The Port Authority of New York and New Jersey is a bi-state agency responsible for managing regional transportation infrastructure, including airports, maritime ports, trans-Hudson bridges and tunnels, and the PATH rail system. This page covers CBC’s work on capital planning and budgeting, financial transparency, PATH rail operations and financing, maritime facility management, and public safety compensation.
This page was created with AICBC Insights uses AI to group, analyze and present data and recommendations from CBC's publications. Always reference the cited sources to verify important details..
The Port Authority should develop a publicly-available needs assessment that identifies spending necessary to bring facilities to a state of good repair.
The agency should establish a set of criteria for selecting enhancement and expansion projects that includes benefit-to-cost analyses.
The Port Authority should discard the use of bi-state parity to allocate capital resources between “New Jersey” projects and “New York” projects.
The Port Authority should identify excess capacity at facilities with low productivity and convert them to higher uses.
The Port Authority should close obsolete and underperforming facilities like Brooklyn and Red Hook that are not needed to meet likely future demand.
The Port Authority should support changes in collective bargaining agreements to lower costs driven by staffing arrangements for groups of workers known as "gangs."
The Port Authority should eliminate container royalties paid by shippers to the workers’ union to fund payments and benefits beyond those funded in their contracts.
The Port Authority should recruit other terminal operators from around the world or introduce direct operation at least one facility to inject competition into the lease renewal process.
Key Data
In a May 2018 analysis, the Port Authority was described as managing a massive $8 billion budget to operate regional airports, maritime ports, PATH trains, and trans-Hudson crossings.
In February 2017, the Port Authority released a $32 billion, 10-year capital plan for 2017 through 2026, with $11.3 billion (35%) funded by pay-as-you-go capital investments from operating surpluses and reserves.
In a January 2015 report, the Port Commerce maritime business line was shown to have consistently run deficits, incurring a $82 million net loss in 2013 that required subsidies from other business lines.
According to a 2014 report, the PATH rail system operated under a unique model with no tax subsidies, causing its annual operating deficit to grow from $294 million in 2004 to $383 million in 2013.
In the 2012 budget, the Port Authority's police force of approximately 1,700 officers constituted almost one-third of its personnel costs, with the Public Safety Department allocated over $406 million.
$11 billion is the amount the new Port Authority Bus Terminal is projected to cost, a quarter of PANYNJ's ten year capital plan and a keystone project for the region's travelers. It's still just a small piece of what the Port Authority -- and its new executive, Kathryn Garcia-- oversees.…
Select photos can be found here - https://flic.kr/s/aHBqjCWM7U . Kathryn Garcia is the Executive Director of the Port Authority of New York and New Jersey. She previously served as director of state operations and infrastructure for New York Gov. Kathy Hochul. In that role she oversaw the daily operations of…
CBC's Gala is a must-attend event for New York's business and civic leaders. The 93rd Annual Gala was held on March 6, 2025, and honored The World Bank Group President Ajay Banga with the Medal for High Civic Service, which is given to a current or former public servant who…
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.
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…
Implementing congestion pricing in Manhattan below 61st Street could generate $1 billion annually for transit capital plans and reduce $5 billion in annual travel time losses. To maximize these benefits, credits should not be provided for Port Authority of New York and New Jersey tolls, as doing so would increase complexity and raise costs for other drivers.
Recommendations related to Port Authority of New York and New Jersey
The Metropolitan Transportation Authority should not provide credit for payment of MTA or Port Authority of New York and New Jersey (PANYNJ) tolls.
The Port Authority of New York and New Jersey suffers from a dysfunctional governance structure defined by state-based fiefdoms that undermine its regional mission. To restore effective leadership and transparency, the agency requires legislative reform, specifically the creation of a professional CEO position and a rotating board chairmanship.
Recommendations related to Port Authority of New York and New Jersey
The Port Authority should create a chief executive officer position to unify decision-making under a single office.
The Port Authority should have the chair of the board rotate every two years between a commissioner from New York and one from New Jersey to promote faithful cooperation.
New Jersey's legislators and governor should adopt the reform bill passed by New York to move the region into a vibrant future.
The Port Authority must ensure that governance reform is enshrined in law to endure and prevent the return of dysfunctional, politicized divisions.
Key Data
$8 Billion
— The annual budget managed by the Port Authority of New York and New Jersey.
$32.2 billion is the size of the 2017-2026 Capital Plan of the Port Authority of NY and NJ. This podcast features Port Authority Executive Director Rick Cotton, followed by a discussion on public-private partnerships, airport renovations, the fate of Gateway, and the 42nd Street bus terminal.
2.7% is the economic growth forecast for 2018 in the Port Authority’s 17-county region, which encompasses more than 200 municipalities. The Port Authority's Chief Economist Alex Heil joined WT[D]P to discuss the economic and transportation trends that impact the Port's bottom line.
