble.
State leaders must ensure drivers, riders, and taxpayers across the region pay their fair share to support the MTA.
Key Data
$33 billion
— The funding gap in the MTA’s capital plan that was absent from the Governor's proposals.
The Metropolitan Transportation Authority faces a $33 billion financing gap in its 2025-2029 capital program, necessitating a sustainable funding plan that avoids frequent tax increases. If the total cost of the program exceeds available financing, the state should prioritize essential repairs and consider canceling expansion projects.
Recommendations related to MTA Capital Program
The Governor should propose a funding plan that is sustainable—meaning it limits the need to raise taxes every five years—and is supported fairly by those across the region and among taxpayers, riders, and drivers to address the MTA 2025-2029 capital program.
If the MTA 2025-2029 capital program plan proves too large to finance, the expansion projects should be on the chopping block.
Key Data
$33 billion
— The financing gap for the MTA 2025-2029 capital program.
The restart of congestion pricing provides a necessary mechanism to address the $15 billion funding gap within the MTA's current capital program. Policymakers must ensure that the $9 charge is implemented sustainably to avoid future tax increases while fairly distributing costs among regional stakeholders.
Recommendations related to MTA Capital Program
The Administration should share more details of the plan so the public and policymakers can rest assured that 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 for the MTA's 2025-2029 Capital Plan, while ensuring New York’s competitiveness.
The capital plan’s financing should be sustainable—not setting the stage for new tax increases every five years—and fairly apportion the cost across the region and among riders, drivers, and taxpayers.
Key Data
$9
— The congestion charge amount intended to help plug the funding gap for the MTA's capital projects.
$15 billion
— The funding gap in the MTA's current Capital Program that the congestion charge is intended to address.
2025-2029
— The timeframe for the MTA's Capital Plan that Governor Hochul supports.
Congestion pricing is a vital funding source to address the $15 billion shortfall in the current Metropolitan Transportation Authority capital budget and support the upcoming five-year capital plan. Beyond this revenue, the transit system must improve efficiency, adjust priorities to meet changing demands, and aggressively combat fare evasion to ensure long-term financial stability.
Recommendations related to MTA Capital Program
Congestion pricing should be used to close the $15 billion shortfall in the current capital budget of the Metropolitan Transportation Authority.
The MTA must identify ways to increase efficiency and adjust priorities to reflect changing demands on the transit system.
The MTA must redouble efforts to dramatically reduce fare evasion, which stresses the budget and makes financing capital investment harder.
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.
The Metropolitan Transportation Authority has proposed a $69 billion, five-year capital plan to address critical infrastructure needs, yet faces a significant funding gap exacerbated by the pause on congestion pricing. To ensure the system's reliability and financial stability, state leaders must prioritize essential repairs over expansion projects, secure sustainable funding sources, and empower the agency to improve operational efficiency.
Recommendations related to MTA Capital Program
State leaders should unpause congestion pricing to address one-third of the funding gap, as any shrinkage or alternative reduces the options available to finance critical new projects.
The state should trim and hyper-focus the capital plan, deferring expansion projects like the Interborough Express to prioritize rebuilding and improving the existing system.
The MTA should reduce fare evasion and increase efficiency, including implementing changes like one-person train operation, to stabilize its operating budget and finance debt.
Funding for the capital plan should be sustainable, avoiding short-sighted borrowing against a tax that guarantees a tax hike every five years.
State leaders should ensure the cost of the capital plan is fairly spread among all beneficiaries, including the region’s riders, taxpayers, and drivers.
Key Data
$69 billion
— The MTA's proposed 5-year capital plan.
$15 billion
— The funding hole created by pausing congestion pricing.
90%
— The portion of Penn Station’s electrical equipment, cables, and wiring that is in poor and marginal condition.
39%
— The portion of transit station ventilation systems that are in poor and marginal condition.
$90 billion
— The MTA's unrealistic 5-year commitment goal given already planned projects.
$1 billion
— The MTA's current structural operating budget gap.
97 - that's the number of days between this conversation and the release of the Governor's Fiscal Year 2026 Executive Budget. But how the State will close its $16 billion structural gap isn't the only important issue facing New York State. How will the State buttress resiliency, reduce greenhouse gas…
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.
The proposed MTA capital plan requires trimming to a more achievable level, as current expansion projects divert resources from essential system rebuilding and improvements. Financing the plan necessitates unpausing congestion pricing and stabilizing the operating budget through reduced fare evasion and increased labor productivity, rather than relying on unaffordable new bond debt.
Recommendations related to MTA Capital Program
The MTA should trim the capital plan to a more achievable level to reduce the funding gap and transparently present what will happen in the next five years.
The MTA should transparently schedule essential rebuild and improve projects before expansion projects.
The State should unpause congestion pricing to help fill the financing hole.
The MTA should develop a funding plan that is sustainable and does not require a new tax increase every five years.
The MTA must reduce fare evasion to help stabilize the operating budget.
Labor must be a partner to increase productivity to help stabilize the operating budget.
Key Data
$8.6 billion
— Proposed and previously planned expansion projects that divert resources from essential rebuilding and improvement efforts.
$10 billion
— Proposed amount in new MTA bonds that is not considered affordable.
$1 billion
— The amount the MTA’s structural budget gap will exceed by the end of the decade.
15 percent
— The portion of an operating budget that is not fully funded, which makes debt unaffordable.
The proposed $68 billion MTA capital plan focuses on essential system repairs, yet it faces significant financing uncertainty and relies on an ambitious investment pace that may exceed capacity. To ensure fiscal stability and avoid service risks, the state must unpause congestion pricing and identify sustainable funding sources while the agency addresses fare evasion and operational efficiencies.
Recommendations related to MTA Capital Program
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.
Labor unions should agree to operating changes that increase efficiency to help fund capital investment and stabilize the operating budget.
Key Data
90%
— The portion of the proposed Capital Program focused on projects that rebuild and improve the system.
$68 Billion
— The total investment amount of the proposed Capital Program.
$96 Billion
— The total investment amount when previously planned but not yet committed projects are included.
$8.6 Billion
— The amount of funding allocated to expansion projects that divert resources from essential rebuilding and improvement efforts.
$19 Billion
— The amount the MTA would be committing annually under the proposed plan.
68%
— The percentage increase of the proposed annual commitment compared to the MTA's prior $11.4 billion annual peak.
The MTA's capital assets are in critical condition, requiring a massive investment to rebuild and improve the system while facing significant funding gaps and capacity constraints. To address these challenges, the state must prioritize essential repairs, right-size the capital program to match realistic commitment capacities, and secure sustainable financing through measures like unpausing congestion pricing and increasing operational efficiency.
Recommendations related to MTA Capital Program
Adopt at most a $62.4 billion 2025-2029 Capital Program to match the maximum amount the MTA can commit over six years given the overhang.
Focus the capital program exclusively on projects to Rebuild and Improve the system to avoid diverting resources to expansion projects.
Unpause congestion pricing because any alternative merely reduces the options available to fund projects in the 2025-2029 Capital Program.
Ensure financing for the 2025-2029 Program is sustainable, allocated among stakeholders, and allocated among drivers, riders, and taxpayers.
Increase productivity and reduce fare evasion to provide at least $1.5 billion in needed operating budget savings.
Key Data
$1.5 trillion
— Total value of the Metropolitan Transportation Authority’s capital assets.
$106.6 billion
— The lower-end estimate for the five-year cost of the Rebuild and Improve program.
$27.6 billion
— The amount of projects from prior capital plans that will not be committed by the end of 2024.
$62.4 billion
— The MTA's capacity for new capital investment over six years.
$1.5 billion
— The amount of operating budget savings needed from increased productivity and reduced fare evasion.
$700 million
— The amount of annual fare evasion on the system.
The Governor's pause on congestion pricing has created a $15 billion financing gap in the 2020-2024 Capital Program, necessitating a shift in focus toward critical infrastructure needs. To ensure the system's stability, the state must end the pause and develop a sustainable, fair financing plan for the 2025-2029 Capital Program that prioritizes essential rebuild and improvement projects.
Recommendations related to MTA Capital Program
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 in the 2020-2024 Capital Program opened by the Governor's congestion pricing pause
Implementing congestion pricing is the most effective way to fund critical transit needs and ensure the system reaches a state of good repair. If that is not possible, the MTA must create a transparent, realistic 2025-2029 capital program that prioritizes essential modernization and infrastructure maintenance.
Recommendations related to MTA Capital Program
The State should stay the course and implement congestion pricing to fund critical transit needs.
The MTA should develop a realistic, holistic 2025-2029 capital program that focuses on essential state of good repair and modernization needs, funds them in the smartest way possible, and transparently involves the public.
Indefinitely suspending congestion pricing creates a need for alternative funding, but raising the Payroll Mobility Tax by $1 billion annually or raiding state reserves would harm the economy and weaken fiscal stability. Implementing congestion pricing remains the most appropriate strategy to fund the MTA's critical capital investment and state of good repair needs.
Recommendations related to MTA Capital Program
The State should not raise the Payroll Mobility Tax $1 billion annually to replace congestion pricing.
The State should not raid reserves to replace congestion pricing revenue, as it would weaken the capacity to protect New Yorkers from future emergencies.
The State should stay the course and implement congestion pricing as it is an appropriate resource for transit investment.
There needs to be a thoughtful, information-based discussion of the MTA’s needs for state of good repair investment to determine how to appropriately and fairly finance those needs.
Key Data
$1 billion
— The amount the State is considering raising the Payroll Mobility Tax annually to replace congestion pricing.
$1.1 billion
— The amount taxes were raised last year to fund the MTA operating budget.
Congestion pricing is essential for funding transit improvements and maintaining the system's state of good repair, avoiding the risks of further delays. The State must release committed funds for the current capital plan to ensure the transit system's stability and avoid higher long-term costs.
Recommendations related to MTA Capital Program
The State should release the funds it has committed to the current capital plan to ensure the transit system's stability.
The MTA should speed up its investments in state of good repair work to avoid the risks of further delays.
Policymakers should stay the course on congestion pricing to provide critical funding for the transit system.
The congestion pricing program should be closely monitored and fine-tuned to ensure it meets its objectives.
The Metropolitan Transportation Authority must prioritize maintaining its current infrastructure in a state of good repair before pursuing system expansion projects. To facilitate informed public discussion on necessary investments and trade-offs, the agency should publish an addendum to its Twenty-Year Needs Assessment detailing the costs, benefits, and timelines for all rebuild and improvement projects.
Recommendations related to MTA Capital Program
The MTA should publish an addendum prior to the release of the capital program that includes detailed estimates of the costs, benefits, and timelines for all assets and investment needs in the categories of “Rebuild” and “Improve” the system.
The MTA should include estimated costs over the next 5 and 20 years for all assets and investment needs in the addendum.
The MTA must prioritize bringing the system to and keeping it in a state of good repair before expanding the system.
Key Data
$40 billion
— Lower bound estimate for bringing the system to adequate condition over the next five years.
$80 billion
— Upper bound estimate for bringing the system to adequate condition over the next five years.
Fare and toll evasion pose a significant fiscal risk to the MTA, threatening the revenue streams necessary to fund over a quarter of the 2020-2024 Capital Program. To mitigate these losses and ensure the system's sustainability, the State should enact the Governor's proposed policies that strengthen enforcement and increase penalties for evasion.
Recommendations related to MTA Capital Program
The State should enact policies that both incentivize compliance with fares and tolls, while also increasing penalties for evasion.
The State should adopt the Governor's proposed policies to strengthen laws and efforts to enforce fare and toll compliance.
The State should adopt the proposed measures to make using a tolled road without payment a theft-of-services offense, increasing this from a civil to criminal infraction.
The State should adopt the proposal to make it illegal to sell devices that obscure license plates.
The State should adopt the proposal to impose fines, ranging from $100 to $500, for intentionally obscuring plates while passing through tolled facilities.
The State should adopt the proposal to grant the MTA the power to confiscate various fake fare-payment devices, such as forged tickets or cards.
Key Data
$700 million
— The estimated cost to the MTA alone from fare and toll evasion in 2023.
$315 million
— The cost of fare evasion on buses in 2022.
$285 million
— The cost of fare evasion on subways in 2022.
$44 million
— The cost of fare evasion on railroads in 2022.
$100 million
— The amount the NYC Speed Camera Program lost due to license-plate-related rejections in 2023.
$46 million
— The amount the MTA lost from license plate fraud in 2022.
The central business district tolling program is expected to generate enough revenue to fund $15 billion in capital spending for the 2020 to 2024 Capital Program. To ensure long-term success, the Metropolitan Transportation Authority should adopt the proposed tolling structure while strictly avoiding additional exemptions and monitoring potential issues like toll evasion and traffic shifts.
Recommendations related to MTA Capital Program
The MTA should adopt the TMRB’s recommended tolling structure.
The MTA should reject calls for additional exemptions or credits for bridge and tunnel crossings.
The MTA should monitor traffic volumes and patterns for all commercial vehicles to determine if substitution occurs and has negative impacts.
The MTA should monitor and evaluate the safety, revenue, and congestion implications of beginning the Friday- and Saturday-night discount periods at 10 p.m.
The MTA should consider a toll evasion mitigation and monitoring program similar to the one recommended by the Blue-Ribbon Panel on Fare Evasion.
Key Data
$15 billion
— Annual revenue generated by the central business district tolling program to fund capital spending in the MTA’s 2020 to 2024 Capital Program.
$15
— The once-daily charge that commercial passenger vehicles and personally owned passenger vehicles will pay under the proposed tolling structure.
$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's Twenty-Year Needs Assessment lacks critical information regarding the costs, timelines, and impacts of projects, preventing a substantive debate on investment priorities. To ensure the system does not deteriorate, the agency must prioritize maintaining current assets over expansion and provide transparent cost-benefit estimates for its proposed capital improvements.
Recommendations related to MTA Capital Program
The MTA should swiftly and wisely implement congestion pricing to provide necessary funds to support the current capital plan.
Prioritizing the maintenance of current assets in a state of good repair must be paramount before expanding the system to prevent network failure.
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 proposed addendum should include the costs and impacts on services and long-run spending if those investments are fully, or only partially, made.
Key Data
$40 billion
— The potential cost over the next five years to begin bringing the transit system to an adequate condition.
$80 billion
— The potential cost over the next five years to begin bringing the transit system to an adequate condition.
The Metropolitan Transportation Authority's Twenty-Year Needs Assessment fails to provide necessary cost estimates for rebuilding and improving the transit system, leaving the public and policymakers without critical information. An addendum is required to detail the costs and benefits of these investments to ensure informed decision-making for the upcoming 2025-2029 Capital Plan.
