State capital planning encompasses the processes and policies New York uses to identify, prioritize, and fund infrastructure projects across state agencies and public authorities. This page covers CBC’s work on long-term capital budgeting, the state of good repair for existing assets, the use of lump-sum appropriations, environmental review reform, and the management of major infrastructure projects like the MTA capital plan.
This page was created with AICBC Insights uses AI to group, analyze and present data and recommendations from CBC's publications. Always reference the cited sources to verify important details..
Exempting modest residential development from SEQR would make building housing cheaper and faster without additional costs to the government.
Exempting water facilities, parks, and resiliency retrofits similarly would reduce the cost of projects that improve the environment.
Imposing deadlines on State and local agencies to sign off on environmental reviews would ensure reasonable and predictable timelines and avoid the death spiral of mounting cost increases and uncertainty.
The State should prioritize state of good repair work on existing capital assets before using funds for expansion projects.
The State should re-tool the capital planning process to focus on assessing, prioritizing, and meeting infrastructure needs, rather than delivering political wins.
The State should identify and invest in cost-effective, core resiliency needs to protect New Yorkers and the economy from the impacts of climate change.
The State should ensure investments in the energy transition focus on cost-effective strategies that balance economic, affordability, and environmental needs.
Key Data
Writing in December 2022, the CBC highlighted that the State's capital budget involves more than $17 billion in planned annual spending on long-term assets like roads and bridges, but criticized the process as inadequately structured.
Following the fiscal year 2023 budget negotiations, a July 2022 analysis revealed a late addition of $1.6 billion for capital projects was added to the enacted budget, consisting of $920 million in lump sums and $656 million for specific projects that were not in the original proposals.
A February 2022 statement by the CBC noted that federal funds make up one-sixth of total capital spending by the State, emphasizing the need to strategically allocate these resources.
In December 2021, the CBC supported legislation requiring the DOT Commissioner to file 4 annual reports to improve transparency and capital planning for the State's transportation infrastructure.
An August 2017 policy brief reported that the Department of Transportation represented the largest capital expense for the State, with annual disbursements exceeding $4.9 billion, which accounted for 36% of projected capital spending by State agencies.
Blake G. Washington is the Budget Director for the State of New York, appointed by Governor Kathy Hochul. Mr. Washington is responsible for the development and management of the New York State budget and leads a team of public servants to administer the fiscal duties of the state, including economic…
Reforming New York's State Environmental Quality Review (SEQR) process by exempting modest residential developments and specific infrastructure projects would reduce construction costs and accelerate development timelines. Implementing deadlines for environmental reviews would further mitigate the financial risks associated with project delays and uncertainty.
Recommendations related to State Capital Planning
Exempting modest residential development from SEQR would make building housing cheaper and faster without additional costs to the government.
Exempting water facilities, parks, and resiliency retrofits similarly would reduce the cost of projects that improve the environment.
Imposing deadlines on State and local agencies to sign off on environmental reviews would ensure reasonable and predictable timelines and avoid the death spiral of mounting cost increases and uncertainty.
Key Data
11%
— Local environmental review increases development costs for 500-unit projects by this amount.
$82,000 per unit
— Additional cost for 500-unit projects due to local environmental review.
10%
— Environmental review cost increase for modest, low-rise projects.
$35,000 per unit
— Cost increase for modest, low-rise projects in cities like Rochester or Buffalo.
$40,000 per unit
— Cost increase for modest, low-rise projects in the Mid-Hudson region.
$45,000 per unit
— Cost increase for modest, low-rise projects on Long Island.
New York State faces significant infrastructure challenges, including the need to prioritize the maintenance of existing assets over new expansion projects. To ensure future resilience, the state must re-tool its capital planning process to focus on cost-effective, core needs rather than political considerations.
Recommendations related to State Capital Planning
The State should prioritize state of good repair work on existing capital assets before using funds for expansion projects.
The State should re-tool the capital planning process to focus on assessing, prioritizing, and meeting infrastructure needs, rather than delivering political wins.
The State should identify and invest in cost-effective, core resiliency needs to protect New Yorkers and the economy from the impacts of climate change.
The State should ensure investments in the energy transition focus on cost-effective strategies that balance economic, affordability, and environmental needs.
Key Data
115,000
— centerline miles of state and local roads supported by the state budget.
17,000
— bridges supported by the state budget.
335,000
— acres of parkland supported by the state budget.
Extending the authorization for joint bidding on public works contracts allows for the simultaneous planning of capital projects and utility relocation, which accelerates project delivery and reduces construction costs. This process avoids the inefficiencies of private negotiations under "Schedule U," which often stall projects and increase expenses for both the city and ratepayers.
Recommendations related to State Capital Planning
The Governor should sign S8404/A8679 and S8405/A8678 to extend the authorization of joint bidding on public works contracts in lower Manhattan and the rest of the city for one year.