The Port Authority of New York and New Jersey's $32 billion, 10-year capital plan lacks a comprehensive needs assessment and clear criteria for project selection, leading to potential underinvestment in state of good repair work. Furthermore, the agency's reliance on bi-state parity to divide resources between New York and New Jersey projects undermines regional planning and efficient capital allocation.
Recommendations related to Port Authority of New York and New Jersey
The Port Authority should develop a publicly-available needs assessment that identifies spending necessary to bring facilities to a state of good repair.
The agency should establish a set of criteria for selecting enhancement and expansion projects that includes benefit-to-cost analyses.
The Port Authority should discard the use of bi-state parity to allocate capital resources between “New Jersey” projects and “New York” projects.
Key Data
$32 billion
— Total value of the Port Authority's 10-year capital plan for 2017 to 2026.
$8.8 billion
— Total funding allocated for state of good repair (SGR) work in the capital plan.
$3.9 billion
— Estimated shortfall in state of good repair (SGR) funding compared to projected depreciation.
$11.3 billion
— Amount of pay-as-you-go capital investment derived from agency operating surpluses and reserves.
$3.5 billion
— Cash disbursements allocated for the replacement of the Bus Terminal through 2026.
$1.7 billion
— Cost of the proposed PATH extension to the Newark AirTrain.
The Port Authority of New York and New Jersey's Brooklyn facilities are underutilized and financially draining, losing significant money annually. Repurposing these 105 acres could generate thousands of housing units and jobs while saving the agency $29 million per year.
Recommendations related to Port Authority of New York and New Jersey
The Port Authority should repurpose its Brooklyn and Red Hook facilities to reduce losses and spending.
It is time to rethink the use of the most underused and obsolete maritime facilities that have a long history of running deficits.
The city should engage the community in envisioning how the property could best be used to generate benefits for the regional economy.
Key Data
$82 million
— Losses incurred by the Port Authority of New York and New Jersey in 2013.
$205,718
— Losses per acre at the Brooklyn facility in 2013.
$184,788
— Losses per acre at the Red Hook facility in 2013.
$29 million
— Annual savings by 2029 if the Port Authority's Brooklyn and Red Hook facilities are repurposed.
175 percent
— Increase in vacant land in Community Board 6 if the 105 acres were made available for development.
3,800 and 7,600
— Potential housing units the site could yield if repurposed.
The Port Authority of New York and New Jersey's maritime ports have consistently run deficits, with projected losses reaching $107 million by 2029. To achieve fiscal sustainability, the agency should close underperforming facilities like Brooklyn and Red Hook while reforming labor agreements to reduce costs associated with staffing and container royalties.
Recommendations related to Port Authority of New York and New Jersey
The Port Authority should identify excess capacity at facilities with low productivity and convert them to higher uses.
The Port Authority should close obsolete and underperforming facilities like Brooklyn and Red Hook that are not needed to meet likely future demand.
The Port Authority should support changes in collective bargaining agreements to lower costs driven by staffing arrangements for groups of workers known as "gangs."
The Port Authority should eliminate container royalties paid by shippers to the workers’ union to fund payments and benefits beyond those funded in their contracts.
The Port Authority should recruit other terminal operators from around the world or introduce direct operation at least one facility to inject competition into the lease renewal process.
Key Data
$107 million
— Projected annual deficit for Port Commerce in 2029.
$82 million
— Loss incurred by Port Commerce in 2013.
$29 million
— Projected annual savings by 2029 from closing the Brooklyn and Red Hook facilities.
$354 million
— Estimated container royalties paid by carriers for New York-New Jersey terminals in 2013.
$300 million
— Potential cost reduction from eliminating cash payments and port-specific container assessments.
$205,718
— Loss per acre generated by the Brooklyn facility in 2013.
The Port Authority Trans-Hudson (PATH) rail system faces growing annual deficits, projected to reach $487 million by 2018, which are currently covered by cross-subsidies from bridge and tunnel tolls. To improve fiscal viability, the system should adopt a more equitable funding model that includes increased passenger fares, new tax subsidies, and potentially transferring operations to New Jersey Transit.
Recommendations related to Port Authority of New York and New Jersey
PATH should adopt a consistent funding structure that shares the cost of operating the transit system among all who benefit, specifically by allocating costs among fares, tax subsidies, and cross-subsidies.
PATH should increase fares to cover a larger share of operating costs, as current fares only cover a small fraction of the actual cost of a ride.
The agency should implement a new tax subsidy, such as a sales or property tax in the counties with the most PATH use, to provide a more stable revenue source.