Recommendations related to MTA Capital Program
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 identifies the impacts on services and long-run costs if those investments are only partially made.
Key Data
$20 billion
— Hypothetical cost example of what New Yorkers do not know regarding the amount needed over the next five years to start bringing the transit system to a state of good repair.
$70 billion
— Hypothetical cost example of what New Yorkers do not know regarding the amount needed over the next five years to start bringing the transit system to a state of good repair.
The Metropolitan Transportation Authority's Twenty-Year Needs Assessment requires significant improvements to ensure transparency and data-driven decision-making for future capital planning. By providing comprehensive, disaggregated data on asset conditions and future service needs, the authority can better prioritize investments and facilitate informed public debate.
Recommendations related to MTA Capital Program
The MTA should include a complete accounting of the system’s current and potential future capacity needs in the Twenty-Year Needs Assessment to ensure all options are considered before prioritization.
The MTA should disaggregate data to the functional group and component level to better inform public discussion and project prioritization.
The TYNA should include data on asset condition, needs, cost, and improvement timeframes for each investment category to achieve a state of good repair.
The MTA should detail all projects’ benefits and costs based on rigorous analysis, standard measures, and MTA goals to bring transparency to investment choices.
The upcoming TYNA should provide clear and complete data on future transportation needs based on projected economic changes and user behavior.
The Metropolitan Transportation Authority faces significant fiscal risks, including potential revenue shortfalls from ridership recovery, fare evasion, and rising labor costs, which threaten the stability of its capital and operating budgets. To ensure the success of the 2025-2029 Capital Plan, the agency must prioritize projects based on available funding and address the fact that nearly half of the current capital plan's funding comes from non-recurring sources.
Recommendations related to MTA Capital Program
Limit exemptions to public and some private transit providers, those specified in the law, and those agreed to in the Final Environmental Assessment.
Do not provide credit for payment of MTA or Port Authority of New York and New Jersey tolls, as doing so would increase the program's complexity and significantly increase the congestion toll paid by other travelers.
Vary the congestion charge by time of day and day of the week, and ensure the charge is easily understood and well-communicated.
Consider charging a vehicle-miles travelled (VMT) fee for those that stay inside of the zone.
Monitor and report congestion pricing outcomes and operational metrics to inform future policy adjustments.
The MTA should prioritize projects based on needs and available funding, as capital needs will exceed available resources.
Key Data
$1 billion
— Annual congestion pricing revenue expected to support capital investment.
$15 billion
— Capital investment in the 2020-2024 Plan expected to be supported by congestion pricing revenue.
45 percent
— Portion of the $55 billion in funding for the 2020-2024 capital plan that comes from sources that will not recur in the next cycle.
$325 million
— Revenue reduction resulting from a 5-percentage point shortfall in ridership.
$500 million
— Annual fare revenue shortfall resulting from the recent spike in fare evasion.
$100 million
— Annual cost of each additional percentage point increase in employee raises.
Congestion pricing is a critical mechanism to reduce traffic and emissions while generating necessary funding for the Metropolitan Transportation Authority's capital plan. To ensure the program's success, the pricing structure must remain simple, avoid unnecessary exemptions or toll credits, and adapt over time based on real-world performance data.
Recommendations related to MTA Capital Program
The Traffic Mobility Review Board should limit exemptions to transit providers, those specified in the law, and those agreed to in the Final Environmental Assessment.
The Board should not provide credit for payment of MTA or Port Authority of New York and New Jersey (PANYNJ) tolls, as doing so would increase the congestion charge for other drivers.
The system should vary the congestion charge by time of day and day of the week, while ensuring the charge is easy to understand and well communicated.
Policymakers should consider charging a vehicle-miles travelled (VMT) fee for those that stay inside of the zone to help meet the program’s goals.
The Board should monitor and report congestion pricing outcomes and operational metrics to inform future policy adjustments.
Key Data
$1 billion
— The annual revenue mandate required by law for the congestion pricing program.
The Metropolitan Transportation Authority faces significant financial challenges as pandemic-era federal funding expires, necessitating a combination of tax increases, fare adjustments, and operational efficiencies to stabilize its budget. To ensure long-term sustainability and improved service, the agency must modernize labor practices, including updating shift scheduling, expanding automated train operations, and reforming retiree health benefits.
Recommendations related to MTA Capital Program
The MTA should expand One Person Train Operation (OPTO), which other systems embraced decades ago, to leverage investments in signals and new subway cars.
The MTA and labor need to modernize how transit workers pick the time and location of their shifts to enable faster service modifications and more efficient scheduling.
The MTA and TWU should switch retirees to a high quality Medicare Advantage plan to restrain ballooning health care costs without reducing benefits.
The MTA and its labor partners must implement more creative and flexible work assignments and scheduling to improve service and adapt to riders’ needs.
Transit workers need to return to pre-COVID attendance levels to improve service and cut overtime costs.
Key Data
$15 billion
— Infrastructure investments supported by congestion pricing.
$1 billion
— Annual revenue from drivers through congestion pricing to support infrastructure.
$400 million
— Savings generated by increasing the MTA's own productivity.
$1.1 billion
— Increase in the Payroll Mobility Tax on New York City businesses.
$165 million
— Increase in city support of paratransit.
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…
The proposed 'Toll Payer Protection Act' would limit the ability of state authorities to collect tolls and penalties, potentially reducing critical revenue needed to maintain transportation infrastructure and fund the MTA's capital plan. By constraining enforcement and mandating amnesty periods, the legislation risks diverting general funds or causing underinvestment in assets that are already not in a state of good repair.
Recommendations related to MTA Capital Program
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.
The State should avoid passing legislation that reduces toll and penalty revenue, as it likely requires diversion of general revenues or leads to underinvestment in assets.
The State should reject the implementation of an amnesty program for non-payment of legitimate tolls and charges, as it is bad precedent and may increase the delinquency rate.
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 percent
— Portion of trips on the NYS Thruway that automatically pay tolls via E-ZPass.
88 percent
— Portion of trips on the PANYNJ crossings that automatically pay tolls via E-ZPass.
95 percent
— Portion of trips on the MTA Bridge and Tunnel crossings that automatically pay tolls via E-ZPass.
$5
— The penalty cap for non-payment of tolls after 30 days proposed in the bill.
$25
— The penalty cap for non-payment of tolls after 60 days proposed in the bill.
The MTA faces a massive structural operating budget deficit and requires over $35 billion in capital investment to maintain its current infrastructure. To address these fiscal challenges, the agency must prioritize efficiency reforms, implement congestion pricing without diverting funds, and focus on state-of-good-repair projects over expansions.
Recommendations related to MTA Capital Program
The MTA should prioritize the state of good repair before expansion projects to ensure the system functions reliably.
Congestion pricing should be implemented expeditiously, and revenues should not be diverted to narrow the operating budget gap.
The MTA should keep laser-focused on increasing its capital project throughput and use techniques such as Fastrack closures to facilitate repairs and upgrades.
The MTA's leadership and labor unions should work together to identify and phase in efficiency reforms to narrow the structural gap.
Riders should pay reasonable fares that increase with costs to support the system's future.
Key Data
$35 billion
— Capital investment needed in the next few years to bring tracks, cars, and signals to a state of good repair.
$25 billion
— Value of planned projects that will remain outstanding at the end of 2024 despite recent increases in contracting and delivery speed.
$2.5 billion
— Amount by which the MTA's recurring annual expenses exceed its revenues.
44%
— The amount by which the productivity of New York City Transit subway facility maintenance work is lower than the national median.
$100 million
— The size of the MTA's current efficiency plan, which would close only 4% of its budget gap.
$750 million
— The MTA's approximate prepandemic structural deficit.
The Central Business District Tolling Program is essential for generating the revenue needed to support the MTA's 2020-2024 capital plan, though its implementation requires careful management of exemptions and toll structures to ensure goals are met. By limiting exemptions and utilizing variable tolling, the program aims to generate $1 billion in annual revenue while reducing traffic and emissions.
Recommendations related to MTA Capital Program
The MTA should vary tolls based on the time of day and day of the week to prioritize both raising revenue and reducing congestion and emissions.
The MTA should limit exemptions to those specified in the law and perhaps to for-hire vehicles and taxis, and not provide credits for MTA or Port Authority of New York and New Jersey tolls.
The MTA should clearly communicate the tolls to enable drivers to know how much they would pay for different trip times and modify their trips accordingly.
The MTA should monitor and report congestion pricing outcomes and operational metrics to inform future policy adjustments.
The MTA should consider charging a VMT fee for trips occurring entirely within the zone to help meet the program's goals and remove in-zone vehicles' de facto exemption.
Key Data
$1 billion
— Annual revenue goal for the Central Business District Tolling Program.
$5 and $14
— Range of cost increase for non-exempted vehicles if exemptions and credits are increased.
The Metropolitan Transportation Authority faces a significant backlog of uncommitted capital projects, with $52.9 billion remaining from previous plans, while at least $12 billion in planned funding is at risk or unaffordable. To address these challenges, the agency must prioritize projects that maintain safety and reduce maintenance costs, while ensuring that capital capacity is first dedicated to bringing the system to a state of good repair before pursuing system expansion.
Recommendations related to MTA Capital Program
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 specific criteria, such as critical safety needs, reducing maintenance costs, and packaging contracts to lower capital costs.
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 continue to work with the federal and State governments to implement congestion pricing by 2023 to provide critical revenues.
The MTA should increase the efficiency of operations to help eliminate the structural deficit and create capacity to issue debt.
Key Data
$52.9 billion
— Projects still uncommitted from the 2020-2024 and two prior five-year capital plans.
$12.0 billion
— Amount of future planned capital financing that is at risk or unaffordable.
$7.1 billion
— Average annual capital commitments over the past six years.
$8.2 billion
— Forecasted capital commitments for 2022.
$30.2 billion
— Amount of projects that would still be uncommitted when the current plan period ends in 2024, assuming annual commitments increase 15 percent.
$11.5 billion
— Amount of planned spending and borrowing that is unaffordable due to the MTA’s structural deficit.
The proposed renovation and expansion of Penn Station is estimated to cost between $6 billion and $7 billion for the renovation alone, with an additional $12 billion-plus required for its expansion. To fund these massive transit improvements, the state plans to use a complex value capture framework that diverts future city property tax revenues, raising significant concerns about cost overruns, local decision-making authority, and the fiscal impact on municipal budgets.
Recommendations related to MTA Capital Program
To ensure the Penn Station project has the maximum and most cost-effective impact, the plan should be designed and executed well, should be based on appropriate decision making input and authority, and should appropriately leverage City, State, federal, and private resources to support transit improvements.
Before any financing plan is approved, the scope of work should be reasonably detailed, scrutinized, and streamlined as much as possible to prevent cost escalation typical of MTA megaprojects.
The State and the railroads should focus on improving safety, circulation, and functionality and doing so in the most cost-effective manner to deliver transportation projects.
The State and the railroads should avoid costly, non-essential, cosmetic improvements and should not preclude the possibility of future capacity or service enhancements to increase transit capacity.
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 for the renovation of Penn Station, which is likely to be one of the costliest transportation projects in the nation's history.
$12 Billion-plus
— Estimated cost for the expansion of Penn Station.
The Metropolitan Transportation Authority requires $15 billion in revenue from the congestion pricing program to successfully implement its current capital plan. Advocates are urging state leadership to expedite federal approvals and resist toll exemptions to ensure the program is implemented by the end of 2023.
Recommendations related to MTA Capital Program
The Governor should use the full force of her office to push the White House and the Federal Highway Administration to expedite the necessary approvals for the congestion pricing program, which is essential for the MTA's capital plan.
The MTA must stand firm against calls for congestion pricing exemptions that would increase tolls on the rest of the driving population and undermine the program's goals.
The Governor should contact Secretary Buttigieg of the USDOT to request no further delay in federal review or permitting processes necessary for the implementation of the congestion pricing program.
The state must ensure that congestion pricing is implemented without further delay and no later than the end of 2023 to secure the $15 billion in capital funding.
Key Data
$15 billion
— Capital funding generated from congestion pricing revenue that is essential to the MTA implementing its capital plan.
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…
John (“Janno”) Lieber was appointed Acting Chair and CEO of the MTA in July 2021. Prior to that he was MTA’s Chief Development Officer and President of Construction & Development where he was responsible for capital planning and for the development and delivery of capital projects across the MTA. From…
The Metropolitan Transportation Authority faces a structural operating budget imbalance exceeding $2 billion annually once federal aid expires, necessitating operational efficiencies and biennial fare increases to avoid service cuts. Implementing congestion pricing is essential to generate $1 billion in annual contributions, which would support $15 billion in critical capital investment.
Recommendations related to MTA Capital Program
The Governor should vigorously support the MTA to improve the efficiency of its operations, including working with the leaders of its unionized workforce, to stave off future service cuts, tax increases, or extraordinary fare increases.
The MTA can save up to $2.9 billion annually by increasing subway and bus operations and maintenance productivity, increasing bus speeds, reforming how it deploys conductors, and reducing employee and retiree health spending.
The State should encourage the MTA to continue the practice of increasing fares and tolls biennially to keep up with inflation.
The State should expeditiously implement congestion pricing to generate resources for the MTA capital plan.
Key Data
$2 billion
— The annual structural imbalance in the MTA's operating budget that will emerge when federal aid runs out.
$2.9 billion
— The amount the MTA can save annually by increasing operations and maintenance productivity, increasing bus speeds, reforming conductor deployment, and reducing health spending.
$1 billion
— The expected net annual contributions from congestion pricing for the MTA capital plan.
$15 billion
— The amount of investment that would be supported by the net annual contributions from congestion pricing.
The MTA faces a structural annual deficit of at least $2.0 billion, necessitating operational efficiency improvements and continued fare increases to ensure future stability. Additionally, $9.8 billion of the 2020-2024 capital plan remains at risk, highlighting the uncertainty surrounding long-term funding and debt management.
Recommendations related to MTA Capital Program
The MTA should implement changes that increase the efficiency of its operations to help stabilize its future.
The MTA should continue planned fare increases to help stabilize its future.
The City should aggressively roll out Fair Fares to help stabilize the MTA for the future.
Key Data
$2.0 billion
— The structural annual deficit the MTA faces, which is currently covered by federal aid and borrowing.
$2.9 billion
— The amount of MLF debt available to support operations through 2025.
$9.8 billion
— The portion of the 2020-2024 capital plan funding that was identified as 'at risk' during the summer.