$16 billion is the estimated cost to build the new rail tunnel under the Hudson River. Decades of delays and funding spats ultimately led to the creation of the Gateway Development Commission, the bi-state entity responsible for making the tunnel a reality. Joining the podcast is Alicia Glen, co-Chair of…
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.
Blake G. Washington is the Budget Director for the State of New York, appointed by Governor Kathy Hochul. Mr. Washington is responsible for the development and management of the New York State budget and leads a team of public servants to administer the fiscal duties of the state, including economic…
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…
New York State's current capital budget process lacks the transparency and integration necessary to ensure cost-effective infrastructure investments. Implementing comprehensive, long-term planning processes would improve decision-making and oversight for these significant public expenditures.
Recommendations related to State Capital Planning
The State should implement comprehensive, transparent long-term capital planning processes to ensure cost-effective, integrated plans and improve decision-making on infrastructure investments.
Kathryn Garcia serves as Director of State Operations and Infrastructure, where she oversees over 70 state agencies and authorities, including the MTA and Port Authority. Kathryn has over 14 years of government experience delivering services that New Yorkers rely on every day. Previously, she served as the Commissioner of the…
New York State's capital budget, which includes over $17 billion in annual spending on infrastructure like roads and bridges, suffers from a lack of comprehensive, transparent planning and oversight. To improve fiscal management, the state should implement a public, long-term capital planning process and avoid using broad, lump-sum appropriations for capital projects.
Recommendations related to State Capital Planning
The State should implement comprehensive, transparent long-term capital planning processes to reduce deferred needs and provide long-term savings.
The State should not enact lump sum appropriations that authorize spending on a broad range of projects or purposes to be determined and allocated at a later date.
Key Data
$17 billion
— Planned annual spending on long-term assets such as roads, bridges, State-owned buildings, and other infrastructure.
$185,000,000
— Appropriation for the Local Community Assistance Program, which is eligible to be financed with State bonds for capital projects.
$102.4 billion
— Value of 21,282 contract transactions in 2019 that were subject to Comptroller oversight.
The Metropolitan Transportation Authority (MTA) faces a significant backlog of $52.9 billion in uncommitted capital projects from its 2010-2024 plans, while at least $12.0 billion of its planned funding is at risk or unaffordable. To address these challenges, the MTA must prioritize projects that maintain safety and reduce costs, while developing a realistic 2025-2029 capital plan that aligns with its actual capacity to execute work.
Recommendations related to State Capital Planning
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 publish the planned schedule for the remaining outstanding projects from the 2010-2024 capital plans.
The MTA should develop an ambitious and solidly financed 2025-2029 capital program incorporating projects from prior plans and current needs.
The MTA should increase the efficiency of operations to help eliminate the structural deficit, possibly creating the capacity to issue debt for capital when the operating budget’s recurring revenues and expenditures are appropriately balanced.
The MTA should continue to work with the federal and State governments to implement congestion pricing by 2023 to provide critical revenues, and environmental and congestion benefits, and support increased ridership.
The MTA should continue capital procurement improvements and reform to increase capacity, and align unit costs with national and international standards for major capital maintenance and system expansion.
The MTA should continue to improve capital execution to increase capacity, including Fastrack, and partial- or full-line shutdowns to accelerate projects.
Key Data
$52.9 billion
— Amount of 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.
$8.2 billion
— Forecasted annual capital commitments for 2022.
$7.1 billion
— Average annual capital commitments over the past six years.
New York State's fiscal year 2023 budget included $1.6 billion in late-added capital projects that bypassed rigorous evaluation and public consideration, relying instead on political negotiations. These lump sum appropriations and last-minute additions undermine sound budgeting practices and threaten the state's long-term debt capacity.
Recommendations related to State Capital Planning
The State should utilize a comprehensive capital planning process that follows five general steps of strategic planning, needs assessment, resource identification, plan development, and implementation.
The Governor and Legislature should stop using lump sum appropriations for capital projects or otherwise.
The Executive should provide transparency on disbursements of existing lump sum pots by reporting details of spending, including the timing, amount, recipient, and purpose of awards.
Key Data
$1.6 billion
— Total amount of capital appropriations added to the enacted budget that were not included in the Executive’s or Legislative budget proposals.
$920 million
— Amount of capital appropriations allocated in a few lump sums.
$656 million
— Amount of capital appropriations allocated for specific projects.
$418 million
— Portion of the funding for the Buffalo Bills Stadium that will be paid for with current money.
$1.2 billion
— Amount of these projects that may be financed through bonds, consuming State debt capacity.
The proposed Penn Station Area project faces significant financial risks and questions regarding local control, necessitating a transparent and cost-effective financing plan that protects city tax revenue. State and city officials must collaborate to ensure the project's scope is well-defined and that the use of value capture does not undermine local decision-making authority or essential public services.
Recommendations related to State Capital Planning
Before any financing plan is approved, the scope of work should be reasonably detailed, scrutinized, and streamlined as much as possible.