PANYNJ should consider transferring PATH operations to New Jersey Transit to facilitate better coordination with other bi-state transit operations and improve planning.
PANYNJ should reduce the reliance on cross-subsidies from bridge and tunnel tolls, freeing up those funds for other regional economic investments.
Key Data
$487 million
— Projected annual deficit for the PATH system in 2018.
$383 million
— PATH's annual operating deficit in 2013.
$3.7 billion
— Accumulated annual losses for PATH from 2004 to 2013.
$1.96
— Average fare revenue per ride for PATH in 2013.
$8.45
— Actual full cost of a PATH ride in 2013.
$12.50
— Scheduled E-ZPass round-trip, peak hour toll on PANYNJ bridges and tunnels in 2018.
The Port Authority of New York and New Jersey has implemented several budget process improvements, such as adopting a detailed annual operating budget and a 10-year capital plan, though many areas remain in progress or require further action. Key gaps include the lack of public project ratings, insufficient detail on funding sources for capital investments, and the absence of independent engineering oversight for major projects.
Recommendations related to Port Authority of New York and New Jersey
The Port Authority should prepare and present a detailed annual operating budget.
The Port Authority should balance the budget in accord with Generally Accepted Accounting Principles (GAAP).
The Port Authority should prepare and present a detailed four-year financial plan.
The Port Authority should adopt the operating budget only after opportunities for public review.
The Port Authority should revise and update the operating budget regularly.
The Port Authority should use a long-term strategy to guide the capital budget.
The Port Authority should base capital strategy on professional assessment of needed investment to maintain state of good repair and accommodate long-term demand trends.
The Port Authority should prepare annual and four-year commitment plans revised annually.
The Port Authority should adopt an explicit policy for financing capital investments with debt and pay-as-you-go (PAYGO) sources.
The Port Authority should use independent engineering consultants to monitor major capital projects and report to the board and to the public.
Key Data
$780 million
— The amount of surplus available for capital investment shown in the adopted budget.
The PATH rail transit system, currently operated by the Port Authority of New York and New Jersey, faces growing operating deficits that strain the agency's ability to fund other critical infrastructure projects. Responsibility for operating the system should be transferred to New Jersey Transit to better coordinate transit operations and eliminate the need for Port Authority tax subsidies.
Recommendations related to Port Authority of New York and New Jersey
Responsibility for running PATH should be shifted to New Jersey Transit.
The Port Authority should transfer PATH operations to New Jersey Transit to allow for more effective coordination of transit services.
The system should adopt a '50-25-25' funding approach or an 'equal shares' approach to create a necessary tax subsidy for PATH.
The system should implement higher fares than are currently planned to cover operating costs.
Key Data
$383 million
— The 2013 operating deficit for the PATH rail transit system.
$1.96
— The average fare revenue per ride in 2013.
$4.3 billion
— The 2012 state and local tax subsidies for New York City Transit.
$49 million
— The 2012 state and local tax subsidies for BART.
$175 million
— The required subsidy for the '50-25-25' formula in 2018.
$233 million
— The required subsidy for the 'equal shares' approach in 2018.
The Port Authority Trans-Hudson (PATH) rail system faces growing annual deficits, projected to reach $487 million by 2018, which are currently covered by cross-subsidies from bridge and tunnel tolls. To improve fiscal viability, the system should adopt a more equitable financing model that incorporates passenger fares, tax subsidies, and reduced reliance on toll-funded cross-subsidies.
Recommendations related to Port Authority of New York and New Jersey
Auto user fees should pay for the facilities available to drivers, so the cost of bridge and tunnel facilities 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 a share of the cost of providing mass transit services to compensate for the negative effects of auto use on the environment.
Mass transit users should pay fares sufficient to cover a significant share of the cost of those services because they receive a direct benefit.
State and local tax subsidies to mass transit should cover a share of the cost of those services to reflect the broad economic benefits provided by an efficient mass transit system.
Consideration should be given to altering PATH's governance to facilitate the collection of a tax subsidy and improve coordination with other bi-state transit operations.
Key Data
$487 million
— Projected annual deficit for the PATH transit system in 2018.
$3.9 billion
— Estimated cost of the new WTC terminal and related amenities.
62 percent
— Portion of total PATH expenses represented by the operating deficit in 2013.
$1.96
— Average revenue per ride for PATH in 2013.
$8.45
— Actual full cost of a single PATH ride in 2013.
244,000
— Average weekday ridership on PATH in 2013.
The Port Authority of New York and New Jersey assembled a panel of policy thinkers to discuss ways of reforming the Authority. The panel included Citizens Budget Commission President Carol Kellermann, along with Mitchell Moss, Director of the Rudin Center for Transportation at New York University; Jameson Doig, Professor of…
The Port Authority of New York and New Jersey should adopt more transparent and rigorous financial practices, including the implementation of a detailed annual operating budget and a long-term capital strategy. These improvements would ensure better public accountability and align the agency's planning with the standards of other major regional public entities.