Congestion pricing in Manhattan below 61st Street is expected to generate $1 billion annually for the MTA capital plan while reducing the $5 billion in annual travel time losses and pollution. Implementing this program requires careful policy design, including variable tolling, limited exemptions, and ongoing performance monitoring to ensure it meets revenue and traffic goals.
Recommendations related to MTA Capital Program
Prioritize both raising revenue and reducing congestion and emissions by varying toll levels to achieve these policy goals.
Limit exemptions to transit providers, those specified in the law, and perhaps to for-hire vehicles (FHVs) and taxis to avoid reducing the program’s ability to achieve its goals.
Do not provide credit for payment of MTA or Port Authority of New York and New Jersey (PANYNJ) tolls, as doing so would increase the complexity of implementing the program.
Vary the congestion charge by time of day and day of the week, while ensuring it is easy to understand and well communicated.
Consider charging a vehicle-miles travelled (VMT) fee for those that stay inside of the zone to help meet the program’s goals in the future.
Monitor and report congestion pricing outcomes and operational metrics to inform future policy adjustments at regular intervals.
Key Data
$5 billion
— Estimated annual travel time and related losses in Manhattan below 61st Street.
$1 billion
— Net annual contribution to the MTA capital plan generated by congestion pricing.
$1 billion
— Annual revenue target for the congestion pricing program.
Congestion pricing in Manhattan is designed to generate $1 billion annually to support $15 billion of the MTA's capital program while reducing traffic and emissions. To ensure success, the program should implement variable tolling, limit exemptions, and monitor performance metrics to allow for future policy adjustments.
Recommendations related to MTA Capital Program
Vary the congestion charge to prioritize both raising revenue and reducing congestion and emissions.
Limit exemptions to transit providers, those specified in the law, and perhaps to for-hire vehicles (FHVs) and taxis.
Do not provide credit for payment of MTA or Port Authority of New York and New Jersey (PANYNJ) tolls.
Vary the congestion charge while ensuring it is easy to understand and well communicated.
Consider charging a vehicle miles travelled (VMT) fee for those that stay in the zone.
Monitor and report congestion pricing outcomes and operational metrics to inform future policy adjustments.
Key Data
$1 billion
— Annual revenue generated by the congestion pricing program to support the MTA's capital program.
$15 billion
— Total amount of the MTA's capital program supported by the congestion pricing revenue.
$55 billion
— Total size of the MTA's 5-year capital program.
$2.50
— Congestion pickup fee authorized for taxis in Manhattan.
$2.75
— Congestion pickup fee authorized for for-hire vehicles (FHVs) in Manhattan.
$60,000
— Annual income threshold for residents of the congestion zone to qualify for exemptions.
The Metropolitan Transportation Authority faces a long-term structural deficit that may approach $2.5 billion annually once federal pandemic aid is exhausted. To ensure fiscal stability and complete critical infrastructure projects, the agency must prioritize essential state-of-good-repair work and expedite the implementation of congestion pricing.
Recommendations related to MTA Capital Program
It is critical that the MTA focus its investment on the highest priority state of good repair and normal replacement work and make publicly available its project schedules and costs.
Congestion pricing remains urgently needed and the MTA should expedite its implementation.
The MTA should continue its policy of regular biannual increases to help adequately and appropriately fund its operations.
The City should continue to implement and ensure full uptake of Fair Fares as a key companion policy to assist low-income riders.
The MTA must sustain and advance the progress in administrative and back-office streamlining.
Key Data
$8.0 billion
— Cumulative cash shortfall forecasted through 2024.
$6.5 billion
— Additional federal aid delivered by the American Rescue Plan.
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.…
The Metropolitan Transportation Authority faces a significant long-term financial challenge, with a projected $7.9 billion cash shortfall for 2022 through 2024 and a capital plan that remains largely on hold. To ensure stability, the agency must prioritize essential state-of-good-repair projects while navigating uncertain revenue streams like congestion pricing and federal aid.
Recommendations related to MTA Capital Program
The MTA should not substantially change its policy of regular fare increases to keep pace with inflation.
Implementing and ensuring full uptake of Fair Fares is a key companion of fare policy in order to assist low-income riders.
Further service "right-sizing" tailored to the reduction and resumption of economic activity and commuting are appropriate.
It will be critical for the MTA to focus its investment on the highest priority state of good repair and critical system replacement work.
Maximization of fare revenue eventually requires a new, re-targeted fare structure modeled on other systems that price discriminate by trip type and time of day.
Key Data
$7.9 billion
— Forecasted three-year, 2022 to 2024 cash shortfall.
$1 billion
— Annual net revenue from congestion pricing that 30 percent of the 2020-2024 capital plan relies on bonding out.
$379 million
— Annual COVID cleaning expenses previously itemized in the budget.
$220 million
— FEMA reimbursement budgeted in 2021 in the November and December plans.
$1.5 billion
— Amount of cash the MTA reported having more than expected at the end of 2020.
$4 billion
— Amount of aid the federal COVID relief bill will deliver to the MTA.
The Metropolitan Transportation Authority faces a $16.2 billion budget gap through 2024 due to pandemic-related revenue declines, necessitating difficult operational savings and a potential rescoping of capital projects. To maintain the system's state of good repair, the authority must prioritize essential infrastructure investments while managing rising debt service costs that threaten future service quality.
Recommendations related to MTA Capital Program
The MTA should work with the labor force to implement additional savings by increasing the efficiency of operations, and reducing overtime and employee benefits costs.
The MTA should forego new headcount, as the financial plan's inclusion of 776 new positions and $250 million in increased personnel costs is not affordable.
The MTA should rescope the capital program to focus on projects that will preserve the system’s state of good repair and reduce future maintenance expenses, especially in the key areas of tracks and signals.
The MTA should optimize service to match ridership patterns and support critical needs of the economy, including adjusting service on overlapping routes.
The MTA should increase tolls by a greater percentage than the currently planned 4 percent increase in 2021, as toll traffic has returned at a faster rate than ridership.
Key Data
$16.2 billion
— Cumulative budget gap from 2020 through 2024.
$5.1 billion
— Anticipated shortfall in fare and toll revenue in 2020.
$250 million
— Increased personnel cost associated with 776 new positions in the fiscal year 2021 financial plan.
90 percent
— Decrease in subway and bus ridership experienced by April.
65 percent
— Decrease in bridge and tunnel traffic experienced by April.
95 percent
— Decrease in commuter rail passengers experienced by April.
The Metropolitan Transportation Authority faces a severe fiscal crisis exacerbated by the pandemic, requiring a strategic combination of operational efficiencies, prioritized capital investments, and adjusted fare and toll policies. To maintain vital services while managing significant budget shortfalls, the authority must focus on essential repairs, defer non-critical expansion projects, and consider targeted revenue increases.
Recommendations related to MTA Capital Program
The MTA should pursue greater efficiencies to lower operating expenses, which in large part require working collaboratively with labor unions.
The MTA should prioritize planned capital investments to lower debt service costs, including postponing expansions and possibly slowing accessibility improvements.
The MTA should optimize service levels by continually adjusting capacity to current demand and safety requirements.
The MTA should revise fare and toll policies to seek more revenue from fares and to raise tolls proportionally more than fares.
The MTA should borrow for operating expenses only as a last resort to sustain vital services during the crisis period.
Key Data
$8.4 billion and $12.6 billion
— The estimated operating budget shortfall for 2020 and 2021.
$64 billion
— The amount of capital commitments in the MTA's current plans for the next five years.
$742 million
— The cumulative debt service savings from prioritizing projects in the first five years of the new plan.
$7.9 billion
— The combined cost of the Second Avenue Subway Phase 2 and the Penn Station Access project.
$6 billion
— The cost of multiple projects intended to expand and accelerate the accessibility of subway and commuter rail stations.
$11
— The proposed increase to the current in-bound toll on MTA tunnels connecting directly to the central business district.
New York City taxpayers provide 71 percent of the Metropolitan Transportation Authority's non-fare and toll revenue, a burden that is expected to grow as new funding sources like the mansion tax and central business district tolling are implemented. These taxpayers already contribute the majority of the transit system's subsidies, including significant funding for the 2020-2024 Capital Program and the Subway Action Plan.
Key Data
71 percent
— of the MTA’s non-fare and toll, nonfederal revenue is provided by New York City taxpayers.
$1.7 billion
— of tax revenue was contributed by City taxpayers to the MTA in 2018 through the City budget.
$25 billion
— of the 2020-2024 Capital Program is expected to be supported by new revenue sources enacted in the 2020 budget.
$374 million
— is the amount the MTA forecasts the new mansion tax will generate in 2020.
$134 million
— was contributed by the City-sponsored Hudson Yards Infrastructure Corporation for debt service on bonds issued to pay for the extension of the No. 7 train.
$5.5 billion
— was the total of State-authorized taxes allocated to the MTA in 2018.
The Metropolitan Transportation Authority's mandatory debarment policy for contractors exceeding budget or schedule by ten percent is discouraging competition and creating excessive risk for vendors. This policy, which applies to the agency's $55 billion capital plan, should be revised to allow for discretion rather than automatic penalties.
Recommendations related to MTA Capital Program
The MTA Board should work with staff to revise the regulations to not mandate automatic debarment for contractors.
The MTA should follow the law to allow the MTA discretion to take into consideration the circumstances of each project and the pool of vendors able to perform the particular work.
Key Data
$55B
— The total value of the MTA's largest ever capital plan.
$38.8 million
— The value of a design-build contract for station accessibility upgrades that failed to attract three potential vendors.
three
— The number of vendors that did not submit proposals on a design-build contract due to excessive risk from contract terms.
ten percent
— The threshold by which a project going over budget or schedule triggers automatic debarment for contractors.
The proposed $54.8 billion MTA 2020-2024 Capital Program is overly ambitious, as the agency is unlikely to be able to commit to the $70 billion in total planned projects within the five-year timeframe. Financing this plan relies heavily on new, volatile revenue streams and increased debt, which threatens to place significant pressure on the operating budget and future capital funding.
Recommendations related to MTA Capital Program
The MTA should prioritize the most impactful projects and initiate those as soon as practicable.
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 new real estate transfer taxes as a source for pay-as-you-go capital projects.
Key Data
$54.8 billion
— The proposed 2020-2024 Capital Program.
$70 billion
— The total value of projects planned, including the new program and the backlog.
$6 billion
— The average annual capital project commitment rate from 2010 to 2018.
$1 billion
— The estimated annual revenue generated by central business district tolling.
15.8 percent
— The portion of total operating spending currently comprised by debt service.
$3.5 billion
— The forecasted debt service in 2023.
The proposed $54.8 billion 2020-2024 MTA Capital Program is overly ambitious, as the agency would need to double its annual commitment rate to $14 billion to complete the $70 billion in total planned projects. Financing this plan relies heavily on volatile revenue streams and new debt, which threatens to increase debt service costs and pressure the operating budget.
Recommendations related to MTA Capital Program
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.
The MTA should 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 volatile real estate transfer taxes to support debt, the MTA should consider this a source for pay-as-you-go capital projects.
Key Data
$54.8 billion
— The proposed value of the 2020-2024 Capital Program.
$70 billion
— The total value of projects planned, including the new program and previously approved projects.
$6 billion
— The average annual capital project commitment rate from 2010 to 2018.
$14 billion
— The required annual commitment rate to execute the new capital plan and backlog in five years.
$1 billion
— The estimated annual revenue from central business district tolling.
$15 billion
— The amount of bonds planned to be supported by central business district tolling revenue.
The MTA's proposed $51.5 billion capital plan for 2020-2024 faces significant uncertainty regarding its financing, as it relies on $6 billion in unauthorized state and city contributions and faces potential deficits. Furthermore, the agency must drastically increase its project execution speed to manage a plan that is 70 percent larger than the previous one while still struggling to complete past commitments.
Recommendations related to MTA Capital Program
The MTA should make public a comprehensive needs assessment to determine if the plan's investments will maximize progress on bringing the system to a state of good repair.
The MTA must secure authorized commitments for the $3 billion in funding from New York State and $3 billion from New York City that the plan currently assumes.
The MTA must accelerate rapidly the pace to execute projects to successfully implement a plan that is 70 percent greater than the 2015-2019 capital plan.
The MTA should clarify how it will finance fully $9.8 billion in bonds and pay-as-you-go capital given its projected operating deficits.
Key Data
$51.5 billion
— The total investment amount proposed in the MTA's 2020-2024 capital plan.
$3 billion
— The amount of funding assumed from New York State that has not yet been authorized.
$9.8 billion
— The 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 is greater than 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.
A coalition of advocacy groups is calling for greater transparency regarding the allocation of 'set-aside' funds within the 2020-2024 Metropolitan Transportation Authority (MTA) Capital Program and the $50 million annual Outer Borough Transit Account. The groups demand that these funds be disclosed in an open data format, including details on project purpose, location, and the officials requesting them, to ensure public accountability.
Recommendations related to MTA Capital Program
The State Legislature should publish in an open data format on the Senate and Assembly websites a list of funds 'set-aside' for the State Legislature from the forthcoming 2020-2024 Metropolitan Transportation Authority (MTA) Capital Program.
The MTA or Capital Program Review Board (CPRB) should publish in an open data format a list of funds being distributed from the Outer Borough Transit Account, or the State Legislature should publish such a list if the MTA or CPRB fails to do so.
Disclosures for transit funds should include detailed information regarding the project or program, including its purpose, location, the member requesting it, the responsible agency, the total amount, and relevant dates.
The Capital Program Review Board should conduct its approval of the designation of Outer Borough Transit Funds publicly in an open meeting, as required by the Open Meetings Law.
Key Data
$50 million
— Annual funding amount for the Outer Borough Transit Account.
2020-2024
— The time period covered by the forthcoming Metropolitan Transportation Authority (MTA) Capital Program.
2015-2019
— The time period of the previous Capital Plan during which the Capital Program Review Board failed to abide by the Open Meetings Law.
The proposed rule mandating five-year debarment for contractors who exceed timelines or cost estimates by 10 percent should be modified to allow the MTA discretion to avoid penalizing itself when debarment is disadvantageous. Instead of relying solely on punitive measures, the MTA should implement incentive-based procurement reforms to encourage efficient contractor performance.
Recommendations related to MTA Capital Program
The MTA should grant the MTA discretion whether to debar a contractor when debarment would disadvantage the MTA.
The MTA should incorporate a debarment remedy as part of an overall reform to the MTA procurement process.
The MTA should introduce incentive-based measures to award the best performing contractors alongside discretionary debarment for the worst performing contractors.
Key Data
40 percent
— The portion of an unused contingency account the contractor was entitled to at the end of the JFK Airport AirTrain project.
