A state of good repair describes the condition in which public infrastructure assets, such as roads, bridges, transit systems, and housing, are maintained to function reliably and safely throughout their intended lifespans. This page covers CBC’s work on MTA capital planning, infrastructure maintenance strategies, public housing capital needs, cost-effective procurement, and the prioritization of core assets over expansion projects.
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 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.
The Rent Guidelines Board should approve rent increases that, at a minimum, keep pace with inflation to ensure building owners have the resources to maintain properties.
The Rent Guidelines Board should augment its reports with more information on the physical and financial well-being of New York City’s housing stock to better track building conditions.
The Rent Guidelines Board should ask the New York City Department of Finance or New York State Homes and Community Renewal to publish a building level file with the total number of rent stabilized units in each rental building in the City.
Key Data
In December 2025, the New York State budget was noted to support vast infrastructure assets, including 115,000 centerline miles of state and local roads and 17,000 bridges.
According to a May 2025 report, pre-1974 rent-stabilized units averaged 1.76 maintenance deficiencies, which is 75% more deficiencies than post-1973 stabilized units and 79% more than market-rate units.
As of March 2025, the MTA's proposed 2025-2029 Capital Plan included $68.4 billion of investments, with 95% supporting rebuilding and improving the transit system.
In late 2024, New York City's Ten-Year Capital Strategy reached $164.8 billion, with 77% dedicated to state of good repair work or programmatic replacement.
In March 2024, a physical needs assessment revealed that almost one-third of NYCHA public housing units had deteriorated to the point where they cost less to build new than to repair.
$897 million is the MTA's projected budget gap in 2030. While the budget is stable at the moment, future gaps are widening as expense growth outstrips revenues. On the upside, ridership is near pre-pandemic levels, the MTA is investing in its infrastructure and rolling stock to bring the system into…
630,000 is the number of riders who travel through Penn Station every day—making it the busiest transportation hub in the nation. The catch? It was designed, reportedly, for just 200,000. Revitalizing Penn Station is a bit of a white whale for its many stakeholders, including three transit agencies, two states,…
New York State must prioritize maintaining its existing infrastructure, including 115,000 miles of roads and 17,000 bridges, by focusing on state of good repair work rather than new expansion projects. To ensure long-term resilience and economic stability, the state should re-tool its capital planning process to address core needs and climate change impacts while balancing environmental and affordability goals.
Recommendations related to State of Good Repair
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
— The number of centerline miles of state and local roads that the State serves as the owner, builder, manager, and financer.
17,000
— The number of bridges that the State serves as the owner, builder, manager, and financer.
335,000
— The number of acres of parkland that the State serves as the owner, builder, manager, and financer.
Proposed legislation requiring prevailing wages for off-site construction would increase costs and delay capital projects, hindering the efficient maintenance and development of public infrastructure. By mandating these wage standards, the bill would discourage the use of cost-effective, off-site fabrication methods that have successfully delivered public restrooms and pedestrian bridges more quickly and affordably.
Recommendations related to State of Good Repair
The Governor should veto A2747A/S2536A to allow the City and State to continue to use off-site custom fabrication without prevailing wages when it would reduce the time or cost of a capital project.
Key Data
20 percent to 50 percent
— McKinsey estimate for how much modular building can accelerate project delivery.
20 percent
— Potential cost reduction from using modular building.
$1 million
— Cost per structure for prefabricated public restrooms.
$3.5 million
— Cost for a typical park bathroom built fully on-site.
30 percent
— Threshold of total costs that classifies a project as a public work or covered project.
Extending the authorization for joint bidding on public works contracts allows the city to coordinate utility relocation with construction projects, preventing delays and reducing overall costs. This legislative change streamlines the planning process, avoiding the inefficiencies and higher expenses associated with separate private negotiations for utility interference.
Recommendations related to State of Good Repair
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.
The current ten-year capital strategy allocates 50% of spending to the state of good repair, a critical category that mayoral candidates are evaluating as they propose strategies to address aging infrastructure. Candidates are weighing whether to maintain, increase, or decrease this share as they balance the need for infrastructure maintenance against other capital investment priorities.
Key Data
50%
— Share of capital spending on State of Good Repair in the current Ten-Year Capital Strategy for Fiscal Years 2026-2035.
$111 billion
— The City's five-year capital program.
24%
— Share of capital spending on Programmatic Replacement in the current Ten-Year Capital Strategy for Fiscal Years 2026-2035.
26%
— Share of capital spending on Program Expansion in the current Ten-Year Capital Strategy for Fiscal Years 2026-2035.
New York City's aging infrastructure requires urgent capital investment to ensure long-term economic growth and resilience. The next administration must prioritize bringing existing assets to a state of good repair while overhauling capital spending to better manage projects and control costs.
Recommendations related to State of Good Repair
Fix what’s broken—bring assets to a state of good repair.
Overhaul capital spending: better manage assets and projects, fix procurement, and control costs.
Avoid waste—choose standardized over customized designs, and don’t build schools when redistricting can solve the problem.
Invest in essential climate resilience and a cost-effective energy transition that balances affordability, the environment, and the economy.
New York City's pre-1974 rent-stabilized housing stock is increasingly falling into disrepair, with maintenance deficiencies significantly higher than in other types of rental units. To prevent a "death spiral" of deterioration, the Rent Guidelines Board should adjust rent policies to support necessary maintenance and improve public reporting on the physical and financial health of these buildings.
Recommendations related to State of Good Repair
The Rent Guidelines Board should approve rent increases that, at a minimum, keep pace with inflation to ensure building owners have the resources to maintain properties.
The Rent Guidelines Board should augment its reports with more information on the physical and financial well-being of New York City’s housing stock to better track building conditions.
The Rent Guidelines Board should ask the New York City Department of Finance or New York State Homes and Community Renewal to publish a building level file with the total number of rent stabilized units in each rental building in the City.
Key Data
1.76
— Average number of maintenance deficiencies found in pre-1974 rent-stabilized units.
$175,225
— Average sales price per unit for 100 percent stabilized buildings citywide in 2024.
$899.4 million
— Combined cost of Article 11 and 420-c property tax exemptions in fiscal year 2025.
75 percent
— Amount by which pre-1974 rent-stabilized units have more maintenance deficiencies than post-1973 stabilized units.
The Metropolitan Transportation Authority faces a funding gap of more than $30 billion, threatening the necessary state of good repair work and basic modernization of the transit system. To address this, the state and city should increase contributions, implement labor savings, and raise user fees to support capital investment.
Recommendations related to State of Good Repair
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 to support the MTA's capital investment needs.
Modestly increase fares, tolls, and vehicle registration fees, dedicating them to support $6.8 billion in bonds for capital investment.
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 to improve MTA finances.
Key Data
more than $30 billion
— The size of the MTA's funding gap that currently lacks a public proposal to close.
$7 billion
— The amount by which the State contribution should be increased to support capital investment.
$2 billion
— The amount by which the City contribution should be increased to support capital investment.
$6.8 billion
— The amount in bonds that would be supported by modestly increasing fares, tolls, and vehicle registration fees.
$500 million
— The amount of recurring operating savings that labor flexibility should provide to support MTA borrowing.
$16 billion
— The additional funding needed for the Capital Plan beyond the proposed adjustments.
The Metropolitan Transportation Authority faces a $33.4 billion funding gap in its $68.4 billion 2025-2029 Capital Plan, which is essential for maintaining the system in a state of good repair. To address this, the state should prioritize rebuilding projects, increase contributions from city and state sources, and implement measures to improve accountability and cost-effectiveness.
Recommendations related to State of Good Repair
The MTA and the State should focus the Capital Plan exclusively on Rebuild and Improve projects.
The MTA and the State should increase the City and State contribution by $9.0 billion in pay-as-you-go (PAYGO) financing.
The MTA and the State should modestly increase fares, tolls, and vehicle registration fees to generate revenue to support a $6.8 billion investment.
The MTA should publish project plans, user-friendly capital project status reports, and regular updates on each asset group’s state of repair.
The MTA should ensure labor provides 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 MTA should require a study to identify any State or City laws or regulations that increase MTA capital costs.
Key Data
$1.5 trillion
— The value of the Metropolitan Transportation Authority’s assets that require investment to be maintained in a state of good repair.
$68.4 billion
— The total size of the MTA’s proposed 2025-2029 Capital Plan.
$33.4 billion
— The funding gap remaining in the MTA's capital plan after identifying $35.0 billion in funding.
$35.4 billion
— The increased financing gap following the State Fiscal Year 2026 Executive Budget.
$3.6 billion
— The amount of funding gap reduction achieved by removing expansion projects from the capital plan.
59 percent
— The portion of total City and State appropriations that would come from City taxpayers.
The current state budget proposals fail to include a plan to fund critical infrastructure investments for the MTA 2025-2029 Capital Program, leaving the system's state of good repair in jeopardy. This lack of a concrete strategy risks the long-term viability of essential public transportation services.
Recommendations related to State of Good Repair
Legislative leaders must 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…
$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…
New York City's recent ten-year capital strategy totals $164.8 billion, with 77 percent of those funds dedicated to maintaining infrastructure in a state of good repair. Implementing permanent joint bidding for capital projects can reduce construction delays and costs, helping the city better manage these significant infrastructure investments.
Recommendations related to State of Good Repair
The City should support future legislation to permanently authorize joint bidding to improve the delivery of capital projects, which are essential for maintaining infrastructure in a state of good repair.
Key Data
$164.8 billion
— Total value of the most recent Ten-Year Capital Strategy covering fiscal years 2024 to 2033.
77 percent
— Portion of the Ten-Year Capital Strategy dedicated to state of good repair work or programmatic replacement.
$4.3 million
— Additional cost added to each project due to 21 months of delay when not using joint bidding.
$1.0 million
— City revenue generated per project under joint bidding cost sharing agreements.
28 months
— Average delay resulting from utility work for street construction projects bid using the traditional method.
7 months
— Average delay resulting from utility work for street construction projects bid using joint bidding.
New York's transit system requires massive investment to bring its $1.5 trillion in assets to a state of good repair, as significant portions of critical infrastructure like transformers and ventilation systems are in poor condition. To ensure reliable service, state leaders must prioritize funding for these essential repairs over expansion projects while addressing the MTA's structural budget gaps and operational inefficiencies.
Recommendations related to State of Good Repair
State leaders should unpause congestion pricing to address one-third of the MTA's capital funding gap.
Albany should trim and hyper-focus the capital plan to align with realistic delivery capabilities rather than an unrealistic $90 billion commitment goal.
The MTA should defer expansion projects like the Interborough Express to direct resources toward ensuring the system does not break down.
The MTA should reduce fare evasion and increase efficiency to stabilize its operating budget and finance debt.
State leaders should support a tightly focused and smartly financed MTA capital plan to ensure the reliable service and financial stability the economy depends on.
Key Data
$1.5 trillion
— The total value of the MTA's assets that require investment to reach a state of good repair.
39%
— The portion of transit station ventilation systems currently in poor and marginal condition.
90%
— The portion of Penn Station’s electrical equipment, cables and wiring currently in poor and marginal condition.
$69 billion
— The size of the MTA's proposed 5-year capital plan focused on improving the system’s state of good repair.
$15 billion
— The funding hole created by pausing congestion pricing.
$1 billion
— The MTA's current structural budget gap.
The Metropolitan Transportation Authority's proposed 2025-2029 capital plan requires trimming to a more achievable level to prioritize essential system repairs over expansion projects. Financing this plan necessitates unpausing congestion pricing, reducing fare evasion, and increasing labor productivity to address a structural budget gap that will exceed $1 Billion by the end of the decade.
Recommendations related to State of Good Repair
The MTA should trim the plan to a more achievable level to reduce the funding gap.
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 State should develop a sustainable funding plan that does not require a new tax increase every five years.
The MTA must reduce fare evasion to stabilize the operating budget.
Labor must be a partner to increase productivity to provide the capacity to finance debt.
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 currently affordable.
$1 Billion
— The MTA’s structural budget gap that will be exceeded by the end of the decade.
15%
— Portion of an operating budget that is not fully funded, making debt less affordable.
The MTA's proposed 2025-2029 capital plan prioritizes essential system rebuilding, yet relies on an ambitious investment pace and undetermined financing sources that threaten long-term stability. To ensure the system's state of repair and modernization, the state must secure sustainable funding through congestion pricing while the agency prioritizes critical projects and improves operational efficiency.
Recommendations related to State of Good Repair
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.
To fund more capital investment and stabilize the operating budget, the MTA will have to reduce fare evasion, and the labor unions should agree to operating changes that increase efficiency.
Key Data
over 90 percent
— The portion of the proposed Capital Program focused on projects that rebuild and improve the system.
$68 billion
— The total investment amount in the proposed capital plan.
$96 billion
— The total investment amount when previously planned but not yet committed projects are included.
$8.6 billion
— The amount in proposed and previously planned expansion projects that diverts resources from essential rebuilding.