The State and the railroads should focus on improving safety, circulation, and functionality and doing so in the most cost-effective manner.
They should avoid costly, non-essential, cosmetic improvements and should not preclude the possibility of future capacity or service enhancements.
It is important to evaluate how the State will manage and mitigate the financing risks inherent to value capture projects, including who will be responsible for interest payments until revenue from new development comes online or who will be responsible for paying for cost overruns.
Ultimately, the Mayor and City Council should guide whether and how much of the City’s future property tax revenue should be dedicated to specific needs, such as a mass transit project, instead of other needs like public safety, education, or housing.
Key Data
$6 to $7 billion
— Estimated cost just for the renovation of Penn Station.
$12 billion-plus
— Estimated cost for the expansion of Penn Station.
New York's transportation capital planning process is currently hampered by being opaque, insufficiently informed, and overly political, preventing the state from maximizing the value of its infrastructure investments. To address this, the state needs to adopt comprehensive, long-term planning strategies, including benefit-cost analysis and the strategic allocation of federal infrastructure aid.
Recommendations related to State Capital Planning
The State should improve its capital planning processes by broadly adopting benefit-cost analysis.
The State should improve its capital planning processes by better identifying needs and resources.
The State should improve its capital planning processes by planning for maintenance and improvements.
The State should improve its capital planning processes by continuously assessing the progress of its work.
The State should strategically identify, allocate, and spend the new federal funds along with the added State funds to maximize their benefits.
Key Data
one-sixth
— Federal funds make up one-sixth of total capital spending by the State.
New York faces a looming $3.5 billion fiscal cliff that necessitates careful management of new and existing programs to ensure long-term fiscal stability. The State must prioritize long-term planning for infrastructure investments, such as roads, bridges, and resiliency projects, to ensure the right initiatives are pursued effectively.
Recommendations related to State Capital Planning
The State should engage in long-term planning and prioritization to ensure the right projects are pursued.
The State should prioritize investments to bring roads and bridges to a state of good repair to help the economy and reduce long-run costs.
The State should include investments to increase resiliency as part of its long-term planning and prioritization efforts.
Key Data
$3.5 billion
— The looming fiscal cliff facing the State budget.
New York lacks a comprehensive, long-term capital planning process for its assets, which is particularly problematic given the recent influx of federal infrastructure aid. The state should adopt a rigorous system that includes benefit-cost analysis, better identification of needs, and continuous assessment of progress to maximize the impact of these investments.
Recommendations related to State Capital Planning
The State should improve its capital planning processes to better identify needs and resources, plan for maintenance and improvements, and continuously assess the progress of its work.
The State should broadly adopt benefit-cost analysis to help prioritize spending among different transportation modes, infrastructure categories, or service types.
The State should identify, allocate, and implement the new federal infrastructure funds to maximize their benefits.
Key Data
one-sixth
— Federal funds make up one-sixth of total capital spending by the State.
110,000
— Public housing units to be renovated through the Preservation Trust.
$15 billion
— Investment supported by the MTA capital plan.
$1 billion
— Net annual contributions for the MTA capital plan expected from congestion pricing.
New York State's transportation capital planning currently relies on opaque, short-term, and politically negotiated strategies that lack critical performance data and long-term vision. Enacting legislation like S199B/A4010B would mandate regular, transparent reporting on project status, funding obligations, and infrastructure conditions to ensure better accountability and strategic asset management.
Recommendations related to State Capital Planning
The Governor should sign S199B/A4010B to improve capital planning and reporting for transportation infrastructure in New York State.
Subsequent legislation should be pursued to add long-term, intermodal planning provisions to the State's transportation capital planning process.
If the bill is vetoed due to unfunded costs, its provisions—plus additional requirements for long-term, intermodal planning—should be included in the fiscal year 2023 budget.
Key Data
$1 million
— Estimated unfunded cost of the 2019 bill A4880/S1673 that was vetoed by the governor.
The Penn Station Area Civic and Land Use Improvement Project proposes a new zoning framework to catalyze development and finance station renovations, but the current plan lacks sufficient detail regarding financing, cost estimates, and the City's role. To ensure fiscal responsibility, the State and City must collaborate on a transparent financing strategy that addresses potential risks and clearly defines the scope of capital improvements.
Recommendations related to State Capital Planning
Empire State Development should provide additional information to answer questions regarding the scope of capital improvements and the estimated cost for each phase before proceeding with the General Project Plan.
New York City should have a substantive role in the planning process and act as a partner that agrees to the use of tax revenue that would otherwise flow to the City’s general fund.
The project plan should avoid costly, non-essential cosmetic improvements and should not preclude the possibility of future capacity or service enhancements, including through-running or additional track capacity.
The public approval process should include broader discussions about financing risks and the most effective strategies for mitigating and managing those risks.
There should be additional public discussion about the merits of the financing strategy compared to other alternatives and whether this is the most appropriate financing approach for the renovation of Penn Station.