$12 million
— The payment amount the contractor received from an unused contingency account upon completion of the JFK Airport AirTrain project.
The Metropolitan Transportation Authority's capital plans have grown significantly, rising from $24.1 billion in the 2010-2014 period to $33.3 billion for 2015-2019. To fund the 2020-2024 capital program, the Central Business District tolling initiative is required to generate $15 billion in revenue.
Key Data
$15 billion
— Amount that tolls must be set to support for the MTA's 2020-2024 capital program.
$33,270
— Total dollars in millions for the 2015-2019 5-year capital plan.
$24,118
— Total dollars in millions for the 2010-2014 5-year capital plan.
$17b
— Total 2019 operating expense & debt service for the MTA.
The New York State fiscal year 2020 budget established three new revenue streams—congestion pricing, a progressive real estate transfer tax, and a sales tax intercept—to fund the Metropolitan Transportation Authority's 2020-2024 capital plan. These funds are directed into a dedicated "CBD Tolling Capital Lockbox" to support approximately $25 billion in capital projects, including subway, bus, and commuter rail improvements.
Key Data
$1.685 billion
— Estimated annual yield from all new resources once the congestion tolling program is operational.
$25 billion
— Amount of the MTA's 2020-2024 Capital Plan expected to be supported by the new revenue sources.
$1 billion
— Estimated annual revenue generated by the congestion pricing program.
$365 million
— Estimated annual revenue generated by the two newly enacted real estate transfer tax surcharges.
$112.5 million
— State sales tax revenue deposit into the Central Business District Trust Fund in State fiscal year 2020.
$127.5 million
— City sales tax revenue deposit into the CBD Tolling Capital Lockbox in State fiscal year 2020.
The New York State budget agreement establishes a congestion pricing program to fund the Metropolitan Transportation Authority's capital program while introducing new revenue streams and design-build contracting requirements. To ensure the program's success, it is essential to limit fee exemptions and reconsider the mandatory application of design-build contracting for projects exceeding $25 million, which may prove counterproductive or administratively burdensome.
Recommendations related to MTA Capital Program
It is critical to limit fee exemptions in order to preserve projected revenues and traffic reduction for the MTA.
The State should avoid mandating the use of design-build contracting on all projects greater than $25 million, as it may be counterproductive on some projects.
The State should remove the requirement for a waiver from the State Division of the Budget for design-build contracting, as it is unnecessarily burdensome.
Key Data
$25 million
— The project cost threshold above which the mandatory use of design-build contracting may be counterproductive.
New York's current transportation funding system fails to generate sufficient revenue to maintain roads, bridges, and mass transit systems, leading to significant infrastructure disrepair and structural budget imbalances. To address these shortfalls, the state should implement new revenue streams, such as congestion pricing and a vehicle-miles traveled (VMT) fee, while also considering increases to existing user fees.
Recommendations related to MTA Capital Program
The Governor and legislature should develop and advance a comprehensive congestion pricing proposal this year to raise sufficient revenues to reduce transportation funding shortfalls and support additional mass transit service.
New York should consider user fees that supplement fuel taxes to prepare for the continued erosion of traditional revenue sources.
Long-term, the State should shift away from fuel taxes toward a more sustainable vehicle-miles traveled (VMT) fee.
The State should set user charges per mile driven in real terms to levels that support the operation and maintenance of the highway system.
Increasing fuel taxes, vehicle fees, and toll rates to those of New York’s neighbors can raise significant sums in the short-term.
Key Data
$3.6 billion
— Annual transportation revenues collected by New York State in fiscal year 2018 from motorist user fees.
$1.3 billion
— Amount of motorist user fees that cross-subsidized mass transit in fiscal year 2018.
$5.5 billion
— Cost of State of Good Repair (SGR) needs at the New York State Department of Transportation in 2016.
17 percent
— Decrease in the amount of fuel tax per mile driven in New York since 1993.
$1.2 billion
— Potential annual revenue generated by a vehicle-miles traveled (VMT) fee charged at a rate of 1 cent per mile.
$1 billion
— Estimated net revenue from the congestion pricing proposal included in the FY 2020 Executive Budget to support MTA capital investments.
The Metropolitan Transportation Authority requires significant financial support, which should be addressed through congestion pricing and operational efficiencies rather than relying on a pied-à-terre tax. The capital program must prioritize state of good repair projects and be executed with greater efficiency to ensure long-term fiscal stability.
Recommendations related to MTA Capital Program
It is crucial for the Legislature to pass congestion pricing in order to raise revenue, decrease congestion, and improve service.
The capital program should be more focused on state of good repair needs and capital projects executed with greater efficiency.
Any additional revenue needed after these operational and capital reforms should come from motorists and broad-based taxes.
Additional spending restraint and operational efficiency, including renegotiation of the Transit Workers United (TWU) labor contract, are critical parts of the solution.
The 10-Point Plan for the Metropolitan Transportation Authority introduces congestion pricing and regular fare increases to support the system's finances and capital investments. While the plan acknowledges the necessity of cost containment and management improvements, it relies on uncertain revenue sources like internet sales and marijuana taxes that should be integrated into the standard budget process.
Recommendations related to MTA Capital Program
The participation of labor and increased productivity by all segments of the workforce are critical to cost containment and management improvement efforts for the MTA.
New revenue sources like internet sales taxes and excise taxes on marijuana should be allocated in the budget process rather than 'earmarked' in statute.
Clarification is needed on the Regional Transportation Committee’s role in reviewing the capital program and toll and fare increases.
The Regional Transportation Committee should not become an obstacle to timely approval of the capital program or fare increases.
Implementing congestion pricing in Manhattan's central business district would generate necessary revenue to support the Metropolitan Transportation Authority's capital program while simultaneously reducing traffic congestion and air pollution. An effective system requires variable toll rates to manage demand, with revenues prioritized for transit infrastructure and bridge maintenance.
Recommendations related to MTA Capital Program
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.
The MTA's capital investment has grown from $24.1 billion in the 2010-2014 period to $33.3 billion in the 2015-2019 period, with a proposed $40 billion Fast Forward Plan aiming to modernize signals, improve accessibility, and replace rolling stock over the next decade. This significant capital expenditure is separate from the $17 billion in annual operating expenses and debt service, which is heavily weighted toward subway and bus operations.
Recommendations related to MTA Capital Program
The Fast Forward Plan prioritizes a modernized signal system on 5 lines during the first 5 years.
The plan aims to deliver 50 new accessible stations and 150 rehabilitated stations in the first 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 targets a modernized signal system on 6 additional lines during the following 5 years.
The plan outlines the addition of 130 additional accessible stations and 150 rehabilitated stations in the following 5 years.
The plan calls for 3,000 new subway cars and 2,100 new buses in the following 5 years.
Key Data
$24,118 million
— The total cost of the 2010-2014 MTA capital plan.
$33,270 million
— The total cost of the 2015-2019 MTA capital plan.
$40 billion
— The estimated cost of the Fast Forward Plan.
$11,259 million
— The 2019 operating expense and debt service for Subway & Buses.
The Metropolitan Transportation Authority faces a worsening fiscal outlook with substantial capital needs that require new recurring revenue streams. To address these challenges, implementing planned biennial fare increases and congestion pricing is essential for the authority's financial stability.
Recommendations related to MTA Capital Program
The City should support planned biennial fare increases and proposed congestion pricing to provide recurring revenue to the MTA.
The proposed state budget includes congestion pricing to fund the Metropolitan Transportation Authority's capital needs, but it also shifts a significant financial burden onto New York City taxpayers by requiring the city to cover half of the capital plan costs not met by congestion pricing revenue. This shift is particularly concerning given that city taxpayers already contribute an estimated 74 percent of the authority's dedicated taxes and subsidies.
Recommendations related to MTA Capital Program
The state should proceed with the congestion pricing proposal because it appropriately dedicates the revenues for the MTA’s capital needs.
The state should eliminate the requirement that New York City fund half of the MTA capital plan not covered by new congestion pricing revenues, as this places an onerous burden on city taxpayers.
Key Data
74 percent
— Estimated share of the MTA’s dedicated taxes and subsidies currently paid by New York City taxpayers.
Establishing a congestion pricing zone in Manhattan is essential to generate revenue exclusively for MTA capital investments. Additionally, improving the transit system's fiscal health requires implementing procurement reforms, conducting independent audits of capital costs, and allowing greater flexibility to close subway lines for necessary construction and maintenance.
Recommendations related to MTA Capital Program
Establish a congestion pricing zone in Manhattan and devote all resulting revenue exclusively to MTA capital investments.
Conduct an independent audit of capital costs and state of good repair needs.
Implement procurement reforms to improve fiscal health.
Allow flexibility in closing subway lines for construction and maintenance.
New York State's infrastructure network is failing due to aging assets, lack of coordinated planning, and insufficient funding, requiring at least $100 billion in new investment to meet current needs. To address these challenges, the state should establish an Office of Infrastructure to centralize planning, prioritize projects based on economic and resiliency goals, and explore alternative funding sources like congestion pricing.
Recommendations related to MTA Capital Program
Establish a New York State Office of Infrastructure to lead long-term, cross-agency planning and serve as a public face for the State’s infrastructure vision.
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 create a Center of Excellence for state infrastructure investment with the objectives to tackle cost drivers, assess and recommend the most appropriate project delivery, and encourage and facilitate knowledge sharing across entities.
The Office of Infrastructure should be a clearinghouse for project transparency and reporting, providing a single access point for capital infrastructure projects statewide.
New York will require more funding from its existing funding sources and should pursue alternate funding sources, such as congestion pricing and value capture.
Key Data
$100 billion
— Minimum investment required to meet the state’s infrastructure needs.
$68 billion
— Estimated investment needed over the next 20 years to update and maintain the MTA system.
$40 billion
— Estimated cost of the MTA's Fast Forward Plan to deliver capital improvements on an accelerated timeline.
$15.6 billion
— Estimated cost over 20 years to continue installing the new communications-based train control (CBTC) signaling system.
$807 million
— Construction cost per track mile for Phase II of the MTA’s Second Avenue Subway project.
20%
— Approximate portion of the MTA and Port Authority capital budgets supported by federal grants.
The MTA's subway car fleet requires significant investment to restore reliability, as past capital programs have often prioritized network expansion over essential car replacement and maintenance. Achieving a state of good repair will require a sustained, multi-billion dollar commitment in future capital plans to address the aging fleet and implement necessary modernization.
Recommendations related to MTA Capital Program
MTA leadership should increase significantly its commitment to subway cars in the 2020-2024 capital program.
The Fast Forward plan must be funded in future capital plans and administered effectively to achieve anticipated results.
The MTA must prioritize subway car investments to avoid placing added pressure on the fleet’s maintenance and squandering hard-fought gains in reliability.
Key Data
$9 billion
— Estimated cost relating to subway cars.
$8.3 billion
— Combined cost of R211s and additional cars.
$40 billion
— Initial estimates of the entire Fast Forward program.
6,482
— Total number of cars in the NYCT subway car fleet.
112,208 miles
— Mean distance between car component failures in 2016.
The MTA's "Fast Forward" plan offers a promising strategy to modernize the transit network, particularly through the prioritization of subway signal upgrades to enhance reliability and safety. To ensure long-term success, the transit authority should align its modernization measures with a state of good repair for all infrastructure and transition to a ten-year capital planning cycle.
Recommendations related to MTA Capital Program
The Metropolitan Transportation Authority (MTA) should explicitly relate the measures identified to progress toward achieving a state of good repair for all system components including stations, track, and line equipment such as vent fans and pumps.
Equal attention should be given to the more hidden elements of the system that are vital to reliability and safety.
The MTA might benefit from moving from the current system of five-year capital plans to a ten-year capital plan that is revised every five years.
A state budget proposal to fund the Metropolitan Transportation Authority by capturing a portion of increased property tax revenue around transit hubs threatens local control and lacks the specific project-based negotiation seen in successful initiatives like the No. 7 line extension. Instead of broad, state-mandated districts, the city should retain the authority to decide on a case-by-case basis how to allocate its own tax revenue for capital projects.
Recommendations related to MTA Capital Program
Any value capture arrangement should be tailored to specific projects and circumstances rather than broadly applied.
The mayor and city council—not the governor and the state Legislature—should determine how the city’s property tax revenue is going to be spent.
Dedicating future tax revenue to a mass transit project should be a policy choice made by the city on a case-by-case basis in a way that is transparent and accountable to taxpayers.
Value capture projects should adhere to best practices rather than granting the MTA overly broad authority in creating districts and limiting city leaders' roles.
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 MTA.
75 percent
— The share of increased New York City property taxes that could be captured for future transportation improvement districts under the proposal.
18 million
— The square feet of new office, residential, and retail space planned or built at Hudson Yards that would not have happened without the No. 7 subway expansion.
$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.
The Governor's proposal to allow the MTA to create tax increment financing districts in New York City without local approval undermines municipal autonomy and lacks necessary safeguards for revenue use. Instead of this unilateral approach, the State and the MTA should utilize existing laws to collaborate with the City on value capture strategies for future capital projects.
Recommendations related to MTA Capital Program
The State and the MTA should use the powers granted to them under the existing TIF law to partner with New York City when considering the use of value capture for future projects.
TIF districts should sunset after a period of time, after which the incremental revenue flowing to the district reverts to a city’s general fund.
Incremental revenue should be segregated to a specific fund to repay the costs of the projects that created the value, rather than flowing directly to the MTA for general use.
Value capture should be used as a financing tool to pay for new capital projects, rather than collecting incremental property tax revenue within one mile of completed projects or projects already under construction.
The MTA should limit the use of value capture to truly transformative projects rather than projects that will not add capacity.
The MTA should reduce the size of subdistricts to industry-standard transit zones, which are no more than a one-half mile buffer surrounding individual stations.
Key Data
75 percent
— The maximum portion of property value increment the MTA could require the City to remit to the Authority.
$100 million
— The minimum estimated cost required for an MTA capital project to be eligible for a transportation improvement subdistrict.
one mile
— The distance from an MTA capital project within which the MTA could capture property tax revenue under the proposed legislation.
one-half mile
— The industry-standard buffer size for transit zones, which is significantly smaller than the one-mile radius proposed in the legislation.
The New York State Executive Budget proposes shifting the financial burden of subway and bus capital improvements entirely to New York City, which would require a massive increase in local capital contributions. Additionally, the plan seeks to authorize the Metropolitan Transportation Authority to establish Transportation Improvement Districts that capture property value increases without local approval, further burdening residents who already contribute 72% of the agency's dedicated taxes and subsidies.