$19 billion
— The amount the MTA would be committing annually under the proposed plan.
68 percent
— The increase in annual commitment compared to the MTA's prior $11.4 billion annual peak.
The Metropolitan Transportation Authority's $1.5 trillion in capital assets are in poor condition, requiring a massive, focused investment to bring the system into a state of good repair. To address this, the agency must right-size its 2025-2029 capital program to match its actual commitment capacity, prioritize essential maintenance over expansion, and secure sustainable funding through measures like unpausing congestion pricing.
Recommendations related to State of Good Repair
The MTA and the State should adopt at most a $62.4 billion 2025-2029 Capital Program to match the agency's actual commitment capacity over six years.
The MTA should focus the capital program exclusively on projects to Rebuild and Improve the system rather than expansion projects.
The MTA and the State should unpause congestion pricing to ensure funding options for the 2025-2029 Capital Program are not reduced.
The MTA should increase productivity and reduce fare evasion to provide at least $1.5 billion in needed operating budget savings.
The MTA should use recurring revenue to support capital investment on a pay-as-you-go basis to ensure sustainable financing.
Key Data
$1.5 trillion
— Total value of the Metropolitan Transportation Authority's capital assets that are in dire shape.
90 percent
— Portion of electrical equipment, cables, and wiring at Penn Station that is in poor/marginal condition.
$106.6 billion and $115.0 billion
— Estimated five-year cost of Rebuild and Improve projects.
$16.6 billion and $25.0 billion
— Rebuild and Improve Commitment Capacity Gap for the next Capital Program.
$700 million
— Annual cost of fare evasion, which exceeds this amount.
$2 billion
— Potential annual savings the MTA could achieve by increasing efficiency with labor collaboration.
The pause on congestion pricing has created a $15 billion financing gap in the 2020-2024 Capital Program, necessitating a shift in focus toward prioritizing critical infrastructure maintenance and modernization. To ensure the system does not crumble, the Metropolitan Transportation Authority must accelerate investments in the state of good repair and develop a sustainable, fair financing plan for the 2025-2029 period.
Recommendations related to State of Good Repair
The Board should do everything in its power to implement congestion pricing as soon as possible to finance infrastructure investment.
The focus should be on using available funds to accelerate investment in state of good repair instead of scrambling to identify substitute revenue.
The MTA should propose a 2025-2029 capital program that wholly prioritizes the most critical rebuild and improve projects.
The State should release any remaining funds it long ago committed to the MTA’s 2020-2024 capital program.
The 2025-2029 capital program should include a sustainable, fair financing plan that apportions the non-federal share regionally and appropriately across drivers, riders, and taxpayers.
Key Data
$15 billion
— The financing hole opened in the 2020-2024 Capital Program due to 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 this funding mechanism is abandoned, the transit authority must create a realistic capital program that prioritizes essential infrastructure improvements to avoid negative impacts on the economy and quality of life.
Recommendations related to State of Good Repair
The MTA should develop a realistic, holistic 2025-2029 capital program that focuses on essential state of good repair and modernization needs.
The State should stay the course and implement congestion pricing to fund critical transit needs.
New York must wisely invest in this transit system’s core infrastructure and finance it properly to protect the economy and quality of life.
The suspension of congestion pricing has prompted discussions about alternative funding sources, but raising the Payroll Mobility Tax by $1 billion annually would negatively impact business competitiveness and lack the environmental benefits of the original plan. Instead, the focus should remain on implementing congestion pricing and conducting a thorough, data-driven assessment of the MTA's state of good repair investment requirements for current and future capital programs.
Recommendations related to State of Good Repair
For both the current and the next five-year capital programs, there needs to be a thoughtful, information-based discussion of the MTA’s needs for state of good repair investment—how much they will cost and how appropriately and fairly to finance those needs.
The State should not now raise the Payroll Mobility Tax $1 billion annually to replace congestion pricing.
Stay the course and implement congestion pricing.
Key Data
$1 billion
— Annual amount the State should not raise the Payroll Mobility Tax by to replace congestion pricing.
$1.1 billion
— Amount by which business taxes were raised last year to fund the MTA operating budget.
The transit system requires urgent investment to achieve a state of good repair and avoid future service disruptions. Releasing committed capital funds and accelerating MTA investments are essential to maintaining system stability and avoiding higher long-term costs.
Recommendations related to State of Good Repair
The State should release the funds it has committed to the current capital plan and ensure the MTA speeds up its investments in state of good repair work.
All sectors should contribute to improving transit, including drivers.
The congestion pricing program should be closely monitored and fine-tuned to meet its objectives.
The Metropolitan Transportation Authority should publish a detailed addendum to its long-term needs assessment that outlines the costs, benefits, and timelines for maintaining and improving transit infrastructure. This transparency is essential for the public to understand the necessary investments and tradeoffs required to bring the system to a state of good repair.
Recommendations related to State of Good Repair
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, including those that bring assets to and keep the system in a state of good repair.
The MTA should include estimated costs over the next 5 and 20 years for projects to bring the system to a state of good repair, understanding that estimates far into the future will likely be less accurate.
Key Data
$40 billion
— Potential cost over the next five years to begin bringing the system to adequate condition.
$80 billion
— Potential cost over the next five years to begin bringing the system to adequate condition.
$60 billion is how much NYCHA plans to invest in its infrastructure over 5 years. Facing ongoing challenges such as budget gaps, weakening rent collection, and deteriorating physical conditions, NYCHA CEO Lisa Bova-Hiatt and Chair Jamie Rubin shared their strategies for managing the nation's largest public housing system.
New York City's public housing faces a massive $60 billion five-year capital need, with nearly one-third of units now at or near the point where it is more cost-effective to build new than to repair. Current funding plans cover only 14 percent of these capital requirements, leaving the vast majority of units without sufficient resources for comprehensive rehabilitation.
Recommendations related to State of Good Repair
The City should fix or replace deteriorating buildings using PACT and the Preservation Trust.
NYCHA must improve management effectiveness and efficiency, and publicly track progress and impact to ensure housing remains viable.
The agency should negotiate savings, boost productivity, and modernize property management through collective bargaining to better address physical needs.
NYCHA needs to overhaul the rent collection process to stabilize its operating budget and support maintenance.
Key Data
$60 billion
— Total five-year capital needs for NYCHA developments.
$373,000
— Five-year capital needs per unit.
$78 billion
— Total twenty-year capital needs for NYCHA developments.
$483,000
— Twenty-year capital needs per unit.
14 percent
— Portion of the five-year capital need covered by the 2024-2028 capital plan.
one-third
— Share of units at or close to the point at which they cost less to build new than to repair in 2023.
The Central Business District tolling program is expected to generate revenue critical for maintaining the transit system's infrastructure in a state of good repair. Implementing the proposed tolling structure without additional exemptions or credits is essential to secure this funding and achieve the program's goals of reduced congestion and emissions.
Recommendations related to State of Good Repair
The MTA should adopt the TMRB’s recommended tolling structure to ensure the revenue necessary to keep infrastructure in a state of good repair.
The MTA should reject calls for additional exemptions or credits to protect the revenue stream required to maintain the transit system in a state of good repair.
The MTA should monitor the effects of the tolls to ensure the program’s long-term success and continued funding for the state of good repair.
The MTA should monitor traffic volumes and patterns for all commercial vehicles to determine if substitution occurs and has negative impacts on the state of good repair funding.
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. to protect the state of good repair revenue.
The MTA should consider a toll evasion mitigation and monitoring program to ensure the revenue targets for the state of good repair are met.
The MTA should closely track license plate obstruction and delinquent payment data following implementation to monitor the evasion rate and protect the state of good repair funding.
Key Data
$15 billion
— Amount of capital spending in the MTA’s 2020 to 2024 Capital Program that the tolling program is intended to fund to ensure a state of good repair.
$15
— Once-daily charge that commercial 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…
The Metropolitan Transportation Authority's Twenty-Year Needs Assessment requires a greater focus on prioritizing the maintenance of existing assets over system expansion to prevent network failure. Policymakers and the public need more transparent cost and benefit estimates for projects to rebuild and improve the system to properly debate investment priorities.
Recommendations related to State of Good Repair
The MTA must make the priority of keeping current assets in a state of good repair paramount before expanding the system, lest the current network deteriorate to the point of frequent 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 MTA should include the costs and impacts on services and long-run spending in the addendum if those investments are fully, or only partially, made.
The MTA should swiftly and wisely implement congestion pricing to support the current capital plan and the state of good repair.
Key Data
$40 billion
— Potential cost over the next five years to begin bringing the transit system to an adequate condition.
$80 billion
— Alternative potential cost over the next five years to begin bringing the transit system to an adequate condition.
The MTA's Twenty-Year Needs Assessment fails to provide necessary cost estimates for bringing the transit system to a state of good repair, leaving the public and policymakers without crucial information. An addendum is needed to detail the costs and benefits of these investments to ensure informed decision-making for the upcoming capital plan.
Recommendations related to State of Good Repair
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 include cost and benefit estimates that are sufficiently disaggregated to identify what should be invested in the next 5 and 20 years to bring the system to a state of good repair and normal replacement cycle.
The MTA should identify the impacts on services and long-run costs if those investments are only partially made.
Key Data
$20 billion
— The potential cost over the next five years to start bringing the transit system to a state of good repair.
$70 billion
— The potential cost over the next five years to start bringing the transit system to a state of good repair.
New York City's public housing faces a staggering $60 billion in five-year capital needs, with nearly one-third of apartments costing more to repair than to replace. To address this, the city must accelerate renovation timelines and secure additional funding sources, as current plans cover less than half of the required investment.
Recommendations related to State of Good Repair
The State and City should seek to streamline the process as much as possible and not introduce additional steps that could delay the renovation process.
The City and State will need to tap additional sources of financing to help close future PACT and Preservation Trust deals.
NYCHA will need to raise additional sources of capital through infill development and phased redevelopment, where feasible, to support its capital program.
Key Data
$60 billion
— NYCHA's investment needs over the next five years.
$78 billion
— Twenty-year investment needs for NYCHA.
10 percent
— Average annual rate of inflation for unaddressed needs since 2017.
$1.5 billion
— City capital subsidies included in the Fiscal Year 2024 Executive Budget Capital Commitment Plan for future PACT projects through fiscal year 2026.
95 percent
— Portion of NYCHA’s portfolio that is obsolete under the HUD standard based on five-year needs.
25 to 30 percent
— Increase in construction costs since 2021.
The Metropolitan Transportation Authority's Twenty-Year Needs Assessment requires more comprehensive data and transparent analysis to effectively prioritize capital investments and ensure the transit system remains in a state of good repair. By providing detailed information on asset conditions, costs, and future service needs, the agency can better facilitate public debate and make data-driven decisions regarding infrastructure improvements.
Recommendations related to State of Good Repair
The MTA should include a complete accounting of the system’s current and potential future capacity needs that does not prematurely omit anything.
The MTA should disaggregate data to the functional group and component level to appropriately prioritize projects and better inform public discussion.
The MTA should include data on asset condition, needs, cost, and improvement timeframes to achieve a state of good repair for each investment category, functional group, and component.
The MTA should detail all projects’ benefits and costs based on rigorous analysis, standard measures, and MTA goals.
The MTA should provide clear and complete data on future transportation needs to ensure long-term planning is grounded in the best available data.
The Metropolitan Transportation Authority's upcoming 2025-2029 Capital Plan must prioritize essential projects to maintain a state of good repair, as capital needs are projected to exceed available funding. With 45 percent of the $55 billion in funding for the previous 2020-2024 plan coming from non-recurring sources, the agency faces significant challenges in securing the necessary resources for future infrastructure improvements.
Recommendations related to State of Good Repair
The MTA's 2025-2029 Capital Plan should focus on bringing the system to a state of good repair by prioritizing projects as capital needs will exceed available resources.
The Twenty-Year Needs Assessment should provide elected officials, riders, and policy makers with a detailed presentation of the system's capital needs over the next two decades.
The MTA should prioritize projects based on needs and available funding because capital needs will exceed available funding resources.
Key Data
$1 billion
— Annual congestion pricing revenue expected to support $15 billion in capital investment for the 2020-2024 Plan.
$15 billion
— Amount of capital investment in the 2020-2024 Plan expected to be supported by annual congestion pricing revenue.
45 percent
— Portion of the $55 billion in funding for the 2020-2024 capital plan that comes from non-recurring sources.
$55 billion
— Total funding for the 2020-2024 capital plan, of which 45 percent comes from non-recurring sources.
Capital efforts should prioritize bringing equipment and facilities to a state of good repair and ensuring they are modernized before allocating resources to expansion projects. This focus ensures that existing infrastructure remains reliable and functional rather than prioritizing new developments.
Recommendations related to State of Good Repair
The MTA’s capital efforts should focus on ensuring its equipment and facilities are brought to, and kept in, a state of good repair and appropriately modernized before spending precious resources on expansion.