Key Data
$17 billion
— Total cost of the Penn Station project, including renovation, expansion, land acquisition, demolition, and public space improvements.
$6 to $7 billion
— Estimated cost of a scaled-back renovation project without the proposed Penn South expansion.
$1.3 billion
— Amount included in the State’s Fiscal Year 2022 Enacted Budget for Penn Station-related projects.
50%
— Anticipated funding share for the project from the federal government.
25%
— Anticipated funding share for the project from New Jersey.
25%
— Anticipated funding share for the project from New York.
New York State must align its tax and spending policies with the Climate Leadership and Community Protection Act (CLCPA) goals to ensure that fiscal decisions do not undermine environmental objectives. By reforming tax expenditures, modifying direct spending on public facilities, and targeting local aid for school and transportation infrastructure, the State can effectively incentivize the transition to a clean energy future.
Recommendations related to State Capital Planning
The State could limit the residential energy sales tax exemption only to zero emission fuels and renewable energy sources and target benefits to sources that support CLCPA goals.
The State could lower, or gradually eliminate, the sales tax exemptions on fossil fuel-based residential energy sources.
The State could consider eliminating exemptions for fossil-fuel based energy used for non-residential purposes, such as research and development.
When replacing any aging heating systems in existing facilities, the State could transition facilities away from fossil fuels wherever cost-effective and feasible.
The State could accelerate the transition to clean fuel vehicles by purchasing electric vehicles and building vehicle charging infrastructure.
The State could consider not reimbursing the cost of installing fossil fuel dependent building infrastructure or vehicles through its economic development grants.
State aid could incentivize school districts to purchase zero-emission school buses and build the needed charging infrastructure.
Key Data
$800 million
— Annual tax exemptions that reduce the cost of consuming fossil fuels.
$200 million
— Amount spent on utilities for public buildings in fiscal year 2019.
7,000
— Number of passenger vehicles in the State's fleet.
$1.8 billion
— Annual economic development grants provided to companies to subsidize expansion or relocation.
$3,207 million
— Current program costs for School Building Aid.
$1,990 million
— Current program costs for School Transportation Aid.
New York State should adjust its capital plan during this period of fiscal stress by eliminating unproductive economic development spending and prioritizing essential projects. Shifting the funding of capital projects from pay-as-you-go to debt financing could generate significant savings, helping to close budget gaps while preserving resources for critical investments.
Recommendations related to State Capital Planning
The State should modify its capital plan for the current period of fiscal stress and eliminate unproductive economic development capital spending.
Eliminating 50 percent of most Empire State Development (ESD) economic development capital spending decreases projected debt service between $36 million and $134 million annually during the financial plan period.
Prioritizing essential projects should allow an additional 10 percent reduction in capital spending, reducing annual debt service by $36 million to $132 million annually during the plan period.
Using debt to finance the remaining 90 percent of capital projects now funded on a pay-as-you-go (paygo) basis would save a net $3.2 billion in fiscal year 2021, decreasing to $2.1 billion in fiscal year 2024.
Key Data
$36 million to $134 million
— Annual debt service savings from eliminating 50% of Empire State Development economic development capital spending.
$36 million to $132 million
— Annual debt service savings from a 10% reduction in capital spending by prioritizing essential projects.
$3.2 billion
— Net savings in fiscal year 2021 from shifting 90% of pay-as-you-go capital projects to debt finance.
$2.1 billion
— Net savings in fiscal year 2024 from shifting 90% of pay-as-you-go capital projects to debt finance.
50 percent
— Proposed reduction of most Empire State Development economic development capital spending.
10 percent
— Proposed reduction in capital spending achieved by prioritizing essential projects.
New York State should adopt a five-year Department of Transportation capital program based on a comprehensive statewide planning process rather than the proposed two-year plan. Implementing best practices for capital planning and programming will support more effective investments in the state's transportation infrastructure.
Recommendations related to State Capital Planning
The State should adopt a five-year Department of Transportation capital program based on a comprehensive statewide capital planning process.
The State should enact best practices for capital planning and programming to support more effective investments in the State’s transportation infrastructure.
New York State should enact legislation requiring the Department of Transportation to implement long-term, transparent capital planning for infrastructure projects to move away from politically driven budgeting. This reform would mandate the creation of multi-year plans, public hearings, and detailed reporting on project delays and cost overruns to improve the condition of state transportation assets.
Recommendations related to State Capital Planning
The Governor should sign A4880/S1673 to improve capital planning for transportation infrastructure in New York State.
The State Department of Transportation should develop a 20-year intermodal transportation capital plan.
The State Department of Transportation should develop a 5-year capital plan for transportation projects.
The State Department of Transportation should hold regional hearings on transportation capital planning.
The State Department of Transportation should biannually submit to the Governor and Legislature a list of current and planned transportation capital projects.
The State Department of Transportation should provide explanations of major delays and cost overruns on individual projects.