Recommendations related to MTA Capital Program
The State should reject the proposal to shift the responsibility for funding New York City subway and bus capital improvements solely to the City of New York, as this would impose an onerous cost shift onto New York City residents and businesses.
The State should not authorize the Metropolitan Transportation Authority to establish Transportation Improvement Districts within New York City that capture revenues from rising property values without the City's approval.
Policymakers should provide specific details regarding how much revenue will be provided for the MTA through the proposed congestion zone.
Key Data
72%
— Percentage of MTA dedicated taxes and subsidies already paid by New York City residents and businesses.
The Metropolitan Transportation Authority lacks a comprehensive, public assessment of its infrastructure needs, which prevents informed decision-making regarding necessary capital investments and funding strategies. Implementing a mandatory, regularly updated asset management report similar to the city's AIMS model would provide the transparency required to prioritize repairs over costly system expansions.
Recommendations related to MTA Capital Program
A full accounting of the mass transit system's condition and the costs needed to achieve a full state of good repair should still be made—and made public.
The governor's agenda for the coming legislative session should include mandating that an AIMS report be prepared and regularly updated by the MTA.
Key Data
$1 billion
— Proposals floated recently by transit advocacy groups aim to generate $1 billion a year for the MTA.
The state faces significant funding questions regarding the Metropolitan Transportation Authority, specifically concerning the identification of revenue sources for the Subway Action Plan and the fulfillment of promised capital commitments. Addressing these gaps is essential to ensure the completion of the 2015-2019 capital program and the implementation of necessary transit improvements.
Recommendations related to MTA Capital Program
The state must identify funding sources for the $161 million in annual costs for phase one of the Subway Action Plan if congestion pricing is not adopted.
The state's capital plan should include $4 billion for phase two of the Subway Action Plan.
The state must account for the remaining $1 billion in capital that was promised in 2017 for the MTA’s 2015-2019 capital program.
Key Data
$161 million
— Annual costs for phase one of the Subway Action Plan.
$4 billion
— Funding required for phase two of the Subway Action Plan.
$1 billion
— Remaining capital promised in 2017 for the MTA’s 2015-2019 capital program.
Mandating two free transfers for subway and bus riders would reduce annual revenue by $40 million, hindering the agency's ability to fund a $1.5 billion system stabilization plan and $650 million in critical capital investments. Current fare structures already provide an unrivaled bargain, with the 2017 average revenue per ride significantly lower than what would be expected if 1993 fares had simply kept pace with inflation.
Recommendations related to MTA Capital Program
The Governor should veto A3439/S2560, a bill mandating two free transfers for persons purchasing a ride on Metropolitan Transportation Authority (MTA) subways and buses.
Key Data
$40 million
— Estimated annual revenue reduction for the MTA if the bill mandating two free transfers is enacted.
$1.5 billion
— Cost of the Subway Action Plan currently being implemented to stabilize the system.
$650 million
— Amount of needed capital investments that would be supported by fare revenue.
$1.21
— Average fare revenue per ride in 1993.
$2.25
— Inflation-adjusted equivalent of the 1993 average fare in 2017.
17%
— Percentage by which the inflation-adjusted 1993 fare exceeds the 2017 year-to-date average revenue per ride.
The MTA's 2018 budget includes a $1.5 billion Subway Action Plan to address infrastructure failures, yet it lacks secured funding, threatening to turn a projected cash surplus into a significant deficit. Without identified revenue sources or commensurate spending reductions, the board should reject the proposed budget to avoid long-term financial instability.
Recommendations related to MTA Capital Program
The board should not advance a budget without either funding sources identified to support the SAP 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.
If the MTA intends to scale back the SAP to match available funding, specific details need to be provided to enable the board to make an informed decision.
Draining reserve funds and eschewing PAYGO capital for more debt should be avoided.
Key Data
$1.5 billion
— Five-year cost of the Subway Action Plan to address the system’s mounting equipment and infrastructure failures.
$428 million
— Budgeted amount for Subway Action Plan operating costs in 2018.
$528 million
— Increase in state and other funding from yet-to-be-identified sources to support phase one of the Subway Action Plan.
$30 million
— Expected 2018 end-of-year cash surplus if the Subway Action Plan is not implemented.
$498 million
— Projected end-of-year deficit in 2018 if the Subway Action Plan is implemented without additional revenues.
$679 million
— Combined funds held in the Bridges and Tunnels Necessary Reconstruction Fund and the MTA Retiree Welfare Benefits Trust.
The MTA's 2015-2019 capital program prioritizes system expansions over necessary repairs, despite the subway system facing significant reliability issues and a $16.1 billion backlog of needs. To address these challenges, the agency should reallocate uncommitted funds from previous capital plans and implement a new funding framework that relies more heavily on motorist cross-subsidies rather than increasing the burden on taxpayers.
Recommendations related to MTA Capital Program
The MTA should re-task uncommitted funds and funds in the current 2015-2019 capital program to work that can accelerate the process of bringing the subway to a state of good repair.
The MTA should seek additional motor vehicle use charges to cross-subsidize transit.
The MTA and its workforce should more aggressively pursue efficiencies at the agency to make the stabilization plan self-sustaining.
The MTA should adopt a mileage-based user fee, also known as a vehicle-miles traveled tax, which would better reflect the actual use of roads and bridges than motor fuel taxes.
MTA management and the Transport Workers Union should establish a cooperative arrangement to provide significant productivity savings to help cover the cost of added workers.
Key Data
$16.1 billion
— Estimated continuing needs for the subway system identified in the 20-year needs assessment.
$12.7 billion
— Amount included in the originally approved 2015-2019 capital plan for state of good repair and normal replacement investments.
$4.8 billion
— Amount allocated to system expansions in the 2015-2019 capital plan.
$80 billion
— Total authorized for capital plans spanning the 2000 to 2014 period.
$18 billion
— Amount of authorized capital funds from the 2000-2014 period that remains unspent.
$9.2 billion
— Amount of authorized capital funds from the 2000-2014 period that remains uncommitted to construction projects.
The Mayor's proposal to increase the personal income tax to fund MTA capital spending is an inappropriate revenue source, as city taxpayers already contribute 40% of the mass transit budget. Instead, long-term capital needs should be addressed through congestion pricing or motor vehicle charges, and programs like half-price MetroCards should be funded using existing city resources.
Recommendations related to MTA Capital Program
New funding streams to support the transit system’s long-term capital needs should come from motorists through congestion pricing or other charges for motor vehicle use.
A program for city-funded half-price MetroCards for low-income riders should be funded with existing City resources rather than a new tax.
Key Data
40%
— New York City taxpayers already provide approximately 40% of the mass transit budget through the payroll mobility tax and other taxes.
New York's subway system requires a significant financial investment to address performance issues, with a proposed plan costing $456 million in annual operating expenses and $380 million in new capital investments. To fund these improvements, the burden should be shared beyond just the city and state by engaging labor unions for productivity savings and increasing contributions from regional motorists through tolls and congestion pricing.
Recommendations related to MTA Capital Program
The MTA’s unions should step up and contribute to the resolution of the subway crisis by providing productivity savings.
Management should alter night shift differentials to reduce the cost of maintenance in the expanded Fasttrack program.
Management should use “split shifts” for operators and conductors to reduce subway operating costs.
The region should increase funding from cars and trucks to support the mass transit system.
Policymakers should implement congestion pricing or other vehicle-based fees to promote a rationally financed transportation system.
Key Data
$456 million
— Recurring annual operating costs for the MTA's plan to reverse subway performance issues.
$380 million
— New capital investments required for the MTA's plan.
74,000
— Total number of people employed by the MTA.
55,000
— Number of MTA employees who operate the subways and buses.
2,700
— Additional workers required to implement the enhancements in the MTA's plan.
12%
— Portion of the MTA's mass transit system currently funded by tolls.
The MTA's Enhanced Station Initiative allocates nearly $1 billion to upgrade 32 subway stations with aesthetic improvements, yet these projects often cost significantly more than standard renewals and do not necessarily target the system's neediest or most heavily used stations. Given the agency's constrained capital budget and declining subway performance, the MTA should reevaluate whether these aesthetic enhancements are a better use of funds than critical infrastructure repairs like signal system upgrades.
Recommendations related to MTA Capital Program
The MTA should reexamine whether the enhancement of 32 stations is worth the trade-off against other capital needs as part of its 60-day review.
The MTA should prioritize investments in the signal system and other State of Good Repair (SGR) work to ensure the system can continue to operate safely and reliably.
Key Data
$1 billion
— Additional capital funds allocated for enhancements under the Enhanced Station Initiative.
$37 million
— Average cost per station for Enhanced Station Initiative projects.
$22 million
— Average cost per station for renewal projects not part of the Enhanced Station Initiative.
$4 billion
— Total funding for subway station projects following the 2015-2019 capital plan amendment.
$1.1 billion
— Amount added to the existing 2015-2019 capital plan for subway station projects.
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…
This week's data point is $32.5 billion - the value of Metropolitan Transportation Authority's (MTA's) capital plan for 2015 to 2019. Special guest MTA Chief Development Officer Janno Lieber discusses the MTA's capital priorities and how the authority can improve management of its mega-projects.
The MTA's 2015-2019 capital plan has seen reduced funding for critical infrastructure repairs, with current allocations covering less than two-thirds of the needs for city transit and less than half for commuter railroads. Furthermore, billions of dollars in previously approved capital investments remain unspent or uncommitted, highlighting a need for accelerated project management and greater transparency in capital spending.
Recommendations related to MTA Capital Program
Leaders should prioritize those investments needed to restore the system and enhance capacity in the most cost-effective manner as the MTA reevaluates the current capital program and looks to the 2020-2024 plan.
A more transparent process should be pursued so that the public may hold the board responsible for distributing limited capital dollars wisely.
To modernize the system, these investments should be accelerated to the maximum extent possible.
Key Data
$12.7 billion to $12.4 billion
— The reduction in total state of good repair and normal replacement commitments in the most recent amendment to the MTA 2015-2019 capital plan.
$110 billion
— The total amount of approved capital investments included in the 2015-2019 capital plan and the three previous plans as of March 2017.
$33 billion
— The amount of capital funds that have been authorized but remain uncommitted as of March 2017.
$17 billion
— The amount of unspent funds from previous capital plans, representing more than one-fifth of previously approved investments.
The Metropolitan Transportation Authority's revised 2015-2019 capital plan prioritizes expensive expansion projects like the Long Island Rail Road expansion and Second Avenue Subway over critical maintenance and modernization needs. This allocation of resources fails to address the root causes of declining transit service, such as antiquated signal systems and aging infrastructure, which remain significantly underfunded.
Recommendations related to MTA Capital Program
The MTA board should reprioritize funds for state of good repair work and the modernization of the subway’s aging signal system in future capital plan amendments.
The MTA board should require more transparency regarding changes made to the capital program.
The agency should emphasize what can be accomplished if capital funds are spent on state of good repair projects and existing system improvements.
Key Data
$29.5 billion
— Total value of the revised five-year capital plan.
$2.7 billion
— New capital commitments added for system expansions.
60 percent
— Maximum portion of continuing capital needs funded for signal malfunctions, rolling stock breakdowns, and power failures.
$26.6 billion
— Original value of the approved capital plan before the 10 percent increase.
$16.1 billion
— Continuing needs for New York City Transit in nominal 2012 dollars.
$700 million
— Commitments added for Phase II of the Second Avenue Subway.
The Mayor's proposal to increase the personal income tax to fund the MTA's capital needs is considered inappropriate, as New York City taxpayers already contribute roughly 40 percent of the transit budget. Instead, funding for long-term capital needs should be sourced from motorists through congestion pricing, while programs like half-price MetroCards for low-income riders should be supported using existing city resources.
Recommendations related to MTA Capital Program
New funding streams to support the MTA's long-term capital needs should come from motorists through congestion pricing or other charges for motor vehicle use.
The program for half-price MetroCards for low-income riders should be funded with existing City resources rather than a new tax.
Key Data
40 percent
— New York City taxpayers already provide approximately 40 percent of the mass transit budget through the payroll mobility tax and other taxes.
The MTA's financial plan faces increased pressure from higher labor costs and reduced state subsidies, which are only partially offset by insurance recoveries and operational efficiencies. To avoid significant future deficits, the agency must identify new policy actions, as current reliance on one-time fixes and unspecified savings is insufficient to maintain long-term fiscal stability.
Recommendations related to MTA Capital Program
The MTA should establish a 1 percent annual general reserve to provide $650 million over the plan period.
The agency must implement new policy actions to avoid serious red ink if the general reserve funds are not available.
Key Data
$52 million
— Net cash impact of the TWU contract over the four-year life of the plan.
$64 million
— Reduction in four-year savings from the rebidding of the TWU’s health benefits.
$116 million
— Unfavorable impact of the contract and health benefit savings combined during the plan.
$271 million
— Total reduced revenues from dedicated taxes and state subsidies over the financial plan.
$175 million
— Total favorable impact from unspecified efficiencies of $25 million in 2017 and $50 million in each year thereafter.
$704 million
— Amount of previously appropriated funds the State Division of the Budget agreed to accelerate to support the MTA capital program.
New York State's policy of achieving 'parity' in funding between the Metropolitan Transportation Authority's mass transit capital plan and the Department of Transportation's road and bridge program is an arbitrary and misguided approach that ignores actual infrastructure needs. Instead of linking these distinct capital plans, investment levels should be determined by objective assessments of asset conditions and performance indicators to ensure resources are allocated where they are most required.
Recommendations related to MTA Capital Program
The MTA’s 20-year needs assessments and the DOT’s Transportation Asset Management Plan should be enhanced and better utilized in future budget processes to construct capital plans.
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.
Political judgments regarding repair needs and improvements should be informed by careful and professional analysis rather than arbitrary parity.
Key Data
$29.5 billion
— Total MTA capital plan for 2015 through 2019.
$26.6 billion
— Amount of the MTA capital plan dedicated to mass transit.
$21.2 billion
— Total spending for the DOT capital program covering fiscal years 2016 through 2020.
$27.1 billion
— Revised DOT program total including Thruway Authority spending.
29%
— Percentage of regional bridge and highway projects in the 2016-2020 DOT plan located in New York City.
60%
— Percentage of regional bridge and highway projects in the 2016-2020 DOT plan located in the MTA service region.
The MTA's labor agreement with the Transport Workers Union provides 28 months of labor peace but exceeds the financial plan, potentially necessitating increased fares or additional borrowing to fund the capital program. Furthermore, the deal delays the implementation of productivity improvements related to work rules and benefits for the same period.