NYCHA's buildings are deteriorating faster than they can be repaired, requiring over $40 billion in capital investment to reach a state of good repair. To achieve this, the agency must transition to an efficient property manager through structural reforms like PACT, improved management, collective bargaining savings, and overhauled rent collection.
Recommendations related to State of Good Repair
Fix or replace deteriorating buildings with Permanent Affordability Commitment Together (PACT) and the Preservation Trust.
Improve management effectiveness and efficiency, and publicly track progress and impacts.
Negotiate savings and increase productivity through collective bargaining.
Overhaul the rent collection process.
Key Data
$40 billion
— Estimated cost of repairs needed to bring NYCHA's public housing units to a <b>state of good repair</b>.
$789 million
— The 2022 structural budget gap between NYCHA's operating revenue and its public housing operating expenses.
$1,481
— NYCHA's monthly per-unit operating cost in 2022, which is double the average rent stabilized unit cost.
63 percent
— The rent collection rate as of February 2023, which has plummeted from the pre-pandemic norm of roughly 90 percent.
$152 million
— Total overtime spending in 2022, which increased 3 percent despite efforts to reduce it.
19 percent
— The increase in total public housing expenditures over the past four years, despite an 8 percent decline in the units under management.
Enacting the Toll Payer Protection Act would reduce toll and penalty revenues, threatening the maintenance of New York's roads, bridges, and transit systems that are already not in a state of good repair. When toll rates were previously frozen from 2016 to 2020, the state had to divert nearly $2 billion in general revenue to cover capital projects and backfill the Thruway budget.
Recommendations related to State of Good Repair
The Governor should veto A3801A/S3587C, the 'toll payer protection act,' to prevent the loss of toll and penalty revenue that could lead to underinvestment in New York's transportation assets, which already are not in a state of good repair.
Contrary to the intent and likely result of this legislation, 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.
Tolling authorities should have appropriate flexibility to ensure that tolls, which are needed and legitimately levied, are paid.
Key Data
nearly $2 Billion
— Amount of general State revenue diverted to backfill the Thruway budget and fund capital projects when toll rates were frozen from 2016 to 2020.
83%
— Percentage of trips on the New York State Thruway that automatically pay tolls via E-ZPass.
88%
— Percentage of trips on Port Authority of New York and New Jersey crossings that automatically pay tolls via E-ZPass.
95%
— Percentage of trips on Metropolitan Transportation Authority Bridge and Tunnel crossings that automatically pay tolls via E-ZPass.
$50
— Current penalty fee for late payment of tolls after 60 days, which the bill would reduce in most cases.
The Metropolitan Transportation Authority requires over $35 billion in capital investment to maintain its tracks, cars, and signals in a state of good repair, a goal that must be prioritized over new service expansions. To ensure system reliability, the agency must accelerate capital project throughput and implement congestion pricing without diverting those revenues to cover operating budget deficits.
Recommendations related to State of Good Repair
The MTA should keep laser-focused on increasing its capital project throughput, use techniques such as Fastrack closures to facilitate repairs and upgrades, and prioritize the state of good repair before expansion projects.
Congestion pricing should be implemented expeditiously, and revenues should not be diverted to narrow the operating budget gap.
The MTA should make significant capital investments to bring and keep its current assets in a state of good repair.
Key Data
$35 Billion
— Capital investment needed in the next few years just to bring tracks, cars, and signals up to, and keep them in, a state of good repair.
$25 Billion
— Planned projects that will remain outstanding at the end of 2024 despite recent success at increasing capital contracting and delivery speed.
44%
— Amount by which the productivity of New York City Transit subway facility maintenance work is lower than the national median.
Commissioner Aggarwala discussed the Adams administration’s plans to increase the city’s resilience, reduce greenhouse gas emissions, and strengthen the NYC Department of Environmental Protection (DEP). Rohit T. "Rit" Aggarwala is a widely recognized expert on urban sustainability, technology, and mobility, and, as Chief Climate Officer he oversees the administration’s environmental…
Congestion pricing is essential to generate the revenue required to bring the transit system to a state of good repair, provided the program is implemented with minimal exemptions and variable tolling. Achieving the $1 billion annual revenue goal requires careful toll structuring, as excessive exemptions or credits could necessitate higher costs for other drivers and jeopardize the program's financial objectives.
Recommendations related to State of Good Repair
Vary tolls based on the time of day and day of the week to prioritize both raising revenue and reducing congestion and emissions.
Limit exemptions to those specified in the law and perhaps to for-hire vehicles (FHVs) and taxis, and do not provide credits for MTA or Port Authority of New York and New Jersey tolls to generate $1 billion in annual revenue.
Clearly communicate the tolls to enable drivers to know how much they would pay for different trip times and modify their trips accordingly as the law intends.
Monitor and report congestion pricing outcomes and operational metrics to inform future policy adjustments.
Consider charging a VMT fee for trips occurring entirely within the zone to help meet the program’s goals.
Key Data
$1 billion
— The annual revenue goal for the Central Business District Tolling Program.
$5 and $14
— The range of increased costs for non-exempted vehicles under certain modeled scenarios.
The Metropolitan Transportation Authority's capital plans are misaligned with its capacity to execute projects, leaving billions of dollars in critical infrastructure needs unaddressed. To ensure the system reaches a state of good repair, the authority must prioritize safety and maintenance projects, improve contracting efficiency, and secure reliable funding sources like congestion pricing.
Recommendations related to State of Good Repair
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
— Projects still uncommitted from the 2020-2024 and two prior five-year capital plans.
$7.1 billion
— Average annual capital commitments over the past six years.
$8.2 billion
— Forecasted capital commitments for 2022.
$30.2 billion
— Projects that would still be uncommitted when the current plan period ends in 2024, assuming annual commitments increase 15 percent to this year’s $8.2 billion target.
$12.0 billion
— Amount of future planned capital financing that is at risk or unaffordable.
$11.5 billion
— Amount of planned spending and borrowing that is unaffordable due to the MTA’s structural deficit.
New York State added $1.6 billion in capital projects to the fiscal year 2023 budget without rigorous evaluation or public consideration, relying on political deals rather than sound planning. This practice threatens the state's ability to finance future critical infrastructure maintenance by consuming debt capacity for projects that lack clear justification.
Recommendations related to State of Good Repair
The State should utilize a comprehensive capital planning process that requires the State to prioritize critical projects and invest capital spending in maintenance of existing assets.
The State should stop using lump sum appropriations for capital projects or otherwise.
The State should provide transparency on disbursements of existing lump sum pots by reporting details of spending, including the timing, amount, recipient, and purpose of awards.
Key Data
$1.6 billion
— Total amount of capital appropriations added to the fiscal year 2023 enacted budget that were not included in prior proposals.
$920 million
— Amount of capital appropriations allocated in lump sums that will go to projects identified behind closed doors.
$656 million
— Amount of capital appropriations allocated for specific projects added to the budget.
$1.2 billion
— Amount of these projects that may be financed through bonds, consuming State debt capacity.
$418 million
— Amount of funding for the Buffalo Bills Stadium that will be paid for with current money.
New York City's public housing faces severe deterioration, with 90 percent of the portfolio at risk of becoming too costly to repair without intervention. To address this, the city must expand RAD/PACT conversions and pass the Preservation Trust legislation to secure funding for comprehensive renovations of the remaining 110,000 units.
Recommendations related to State of Good Repair
The City should fully integrate NYCHA into the City’s affordable housing strategy to address the capital crisis.
NYCHA must accelerate and maximize the pace of Section 8 conversions through RAD/PACT to renovate and preserve public housing.
The City should take advantage of underutilized land to raise revenue through infill development or air rights sales to fund capital needs.
NYCHA needs to improve operations and construction management to address the capital crisis.
The Council should join NYCHA and City Hall in lobbying for State and federal actions needed to pass the Preservation Trust to fund the renovation of remaining public housing units.
Key Data
$32 billion
— The amount of NYCHA's capital needs documented in the 2018 report.
90 percent
— The portion of NYCHA's portfolio at risk of deteriorating to such poor conditions by 2027 that it would cost more to repair the units than to replace them.
$3.2 billion
— The amount in capital improvements financed through RAD conversions.
110,000
— The number of NYCHA public housing units that would remain in the Section 9 program even if the goal of renovating 62,000 units is met.
62,000 units
— The maximum number of units NYCHA can convert under its federal cap.
New York's Fiscal Year 2023 Executive Budget provides increased funding for transportation infrastructure, including efforts to address the backlog of deferred maintenance on roads and bridges. However, the state's capital planning process remains opaque and overly political, necessitating a more strategic approach to allocating federal and state resources to maximize infrastructure value.
Recommendations related to State of Good Repair
The State should improve its capital planning processes by broadly adopting benefit-cost analysis to better prioritize transportation projects.
The State should improve its capital planning processes by better identifying needs and resources to address infrastructure requirements.
The State should improve its capital planning processes by planning for maintenance and improvements to ensure long-term infrastructure viability.
The State should improve its capital planning processes by continuously assessing the progress of its work to ensure accountability.
The State should strategically identify, allocate, and spend the new federal funds along with added State funds to maximize their benefits for infrastructure.
Key Data
one-sixth
— The portion of total capital spending by the State currently comprised of federal funds.
2026 is the year the MTA will likely have spent all of its one-time COVID-19 federal aid, and when the MTA will have to address the estimated $2.5 billion annual structural operating deficit which that aid is now covering. At an event with CBC Trustees, MTA Chair and CEO Janno…
New York lacks a comprehensive, long-term capital planning process for its vast network of infrastructure assets, despite the availability of significant federal funding. Implementing a rigorous system that includes benefit-cost analysis and better maintenance planning is essential to effectively manage and improve the state's capital stock.
Recommendations related to State of Good Repair
The State should improve its capital planning processes, broadly adopt benefit-cost analysis, better identify needs and resources, plan for maintenance and improvements, and continuously assess the progress of its work.
The State should identify, allocate, and implement the new federal infrastructure funds to maximize their benefits.
The State should help improve the New York City Housing Authority (NYCHA) by approving the proposed Preservation Trust, enacting procurement reform, and increasing financial support for Rental Assistance Demonstration (RAD) public-private partnerships that bring in capital and often new management.
Key Data
one-sixth
— Proportion of total capital spending by the State currently made up of federal funds.
110,000
— Number of public housing units that would be renovated through the Preservation Trust.
$15 billion
— Amount of investment supported by the net annual contributions from congestion pricing for the MTA capital plan.
NYCHA faces capital needs exceeding $40 billion, necessitating significant increases in city funding and the implementation of procurement reforms to ensure effective repairs. To secure long-term viability, the authority must transition to alternative voucher funding models and adopt modern property management practices to reduce operating costs.
Recommendations related to State of Good Repair
State lawmakers should act swiftly to grant NYCHA authorization to use construction manager-build or construction manager-at risk procurement methods.
NYCHA’s federal monitor, along with NYCHA and the City, should strongly advocate for HUD to grant waivers from restrictive federal public housing procurement rules for both its annual Section 9 subsidies and any additional federal funding.
City and State lawmakers should create the Preservation Trust, since it will provide NYCHA with additional options to finance needed capital investment.
NYCHA must implement changes, such as those outlined in its Blueprint for Change, to operate like a modern and effective property management organization and reduce per-unit operating costs.
Key Data
$40 billion
— NYCHA's capital needs due to years of underinvestment, mismanagement, and cost inflation.
$4.6 billion
— Planned commitments for NYCHA in the Fiscal Year 2022 Adopted Capital Commitment Plan through fiscal year 2031.
$2.9 billion
— Planned commitments for NYCHA through fiscal year 2025.
$257 million
— Total capital committed to NYCHA by the City in the decade prior to the recent increase (fiscal years 2006 through 2015).
$2.2 billion
— The amount the City was required by the settlement agreement to invest through fiscal year 2027.
$2.8 billion
— Funding included in the Capital Commitment Plan for building improvements.
Congestion pricing in New York City is intended to support MTA capital investment, reduce traffic, and lower emissions, with revenue critical to improving the state of good repair of the transit system's infrastructure. The program should be implemented with variable tolling, limited exemptions, and transparent monitoring to ensure it meets its goals effectively.
Recommendations related to State of Good Repair
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
— Amount generated annually 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 program.
$55 billion
— Total value of the MTA's 5-year capital program.
$2.50
— Congestion pickup fee authorized for taxis below 96th Street in Manhattan.
$2.75
— Congestion pickup fee authorized for for-hire vehicles (FHVs) below 96th Street in Manhattan.
$60,000
— Annual income threshold for residents of the congestion zone to qualify for an exemption.
800,000 is the approximate number of daily passengers who travel on Northeast Corridor trains. The only rail link that connects New York and New Jersey is through a 110-year-old tunnel under the Hudson River. The Biden administration has pledged to move forward the Gateway Program―the planned, phased expansion and renovation…
New York City's capital planning process requires better alignment with comprehensive needs assessments and clear metrics to ensure infrastructure is maintained in a state of good repair. Rather than linking capital reforms to land use, the city should focus on improving asset management and maintaining mayoral authority over budget planning to effectively prioritize investments.