Subsequent legislation should require the Department of Transportation to outline goals and strategies for maintaining and improving transportation assets.
Subsequent legislation should make public a summary of the inventory of assets, asset quality, recently completed projects, and performance relative to predetermined goals.
It’s no secret New York’s roads are in dire need of repair, and now there are numbers to prove it. A new report by the Citizens Budget Commission says New York needs $5.7 billion to keep roads in “good repair.” Watch the original segment here .
The Mario M. Cuomo Bridge, which replaced the Tappan Zee Bridge, requires a toll increase to cover its $2.9 billion in long-term debt service costs rather than relying on a systemwide toll hike. To ensure fiscal responsibility, the current toll freeze should be lifted to align revenue collection with the bridge's completion, ensuring users pay for the infrastructure they utilize.
Recommendations related to State Capital Planning
Increasing the toll on the new Cuomo Bridge alone is the appropriate approach, and the new toll should cover all of the bridge’s debt and maintenance costs.
The Thruway Authority should reconsider the systemwide toll freeze and increase tolls by the rate necessary to service the debt when the costs are payable.
There should be transparency and public discussion on the toll increase now, as the bridge is opened for use.
The best approach would be to effectuate a toll increase that covers all of the increased debt service costs, when the asset begins serving users with the completion of the bridge.
Key Data
$2.9 billion
— Amount in loans and bonds that will need to be repaid for the bridge in the long term.
$10.61
— Projected toll for passenger vehicles based on current debt projections.
$174 million
— Average annual debt service costs for the Cuomo Bridge's loans and bonds.
24%
— Required increase on all Thruway tolls to fund the increase in debt service, assuming no decreases in utilization.
$3.1 billion
— Total cost for the design-build contract of the new bridge.
$1.6 billion
— Federal Transportation Infrastructure Finance and Innovation Act (TIFIA) loan approved for the bridge replacement.
New York State's transportation capital planning process lacks a cohesive, data-driven strategy, often relying on disjointed documents and political negotiations rather than objective needs assessments. To improve accountability and transparency, the state should codify a formal, multi-year planning process that links asset conditions to specific funding and project goals.
Recommendations related to State Capital Planning
State officials should codify in statute a process to formally set forth appropriate capital planning procedures for Department of Transportation assets.
The state should produce an update of the capital program’s strategies and goals to outline the system's vision, desired asset conditions, and contingencies for adverse weather.
A needs assessment highlighting the condition of assets and the projected costs associated with maintaining them should be published to link asset conditions to costs.
The state should provide a proposed project list with funding identified that accompanies the Governor’s proposed budget to help elected officials negotiate funding levels.
The Department of Transportation should reproduce its list of projects annually with each Executive Budget to enable the Legislature, stakeholders, and the public to track project progress.
A status report on projects included in the enacted five-year capital plan should be published to compare implementation progress relative to original goals.
Key Data
$4.9 billion
— Annual disbursements for the Department of Transportation's capital expenses.
11.2 percent
— Portion of New York's bridges graded as structurally deficient.
$21 billion
— Total funding available for the 2016 through 2020 capital program.
$3 billion
— Amount of capital program funding allocated ambiguously to "statewide" projects.
$6.5 billion
— Amount of capital program funding left out of project lists entirely.
6.92
— Average rating of State roads in fiscal year 2016 on a 1 to 10 scale.
New York City's capital construction process for libraries and cultural institutions is plagued by excessive delays and high costs, with median project durations exceeding four years and new construction costs reaching $930 per square foot. These inefficiencies stem from a complex, multi-agency oversight system that lacks accountability and relies on outdated procurement methods, necessitating fundamental reforms to improve project delivery and fiscal responsibility.
Recommendations related to State Capital Planning
The mayor should convene a task force to review and reform the capital construction process to identify and mitigate systemic inefficiencies.
The city should leverage its existing Capital Projects Dashboard and expand it to systematically track the real costs and timelines of all capital construction projects.
The city should streamline project approval practices and reduce redundancies between the Office of Management and Budget and the Department of Design and Construction.
The city should work with relevant departments to simplify the design review process at the Department of Design and Construction and establish achievable timetables for feedback.
The city should fund an expanded agency-wide data and analytics team within the Department of Design and Construction to analyze cost trends and predict potential overruns.
The city should institute a process for nonprofits to prequalify for discretionary capital funds to ensure they have the capacity to manage major initiatives.
The city council should adopt and fund a fixed five-year capital program to establish dependable funding for routine state-of-good-repair investments.
The Office of Management and Budget should create a handbook providing an easy-to-understand summary of all capital eligibility rules and requirements.
The city should escalate efforts to authorize design-build on appropriate capital construction projects to reduce delays and control costs.
The city should expand the use of pass-through project management for libraries and large cultural organizations to reduce the burden on city agencies.
Key Data
$930 per square foot
— The median cost for new library and cultural buildings in the sample.