The MTA's 2017 preliminary budget relies on projected surpluses and cash balances to fund capital investments, but these reserves are expected to be exhausted by 2020, creating significant long-term financial risks. To ensure future stability and capital funding, the agency must address these deficits, manage rising labor and benefit costs, and likely secure new revenue sources such as increased tolls or vehicle-related fees.
Recommendations related to MTA Capital Program
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 revenue from cross-subsidies from motor vehicle users, including higher tolls, gasoline taxes, and license and registration fees.
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 2017.
$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 projected adjusted cash deficit for the MTA in 2020.
$14 billion
— The MTA’s total OPEB liability as of March 31, 2016.
$608 million
— The total OPEB Current Payment listed in the 2017 financial plan.
$28 million
— The projected cash balance at the end of 2017 after allocating available cash to PAYGO funding.
The FY2016-2017 Executive Budget fails to provide a clear plan for funding the Metropolitan Transportation Authority’s capital program, offering only a vague pledge for future support. While the budget does include measures to streamline MTA procurement and allow for public-private partnerships, it lacks the necessary detail to ensure the capital program's financial viability.
The Governor's proposed budget includes an $8.3 billion pledge to the Metropolitan Transportation Authority’s capital plan, raising questions about the balance between borrowing and pay-as-you-go funding. This budget proposal also addresses various other fiscal priorities, including school aid, Medicaid growth, and tax rebates, as the state navigates spending limits and potential revenue allocations.
Key Data
$8.3 billion
— Amount pledged by the Governor to the Metropolitan Transportation Authority’s (MTA’s) capital plan.
The Metropolitan Transportation Authority's financial plan relies on optimistic economic growth projections that may not hold up during a recession, potentially leading to a $1.5 billion revenue shortfall. To mitigate these risks, the agency should adopt more cautious revenue assumptions, establish an explicit rainy day fund, and limit the diversion of capital and retiree benefit funds to cover operating expenses.
Recommendations related to MTA Capital Program
More cautious economic and revenue assumptions seem appropriate.
Accumulation of general reserves should be permitted, and an explicit rainy day fund established covering a larger share of total expenses before releasing future reserves to reduce other long-term liabilities.
Greater restrictions on diversion of OPEB funding and a firmer commitment to PAYGO capital allocations would reduce the risks associated with reallocation of those items.
Continuing to increase planned efficiency gains beyond current targets for future years would help bring expenditures in line with the revenues available when a downturn occurs.
Key Data
$1.5 billion
— Cumulative shortfall of revenue over a four-year period in an illustrative case recession.
$616 million
— Largest variance in Year Three, when the recession scenario produces a loss relative to plan assumptions.
$4.6 billion
— Revenue shortfall over the financial plan based on the 2007 recession experience.
$1.3 billion
— Savings achieved annually in 2015 through the MTA's initiative to curb expenditure growth.
$129,000
— Expected compensation costs per employee in 2018.
$20 billion
— Current unfunded OPEB liability of the MTA.
The MTA's revised five-year capital plan appropriately prioritizes maintaining existing subway services over accelerating the construction of Phase Two of the Second Avenue Subway. By reducing funding for the new line from $1.5 billion to $535 million, the plan acknowledges current budget constraints and construction delays while focusing on essential repairs.
Recommendations related to MTA Capital Program
The MTA Board should approve the revised five-year capital plan because it is well-constructed and should move forward as is.
The MTA should prioritize keeping existing services in a state of good repair over pushing new projects.
The MTA should move the $1.0 billion in construction work into the next five-year plan to acknowledge the reality of construction delays.
Key Data
$1.5 billion
— Original allocation for Phase Two of the Second Avenue Subway.
$535 million
— Revised allocation for Phase Two of the Second Avenue Subway.
$3 billion
— Amount cut from the initial $32 billion capital plan.
$1.0 billion
— Construction work scheduled for 2019 in the initial proposal.
$420 million
— Funding for planning and design in 2015 and 2016.
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.
The MTA's 2015 to 2019 capital plan has been reduced to $26.1 billion, down from the $29 billion initially requested by the MTA Board. Officials must now specify the revised plan's contents, prioritize essential repairs and signaling upgrades over system expansions, and clearly identify the funding sources for these commitments.
Recommendations related to MTA Capital Program
The content of the now reduced scale of the program must be specified in a revised capital plan to be submitted to the Capital Program Review Board.
These challenging cuts should be made in accord with priorities favoring progress toward a state of good repair and enhanced signaling systems over less urgent, albeit desirable, system expansions.
The Mayor and Governor and their budget staffs should identify the sources of their committed funds.
The mix to be relied upon by each government should be specified in the Governor's January 2016 Executive Budget and the Mayor's November Financial Plan modification or January 2016 Financial Plan.
Key Data
$26.1 billion
— The size of the revised MTA capital plan.
$29 billion
— The amount initially sought by the MTA Board for the capital plan.
$26.8 billion
— The amount more recently sought by Chairman Prendergast for the capital plan.
The New York City subway system contains 15,275 structural components, with current investment policies projected to delay a state of good repair for all stations until 2067. While the proposed 2015-2019 capital program aims to improve 199 stations, significant disparities remain, as evidenced by the 7 line having 37% of its structural components in need of repair.
Key Data
2067
— The year by which current investment policies would achieve a state of good repair for all subway stations.
15,275
— The total number of structural components across the subway system.
199
— The number of stations included in the proposed 2015-2019 capital program for component improvements.
37%
— The share of structural components not in a state of good repair on the 7 line.
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's current capital plan fails to bring subway stations to a state of good repair, as the pace of work is insufficient and funding is heavily prioritized for expansion projects rather than existing infrastructure. To address this, the agency must reallocate capital funds from expansions to repair work, improve project management to reduce costs, and leverage public-private partnerships to secure additional investment.
Recommendations related to MTA Capital Program
The agency should reallocate capital funds from new expansion projects to SGR work.
The MTA 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 MTA should reallocate resources from expansions to state of good repair work.
The MTA should improve its project management practices.
The MTA should identify opportunities for introducing station conservancies and inviting private partners into station-related P3s.
Key Data
467
— Number of subway stations requiring rehabilitation and repair.
15,275
— Total number of structural components in the subway system.
21 percent
— Share of structural components that will not be in a state of good repair after the 2010-2014 capital plan.
$5.5 billion
— Funding allocated for expansion projects across the mass transit system in the proposed 2015-2019 capital plan.
$1.3 billion
— Funding allocated for structural and architectural station component work in the proposed 2015-2019 capital plan.
2067
— Year by which a state of good repair for all station components would be achieved at the current pace of work.
The MTA's current capital plan fails to adequately address the maintenance needs of 467 subway stations, with 21 percent of structural components remaining in a state of disrepair. To achieve a state of good repair, the agency should reallocate funds from expansion projects, improve project management to reduce costs, and leverage public-private partnerships.
Recommendations related to MTA Capital Program
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 and inviting private partners into station-related public-private partnerships.
The MTA should set new goals and adopt new practices rather than continuing to imitate Sisyphus.
Key Data
467
— Total number of subway stations the MTA must rehabilitate and repair to maintain a state of good repair.
21 percent
— Share of the system's 15,275 structural components that will not be in a state of good repair after completion of projects in the 2010-2014 plan.
$5.5 billion
— Total funding allocated for expansion projects across the mass transit system in the proposed 2015-2019 capital plan.
$43 million
— Cost per station for ADA accessibility projects in the proposed 2015-2019 capital plan, which is more than double the cost of most station renewals.
$210 million
— Amount of subway station improvements to be completed by the developer as part of the 2014 agreement with SL Green for One Vanderbilt.
$1.3 billion
— Total funding in the proposed 2015-2019 capital plan for projects to improve station components.
The Metropolitan Transportation Authority faces a $2.6 billion funding gap in its capital plan, which could be addressed by increasing taxes on services regulated by the Taxi and Limousine Commission. Implementing these tax reforms, such as expanding the per-ride tax to black cars or reforming the transportation sales tax, could generate significant revenue to help close the shortfall.
Recommendations related to MTA Capital Program
Needed MTA capital funds should be provided from additional motor vehicle cross-subsidies to help offset the negative externalities of automobile use.
Motor vehicle cross-subsidies should increase to 25 percent of mass transit costs from the expected 11 percent in recent MTA financial plans.
The 50-cent per-ride taxicab tax should be expanded to all black car and Dispatch Service Provider (DSP) trips.
The per-ride tax on black cars and DSPs should be set at a rate equal to that applied to taxicabs, which would be 3.95 percent of the fare.
The transportation sales tax should be reformed to lower the burden on black cars and dedicate the entire tax to the MTA.
Key Data
$2.6 billion
— The remaining funding gap for the MTA's five-year capital investment plan.
$33 million
— The additional revenue that would have been raised in 2015 by applying the 50-cent per-ride tax to all black car and DSP trips.
$70 million
— The additional revenue that would have been generated in 2015 if a 3.95% tax rate was applied to black car and DSP trips.
$100 million
— The revenue gained in 2015 from a reformed transportation sales tax set at a 5.75% levy.
$138 million
— The revenue gained in 2015 from a reformed transportation sales tax set at a 7.75% levy.
The Metropolitan Transportation Authority's five-year capital plan faces a $9.8 billion funding gap, which should be addressed by increasing motor vehicle cross-subsidies rather than relying on the traditional debate between city and state funding. To achieve a more balanced funding model, the agency should pursue long-term solutions like a vehicle-miles-traveled tax and immediate measures such as congestion pricing and increased vehicle registration fees.
Recommendations related to MTA Capital Program
The Metropolitan Transportation Authority should implement a vehicle-miles-traveled (VMT) tax to fund transportation infrastructure over the long term.
The Metropolitan Transportation Authority should pursue enhanced tolling policies, including East River bridge tolls and other congestion pricing mechanisms, to generate more immediate funding.
The Metropolitan Transportation Authority should increase vehicle registration fees to help close the funding gap.
Drivers should cover more than twice the current proportion of costs, which is currently 12%.
Key Data
$29.8 billion
— The total cost of the MTA's five-year capital plan.
$9.8 billion
— The narrowed funding gap for the MTA's capital plan.
73%
— The share of the MTA's $1.3 billion regional payroll tax paid by New York City employers.
12%
— The current proportion of MTA transit services funding provided by motor vehicle cross-subsidies.
48%
— The proportion of MTA transit services funding provided by fares.
40%
— The proportion of MTA transit services funding provided by tax subsidies.
The 2015-2019 MTA capital plan faces a $9.8 billion funding gap, with debates over whether the City or State should bear the cost obscuring the fact that both rely on the same regional tax base. To address this, leaders should implement efficiency savings, move beyond the City/State funding debate, and increase revenue through congestion pricing, bridge tolls, or vehicle-miles traveled fees.
Recommendations related to MTA Capital Program
The details of which projects will utilize these alternative 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.
In the longer term, funding for mass transit should include a vehicle-miles traveled fee system.
More immediate funding for mass transit 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 efficiency procedures including design-build and public-private partnerships.
$9.8 billion
— The remaining funding gap for the MTA capital plan that is currently the subject of debate.
$580 million
— Annual operating and capital support provided by New York City taxpayers to the MTA.
$4.2 billion
— Estimated portion 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.
12 percent
— Current share of MTA transit service funding derived from motor vehicle cross-subsidies.
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 proposed legislation to increase free transfers on subways and buses would reduce annual MTA revenue by $40 million, undermining the agency's ability to fund critical capital investments and address operating deficits. Given that current fare structures already provide significant value compared to historical inflation-adjusted rates, sacrificing this revenue to benefit a limited number of riders is fiscally imprudent.
Recommendations related to MTA Capital Program
The Governor should veto S3228/A2607, a bill mandating an increase from one to two free transfers for persons purchasing a ride on Metropolitan Transportation Authority (MTA) subways and buses.
Key Data
$40 million
— The estimated annual reduction in MTA revenue if the bill mandating an increase in free transfers is enacted.
$1.21
— The average fare revenue per ride in 1993.
$2.05
— The inflation-adjusted equivalent of the 1993 average fare revenue per ride in 2014.
20%
— The percentage by which the inflation-adjusted 1993 fare revenue exceeds the actual 2014 average revenue per ride of $1.70.
$1.70
— The actual average revenue per ride in 2014.
$500 million
— The amount of capital investments that could be supported by the fare revenue that would be lost under the proposed bill.
The Metropolitan Transportation Authority requires over $14 billion annually to operate, with labor costs accounting for the majority of expenses. To address a projected $2.1 billion deficit by 2018, funding should be restructured so that fares, motorist fees, and tax subsidies are more equitably balanced to cover operating costs and necessary capital repairs.
Recommendations related to MTA Capital Program
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.
$16.6 billion
— Estimated funding required for mass transit services in 2018.
$2.1 billion
— Projected unfunded deficit for mass transit services in 2018.
$5.7 billion
— Annual revenue generated by the fare box.
$1.7 billion
— Annual revenue generated by tolls on MTA bridges and tunnels.
$8.6 billion
— Annual costs related to labor, including wages and benefits.
New York City taxpayers already contribute $4.5 billion annually to the Metropolitan Transportation Authority through various local, regional, and state taxes, far exceeding the contributions from taxpayers outside the city. To address the MTA's $1 billion annual budget shortfall, the state should implement user charges on motor vehicles, such as a vehicle-miles traveled tax, rather than relying solely on increased city contributions.
Recommendations related to MTA Capital Program
The state should implement user charges on motor vehicles to raise the money the MTA needs.
New York should implement a vehicle-miles traveled (VMT) tax to collect revenue from vehicle owners based on distance, weight, or route.
Launching a vehicle-miles traveled (VMT) tax in New York could 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.
$4.5 billion
— Total annual contribution from New York City taxpayers to the MTA.
$587 million
— Revenue from tolls used to help pay for mass transit services.
$922 million
— Total annual City budget contribution to the MTA in 2014.
The Metropolitan Transportation Authority faces a $19 billion funding gap in its $32 billion five-year capital plan, requiring new revenue streams to address the shortfall. To bridge this deficit, the state should implement a combination of rational tolling and a vehicle-miles-traveled tax to increase the share of costs covered by drivers to 25%.
Recommendations related to MTA Capital Program
The State of New York should create a new revenue stream to support borrowing that fills the gap in the capital plan and contributes 25% of the MTA’s operating costs as well, specifically by having drivers cover 25% of MTA mass transit costs.
Elected leaders should implement, over a period of years, some combination of a VMT tax and more rational tolling to sustain and improve transportation facilities.
The state should adopt a funding model where transit fares cover half the cost, general tax subsidies cover 25%, and motor vehicle cross-subsidies cover 25%.