Recommendations related to State of Good Repair
A more coordinated, consistent approach for managing our assets would include better inputs about conditions and needs, and clear goals and metrics about how best to achieve and maintain a state of good repair.
The Ten-Year Capital Strategy should reflect how the City plans to prioritize investments given its overall needs and its financial outlook.
The Strategy would adequately cover long-range capital planning needs if it were aligned with a comprehensive needs assessment, an assessment of affordability, guided by measurable goals and objectives as intended in the Charter.
The Mayor should retain the role of submitting a capital budget to the Council and the right to propose how to prioritize investments based on strategic planning documents, a revamped AIMS report, or a newly conducted comprehensive physical needs assessment.
The Mayor, through the Office of Management and Budget and mayoral agencies, also should conduct and oversee the needs assessment process.
Key Data
78%
— of spending in the Preliminary Fiscal Year 2022 Ten-Year Capital Strategy is for state of good repair needs or programmatic replacement.
$92 billion
— amount of spending in the Preliminary Fiscal Year 2022 Ten-Year Capital Strategy allocated for state of good repair needs or programmatic replacement.
The Metropolitan Transportation Authority faces a significant financial shortfall, necessitating a focus on prioritizing essential maintenance and critical system replacement work within its capital plan. While federal aid and better-than-expected revenues provide some relief, the agency must continue to manage its budget carefully to ensure long-term stability and service delivery.
Recommendations related to State of Good Repair
The MTA should not substantially change its policy of regular fare increases.
The MTA should implement and ensure full uptake of Fair Fares to assist low-income riders.
The MTA should focus its investment on the highest priority state of good repair and critical system replacement work.
The MTA should continue service 'right-sizing' tailored to the reduction and resumption of economic activity and commuting.
The MTA should incorporate higher than planned 2020 receipts into its forecast.
Key Data
$7.9 billion
— Forecasted three-year, 2022 to 2024 cash shortfall for the MTA.
$2.9 billion
— Amount borrowed to support operations in the 2020 and 2021 budgets.
$4 billion
— Federal COVID relief bill funding delivered to the MTA.
$1.5 billion
— Amount of cash the MTA reported having more than expected at the end of 2020.
$1 billion
— Annual net revenue from congestion pricing that 30 percent of the 2020-2024 capital plan relies on.
$500 million
— Shortfall in the 2021 financial plan pending further updates.
The Metropolitan Transportation Authority faces a cumulative $16.2 billion budget gap through 2024 due to pandemic-related revenue losses, necessitating difficult financial decisions to maintain operations. To avoid long-term damage to the system's state of good repair, the agency must prioritize capital projects that reduce future maintenance costs while managing debt service growth.
Recommendations related to State of Good Repair
Rescoping the capital program to focus on the 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 avoid issuing long-term debt to support operations, as it risks adding unsustainable annual spending and necessitates reductions in capital investments, which threatens the system’s state of good repair.
Key Data
$16.2 billion
— Cumulative budget gap for the MTA from 2020 through 2024.
$567 million
— Estimated cost of new COVID-related cleaning in 2020.
$591 million
— Estimated cost of new COVID-related cleaning in 2021.
$518 million
— Estimated cost of new COVID-related cleaning in 2022.
$500 million
— Estimated cost of new COVID-related cleaning annually in 2023 and 2024.
19 percent
— Debt service as a percentage of the MTA's operating revenues and subsidies in 2020.
The MTA faces a severe fiscal crisis due to the pandemic, necessitating a strategic prioritization of capital projects to ensure the system remains functional. By delaying expansion and accessibility projects, the authority can focus resources on maintaining a state of good repair for existing assets and critical infrastructure.
Recommendations related to State of Good Repair
The MTA should prioritize projects needed to achieve or maintain a state of good repair for existing assets, including signal and communications system updates and replacing aged subway cars.
The MTA should slow and extend the volume of work for expansion and accessibility projects beyond the current five-year period to permit a balance with the need for other investments to promote a state of good repair.
Deferring lower priority projects would enable the MTA to make its capital plan more realistic, transparent, affordable, and effective in making vital operations safe and reliable.
Key Data
$64 billion
— Total capital commitments in the next five years.
$54.8 billion
— Amount allocated to the 2020-2024 capital plan.
$8.8 billion
— Work remaining from earlier plans in 2020 and 2021.
$7.9 billion
— Combined cost of the Second Avenue Subway Phase 2 and Penn Station Access projects.
$6 billion
— Cost of multiple projects to expand and accelerate the accessibility of subway and commuter rail stations.
$742 million
— Cumulative debt service savings from prioritizing projects in the first five years of the new plan.
The Metropolitan Transportation Authority's proposed $54.8 billion 2020-2024 Capital Program is overly ambitious, as it fails to account for a $15 billion backlog of previously approved projects and lacks the necessary transparency for oversight. To ensure the system's stability, the agency must prioritize state of good repair and routine replacement projects while providing a clear, detailed schedule for implementation.
Recommendations related to State of Good Repair
MTA capital investments must first emphasize state of good repair and routine replacement before projects to expand the system or provide enhanced amenities.
The MTA should prioritize the most impactful projects and initiate those as soon as practicable.
The MTA should allocate its human and financial resources to the highest priority projects, and its capital plan documents should reflect these priorities by including, at minimum, the year in which the MTA plans to commit and complete each project.
The MTA should provide the detail needed and present a five-year plan for investment so the MTA Board, oversight bodies, and the public can assess whether it is appropriate and hold the MTA accountable for implementation.
The MTA should consider volatile real estate transfer tax revenue a source for pay-as-you-go capital projects rather than using it to support debt.
Key Data
$54.8 billion
— The proposed 2020-2024 Capital Program size.
$70 billion
— Total projects planned, including the backlog.
$15 billion
— Previously planned and approved capital projects yet to commit.
$6 billion
— Average annual capital project commitment from 2010 to 2018.
$14 billion
— Required annual commitment rate to execute the backlog and new plan in five years.
$45 billion
— Achievable commitment amount over the next five years.
The MTA's $54.8 billion 2020-2024 Capital Program lacks a necessary needs assessment and annual project schedules, making it impossible to determine if the plan will effectively address the system's long-run state of good repair. Without a clear blueprint prioritizing the most impactful projects, the plan risks failing to deliver the necessary infrastructure improvements and financial stability for the transit system.
Recommendations related to State of Good Repair
The MTA should prioritize the most impactful projects and initiate those as soon as practicable.
The MTA should allocate its human and financial resources to the highest priority projects, and its capital plan documents should reflect these priorities by including, at minimum, the year in which the MTA plans to commit and complete each project.
The MTA should provide the detail needed and present a five-year plan for investment so the MTA Board, oversight bodies, and the public can assess whether it is appropriate to bring infrastructure to a state of good repair.
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 total proposed 2020-2024 Capital Program.
$13.6 billion
— The amount allocated to state of good repair projects.
$23.3 billion
— The amount allocated to normal replacement projects.
$5.9 billion
— The amount included for subway signal upgrades.
$5.1 billion
— The amount included for accessibility improvements at 70 subway stations.
$14 billion
— The annual projected commitment rate required to execute the new capital plan and backlog in five years.
New York's transportation infrastructure suffers from deferred maintenance and poor asset conditions that lag behind the rest of the nation due to politically driven budgeting practices. Improving capital planning through legislative mandates for long-term strategies and transparent reporting on asset quality is essential to address these systemic infrastructure failures.
Recommendations related to State of Good Repair
The Governor should sign A4880/S1673 to improve capital planning for transportation infrastructure.
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 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 State Department of Transportation to outline goals and strategies for maintaining and improving transportation assets.
Subsequent legislation should require the State Department of Transportation to make public a summary of the inventory of assets, asset quality, recently completed projects, and performance.
90% is the share of NYCHA units that are at risk of no longer being cost effective to repair by 2027 at the current rate of deterioration. NYCHA released a plan to address this in December 2018. CBC Senior Research Associate Sean Campion joins the pod to discuss progress, the…
NYCHA's strategic plan to address its $32 billion capital need faces significant hurdles, including stalled infill development projects and a growing repair backlog that has seen average completion times rise to 112 days. Without increased cooperation from labor unions and government partners, the authority risks failing to meet its goals, leaving thousands of units without necessary renovations each year.
Recommendations related to State of Good Repair
The federal monitor should work with the new Chair to increase funding for federal operating and capital subsidies to support turnaround efforts.
Federal authorities should improve the Rental Assistance Demonstration (RAD) program by lifting the cap on conversions, exempting conversions from the tax-exempt private activity bond cap, or creating dedicated tax credits.
Federal officials should lift the prohibition on design-build and best value procurement for federally-funded capital projects to allow for more efficient construction.
The federal government should provide additional appropriations for tenant protection vouchers to support NYCHA's conversion efforts.
Federal authorities should allow for more flexible use of federal capital and operating dollars to enable NYCHA to reinvest operating savings into capital upgrades.
Key Data
$32 billion
— NYCHA's five-year capital need.
112 days
— Average time to complete repairs as of July 31, 2019, up from 71 days.
$181,000
— Average per-unit capital need for NYCHA properties.
4,000
— Number of units that could go without repairs each year if NYCHA 2.0 funding is not secured.
$16 billion
— New revenue for capital repairs over 10 years that NYCHA 2.0 would raise.
62,000
— Number of units NYCHA aims to convert through the PACT program by 2028.
The Metropolitan Transportation Authority's proposed $51.5 billion capital plan lacks a clear needs assessment to determine if it will effectively bring the transit system to a state of good repair while balancing service expansion. Furthermore, the plan relies on $6 billion in unauthorized funding from the State and City, and requires a significant acceleration in project execution to succeed.
Recommendations related to State of Good Repair
The MTA should make public a comprehensive needs assessment to clarify whether investments will be sufficient to maximize progress on bringing the system to a state of good repair.
The MTA must clarify how it will secure the $3 billion in funding from New York State and $3 billion from New York City, as neither the State nor the City has authorized these commitments.
The MTA must accelerate the pace to execute projects, as the proposed plan is 70 percent greater than the 2015-2019 capital plan and the agency has only committed approximately 65 percent of the previous plan as of June 2019.
Key Data
$51.5 billion
— Total investment amount proposed for the region’s mass transit network.
$3 billion
— Funding amount assumed from New York State that has not yet been authorized.
$3 billion
— Funding amount assumed from New York City that has not yet been authorized.
$9.8 billion
— Amount in bonds and pay-as-you-go capital that the MTA may struggle to finance given projected operating deficits.
70 percent
— The size increase of the proposed 2020-2024 capital plan compared to the 2015-2019 capital plan.
65 percent
— The portion of the 2015-2019 capital plan that the MTA had committed as of June 2019.
New York State is approaching its statutory debt limit, necessitating a shift in capital spending priorities away from discretionary local projects toward essential infrastructure needs. Future debt issuance should be strictly reserved for investments justified by a clear need for repair or service enhancement to ensure long-term fiscal stability.
Recommendations related to State of Good Repair
The State should limit capital spending to investments justified on the basis of need or rate of return, particularly since it is approaching its statutory debt limit.
State debt should only be issued for capital investments that are justified by need for repair or service enhancement identified through a systematic evaluation of state needs.
The duration of debt service payments should be equal to or less than the expected useful life of the investment in order to align the timing of the payment for the asset with the benefit of the asset’s use.
If the State is going to add debt-funded capital appropriations, the additional spending should be limited to significant state infrastructure investments.
The legislature should close out session without passing any capital pork.
Key Data
$1.4 Billion
— Debt capacity available in fiscal year 2021.
$107 Million
— Available debt capacity remaining by fiscal year 2024.
$1.9 Billion
— Amount authorized for the State and Municipal (SAM) Facilities Program for small grants to local governments and nonprofits.
$157 Million
— Reappropriation from 2008 for the New York State Capital Assistance Program.
$475 Million
— Amount of SAM funding in the fiscal year 2019 budget.
It’s no secret New York’s roads are in dire need of repair, and now there are numbers to prove it. A new report by the Citizens Budget Commission says New York needs $5.7 billion to keep roads in “good repair.” Watch the original segment here .
New York requires approximately $5.7 billion annually to maintain its roads and bridges in a state of good repair, yet 37 percent of this necessary work is currently deferred. To address this funding shortfall and the decoupling of fuel consumption from road use, the state should implement a vehicle-miles traveled (VMT) fee to provide a sustainable, user-pays revenue source.
Recommendations related to State of Good Repair
Phase in implementation in order to allow the public sector to build expertise in a new area of revenue generation.
Require commercial fleets to transition to a VMT fee to address the high costs these heavier vehicles impose on highways.
Create a volunteer program for passenger vehicles to build public awareness and encourage acceptance.
Provide a multiyear transition to allow ample time to establish the soft and hard infrastructure necessary to implement a near-universal program.