1,550 days
— The median time it took for a capital project to be completed.
36 percent
— The share of projects that took more than five years to complete.
$1,272 per square foot
— The average cost of ground-up construction projects when managed by the city.
$641 per square foot
— The average cost of ground-up construction projects when managed by the New York Public Library.
140
— The number of unplanned closures experienced by the Brooklyn Public Library in 2013 due to infrastructure failures.
New York State's policy of achieving "parity" in transportation capital spending between downstate mass transit and upstate road and bridge improvements is an arbitrary and misguided approach that ignores actual infrastructure needs. Instead of linking funding amounts, the state should base capital planning on objective assessments of asset conditions and performance indicators to ensure resources are allocated where they are most required.
Recommendations related to State Capital Planning
The scale and content of each capital program should be rooted in an objective assessment of needs relating current asset conditions to a desired state of good repair and identifying priorities for system enhancements based on a comparison of projected performance indicators for prospective projects.
The MTA’s 20-year needs assessments and the DOT’s Transportation Asset Management Plan should be enhanced and better utilized in future budget processes.
Key Data
$29.5 billion
— Total MTA capital plan for 2015 through 2019.
$26.6 billion
— MTA capital plan total for mass transit, excluding bridges and tunnels.
$21.2 billion
— Total spending for the DOT capital program covering five state fiscal years.
$27.1 billion
— Revised DOT program total including Thruway Authority spending.
29%
— Portion of regional bridge and highway projects in the 2016-2020 DOT plan located in New York City.
60%
— Portion of regional bridge and highway projects in the 2016-2020 DOT plan located in the MTA service region.
The state should prioritize using one-time financial settlements for long-term capital investments that reduce borrowing rather than funding operating expenses. Additionally, the state should expand design-build authorization to New York City and halt new economic development capital spending until existing programs demonstrate better transparency and results.
Recommendations related to State Capital Planning
The State’s current year $1.8 billion in one-time financial settlements should be used to provide long-term benefits such as pay-as-you-go capital investments that replace borrowing, enhance reserves, or accelerate debt payments.
The proposal to extend design-build authorization to all State agencies, authorities, and counties outside of New York City should also extend authorization to New York City, which has requested the authority in the last two legislative sessions.
The Executive Budget's proposals to increase economic development capital spending should be rejected and a moratorium on new economic development programs imposed until more transparency and results are achieved in the existing programs.
Key Data
$1.8 billion
— The amount of one-time financial settlements the state should use for long-term benefits like pay-as-you-go capital investments.
$270 million
— The amount dedicated to the Department of Transportation capital plan that could prove beneficial if the investment displaces debt.
$200 million
— The amount dedicated to health care capital grants that may prove worthwhile if utilized to effectuate systematic reforms.
$334 million
— The increase in non-ESD economic development capital spending proposed in the Executive Budget.
On February 22, 2017, New York State Budget Director Robert Mujica presented highlights from the New York State Executive Budget for Fiscal Year 2018 to the Citizens Budget Commission.
The Port Authority of New York and New Jersey's $32 billion, 10-year capital plan lacks a comprehensive, publicly available needs assessment and clear criteria for prioritizing projects, leading to potential inefficiencies. The agency should adopt a more transparent, data-driven approach to capital planning that prioritizes regional benefits over political parity between New York and New Jersey.
Recommendations related to State Capital Planning
The Port Authority should develop a publicly-available needs assessment that identifies spending necessary to bring facilities to a state of good repair.
The agency should establish a set of criteria for selecting enhancement and expansion projects that includes benefit-to-cost analyses.
The Port Authority should discard the use of bi-state parity to allocate capital resources between “New Jersey” projects and “New York” projects.
Key Data
$32 billion
— The total value of the Port Authority's 10-year capital plan for 2017 to 2026.
$3.9 billion
— The estimated shortfall in state of good repair (SGR) work over the 10-year plan period.
$3.5 billion
— The cash disbursement allocated for the beginning replacement of the Bus Terminal.
$2.7 billion
— The funding allocated in support for the Gateway Project to create new trans-Hudson rail capacity.
$1.7 billion
— The cost of the proposed PATH extension to the Newark AirTrain.
$377 million
— The amount added to the capital program to rehabilitate the current, obsolete Newark AirTrain.
The Dormitory Authority of the State of New York (DASNY) is profiled in a publication by City & State. A deep dive analysis of the agency is available on page 27 of the report.
NY1 Governor Cuomo said he wants an additional mile-and-a-half of track built to create a rail link between La Guardia Airport and Willets Point in Queens.
The Metropolitan Transportation Authority's 2015-2019 capital plan faces a $9.8 billion funding gap, prompting debates over whether the City or State should bear the financial burden. Instead of arguing over apportionment, leaders should focus on efficient construction methods and secure necessary funding through congestion pricing, bridge tolls, or vehicle-miles traveled fees.