Key Data
$32 billion
— The amount the Metropolitan Transportation Authority needs over the next five years to repair, replace, and improve its facilities.
$13 billion
— The amount of funding the Metropolitan Transportation Authority currently has available for its five-year capital plan.
$19 billion
— The size of the funding gap in the Metropolitan Transportation Authority's five-year capital plan.
11%
— The current portion of Metropolitan Transportation Authority mass transit costs covered by drivers through bridge and tunnel tolls, state license and registration fees, and gasoline taxes.
25%
— The recommended portion of Metropolitan Transportation Authority mass transit costs that should be covered by drivers.
$2.1 billion
— The total amount of new annual revenue needed from motor vehicle user fees to support borrowing and operating costs.
NY1 Drivers could be paying more to help fund mass transit if one non-profit group gets its way. The Citizens Budget Commission is proposing a number of fees on cars and trucks to help the MTA close a $1 billion gap in its capital investment program.
The Metropolitan Transportation Authority faces significant financial instability, characterized by recurring operating deficits and a heavy reliance on borrowing for capital investments that has driven debt to $32 billion as of 2011. To address these issues, a new '25-50-25' financing formula is proposed, which would reallocate costs among motorists, transit riders, and taxpayers to generate $2.6 billion in additional annual revenue by 2016.
Recommendations related to MTA Capital Program
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 in 2012.
$2.6 billion
— Additional annual revenue the 25-50-25 policy would provide by 2016 without new taxes.
$32 billion
— MTA debt outstanding in 2011.
$39 billion
— Projected MTA debt outstanding in 2015.
$16.8 billion
— Total investment in five MTA 'megaprojects'.
$3.6 billion
— Cost overruns for the five MTA 'megaprojects'.
The Metropolitan Transportation Authority faces a $15 billion funding gap for its 2015-2019 capital plan, which could be partially addressed by capping the number of rides on unlimited 7-day and 30-day MetroCards. Implementing such caps could generate $93 million annually, providing a fairer revenue-raising alternative to broad fare increases that impact all riders.
Recommendations related to MTA Capital Program
The MTA should cap the number of rides permitted on the 7-day and 30-day passes to generate revenue as an alternative to broad fare increases.
The MTA should use more information than is now publicly available about the ways high-volume passholders use the system to guide the setting of specific ride caps.
The MTA should consider using the revenue from ride caps to support $1.5 billion in borrowing for the capital plan instead of relying solely on general fare increases.
Key Data
$15 billion
— The funding gap for the proposed MTA capital plan.
$93 million
— Annual revenue that could be secured by capping the number of rides available to unlimited 7-day and 30-day MetroCards.
$1.5 billion
— Amount of borrowing for the capital plan that could be supported by the revenue from capping unlimited passes.
$147 million
— Estimated annualized yield of the 2015 subway and bus fare increase.
$807 million
— Annual foregone revenue from 'free' rides on unlimited passes.
28.4 million
— Estimated monthly number of 'free' rides on unlimited passes.
Investments in transportation and transit infrastructure, including the $400 million allocated to the Metropolitan Transportation Authority, should be accompanied by comprehensive financing plans. These plans are necessary to address the full costs of the Tappan Zee Bridge replacement and the funding shortfall in the MTA’s five-year capital plan.
Recommendations related to MTA Capital Program
The state should develop 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.
Key Data
$400 million
— Allocation for the Metropolitan Transportation Authority's Access to Penn Station project and for parking and development near commuter rail stations.
$1.3 billion
— Allocation to the Thruway Authority from bank settlement funds.
$750 million
— Allocation for other bridge and road projects from bank settlement funds.
$5.4 billion
— Total amount in settlements with banks for regulatory violations available to New York.
The FY2016 Executive Budget allocates $400 million to the MTA for Penn Station access and suburban station development, alongside an additional $750 million in capital appropriations for fiscal years 2018 through 2020. These investments are considered insufficient to address the massive funding gaps in the MTA capital plan, necessitating the development of viable long-term financing strategies.
Recommendations related to MTA Capital Program
Viable financing plans are imperative for the MTA to address its capital needs.
The state should ensure that viable capital plans are developed for the MTA to justify the allocation of settlement funds.
Key Data
$400 million
— Funding allocated to 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 fiscal year 2016 Executive Budget addresses significant unfunded capital needs in transportation infrastructure by allocating bank settlement proceeds and extending capital commitments for the Metropolitan Transportation Authority. These measures provide $400 million for the Access to Penn Station project and an additional $750 million in capital funding through fiscal year 2020 to help bridge financing shortfalls.
Recommendations related to MTA Capital Program
The $1.5 billion in one-time settlement funds, in particular, would be better invested in infrastructure needs.
Key Data
$32 billion
— Proposed capital plan of the Metropolitan Transportation Authority.
$400 million
— One-time funds from bank settlements allocated for the Access to Penn Station project and for parking and development near commuter rail stations.
$750 million
— Additional capital commitments to the MTA funded from appropriations for the State’s five-year capital plan, extended from fiscal year 2017 to 2020.
The state budget must address the significant funding gaps within the MTA and Thruway Authority capital plans to ensure the viability of these critical transportation infrastructure projects. Clarity on the financing strategy for these projects is a key element to look for in the upcoming fiscal year.
The MTA's 2015-2019 capital plan faces a $15 billion funding gap, requiring a strategic approach to revenue generation through tax subsidies, user fees, and cross-subsidies. To address this shortfall and improve system reliability, the authority must prioritize infrastructure repairs and signal modernization over poorly planned expansion projects while implementing a "25-50-25" funding model.
Recommendations related to MTA Capital Program
The MTA should prioritize bringing aged infrastructure to a state of good repair rather than focusing on new expansion projects.
The MTA must accelerate the schedule for adopting Communications-Based Train Control to improve safety and efficiency.
The MTA should require better planning and greater transparency before committing funds to new expansion projects.
The MTA should implement modest fare increases to bring revenue closer to the 50 percent target for user fees.
The MTA should increase the motor vehicle users' cross-subsidy through mechanisms like tolls, registration fees, or the Move New York plan to cover one-quarter of mass transit costs.
Key Data
$32 billion
— Total investment required for the MTA's 2015-2019 capital plan.
$15 billion
— The funding gap identified in the MTA's capital plan.
$5.5 billion
— Amount allocated in the proposed plan for projects that would expand the network.
$2.6 billion
— Cost overruns on the East Side Access project.
$1.6 billion
— Annual increase in funding from the payroll mobility tax.
$167 to $293
— Range of annual increased costs motorists would face under the proposed cross-subsidy plan.
The MTA's 2015-2019 capital plan fails to adequately prioritize essential infrastructure repairs and signal modernization, while committing substantial funds to expansion projects without clear justification or cost analysis. The plan leaves a $15.2 billion funding gap and delays critical upgrades, necessitating a revision that focuses on established criteria for investment and improved project management.
Recommendations related to MTA Capital Program
The MTA should revise the plan to make sufficient progress in bringing aged infrastructure to a state of good repair (SOGR).
The MTA should accelerate the schedule for adopting Communications-Based Train Control (CBTC) to modernize signal and communication systems.
The MTA should establish explicit criteria for selecting priority projects and analyze their benefits relative to other possibilities before committing funds to system expansions.
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 rethink the management of large-scale projects, especially those for expansion and for improvements in the signal and communication systems, to promote more effective implementation.
Key Data
$32 billion
— Total investments in the 2015-2019 capital plan approved by the MTA Board.
$15.2 billion
— The amount of the funding gap remaining in the 2015-2019 capital plan.
$5.4 billion
— The total shortfall in funding for major asset categories compared to the needs assessment.
$5.5 billion
— The amount allocated for expansion projects in the adopted capital plan.
$10.8 billion
— The current estimated cost of the East Side Access project, which was originally approved at $6.3 billion.
87 percent
— The share of total spending in the needs assessment and board-approved plan comprised by NYCT, LIRR, and MNR.
The Metropolitan Transportation Authority faces significant long-term fiscal challenges due to cash-based budgeting, reliance on debt, and unfunded post-employment benefit obligations. To ensure future viability, the agency must adopt GAAP-based budgeting, implement equitable revenue strategies, modernize labor relations, and prioritize capital investments to achieve a state of good repair.
Recommendations related to MTA Capital Program
A reinvented MTA should balance its budget on a GAAP basis.
A reinvented MTA would have a legal framework for labor relations that permits all its employees to bargain under the same set of rules and be part of a single human resource system.
A reinvented MTA would have a timely plan for bringing its assets to SOGR and would give highest priority in its capital investments to achieving that goal.
A reinvented MTA would make the financial investment and operational changes necessary for far speedier conversion to CBTC.
A reinvented MTA would quickly initiate planning and deployment of a new fare collection system that reduces collection costs, permits flexibility in future fares such as zoned fares and peak pricing, and speeds passenger flow into the system.
A reinvented MTA would take the lead in working with the other major regional transportation agencies to develop a plan for expanded trans-Hudson rail capacity including new tunnels and greater platform capacity at or near Pennsylvania Station.
Key Data
$33 billion
— The MTA's long-term debt outstanding in 2013.
$10 billion
— The MTA's unfunded OPEB liability at the end of 2013.
$115 billion
— Total capital investments made system-wide since 1982.
$106 billion
— The plan of investment identified by the MTA for the next 20 years.
68,000
— The number of employees at the MTA.
15 percent
— The estimated collection costs for the current fare system.
The Metropolitan Transportation Authority faces a significant long-term financial deficit, with GAAP-based annual shortfalls projected to reach up to $3.4 billion over the next four years. To address this, a funding model is proposed that relies on a mix of regular fare increases, existing tax subsidies, and new revenue streams from auto users to cover capital and operating costs.
Recommendations related to MTA Capital Program
The MTA should implement the '50-25-25' funding model, where fares cover 50 percent of full operating costs, a tax subsidy covers 25 percent, and a cross-subsidy from auto users covers 25 percent.
The MTA should continue moderate but regular fare increases to ensure revenues cover operating costs.
The MTA should enact new forms of auto-cross subsidy for major new funding, such as higher bridge and tunnel tolls, higher motor vehicle registration fees, or congestion pricing.
The MTA should put renewed energy into cost reduction efforts to improve financial stability.
Key Data
$26.6 billion
— Estimated core capital needs for state-of-good-repair and regular replacement of rolling stock during the 2015-2019 period.
$2.8 billion
— The current annual deficit when using Generally Accepted Accounting Principles (GAAP).
$3.0 billion to $3.4 billion
— The range of projected annual deficits for each of the next four years using GAAP accounting.
$1.9 billion
— New resources identified by the MTA since February 2013.
$1.3 billion
— The annual savings target the MTA intended to achieve by 2017 through measures launched in 2009 and 2010.
$67 million
— The actual annual savings generated by 2017 from cost-reduction initiatives outside of the paratransit program.
New York State's first 10-year statewide capital plan commits $174 billion to infrastructure, with the Metropolitan Transportation Authority and Department of Transportation accounting for $97.6 billion of that total. To improve the planning process, the state should implement better asset condition assessments, establish a clear financing plan addressing affordability, and provide project-level data for tracking.
Recommendations related to MTA Capital Program
The next version of the statewide capital plan should include better information about asset condition and the match-up between planned levels of state of good repair spending and need.
The state should develop an improved financing plan that addresses the issue of affordability for capital projects.
Future capital plans should include better project-level data to facilitate project tracking.
In order to prioritize state of good repair in a capital planning process, information on the estimated cost of reaching state of good repair over the period of investment is needed for every asset.
The next plan should reconcile differences and standardize the approach to commitments versus financing and disbursements across agencies.
Key Data
$174 billion
— Total planned investment commitments for the fiscal year 2013-14 to 2022-23 period.
$113 billion
— Amount of the statewide capital plan committed to transportation.
$97.6 billion
— Combined planned spending for the Metropolitan Transportation Authority and the New York State Department of Transportation.
$43.4 billion
— Amount the Metropolitan Transportation Authority will spend to refurbish stations, maintain subway trains and buses, and replace rolling stock.
$10.2 billion
— Expected contribution from New York City and its surrounding communities to the Metropolitan Transportation Authority capital plan.
NY1 The head of the Metropolitan Transportation Authority warns that subway tubes flooded during Hurricane Sandy likely still need repairs on equipment damaged by saltwater.
The Metropolitan Transportation Authority faces significant long-term deficits, with annual expenditures reaching $17.1 billion and a projected 2016 deficit exceeding $3.6 billion. A proposed "25-50-25" funding model suggests restructuring revenue sources to rely on a mix of auto user fees, fare increases, and tax subsidies to ensure the system remains in good repair.
Recommendations related to MTA Capital Program
The cost of bridges and tunnels should be funded entirely through tolls and fees paid by the motorists who use them.
Motorists' tolls and fees should 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 tax subsidies to mass transit should cover at least one-quarter of the operating cost of those services and fund 'catch-up' capital investments needed to bring the system to a state of good repair.
Key Data
$17.1 billion
— Annual operating and financing expenditures of the MTA's agencies in 2012.
$3.6 billion
— Projected deficit for the MTA in 2016.
$2.6 billion
— Additional annual revenue the proposed "25-50-25" approach would provide by 2016.
$2.75
— Cost of a single-ride subway ticket by 2016 under the proposed plan.
$167 to $293
— Increased annual costs motorists would face for the use of their vehicles.
39 percent
— Percentage of operating expenses the MTA currently recovers through fares.
The Metropolitan Transportation Authority faces significant financial instability due to recurring deficits and inadequate capital investment, necessitating a new financing strategy. A proposed "25-50-25" formula suggests reallocating costs among bridge and tunnel tolls, transit fares, and tax subsidies to ensure long-term fiscal stability and infrastructure maintenance.
Recommendations related to MTA Capital Program
The cost of bridge and tunnel facilities should be funded entirely through user fees paid by motorists.
Motorists’ tolls and fees 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 tax subsidies to mass transit should cover at least one-quarter of the operating cost of those services and fund “catch-up” capital investments needed to bring the system to a state of good repair.
The MTA should 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 2016 deficit for the MTA, equivalent to approximately 18 percent of operating expenses.
$17.8 billion
— Cumulative unfunded Other Post-Employment Benefits (OPEB) liability as of the end of 2011.
$32 billion
— MTA debt outstanding in 2011, which grew from $14 billion in 2000.
$16.8 billion
— Total investment in five "megaprojects" with cost overruns of more than $3.6 billion.
53 percent
— MTA system-wide farebox operating ratio in 2010.