Maintain flexibility to accommodate new technology by remaining technologically agnostic and not committing to a single, proprietary platform.
Establish rates that vary by type of vehicle and location to account for the negative effects of air pollution and traffic congestion.
Execute a clear and transparent rate-setting process so that motorists know how, when, and at what rate a VMT fee is being imposed.
Use the VMT fee as an addition to existing sources to help remedy the mismatch between available highway and transit revenues and needed annual expenditures.
Key Data
$5.7 billion
— Annual funding required for the State to achieve a state of good repair on its assets.
$2.1 billion
— Amount of necessary repair work that is currently deferred.
37 percent
— Portion of necessary repair work that is currently deferred.
51 percent
— Reduction in the inflation-adjusted per-mile direct cost to motorists who travel on State roadways since 1993.
123 billion miles
— Estimated distance traveled by motorists in New York State in 2016.
$1 billion
— Potential annual revenue yield from an average per-mile fee of 1 cent.
The NYC FY 2020 Executive Budget increases the 10-year capital strategy to $116.9 billion, an increase of $12.8 billion from the preliminary budget. This strategy requires more comprehensive planning and prioritization to effectively address state of good repair needs.
Recommendations related to State of Good Repair
The 10-year capital strategy could benefit from more comprehensive planning and prioritization focusing on state of good repair work.
Key Data
$116.9 billion
— Total value of the 10-year capital strategy in the FY 2020 Executive Budget.
$12.8 billion
— Growth of the 10-year capital strategy from the Preliminary Budget.
New York's transportation infrastructure is in poor condition because current funding mechanisms, primarily fuel taxes, are failing to generate enough revenue to maintain roads and bridges in a state of good repair. To address this, the state should implement new revenue sources like congestion pricing and vehicle-miles traveled (VMT) fees, while also considering increases to existing motorist user fees.
Recommendations related to State of Good Repair
The Governor and legislature should develop and advance a comprehensive proposal this year, one that raises sufficient revenues to reduce transportation funding shortfalls and to support additional mass transit service to meet the needs of those drivers who choose to switch modes.
Long-term the State should shift away from fuel taxes toward a more sustainable VMT fee.
Increasing fuel taxes, vehicle fees, and toll rates to those of New York’s neighbors can raise significant sums in the short-term.
New York ought to prepare for the continued erosion of revenues, and it should consider user fees that supplement fuel taxes.
Key Data
$5.5 billion
— The cost of SGR needs at NYSDOT in 2016.
$3.6 billion
— Annual transportation revenues collected by New York State.
17 percent
— The decrease in the amount of fuel tax per mile driven in New York since 1993.
10.5 percent
— The share of New York bridges that were structurally deficient in 2017.
18.5 percent
— The share of New York's National Highway System pavement considered 'Rough' or 'Very rough'.
$1.2 billion
— The potential annual revenue from a VMT fee charged at a rate of 1 cent per mile.
The MTA's $40 billion Fast Forward Plan aims to modernize the transit system by upgrading signal systems on 11 lines, rehabilitating 300 stations, and adding thousands of new subway cars and buses. These capital investments are critical for addressing the state of good repair and improving performance across the aging subway network.
Recommendations related to State of Good Repair
The Fast Forward Plan prioritizes a modernized signal system on 5 lines during the first 5 years.
The plan includes the construction of 50 new accessible stations and the rehabilitation of 150 stations in the first 5 years.
The plan calls for 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 includes the construction of 130 additional accessible stations and 150 rehabilitated stations in the following 5 years.
The plan calls for the procurement of 3,000 new subway cars and 2,100 new buses in the following 5 years.
Key Data
$40 billion
— Estimated cost of the Fast Forward Plan.
$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.
$17,118
— Dollars in millions allocated to Subway & Buses in the 2015-2019 capital plan.
$11,672
— Dollars in millions allocated to Subway & Buses in the 2010-2014 capital plan.
New York City's Ten-Year Capital Strategy has reached record sizes, such as $95.8 billion, often including unrealistic scopes that make it difficult to prioritize essential infrastructure maintenance. To ensure fiscal responsibility, capital investment should prioritize projects that bring critical assets like roads, bridges, and schools to a state of good repair rather than funding new initiatives without clear returns.
Recommendations related to State of Good Repair
The City should focus on priority projects and reduce the funding level in the upcoming Ten-Year Capital Strategy.
Capital investment should be focused on projects that repair and improve the assets upon which businesses and residents rely—roads, bridges, the water and sewer system, and public facilities such as schools—and bring them to a state of good repair (SGR).
New initiatives should only be included in the capital plan if they can be justified by a clear return on investment.
Key Data
$83.8 billion
— Size of the first Ten-Year Capital Strategy released under Mayor de Blasio.
$95.8 billion
— Size of the second Ten-Year Capital Strategy released under Mayor de Blasio.
$32 billion
— NYCHA's capital needs over the next five years.
$24 billion
— Possible sources for capital funding identified in the NYCHA 2.0 plan over 10 years.
The Metropolitan Transportation Authority requires an independent audit of its capital costs and state of good repair needs to address ongoing fiscal and managerial challenges. Implementing procurement reforms and allowing for greater flexibility in closing subway lines for maintenance are essential steps to improve the system's long-term health.
Recommendations related to State of Good Repair
The MTA and its partners should conduct an independent audit of capital costs and state of good repair needs.
The MTA and its partners should allow for flexibility in closing subway lines for construction and maintenance.
The MTA should establish a congestion pricing zone in Manhattan and devote all resulting revenue exclusively to MTA capital investments.
New York State's infrastructure network is aging and failing, requiring over $100 billion in new investment to address critical needs and modernize systems. The state lacks a coordinated, long-term planning process, leading to ad hoc project prioritization and significant cost overruns that threaten long-term economic vitality.
Recommendations related to State of Good Repair
Establish an Office of Infrastructure to lead statewide infrastructure planning.
The Office of Infrastructure should articulate a set of criteria to prioritize infrastructure investment, aligned with statewide policy objectives and needs.
Within the Office of Infrastructure, project prioritization and investment must balance often competing goals: maintaining a State of Good Repair of existing assets vs delivering transformative projects that expand capacity.
The Office of Infrastructure should be a clearinghouse for project transparency and reporting, providing a single access point for capital infrastructure projects statewide.
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.
In order to appropriately fund the State’s infrastructure needs, 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 by the MTA over the next 20 years to update and maintain the system.
$4.7 billion
— Estimated investment needed in the three NYC area airports, 75% of which is for SOGR.
$15.6 billion
— Estimated cost over 20 years to continue installing the new signaling system (CBTC).
$8.4 billion
— Estimated cost over 20 years to replace subway cars.
$21 billion
— Potential amount the Resiliency Finance Corporation could raise over 20 years.
90% is the share of NYCHA units CBC estimates may not be cost effective to repair by 2027 under the current trajectory of deterioration. NYCHA Interim Chair and CEO Stan Brezenoff joined CBC to discuss the policy and funding challenges facing NYCHA, and how he plans to tackle key areas…
New York's infrastructure shows mixed results, with road surfaces improving and bridge conditions showing progress despite remaining worse than the national average. However, the Metropolitan Transportation Authority has seen a significant decline in subway on-time performance, contrasting with the relatively stable performance of commuter railroads.
Key Data
11%
— Percentage of the deck area on New York’s 17,456 bridges rated as poor in 2017, compared to 6 percent nationwide.
64%
— Percentage of state-owned road surfaces rated as 'good' or 'excellent' in 2016, compared to 60 percent in 2011.
63%
— On-time performance of the MTA’s subways in 2017, a significant decline from 89 percent in 2010.
89%
— On-time performance of the MTA’s subways in 2010, which declined to 63 percent by 2017.
New York City Housing Authority apartments suffer from significantly worse physical conditions than comparable private rental units, with 41 percent of residents reporting broken plaster or peeling paint. Bringing these public housing units to a state of good repair requires an estimated $32 billion investment over the next five years to address critical infrastructure needs.
Key Data
$32 Billion
— Estimated cost of bringing the city’s public housing units to a state of good repair over the next five years.
28%
— Share of NYCHA residents reporting heating breakdowns in 2017.
41%
— Share of NYCHA residents reporting broken plaster or peeling paint in 2017.
30%
— Share of NYCHA residents reporting water leaks in 2017.
29%
— Share of NYCHA residents reporting cracks in ceilings and walls in 2017.
9%
— Share of NYCHA residents reporting holes in floors.
The MTA's financial plan includes significant funding for maintenance and operational improvements, specifically allocating $836 million for the Subway Action Plan, $132 million for Long Island Rail Road plans, $56 million for Metro-North Railroad plans, and $52 million for the Bus Action Plan. These investments are part of a broader budget strategy that also includes hiring hundreds of new workers to implement these critical service and infrastructure initiatives.
Key Data
$836 million
— funding allocated for the Subway Action Plan to address maintenance and operational needs.
$132 million
— funding allocated for commuter railroad plans at the Long Island Rail Road.
$56 million
— funding allocated for commuter railroad plans at Metro-North Railroad.
$52 million
— funding allocated for the Bus Action Plan.
$31.8 billion is the amount required to repair NYCHA's public housing units over the next five years. CBC Senior Research Associate Sean Campion discuss the findings and recommendations of CBC's recent report on NYCHA's capital needs and explains how NYCHA got into such a deep hole and and how it…
The New York City subway fleet requires significant investment to return to a state of good repair, as reliability has declined due to deferred maintenance and aging cars. With an estimated $9 billion needed for modernization and replacement, the MTA must prioritize these investments in the 2020-2024 capital program to restore performance levels.
Recommendations related to State of Good Repair
MTA leadership should increase significantly its commitment to subway cars in the 2020-2024 capital program to return car reliability to its previous highpoint.
The MTA must prioritize subway car investments over other network expansion projects to avoid placing added pressure on the fleet’s maintenance and squandering hard-fought gains in reliability.
The MTA must ensure that the Fast Forward plan is fully funded in future capital plans and administered effectively to achieve anticipated results.
Key Data
$9 billion
— The estimated total cost relating to subway car procurement and retrofitting.
$1.2 billion
— The amount authorized in the MTA’s current capital plan for subway car needs.
150,000 miles
— The agency's goal for Mean Distance Between Failures (MDBF) for subway cars.
112,208 miles
— The actual Mean Distance Between Failures (MDBF) for the subway fleet in 2016.
New York City's public housing authority faces a $32 billion capital shortfall, with 90 percent of its housing units at risk of becoming too deteriorated to repair by 2027. To address this crisis, the authority must transition to a more efficient management model, leverage underutilized land assets, and integrate its operations into the city's broader affordable housing strategy.
Recommendations related to State of Good Repair
The City should fully integrate NYCHA into the City’s affordable housing strategy to ensure a more holistic approach to housing needs.
NYCHA should transition to an affordable housing steward that manages fewer buildings by increasing public-private partnerships and transferring or selling inefficient properties.
The authority should tap underutilized land assets to fund repairs and facilitate redevelopment by selling air rights and pursuing infill development.
NYCHA must improve operations and construction management to lower costs by decentralizing property management and modernizing collective bargaining agreements.
Key Data
$32 billion
— The amount of capital needs quantified for NYCHA over the next five years.
90 percent
— The portion of NYCHA housing units at risk of deteriorating past the point of cost-effective repair by 2027.
39 percent
— The amount by which NYCHA's operating costs are higher than those of other landlords operating rent-stabilized buildings.
58 million
— The number of square feet of additional development capacity available on NYCHA campuses.
$1.5 billion
— The potential revenue that could be raised by selling 10 percent of NYCHA's air rights.
$1.4 billion
— The potential revenue that could be raised by building an additional 10,000 units through infill development.
NYCHA faces $32 billion in capital needs over the next five years, with 90 percent of its housing units at risk of becoming irreparable by 2027 without immediate, radical changes. To address this, the organization must transition to an affordable housing steward, leverage underutilized assets, and implement significant management reforms alongside public-private partnerships.
Recommendations related to State of Good Repair
NYCHA should transition to an affordable housing steward employing a full range of strategies.
NYCHA must tap its underutilized assets, including air rights and potential infill development.
NYCHA must adopt best operational practices in procurement and building maintenance.
NYCHA must implement significant management reforms to improve and manage developments.
NYCHA must utilize public-private partnerships to improve and manage developments.
Key Data
$32 billion
— NYCHA’s capital needs over the next five years.
90 percent
— NYCHA housing units at risk of no longer being cost-effective to repair by 2027.
$8 billion
— Capital investment planned over the next five years.
$7 billion
— Combined savings and new revenue identified to slow deterioration.
The NYC Fiscal Year 2019 budget features significant increases in operating and capital spending, raising concerns about fiscal sustainability and the need for better balance between spending and reserves. To address these challenges, the city should prioritize infrastructure investments that focus on the state of good repair while implementing stricter controls on workforce growth and labor costs.