Recommendations related to State Capital Planning
The MTA should specify which projects will utilize alternative project delivery methods in the revised capital plan.
City, State, and MTA leaders should drop the 'City/State' frame of reference and develop a concrete plan to put the necessary funding in place.
The MTA should secure more funding from motor vehicle cross-subsidies to support transit services.
The state should implement a vehicle-miles traveled fee system for the long term, while utilizing East River bridge tolls and congestion pricing for immediate funding.
Key Data
$2.2 billion
— Estimated savings from efficiencies in the MTA capital plan.
$9.8 billion
— The funding gap for the MTA capital plan.
$580 million
— Annual operating and capital support provided by New York City taxpayers to the MTA.
$4.2 billion
— New York City's contribution to the nearly $6 billion allocated to the MTA from state-authorized regional and statewide taxes.
73 percent
— Share of the MTA's $1.3 billion regional payroll tax paid by New York City firms.
48 percent, 40 percent, and 12 percent
— Current funding breakdown for MTA transit services from fares, tax subsidies, and motor vehicle cross-subsidies, respectively.
On November 12, 2014, the Citizens Budget Commission co-sponsored a conference titled Modernization of New York's Built Environment Laws: If Not Now, When? in Albany, New York. This panel discussion examined the problems with New York's "low-bid" and "design-bid-build" procurement rules and how "alternative" delivery methodologies, such as design-build,…
The Metropolitan Transportation Authority's 2015-2019 capital plan faces significant criticism for failing to prioritize essential infrastructure repairs and for lacking a transparent, evidence-based process for selecting expansion projects. With a $15.2 billion funding gap and questionable project management, the plan requires revision to ensure taxpayer funds are directed toward the most critical needs rather than premature expansions.
Recommendations related to State Capital Planning
The MTA should revise the proposed plan to make sufficient progress in bringing aged infrastructure to a state of good repair.
The MTA should embrace a more ambitious schedule for Communications-Based Train Control (CBTC) installation and provide the necessary funding in the 2015-2019 plan.
Explicit criteria should be established for selecting priority projects and evidence should be considered as to how well a range of potential investments meet these criteria.
The MTA should postpone commitment to new expansion projects until an improved planning process is established and used to assess multiple potential projects.
Attention should be given to rethinking the management of large-scale projects, especially those for expansion and for improvements in the signal and communication systems, to promote more effective implementation.
Key Data
$32 billion
— Total investments called for in the MTA's 2015-2019 capital plan.
$15.2 billion
— The amount of the 2015-2019 capital plan that remains unfunded.
$5.4 billion
— The total shortfall in the 2015-2019 plan compared to the 2013 needs assessment.
$10.8 billion
— The current estimated cost of the East Side Access project, which was originally approved at $6.3 billion.
$6.3 billion
— The original estimated cost of the East Side Access project approved in 2000.
The Smart Schools Bond Act, which proposes $2 billion in debt for school technology, is ill-conceived because it lacks a statewide needs assessment and threatens the state's debt capacity. Instead of funding one-time technology purchases, the state should prioritize critical infrastructure needs identified through a comprehensive capital planning process.
Recommendations related to State Capital Planning
Any list of capital needs to be funded with state-supported debt should be established through the new statewide capital planning process.
The borrowing capacity remaining under the debt cap should be reserved for high-priority infrastructure investments, not used to fund unjustified one-time technology purchases.
New Yorkers should reject the Smart Schools Bond Act.
Before $2 billion is committed, a statewide needs assessment should be conducted.
Key Data
$2 billion
— The amount of general obligation bonds authorized by the Smart Schools Bond Act to fund school technology and other projects.
$174 billion
— The total capital needs identified in the state's 10-Year Capital Plan for 48 state agencies and authorities.
$89 billion
— The state and local infrastructure funding shortfall projected over the next 20 years.
4 percent
— The statutory debt cap limit on state-supported debt as a percentage of personal income.
$6.4 billion
— The amount of debt service paid by the state in fiscal year 2013-14.
The New York State Department of Transportation faces challenges that necessitate a comprehensive needs assessment to identify the resources required for implementing a capital plan. This process is critical for addressing the agency's infrastructure and operational requirements.
New York State's first 10-year statewide capital plan commits $174 billion across 47 agencies to improve infrastructure and economic growth, with $113 billion dedicated to transportation and $117.8 billion focused on State of Good Repair projects. To improve future iterations, the state should enhance asset condition reporting, establish a clear financing framework to address affordability, and provide granular project-level data for better tracking.
Recommendations related to State Capital Planning
The State should provide 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.
The State should provide better project-level data to facilitate project tracking.
The State should establish a framework for assessing the affordability of the plan, similar to New York City’s Annual Statement of Debt Affordability.
The State should reconcile differences and standardize the approach to commitments versus financing and disbursements in future plans.
Key Data
$174 billion
— Total planned investment commitments for the New York State 10-year statewide capital plan for the fiscal year 2013-14 to 2022-23 period.