The Metropolitan Transportation Authority faces a significant debt burden, with debt service costs consuming nearly one-third of its fare and toll revenue, necessitating careful management of debt refunding strategies. To avoid unfairly burdening future riders and taxpayers, the authority should adhere to strict guidelines that prioritize genuine savings over short-term relief through debt stretching or back-loading.
Recommendations related to MTA Capital Program
The MTA Board should not seek any exemptions from the State Comptroller’s guidelines regarding debt issuance and refunding.
The MTA should ensure that any debt refunding follows guidelines that promote the greatest total savings while preventing the unfair passing of costs onto future taxpayers and straphangers.
The MTA should pursue opportunities for savings from high-to-low interest rate exchanges, but these savings should not be offset with shuffling and stretching of debt service payments.
Key Data
$32 billion
— Long-term debt outstanding for the Metropolitan Transportation Authority.
$2.1 billion
— Debt service cost in 2012, consuming nearly one-third of revenue from fares and tolls.
$2.6 billion
— Projected debt service cost by 2015.
$39 billion
— Amount of outstanding debt the MTA will have by 2015.
$9.1 billion
— Spending in the first two years of the 2010-14 capital plan.
$6.0 billion
— Amount of the first two years of the 2010-14 capital plan financed with borrowing.
The state budget provided $770 million in capital support to the Metropolitan Transportation Authority, including a $150 million grant, to help the agency complete its five-year capital plan. Additionally, the creation of the New York Works Task Force aims to improve the coordination of capital spending across state agencies, including the transportation infrastructure managed by the Metropolitan Transportation Authority.
Key Data
$770 million
— Total capital support provided to the Metropolitan Transportation Authority to assist in completing its five-year capital plan.
$150 million
— Capital grant allocated to the Metropolitan Transportation Authority for the upcoming year.
New York State must urgently address the funding gap for the Metropolitan Transportation Authority's capital program, which remains unfunded starting in January 2012. Failing to secure these resources threatens the state's transportation infrastructure and overall fiscal health.
Recommendations related to MTA Capital Program
The state must determine how to fund the pressing capital needs of the MTA and the rest of the State's transportation infrastructure.
New York City's capital assets, including critical infrastructure like the water system, schools, and transportation networks, require a more strategic, long-term planning approach to ensure they are maintained in a state of good repair. Current budgeting practices often rely on borrowing for routine replacements rather than using operating revenues, and many expansion projects lack rigorous economic justification or clear prioritization.
Recommendations related to MTA Capital Program
The City should place all its capital assets on regular replacement cycles according to their useful lives and fund their replacement with operating revenues, not from the capital budget.
Expansion projects should be clearly explained and justified with data that demonstrates economic and other benefits, or a high rate of return on the investment of public funds.
The City should improve its needs assessments, and develop a systematic plan or timetable for bringing all capital assets to a state of good repair.
Efforts to institutionalize PLANYC should be pursued through City Council approval of legislation establishing the Office of Long-Term Planning and Sustainability as a mayoral office.
The strategic approach should be expanded to encompass other agencies and capital assets.
Key Data
$38.3 billion
— The value of the MTA's entire capital asset portfolio.
$6.5 billion
— The value of transportation assets guided by PLANYC.
$23 billion
— The total cost of planned expansion projects for the next ten years.
$83.7 billion
— The total capital investments called for in the recently adopted Ten-Year Capital Strategy.
The MTA's proposed 2010-2014 capital plan faces a $10 billion funding gap and relies on overly ambitious projections that fail to address the system's massive state of good repair backlog. To improve performance and transparency, the plan should be downsized to realistic capacity levels and prioritized toward critical infrastructure repairs rather than system expansion.
Recommendations related to MTA Capital Program
The MTA should commit to greater transparency in informing the public about the status of its capital projects.
This capital plan should be implemented in tandem with an improved information management system for tracking capital projects that provides clear and consistent benchmarks.
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.
24 percent
— Cost overrun for the South Ferry Terminal project above the initial estimate.
90 percent
— Cost overrun for the Fulton Street Transit Center project above the initial estimate.
$130 billion
— Adjusted needs estimate for the MTA's 20-year period.
$10 billion
— Funding gap approaching for the full five-year period of the capital plan.
The MTA faces a significant funding shortfall for its 2010-2014 capital plan, with only $18.2 billion identified for a $28.1 billion investment need. To address these challenges, the agency must improve project planning and implementation while adopting a balanced funding strategy that relies on fare increases, cross-subsidies from auto users, and state support for past policy failures.
Recommendations related to MTA Capital Program
New MTA leadership must devote more effort to constraining expenditure growth, utilizing cross-subsidies from auto users and farebox revenue as the best sources for new funding.
The MTA should adopt a “50-25-25” funding approach, where mass transit services are funded half by rider fares, one-quarter by general tax subsidies, and one-quarter by cross-subsidies from auto users.
State taxes should underwrite the capital needs that arise from bad policy decisions made by the MTA and state officials in the past, rather than imposing this burden on current riders.
For regular repair and replacement of facilities, the MTA should utilize the 50-25-25 funding approach with spending handled on a pay-as-you-go basis or through debt service raised from that mix of sources.
MTA leaders should give greater attention to improved planning and implementation as they continue to develop the next five-year capital plan.
Key Data
$842
— Budget gap identified in the MTA's July 2009 preliminary financial plan for 2012 (in millions).
$1,138
— Budget gap identified in the MTA's July 2009 preliminary financial plan for 2013 (in millions).
$4,656 million
— Projected operating budget gap for 2012 if generally accepted accounting principles were applied.
$5,097 million
— Projected operating budget gap for 2013 if generally accepted accounting principles were applied.
$28.1 billion
— Total investment called for in the preliminary 2010-2014 capital plan.
$18.2 billion
— Identified funding sources for the 2010-2014 capital plan.
A coalition of organizations advocates for a mobility tax in the twelve counties served by the MTA to be used primarily for long-term capital needs rather than permanent operating expenses. The group supports using this revenue for operating costs only during the first year, contingent upon the implementation of at least 8% in toll and fare increases.
Recommendations related to MTA Capital Program
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 during the first year in which it is collected may be used 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.
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%
— Minimum level of toll and fare increases required to justify using mobility tax revenue for operating needs during the first year.
The Metropolitan Transportation Authority requires a revised financing strategy that prioritizes fare increases and higher tolls on East River and Harlem River bridges to support essential capital projects. Additionally, implementing stricter transparency standards for both current and future capital plans, alongside productivity improvements, is necessary to ensure efficient use of funds.
Recommendations related to MTA Capital Program
The MTA board should be required to implement transparency measures for capital projects to enable the authority to use its funds more efficiently and to restore public credibility.
A two or three year schedule of significant short-run fare increases should be implemented to bring the share of expenses covered by the fare to approximately 50 percent.
Tolls on the East River and Harlem River bridges should be higher than the Commission recommends to provide a greater incentive to shift to mass transit and generate more revenue.
A regional payroll tax represents a more predictable and fairer way to channel direct taxpayer support to the MTA than the current mix of taxes.
The transparency recommendations should apply to projects in the current capital plan as well as future ones, as the public deserves accountability on dollars whether authorized in 2009 or in previous capital plans.
The MTA board should accept responsibility for substantially lowering the growth in operating expenses by setting targets for lower growth in multi-year financial plans.
Key Data
50 percent
— The target share of expenses to be covered by the fare.
7 percent
— The approximate annual fare increase required to reach the 50 percent cost-coverage goal by 2011.
2000-2004
— The years covered by the previous MTA capital plan where nearly a quarter of commitments remained uncommitted.
300
— The number of projects in the previous capital plan that were still uncommitted at the end of 2004.
50/25/25
— The recommended funding formula for mass transit services, split between fares, a general tax subsidy, and a cross-subsidy from auto users.
The Metropolitan Transportation Authority faces significant operating deficits and unfunded capital needs, necessitating fare increases to maintain system repairs and expansion. Linking future fare adjustments to the actual cost of a ride, rather than inflation, could incentivize efficiency and provide transparency during labor negotiations.
Recommendations related to MTA Capital Program
The MTA should link future fare increases to the cost of a ride rather than inflation to allow for potential savings through increased efficiency and new technology.
The MTA should proceed with the proposed fare increase to ensure the agency can continue to restore stations and other assets to a state of good repair and expand the system.
Key Data
$3.1 billion
— The deficit the MTA will run in 2007.
$4 billion
— The operating deficit the MTA faces in the following year.
$4.3 billion
— The projected funding gap for the state in the coming fiscal year.
$222 million
— The amount of cash on hand the MTA had at the time of the report.
New York City must reform its capital budgeting process to better maintain its vast infrastructure, including the MTA, by moving away from reactive repairs toward systematic, long-term planning. This requires funding asset replacement through operating revenues rather than borrowing, and justifying new expansion projects with rigorous economic analysis.
Recommendations related to MTA Capital Program
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.
The City should institutionalize and expand the PLANYC approach to include a broader range of public infrastructure.
The City should develop a systematic plan for bringing all City-owned assets to a state of good repair by expanding the Asset Information Management System (AIMS) report.
Key Data
$38,307 million
— Total value of Metropolitan Transportation Authority capital assets in fiscal year 2006.
$83.7 billion
— Total capital investments called for in the Ten-Year Capital Strategy over the next ten years.
$60,464 million
— Total value of City-controlled capital assets in fiscal year 2007.
$7,829 million
— Total value of Port Authority of New York and New Jersey capital assets in New York City in fiscal year 2006.
$3.0 billion
— Depreciation of the City's major assets based on historical cost in fiscal year 2007.
$4.9 billion
— Estimated depreciation of the City's major assets based on replacement cost in fiscal year 2007.
The Metropolitan Transportation Authority faces a growing financial crisis characterized by heavy borrowing to cover capital expenses, which diverts significant revenue toward debt service rather than service improvements. To ensure long-term stability, the agency must implement productivity enhancements to reduce costs and rebalance its revenue sources by increasing fares, taxes, and tolls.
Recommendations related to MTA Capital Program
The M.T.A. should make a greater commitment to productivity enhancements in order to reduce the rate of cost increases.
The M.T.A. should rebalance its revenue so that fares account for half, taxes for one quarter, and tolls and fees for another quarter.
The M.T.A. should implement higher tolls and increased license and registration fees to encourage more commuters to move from cars to mass transit.
The M.T.A. should consider higher gasoline taxes and congestion-pricing plans similar to those recently adopted by London and Stockholm.
Key Data
$1 billion
— MTA's projected gap in 2008.
$2.1 billion
— MTA's projected shortfall in 2010.
$32 billion
— Projected outstanding debt by the end of 2010.
$22 billion
— Outstanding debt in 2005.
$1.3 billion
— Current year debt service.
$900 million
— Potential annual savings from productivity initiatives.
The Metropolitan Transportation Authority faces significant financial challenges, with operating deficits projected to grow to $3.5 billion by 2009 and a massive capital program requiring billions in funding. To address these shortfalls, the report proposes a new financing model that relies on increased user fees from motorists, higher farebox recovery ratios, and dedicated state and local subsidies to ensure the system reaches a state of good repair.
Recommendations related to MTA Capital Program
The cost of bridge and tunnel facilities should be paid for entirely through user fees paid by motorists.
User fees paid by motorists should also generate a surplus large enough to cover one-quarter of the cost of providing mass transit services.
Mass transit users should pay fares sufficient to cover one-half the operating cost of those services.
State and local subsides to mass transit should cover one-quarter of the operating cost of those services and fund 'catch-up' capital investments needed to bring the system to a state of good repair.
Key Data
$21.3 billion
— Total value of the MTA's approved capital plan for the 2005-2009 period.
$22 billion
— Total MTA debt outstanding at the end of 2005.
$1.3 billion
— Estimated annual cost of replacing capital used in operations, which the report suggests should be funded from operating revenues and federal grants.
$1.382 billion
— Estimated annual net gain from implementing a London-like congestion pricing plan for the New York central business district.
$1.1 billion
— Operating deficit amount exceeded in two of the five most recent years prior to the report.
$9 billion
— Budgeted MTA operating expenses for 2006.
The New York region's transportation system requires a new, coordinated approach to financing and planning to address significant maintenance backlogs and the need for future capital expansion. By establishing a regional policy board and implementing consistent user fees, the region can better fund its transit and road infrastructure while reducing reliance on unpredictable subsidies.
Recommendations related to MTA Capital Program
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 regional transportation policies and priorities.
Motor vehicle user fees should be dedicated to transportation agencies for two purposes: to cover the operating costs of roads and bridges; and to provide a cross-subsidy to mass transit of one-quarter of mass transit costs.
Mass transit riders should pay a fare sufficient to cover one-half the transit agencies’ operating costs.
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.
New capital for improvements and expansions should be generated by borrowing to be repaid in the same manner as identified above for meeting current operating expenses, and ensuring that contributions to capital from third parties are used for this purpose.
Key Data
$30 billion
— Capital investments by the MTA over the last 20 years.
$15.3 billion
— Estimated cost of a new Second Avenue subway.
$2.2 billion
— Estimated cost of the extension of the Number 7 subway line to the west side of Manhattan.
$6.0 billion
— Estimated cost of the 'East Side Access' project connecting the Long Island Railroad to Grand Central Station.
$4.6 billion
— Estimated cost of a new rail tunnel connecting New Jersey to midtown Manhattan called 'Access to the Region’s Core'.
$1.1 billion
— Estimated cost of a new Penn Station at the Farley Post Office site.
New York's transportation infrastructure requires significant investment to achieve a state of good repair, with an estimated $20.4 billion needed for mass transit and $12.2 billion for highways over the ten-year period ending in 2007. To maintain competitiveness, the city must prioritize these repairs while simultaneously exploring modern signaling technology and pricing policies to increase system efficiency and capacity.
Recommendations related to MTA Capital Program
New York's leaders should address how to improve transit system efficiency and ridership to ensure the system remains competitive.
The city must determine how rapidly to achieve a state of good repair for the existing highway and mass transit infrastructure.
Transit leaders should learn from the operations of other systems, such as those in Chicago and London, to identify modern human resource measures that could enhance future competitiveness.
Efforts to increase ridership should focus on off-peak hours, as peak hour trains are already relatively crowded.
The city should explore modernized signaling and train control systems as a cost-effective alternative to new construction for expanding rush-hour capacity.
Key Data
$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.
$12.2 billion
— Estimated funding needed for highway and related facility repairs over the ten-year period spanning fiscal years 1998 to 2007.
$9.7 billion
— The funding gap in four capital budget categories—line structures, signals, line equipment, and stations and communications.
$30 billion
— Total investment in rail transportation systems in the New York region since the early 1980s.
$1.6 billion
— The approximate annual level of investment in rail transit in New York.
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.