Recommendations related to State of Good Repair
The Capital Plan should be reduced and refocused on strategic priorities that emphasize state of good repair and maximize the return on investment for new projects.
The City should use current resources as “pay-go capital” instead of borrowing to invest in infrastructure without increasing long-term liabilities.
Key Data
$25 billion
— Estimated capital needs for NYCHA developments.
$65.1 billion
— Projected capital spending for fiscal years 2019 to 2022.
87.5 percent
— Increase in the capital plan from the Fiscal Year 2015 Executive Financial Plan.
$34.7 billion
— Capital spending projected in the Fiscal Year 2015 Executive Financial Plan.
$7.0 billion
— Budgeted debt service in fiscal year 2019.
11.6 percent
— Percentage of tax revenue represented by debt service in fiscal year 2019.
The 'Fast Forward' plan to modernize New York City Transit offers a promising approach to improving subway reliability and safety, particularly through the acceleration of signal modernization. To ensure long-term success, the Metropolitan Transportation Authority should align its measures with achieving a comprehensive state of good repair across all system components and transition to a ten-year capital planning cycle.
Recommendations related to State of Good Repair
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.
The Metropolitan Transportation Authority (MTA) should give equal attention to the more hidden elements of the system that are vital to reliability and safety.
The Metropolitan Transportation Authority (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.
New York City's capital planning process lacks the necessary data and needs assessments to determine if assets are being maintained in a state of good repair. The current system fails to align with capital strategies, necessitating improvements in asset management and life-cycle cost analysis to ensure critical infrastructure is properly repaired and maintained.
Recommendations related to State of Good Repair
The City should improve its needs assessment by ensuring the Asset Management Information System (AIMS) incorporates thorough assessments to determine the investment needed to reach a state of good repair.
The City should make smart and targeted capital investments by directing capital dollars to repairing its critical infrastructure and ensuring buildings and facilities are safe.
The capital planning process should incorporate a life-cycle cost analysis that includes the cost of operating, maintaining, and ultimately replacing capital assets.
Key Data
$79 billion
— The Preliminary Capital Commitment Plan for Fiscal Years 2018 to 2022.
$418 million is the amount Governor Andrew Cuomo wants New York City to commit to the Subway Action Plan, the emergency plan to address repairs to the distressed subway system. Politico NY senior reporter Dana Rubinstein discusses this and other pressing transit issues.
New York City's capital planning has historically lacked a comprehensive, citywide strategy for maintaining assets, leading to a growing backlog of infrastructure in need of repair. To address this, the city should implement a "fix it first" policy that prioritizes state of good repair projects and dedicates 70 percent of the next ten-year capital strategy to eliminating the maintenance backlog.
Recommendations related to State of Good Repair
The next administration should enact clear guidelines or directives for performing routine maintenance and regular replacement of assets to prevent the state of good repair backlog from growing.
All city agencies and component units should undertake a comprehensive needs assessment that details the condition of major asset classes and the cost to fix those in disrepair.
The needs assessment should be used to develop a plan to achieve state of good repair that includes a detailed timeline with four-year and ten-year goals.
The City should adopt a "fix it first" strategy, in which state of good repair projects receive priority at each agency.
Seventy percent of the next Ten-Year Capital Strategy should be dedicated to state of good repair work until 70 percent of the state of good repair backlog is eradicated.
Key Data
$6.4 billion
— State of good repair requirements as reported in the Asset Information Management System in fiscal year 2014.
$3.7 billion
— Dollars invested in state of good repair in fiscal year 2014.
41 percent
— The low point of the share of state of good repair need funded in 2004.
$13 billion
— Unmet needs identified by the New York City Housing Authority's most recent Physical Needs Assessments through 2015.
70 percent
— The share of the next Ten-Year Capital Strategy that should be dedicated to state of good repair work until the backlog is eradicated.
66 percent
— The total share of stated maintenance needs funded from the expense budget in fiscal year 2014.
The New York City Housing Authority faces a massive and growing funding gap, with capital needs likely exceeding $25 billion as its aging housing stock continues to deteriorate. Despite spending $1.7 billion on capital improvements between 2012 and 2016, the authority has struggled to meet the requirements to bring its buildings into a state of good repair due to inadequate federal subsidies and rising costs.
Key Data
$25 billion
— The likely capital needs identified in the forthcoming Physical Needs Assessment, which dwarf available resources.
$16.5 billion
— The total cost of bringing the housing system to a state of good repair identified in the 2011 Physical Needs Assessment.
$3 billion
— The estimated damage caused to the housing system by Superstorm Sandy.
$1.7 billion
— The amount spent on capital improvements between 2012 and 2016, which met only 10 percent of the identified needs.
$1.1 billion
— The amount spent on roofs and brickwork between 2012 and 2016, representing 68 percent of total capital spending.
$6.9 billion
— The capital needs identified in the 2006 Physical Needs Assessment.
The Metropolitan Transportation Authority lacks a comprehensive, public assessment of its infrastructure's condition and the true cost required to achieve a state of good repair. Implementing a mandatory, annually updated Asset Information Management System report would provide the transparency necessary for lawmakers to prioritize essential maintenance over system expansions.
Recommendations related to State of Good Repair
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.
The Metropolitan Transportation Authority's 2018 budget includes the first phase of a $1.5 billion Subway Action Plan aimed at addressing critical infrastructure failures in signals, track, power, and car equipment. The board should reject the proposal unless funding is secured or commensurate reductions are made in other areas to maintain a cash balance.
Recommendations related to State of Good Repair
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 to maintain long-term infrastructure investment capacity.
Key Data
$1.5 billion
— Five-year plan to address the system’s mounting equipment and infrastructure failures.
$428 million
— Budgeted amount for Subway Action Plan operating costs in 2018.
$498 million
— Projected end-of-year deficit if the Subway Action Plan is implemented without additional revenues.
$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.
New York State's transportation capital planning process lacks a holistic, data-driven strategy, often resulting in disjointed projects that are not clearly linked to asset conditions or long-term needs. To ensure infrastructure is maintained in a state of good repair, the state should codify a formal, transparent planning process that includes regular needs assessments, clear project lists with identified funding, and status reports.
Recommendations related to State of Good Repair
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 annual update of the capital program’s strategies and goals to outline the system's needs over the upcoming five-year period.
The state should conduct a needs assessment highlighting the condition of the assets and the projected costs associated with maintaining them.
The Department of Transportation should reproduce its list of projects annually with each Executive Budget to enable the Legislature and the public to track progress.
The state should issue a status report on projects included in the enacted five-year capital plan to compare implementation progress relative to original goals.
Key Data
$4.9 billion
— Annual disbursements for the Department of Transportation's capital expenses.
11.2 percent
— Portion of New York State 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.
$130 million
— Additional capital funding added in the fiscal year 2018 budget for projects outlined by legislative leaders.
This week's data point is $17 billion - the capital needs for rehabilitating the nation's largest housing authority. NYCHA Chair and CEO Shola Olatoye joins the podcast to discuss strategies for addressing these capital needs and to review progress implementing NextGenNYCHA, its strategic plan.
The MTA has prioritized system expansions over necessary capital improvements, leaving the subway system in a state of disrepair despite having billions in uncommitted funds that could be re-tasked. To address long-term needs, the agency should shift its funding framework to rely more on motorist cross-subsidies and pursue operational efficiencies rather than relying on increased taxpayer subsidies.
Recommendations related to State of Good Repair
These uncommitted funds, and funds in the current 2015-2019 capital program can and should be re-tasked 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.
The MTA should rethink its funding framework to raise necessary revenues from the three categories of beneficiaries of the region’s mass transit system: riders, taxpayers, and drivers.
Key Data
$16.1 billion
— Estimated continuing needs for the subway system.
$12.7 billion
— Amount included in the originally approved 2015-2019 capital plan for state of good repair and normal replacement investments.
$18 billion
— Amount of authorized capital funds from the 2000 to 2014 period that remains unspent.
$9.2 billion
— Amount of authorized capital funds from the 2000 to 2014 period that remains uncommitted to construction projects.
$380 million
— New capital investments included in the MTA Chairman's stabilization plan.
$456 million
— Recurring operating costs included in the MTA Chairman's stabilization plan.
New York’s subway system requires $456 million in recurring annual operating costs and $380 million in new capital investments to reverse deteriorating performance and address the current crisis. Funding this plan necessitates a shared sacrifice that includes productivity savings from labor unions and new revenue streams from motorists, such as congestion pricing or vehicle-miles-traveled fees.
Recommendations related to State of Good Repair
MTA management and the Transport Workers Union should establish a cooperative arrangement to provide significant productivity savings to help cover the cost of the added workers.
The MTA should implement potential savings such as altering night shift differentials and using split shifts for operators and conductors to reduce subway operating costs.
Policymakers should consider congestion pricing, expanding the taxicab tax to black cars, or dedicating a larger portion of the sales tax on this service to transit to generate revenue.
The city and state should adopt a long-term approach to collect a vehicle-miles-traveled user fee based on distance, vehicle weight, or time of day.
The mayor and governor should reach out to labor and motorists to elicit their cooperation in reviving the transit system.
Key Data
$456 million
— recurring annual operating costs for the MTA's plan to reverse deteriorating subway performance.
$380 million
— new capital investments required for the MTA's plan to reverse deteriorating subway performance.
74,000
— total number of people employed by the MTA.
55,000
— number of MTA employees who operate the subways and buses.
12%
— portion of the MTA’s mass transit system currently funded by tolls.
2,700
— additional workers required to implement enhancements like more frequent inspections and shortened maintenance cycles.
The MTA's Enhanced Station Initiative (ESI) prioritizes aesthetic upgrades and amenities at 32 subway stations, but these improvements divert nearly $1 billion from critical component repairs and other essential infrastructure needs. Because many of these enhanced stations are not among the system's most dilapidated or heavily used, the agency should reevaluate whether these cosmetic investments are the best use of limited capital funds compared to necessary state of good repair work.
Recommendations related to State of Good Repair
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 must prioritize investments in the signal system and other SGR work to ensure the system can continue to operate safely and reliably.
The agency should evaluate whether future riders will be better off waiting out the delays at enhanced stations as it reviews its capital program to address the current state of emergency.
Key Data
$921 million
— Total allocated for the Enhanced Station Initiative (ESI) in the 2015-2019 capital program.
$37 million
— Average cost per station for the Enhanced Station Initiative projects.
$22 million
— Average cost per station for renewal projects not part of the Enhanced Station Initiative.
8 percent
— Share of annual weekday entries to the system accounted for by the 32 Enhanced Station Initiative stations.
Residents in the Bronx report low satisfaction with infrastructure maintenance, with only 37.4% rating the maintenance of streets and roads as excellent or good. While storm water drainage and sewer maintenance received a 50.3% positive rating, these figures highlight significant disparities in the perceived quality of essential city services across different community districts.
Key Data
37.4%
— Bronx residents who rated the maintenance of streets and roads as excellent or good.
51.7%
— Bronx residents who rated the condition of street trees as excellent or good.
50.3%
— Bronx residents who rated storm water drainage and sewer maintenance as excellent or good.
The Metropolitan Transportation Authority faces declining subway and bus performance, with on-time subway arrivals dropping from 84 percent to 66 percent since 2013 and subway car mechanical failures increasing. Despite these service issues, the agency has reduced funding for state of good repair projects and holds $33 billion in authorized but uncommitted capital funds.
Recommendations related to State of Good Repair
Leaders should prioritize those investments needed to restore the system and enhance capacity in the most cost-effective manner.
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
84 percent to 66 percent
— The share of subway trains reaching their scheduled terminal on time since January 2013.
165,946 miles to 119,090 miles
— The decline in the 12-month rolling average for the mean-distance-between-failure of subway cars from January 2013 to March 2017.
91 to 197
— The increase in the 12-month rolling average of LIRR trains canceled and partially canceled per month from January 2013 to May 2017.
$12.7 billion to $12.4 billion
— The reduction in total state of good repair and normal replacement commitments in the MTA 2015-2019 capital plan.
$33 billion
— The amount of capital investments authorized but remaining uncommitted as of March 2017.
The Metropolitan Transportation Authority's recent capital plan amendment prioritizes expansion projects over critical maintenance, despite the system's urgent need for repairs and signal modernization. By shifting resources toward new construction rather than addressing the $20 billion in identified infrastructure needs, the agency risks further service deterioration and fails to adequately support the existing transit network.
Recommendations related to State of Good Repair
The MTA board should reprioritize funds for more appropriate state of good repair work and for the modernization of the subway’s aging signal system in future capital plan amendments.
The board should require more transparency of changes to the capital program to ensure public accountability.
The agency should emphasize what can be accomplished if capital funds are spent on state of good repair projects, existing system improvements, or both.
Board members and the public must remain engaged in the MTA’s capital planning process to ensure the region does not squander another opportunity to reinvest.
Key Data
$20 billion
— The estimated size of New York City Transit's 'Continuing Needs' in 2017 dollars.