Recommendations related to Port Authority of New York and New Jersey
The PANYNJ should have a detailed annual operating budget and a four-year financial plan.
The operating budget should be adopted only after opportunities for public review and should be revised and updated during the fiscal year.
The PANYNJ’s capital budgeting should be guided by a long-term (a period of 10 to 20 years) capital strategy that is revised every four years.
The capital budget should include an annual and a four-year commitment plan revised annually.
Regular and frequent (quarterly) reports should be made to the Board and the public on the status of each capital project relative to the scheduled milestones and planned costs for the project.
Performance measures of activities and accomplishments should be specified for each major agency activity, and regular and frequent (quarterly) reports should be presented to the Board and the public comparing actual and targeted performance.
Port Authority of New York and New Jersey police officers receive compensation that is more generous than most other regional law enforcement agencies, driven by higher base salaries and more extensive supplemental pay. The next collective bargaining agreement should aim to narrow these pay disparities by aligning officer compensation with that of other large urban police departments in the region.
Recommendations related to Port Authority of New York and New Jersey
The next contract should align PANYNJ officers’ compensation with that of officers in other large urban police departments in the region.
The specific terms of the next contract should be set by collective bargaining, but the result should be hourly rates that are much closer to those of their counterparts in the region served.
Key Data
1,700
— The current size of the Port Authority of New York and New Jersey police force.
$406 million
— The amount allocated to the Public Safety Department in the PANYNJ's 2012 budget.
31 percent
— The portion of the total PANYNJ personal service budget represented by personal service items for the Public Safety Department.
$83.99
— The hourly pay rate for PANYNJ senior officers in 2009.
$103,500
— The maximum combined base and longevity pay for PANYNJ officers in 2009.
$16,458
— The average overtime earnings for all PANYNJ officers in 2009.
Three former Executive Directors of the Port Authority discuss what went wrong and how the Port Authority should move forward to be effective in carrying out its mission.
Port Authority Executive Director Pat Foye discusses his vision for the future of the Port Authority, with a focus on realigning the authority's mission and streamlining internal processes.
The New York-New Jersey metropolitan region's transportation system suffers from inadequate maintenance, lack of comprehensive planning, and inconsistent pricing policies that rely too heavily on subsidies rather than user fees. To address these issues, the region should establish a new entity to enforce consistent regional policies, dedicate user fees to transportation, and accelerate the elimination of maintenance backlogs.
Recommendations related to Port Authority of New York and New Jersey
The governors of New York and New Jersey should create a new entity with authority to set and enforce regional transportation policies and priorities.
The region’s transportation agencies should have sufficient resources to meet all necessary operating expenses.
Motor vehicle user fees should be dedicated to transportation agencies to cover the operating costs of roads and bridges and provide a cross-subsidy to mass transit.
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.
Key Data
$13 billion
— Combined annual operating expenditures of the 25 transportation agencies in the region.
39 percent
— Percentage of urban roads in New York that are in unacceptable condition.
37 percent
— Percentage of bridges in both New York and New Jersey that are structurally deficient or obsolete.
$1.2 billion
— Total mass transit operating deficit in the region in 2001.
65,000
— Number of people the PATH system brings from New Jersey into Manhattan each workday.
$5.7 billion
— Total user fees collected from auto users in the region.
New York's transportation infrastructure, including its extensive highway and rail networks, faces significant challenges in maintaining a state of good repair and meeting future capacity needs. Addressing these issues requires balancing investments in existing systems with strategic expansions to improve efficiency and competitiveness against other global cities.
Recommendations related to Port Authority of New York and New Jersey
New York's leaders should address how to improve transit system efficiency and ridership to enhance competitiveness.
New York's leaders should determine how rapidly to achieve a state of good repair for the existing infrastructure.
New York's leaders should evaluate how much new mass transit capacity is necessary to accommodate future growth.
Transit leaders should learn from the operations of other systems to identify modern human resource measures that could enhance future competitiveness.
Employers should be encouraged to cooperate by facilitating flexible working hours to help shift ridership to less crowded hours.
Key Data
$12.2 billion
— Estimated cost needed for highway and related facilities over the ten-year period spanning fiscal years 1998 to 2007.
$20.4 billion
— Estimated cost needed to achieve and maintain a state of good repair for the facilities operated by the Transit Authority.
$1.3 billion
— Amount spent by the Port Authority on PATH.
37,066
— Total miles of roadway in New York.
8,689
— Number of buses in the New York fleet.
6,164
— Number of cars in the New York rapid rail fleet.
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