$113 billion
— Amount of the statewide capital plan committed to transportation, representing 65 percent of the total.
$117.8 billion
— Total investment allocated for State of Good Repair (SOGR) projects within the 10-year capital plan.
$95.4 billion
— Total assets net of depreciation reported by New York State in fiscal year 2012.
$180.3 billion
— Total debt outstanding for the agencies and authorities included in the capital plan for fiscal years ending in 2011-12.
$641 million
— Projected amount that debt outstanding will be below the debt limit by fiscal year 2016-17.
The proposed New York State budget for fiscal year 2013-14 includes accounting changes at the State Insurance Fund that create $2 billion in excess reserves, of which $500 million is earmarked for capital projects. While supporting the use of these funds for one-time capital investments, the budget should avoid using such reserves for recurring operating expenses and should halt the unjustified expansion of economic development spending, which includes $165 million for additional capital grants.
Recommendations related to State Capital Planning
The Legislature should require that all of the State Insurance Fund reserves be used prudently for purposes such as capital investment and debt retirement.
The State should halt the unjustified expansion of economic development spending, which includes $165 million for additional capital grants.
Key Data
$2 billion
— Excess reserves in the State Insurance Fund resulting from proposed accounting changes.
$750 million
— Amount of State Insurance Fund reserves the budget would use for one-time expenses in fiscal year 2013-14.
$500 million
— Portion of State Insurance Fund reserves allocated for capital projects.
$165 million
— Funding for additional capital grants included in the proposed economic development spending increase.
The New York State budget establishes a task force to improve the coordination of capital spending across agencies, addressing a historically fragmented and non-strategic planning process. Additionally, the budget includes significant capital support for the Metropolitan Transportation Authority while continuing to fund various economic development programs that lack sufficient accountability and performance metrics.
Recommendations related to State Capital Planning
The State should utilize the New York Works Task Force to coordinate capital spending among state agencies and authorities to move away from a fragmented and less than strategic capital planning process.
Before making additional financial commitments to economic development programs, the State should improve accountability for existing programs.
The State should systematically employ performance metrics and evaluative analysis to identify failing economic development programs for elimination or redesign before creating new ones.
The State should completely overhaul economic development power programs rather than subjecting them to additional parochial constraints.
Key Data
$770 million
— MTA capital support
$150 million
— MTA capital grant
$6 billion
— annual economic development spending, including capital grants
$150 million
— capital grants for regional economic development councils
New York State's current budgetary process relies on an outdated General Fund construct that obscures the true financial picture, necessitating a shift toward a unified "State Operating Funds" approach. This reform should include separating the capital budget from the annual operating plan, improving transparency in reporting, and adopting accrual-based accounting to prevent the manipulation of deficits.
Recommendations related to State Capital Planning
The State’s capital budget should be separated from its annual operating budget plan.
The capital budget should cover the activities of public authorities as well as State agencies.
The State needs to provide additional information on the condition of State assets and programmatic plans for capital investments.
Capital plans should identify key goals and align funding with specific projects.
Key Data
$121.6 billion
— The total All Funds cash amount for the state budget.
$54.6 billion
— The portion of the budget represented by the General Fund.
45%
— The percentage of the total budget represented by the General Fund.
$13.5 billion
— The state's deficit calculated on a GAAP basis.
$1.9 billion
— The state's positive year-end balance reported on a cash basis.
$3 billion
— The amount of personal income tax revenues transferred out of the General Fund for the School Tax Relief program (STAR).
New York State's extensive reliance on public authorities has led to significant issues, including the misuse of debt powers to circumvent constitutional limits and a lack of coordination between authority projects and state capital planning. To address these problems, the state should implement comprehensive debt limits, integrate authority capital investments into the state's capital plan, and enhance the transparency and governance of these entities.
Recommendations related to State Capital Planning
The state should eliminate the misuse of authorities’ debt powers by setting comprehensive constitutional limits on the amount of State-supported and City-supported debt that can be issued.
The state should improve the oversight of non-State-funded authority debt by replacing the PACB review process with more comprehensive capital planning and project feasibility studies subject to professional, transparent review.
The state should improve the effective use of tax-exempt conduit debt by requiring more explicit advance allocation of its purposes and more competition among private entities for its benefits.
The state should make authorities more accountable through more complete and accessible reporting of financial and other information.
The state should enhance the governance of authorities through greater independence and professionalism among board members.
Key Data
$227 billion
— Estimated total debt of state and local governments and their authorities in New York.
$41 billion
— Amount of outstanding backdoor debt issued by authorities on behalf of the State.
$10 billion
— Amount by which State-supported debt in 2003 exceeded the State's danger-zone threshold.
$8.5 billion
— Annual operating expenses of the Metropolitan Transportation Authority, the largest authority accountable to the State.
$106 billion
— Combined debt issued by the State directly and by authorities accountable to the State at the end of fiscal year 2005.
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