$2.7 billion
— The amount of new capital commitments added for two system expansions in the May 2017 amendment.
$12.4 billion
— The reduced amount of total state of good repair and normal replacement commitments following the recent amendment.
$29.5 billion
— The total value of the five-year capital plan after the addition of $2.8 billion in investments.
New York City's capital planning process requires improved assessment of infrastructure needs and performance metrics to effectively track progress toward maintaining a state of good repair. Current tools like the Asset Information Management System are not comprehensive enough to evaluate whether the city is successfully funding the necessary investments to keep assets in good condition.
Recommendations related to State of Good Repair
The capital planning process should include a better assessment of capital needs—including the resources needed to bring city infrastructure to a state of good repair—and metrics to assess performance.
The City should improve the Asset Information Management System (AIMS) to ensure it is sufficiently comprehensive to evaluate the city’s funding progress regarding the state of good repair.
The City should incorporate programmatic indicators into the Capital Strategy to measure progress toward a state of good repair.
Key Data
80%
— Share of planned ten-year capital spending in the first four years of the plan for street reconstruction.
86%
— Share of planned ten-year capital spending in the first four years of the plan for parks, playground, and recreational facilities.
92%
— Share of planned ten-year capital spending in the first four years of the plan for police facilities.
92%
— Share of planned ten-year capital spending in the first four years of the plan for sanitation garages and facilities.
New York City's Ten-Year Capital Strategy lacks the necessary transparency and programmatic indicators to effectively determine if the city is investing enough to maintain its infrastructure in a state of good repair. The current planning process fails to adequately link capital spending to actual asset conditions, leaving the city at risk of underinvesting in critical infrastructure and failing to hold leaders accountable for long-term stewardship.
Recommendations related to State of Good Repair
The City should clearly relate the Ten-Year Capital Strategy back to statements of needs so that the City and the public can determine whether or not planned capital investment is adequate to bring infrastructure to a state of good repair.
The City should improve the Asset Information Management System (AIMS) to include assets owned by City-related public authorities to provide a more comprehensive assessment of the City's capital needs.
The City should include programmatic indicators to set goals for the Ten-Year Strategy to improve accountability when it comes to monitoring the City’s work toward a state of good repair.
The City should incorporate rebalancing of the capital plan in future capital strategies to reflect a more realistic allocation over the first four years.
The City should include other benchmarks to measure progress toward the project’s completion in cases where spending categories do not lend themselves to unit cost comparison.
Key Data
$51 billion
— Amount of planned commitments dedicated to keeping assets in a state of good repair.
$20 billion
— Amount dedicated toward programmatic replacement of water and sewer components, public building components, vehicles, and equipment.
152 percent
— Growth in AIMS needs funding since fiscal year 2005.
$1.8 billion
— Outstanding need remaining for AIMS-tracked infrastructure.
26 percent
— Share of unfunded needs in fiscal year 2017.
New York City’s capital construction process for libraries and cultural institutions is plagued by excessive delays and high costs, often exceeding private sector benchmarks. To address these inefficiencies, the city must implement systemic reforms, including streamlined approval processes, better data tracking, and more flexible procurement methods to ensure these vital community assets are maintained and built effectively.
Recommendations related to State of Good Repair
The mayor should convene a task force to review and reform the capital construction process.
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 OMB and DDC.
DDC should work with other relevant departments to simplify the design review process.
The city should fund an expanded agency-wide data and analytics team within DDC to inform smarter decision-making.
The city should institute a process for nonprofits to prequalify for discretionary capital funds.
The city should establish dependable funding for capital construction projects, including routine state-of-good-repair investments.
OMB should standardize and disseminate capital eligibility rules and requirements.
The city should allow appropriate capital projects to be contracted through a design-build process.
City agencies should expand the use of pass-through project management for libraries and large cultural organizations.
Key Data
$930 per square foot
— The median cost for new library and cultural buildings in the analysis.
1,550 days
— The median time it took for a capital project to be completed.
$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.
36%
— The share of capital projects that took more than 1,825 days (over 5 years) to complete.
$812 million
— The estimated state-of-good-repair needs for the three library systems.
New York State's transportation funding should be based on objective assessments of infrastructure needs and asset conditions rather than arbitrary parity between downstate mass transit and upstate road projects. With 1,956 bridges across the state classified as structurally deficient, capital programs must prioritize data-driven analysis to ensure a proper state of good repair.
Recommendations related to State of Good Repair
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.
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.
Political judgment is appropriate in making the hard choices among repair needs and improvements, but these judgments should be informed by careful and professional analysis.
Key Data
$29.5 billion
— Total value of the MTA capital plan covering 2015 through 2019.
$21.2 billion
— Total spending for the DOT capital program covering five state fiscal years.
1,956
— Total number of bridges in New York State classified as structurally deficient and in need of serious repair.
1,621
— Number of structurally deficient bridges located in non-MTA regions.
29%
— Portion of regional bridge and highway projects in the 2016-2020 DOT plan allocated to New York City.
60%
— Portion of regional bridge and highway projects in the 2016-2020 DOT plan allocated to the MTA service region.
The Port Authority's 10-year capital plan lacks a comprehensive needs assessment to identify necessary investments for maintaining a state of good repair, leading to potential underinvestment. By failing to prioritize projects based on objective criteria and instead relying on bi-state parity, the agency risks misallocating resources and neglecting critical infrastructure maintenance.
Recommendations related to State of Good Repair
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
$8.8 billion
— Total amount allocated for projects categorized as state of good repair (SGR) work in the 10-year capital plan.
$12.7 billion
— Estimated total 10-year depreciation of Port Authority assets.
$3.9 billion
— Calculated shortfall in state of good repair (SGR) investment compared to projected depreciation.
30 percent
— The percentage by which the agency may be underinvesting in state of good repair (SGR) work.
$377 million
— Amount added to the capital program to rehabilitate the obsolete Newark AirTrain after it was excluded from the previous capital plan.
New York City's aging bridge infrastructure, with a median age of 80 years and 82 bridges classified as structurally deficient, requires significant investment and more efficient project delivery. By adopting design-build contracting, which has proven successful in other states and for New York State agencies, the City could potentially save $2 billion over the next decade on its $7.7 billion bridge improvement plan.
Recommendations related to State of Good Repair
State legislators should enable New York City to benefit from the design-build approach to complete infrastructure projects in a cost-effective manner.
The legislature should include design-build authority for the New York City Department of Transportation in the budget bills.
Key Data
80 years
— The median age for a City-owned bridge, which is nearly twice the national median of 42.
82
— The number of City-owned bridges classified as structurally deficient, meaning they have a significant defect that requires monitoring.
45 percent
— The amount by which current NYCDOT bridge projects are over budget.
$7.7 billion
— The amount New York City plans to spend on bridge work over the next 10 years.
27 percent
— The estimated savings produced by the New York State Department of Transportation's Accelerated Bridge Program using design-build contracts.
$2 billion
— The potential savings for New York City over 10 years if it realizes savings on par with the State’s experience using design-build.
The MTA's decision to reduce funding for Phase Two of the Second Avenue Subway from $1.5 billion to $535 million is a prudent move that prioritizes maintaining existing transit infrastructure over new expansion projects. By shifting $1.0 billion in construction work to the next capital plan, the agency ensures that reliable service and safety on current lines remain the primary focus given limited financial resources.
Recommendations related to State of Good Repair
The MTA should ensure that keeping existing services in a state of good repair takes priority over pushing new projects.
The MTA should prioritize not jeopardizing reliable service and safety on current subway lines serving millions daily over a fast pace for a new service reaching far fewer riders.
Key Data
$3 billion
— The amount cut from the initial $32 billion MTA capital plan due to funding shortages.
$1.5 billion
— The original amount allocated for Phase Two of the Second Avenue Subway in the MTA capital plan.
$535 million
— The revised amount allocated for Phase Two of the Second Avenue Subway in the MTA capital plan.
$1.0 billion
— The amount of construction work for Phase Two moved into the next five-year capital plan.
$420 million
— The funding allocated for planning and design of the Second Avenue Subway 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, reduced to $26.1 billion, requires a revised strategy that prioritizes essential infrastructure maintenance and signaling upgrades over system expansions. Funding sources for this agreement must be clearly identified by the Mayor and Governor to ensure transparency regarding whether costs will be borne by taxpayers, riders, or motorists.
Recommendations related to State of Good Repair
The revised capital plan must be structured to prioritize progress toward a state of good repair and enhanced signaling systems over less urgent system expansions.
The Mayor and Governor must identify the specific sources of their committed funds, clarifying whether the money will come from taxes, fares, or tolls.
Key Data
$26.1 billion
— The reduced scale of the MTA's 2015 to 2019 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.
Current investment policies for New York City subway stations will not achieve a state of good repair for all 467 active stations until at least 2067. While some subway lines are in better condition due to recent renewals, others have significant portions of their structural components, such as stairs and ventilators, failing to meet safety and performance standards.
Key Data
37 percent
— of the 618 structural components on the 7 line are not in a state of good repair.
26 percent
— of the 2,011 structural components on the C line are not in a state of good repair.
15 percent
— of the 1,288 structural components on the 6 line are not in a state of good repair.
18 percent
— of the structural components on the 4 line are not in a state of good repair.
16 percent
— of the structural components on the 5 line are not in a state of good repair.
17 percent
— of the structural components on the M line are not in a state of good repair.
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 pace of subway station rehabilitation is insufficient to maintain a state of good repair, with over one in five structural components failing to meet standards. To address this, the agency should shift funding from expansion projects to station repairs, improve project management to reduce cost overruns, and leverage public-private partnerships to secure additional capital.
Recommendations related to State of Good Repair
The MTA should reallocate available capital funds from new expansion projects to SGR work to accelerate the pace of station repairs.
The agency should improve the management of station projects to lower costs and permit more progress with available funds.
The MTA should experiment with new models of public-private partnerships at selected stations to secure additional capital and implement projects more efficiently.
The agency should identify opportunities for introducing station conservancies to marshal resources to rehabilitate and maintain stations on an ongoing basis.
The MTA should set new goals and adopt new practices rather than continuing to struggle with the current, ineffective rehabilitation strategy.
Key Data
467
— Total number of subway stations the MTA is responsible for rehabilitating and repairing.
15,275
— Total number of structural components within the subway system.
21%
— Share of structural components that will not be in a state of good repair after the completion of the 2010-2014 capital plan.
$5.5 billion
— Amount allocated for expansion projects across the mass transit system in the proposed 2015-2019 capital plan.
45%
— Cost increase for the 42 station rehabilitations and renewals completed between November 2010 and January 2014.
$1.3 billion
— Amount allocated in the proposed capital plan for projects to improve station components.
The Metropolitan Transportation Authority struggles to maintain 467 subway stations in a state of good repair, as current capital plans fail to address the backlog of structural components needing attention. To improve progress, the agency should reallocate funds from expansion projects, enhance project management to reduce cost overruns, and leverage public-private partnerships for station maintenance.
Recommendations related to State of Good Repair
The MTA should reallocate funds from system expansions to SGR work to have a significant impact on the pace of achieving a state of good repair.
The agency should improve the management of projects to avoid delays and cost overruns so that more can be achieved with available funds.
The MTA should develop new public-private partnerships to make available private capital investment in the stations and lower rehabilitation costs.
Key Data
467
— Total number of subway stations the MTA must rehabilitate and repair.
15,275
— Total number of structural components in the subway system.
21%
— Share of structural components that will not be in a state of good repair after the 2010-2014 capital plan.
$5.5 billion
— Amount allocated for expansion projects across the mass transit system in the proposed 2015-2019 plan.
2067
— The year by which a state of good repair for all station components would be achieved at the current pace of progress.
New York City's outstanding debt has exceeded $110 billion, and the proposed $83.8 billion Ten-Year Capital Strategy lacks a direct link to a needs assessment, making it difficult to determine progress toward achieving a state of good repair. Without a comprehensive inventory of city assets and clear performance metrics, it is impossible to effectively track the management of capital projects or ensure spending is directed toward projects with demonstrable benefits.
Recommendations related to State of Good Repair
Proposed capital spending should be limited to clearly defined projects with demonstrable benefits.
The City should establish a single comprehensive source that describes all the City's assets and their condition to properly assess needs.
The City must provide performance metrics and timelines with milestones to track performance and hold agencies accountable for capital projects.
Key Data
$110 billion
— New York City's outstanding debt as of June 30, 2014.
$83.8 billion
— Total value of the proposed Ten-Year Capital Strategy for Fiscal Years 2016-2025.
$30 billion
— Increase in debt to be issued over the next four years.
96 percent
— Growth of New York City's outstanding debt since 2002.
The Metropolitan Transportation Authority requires over $14 billion annually to operate, with projected costs for mass transit services reaching $16.6 billion by 2018. To address a projected $2.1 billion funding deficit and ensure the system reaches a state of good repair, tax subsidies should be increased to cover 25 to 30 percent of operating costs while funding necessary capital investments.
Recommendations related to State of Good Repair
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, reflecting the broad economic benefits of mass transit and the costs associated with restoring the system.
Key Data
$14 billion
— Annual operating cost required for the MTA system.
$16.6 billion
— Estimated 2018 requirement for mass transit services, excluding Bridges and Tunnels.
$2.1 billion
— Projected unfunded deficit for mass transit services in 2018.
New York City's ten-year capital strategy lacks a direct link to a comprehensive needs assessment, making it impossible to determine how much progress will be made toward achieving a state of good repair for critical infrastructure. Furthermore, the plan relies on significant borrowing, with debt service projected to grow to $7.7 billion annually, while failing to provide sufficient performance metrics or clear justifications for billions in proposed investments.
Recommendations related to State of Good Repair
The Strategy should incorporate information from agency assessments and clearly spell out how much of state of good repair needs will be addressed by the proposed investments, and how quickly.
The Council should require improved reporting on the rationale for and performance goals of capital spending and should limit the capital budget to clearly defined projects with demonstrable benefits.
Agencies other than the Department of Transportation and Department of Education should improve their reporting to better align with state of good repair assessments.
Key Data
$83.8 billion
— The total value of the Ten-Year Capital Strategy for Fiscal Years 2016 to 2025.
$100 billion
— The amount of debt the City currently has outstanding.
$7.7 billion
— The projected annual cost of debt service by fiscal year 2019.
$30 billion
— The increase in the Ten-Year Capital Strategy from the prior strategy released in 2014.
$4.1 billion
— The amount proposed for sewer main expansion or replacement.
$22 billion
— The amount of new OneNYC investments for which details are lacking.
New York City's Ten-Year Capital Strategy, which includes $67.7 billion in capital commitments, requires greater transparency regarding debt affordability, infrastructure priorities, and performance targets. The strategy must explicitly detail how proposed investments will address the city's infrastructure needs and achieve a state of good repair.
Recommendations related to State of Good Repair
The City should clarify how much more debt will be issued and what benchmarks will be used to determine affordability.
Each agency should describe how its capital spending plans advance the goals of OneNYC, and funding for specific OneNYC infrastructure initiatives should be clearly identified.
Agency plans should be accompanied by information on per-unit costs and performance targets.
The Strategy should incorporate information from asset condition assessments and clearly spell out how much of state of good repair needs will be addressed by the proposed investments, and how quickly.
Key Data
$67.7 billion
— Total capital commitments in the preliminary Ten-Year Capital Strategy.
$14 billion
— Amount by which the Preliminary Strategy exceeded the previous ten-year plan.
8 percent
— Debt supported directly by City tax dollars as a percentage of real property values.
5 percent
— Affordability benchmark for debt supported by City tax dollars.
$100 billion
— Total debt outstanding for the City.
The Metropolitan Transportation Authority faces significant financial challenges, including recurring deficits and inadequate capital investment, which prevent the system from reaching a state of good repair. To address this, a new financing formula is proposed that balances costs among transit riders, motorists, and taxpayers to ensure long-term fiscal stability and infrastructure maintenance.
Recommendations related to State of Good Repair
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
$17.8 billion
— Cumulative unfunded Other Post-Employment Benefits (OPEB) liability as of the end of 2011.
$2 billion
— Current annual depreciation at the MTA, which represents the day-to-day decrease in the value of assets.
$32 billion
— MTA debt outstanding in 2011, which increased from $14 billion in 2000.
$16.8 billion
— Total investment in five 'megaprojects' that have consumed more resources than initially anticipated.
35 percent
— Portion of capital spending devoted to state of good repair (SOGR) projects from 1982-2009.
67 percent
— Combined total of capital spending devoted to bringing assets to and keeping assets in a state of good repair.
The Metropolitan Transportation Authority's capital plan fails to adequately address the need to bring aged infrastructure to a state of good repair, instead prioritizing network expansion projects without sufficient planning. To address the $15 billion funding gap and improve system reliability, the focus should shift toward transparency and prioritizing essential repairs over new expansions.
Recommendations related to State of Good Repair
The MTA should prioritize bringing aged infrastructure to a state of good repair over allocating funds to projects that would expand the network without sufficient planning.
Better planning and greater transparency should precede investments in new expansions.
The MTA should accelerate the schedule for adopting Communications-Based Train Control (CBTC) to improve safety and efficiency.
Key Data
two out of 14
— categories of assets—subway cars and mainline track and switches—that are rated 100 percent in a state of good repair.
$5.5 billion
— allocated in the proposed plan to projects that would expand the network without sufficient planning or capacity.
$1 trillion
— value of physical assets that the MTA requires substantial additional capital funds to sustain and enhance.
The MTA's 2015-2019 capital plan fails to adequately prioritize bringing aged infrastructure to a state of good repair, leaving critical systems in need of renovation while committing substantial funds to new expansion projects without clear justification. The plan leaves a $15.2 billion funding gap and lacks a comprehensive strategy for modernizing signal and communication systems, necessitating a revision to prioritize essential repairs and improve project management.
Recommendations related to State of Good Repair
The MTA should revise the proposed plan to make sufficient progress in bringing aged infrastructure to a state of good repair (SOGR).
The MTA should embrace a more ambitious schedule for modernizing signal and communication systems and provide the necessary funding in the 2015-2019 plan.
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.
The MTA should establish explicit criteria for selecting priority projects and consider evidence regarding how well a range of potential investments meet these criteria.
Key Data
$15.2 billion
— The amount of the unfunded gap in the MTA's 2015-2019 capital plan.
$5.4 billion
— The total shortfall in funding for SOGR compared to the needs assessment.
$815 million
— The reduction in funds designated for communication and signals at NYCT from the needs assessment to the adopted plan.
$10.8 billion
— The current estimated cost of the East Side Access project, which was originally approved at $6.3 billion.
$2.7 billion
— The shortfall in funding for SOGR at New York City Transit.
$1.6 billion
— The shortfall in funding for SOGR at Metro-North Railroad.
The PATH transit system requires significant capital investment, with 38% of the planned $1.9 billion in capital spending from 2014 to 2018 allocated to maintaining a state of good repair and addressing mandatory projects. These investments are essential for the system's long-term viability, though the system currently faces substantial and growing operating deficits.
Key Data
38%
— The portion of the $1.9 billion in planned capital spending from 2014 to 2018 allocated to state of good repair and mandatory projects.
$2.2 billion
— The estimated total value of damage to facilities from Superstorm Sandy, of which PATH suffered more than half.
$1 billion
— The amount expected to be spent on Sandy-related capital projects over 10 years, with 64% dedicated to PATH.
The New York State Department of Transportation faces significant challenges that require a comprehensive needs assessment and the identification of necessary resources to effectively implement a capital plan. Addressing these requirements is critical for maintaining infrastructure and ensuring long-term planning stability.
The Port Authority has adopted a long-term strategy that prioritizes maintaining assets in a state of good repair, yet it fails to base its capital strategy on a professional assessment of needed investments. Although the agency has secured a $780 million surplus for capital projects, it lacks a public rating system for project prioritization and independent engineering oversight.
Recommendations related to State of Good Repair
The Port Authority should base its capital strategy on a professional assessment of needed investment to maintain a state of good repair and accommodate long-term demand trends.
The Port Authority should use a long-term strategy to guide the capital budget that emphasizes maintaining its assets in a state of good repair.
Key Data
$780 million
— Surplus available for capital investment in the 2014 adopted budget.
The Metropolitan Transportation Authority lacks a comprehensive plan to bring its extensive physical assets to a state of good repair, with most infrastructure components remaining in poor condition despite significant historical and planned capital investments. To address this, the agency must prioritize achieving a state of good repair in its capital planning and develop a concrete, timely strategy to maintain its essential infrastructure.
Recommendations related to State of Good Repair
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.
Key Data
$115 billion
— Total capital investments made system-wide since 1982, which have failed to bring assets to a state of good repair.
$106 billion
— Total planned investment by the MTA over the next 20 years, which will still leave many infrastructure components not in a state of good repair.
$68 billion
— Portion of the 20-year investment plan allocated specifically for New York City Transit.
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 address these financial challenges and ensure the system remains in a state of good repair, a more equitable financing model should be adopted that balances costs among passengers, taxpayers, and motorists.
Recommendations related to State of Good Repair
Auto user fees should pay for the facilities available to drivers, meaning 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 and the benefits to drivers from reduced road congestion.
Mass transit users should pay fares sufficient to cover a share of the cost of those services, as riders receive a direct benefit.
State and local tax subsidies to mass transit should cover a share of the cost of those services, justified by the broad economic benefits to employers, workers, and shoppers 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 PATH in 2018.
38 percent
— Portion of PATH's 2014-2018 capital spending allocated to state of good repair and mandatory projects.
$2.2 billion
— Estimated total value of damage from Superstorm Sandy to PANYNJ facilities.
64 percent
— Portion of the $1 billion in Sandy-related capital projects dedicated to PATH.
$3.9 billion
— Estimated cost of the new WTC terminal and related amenities.
20 percent
— Expected capacity increase from the full modernization program.
New York City's capital planning has historically lacked a comprehensive, citywide strategy for routine maintenance, leading to a growing backlog of infrastructure in need of repair. To address this, the city should implement a 'fix it first' approach that prioritizes state of good repair projects and establishes clear, transparent guidelines for asset management and debt affordability.
Recommendations related to State of Good Repair
The next administration should enact clear guidelines or directives for performing routine maintenance and regular replacement of assets to prevent the state of good repair backlog from growing.
All city agencies and component units should undertake a comprehensive needs assessment that details the condition of major asset classes and the cost to fix those in disrepair.
The City should adopt a 'fix it first' strategy, in which state of good repair projects receive priority at each agency.
The next administration should articulate a standard for keeping debt from becoming unaffordable.
The City should renew its Project Labor Agreements to reduce labor costs and improve managerial flexibility.
Key Data
$87.7 billion
— The total value of assets owned by New York City and its related public authorities as of fiscal year 2013.
$6.4 billion
— The total state of good repair requirements reported in the Asset Information Management System in fiscal year 2014.
$13 billion
— The amount of unmet needs identified by the New York City Housing Authority's most recent Physical Needs Assessments through 2015.
$3.2 billion
— The projected cost of completing the Croton Filtration Plant, which is more than double the original cost.
$67.6 billion
— The city's total debt in fiscal year 2013, which was more than 8 percent of the full value of property.
$3.7 billion
— The amount invested in state of good repair in fiscal year 2014.
The MTA faces a significant long-term funding challenge, requiring $26.6 billion between 2015 and 2019 to address core capital needs like state-of-good-repair and rolling stock replacement. To bridge this gap and move away from debt-reliant cash accounting, the agency should adopt a funding model that balances fare revenue, tax subsidies, and auto-user fees.
Recommendations related to State of Good Repair
The MTA should continue moderate (but regular) fare increases, keep existing tax subsidies, and enact new forms of auto-cross subsidy to address the long-term need for enhanced funding.
The MTA should put renewed energy into cost reduction efforts to help address its financial condition and capital funding needs.
The MTA should avoid using alleged surplus resources to permit the planned fare increases in 2015 and 2017 to be lowered or postponed, as this is not sound financial management.
Key Data
$26.6 billion
— Estimated funding needed in the five-year period from 2015-2019 to cover core capital needs related to state-of-good-repair and regular replacement of rolling stock.
$2.8 billion
— The annual deficit the MTA is running this year when using Generally Accepted Accounting Principles (GAAP).
$1.9 billion
— The amount of new resources the MTA identified since February 2013.
$240 million
— The cumulative total of out-year budget gaps.
$67 million
— The amount generated annually by 2017 from cost-reduction initiatives outside of the paratransit program.
New York State's 10-year capital plan allocates $117.8 billion toward State of Good Repair (SOGR) projects, with the vast majority dedicated to transportation infrastructure. To improve this planning process, the state needs to provide better asset condition assessments, establish a clear framework for evaluating affordability, and standardize reporting on project commitments and disbursements.
Recommendations related to State of Good Repair
The State should provide better information about asset condition and the match-up between planned levels of state of good repair (SOGR) spending and need.
The State should develop an improved financing plan that addresses the issue of affordability.
Future plans should include better project-level data to facilitate project tracking.
The State should provide information on the estimated cost of reaching SOGR over the period of investment for every asset.
The State should set condition improvement targets and provide estimates of the cost of achieving the desired improvement.
The State should reconcile differences and standardize the approach to commitments versus financing and disbursements.
The State should establish a framework for assessing the affordability of the capital plan.
Key Data
$117.8 billion
— The total amount allocated for State of Good Repair (SOGR) projects in the 10-year statewide capital plan.
$89.2 billion
— The portion of the SOGR allocation dedicated specifically to transportation projects.
$43.4 billion
— The amount the Metropolitan Transportation Authority (MTA) will spend on SOGR to refurbish stations, maintain subway trains and buses, and replace rolling stock.
$39.1 billion
— The amount the Department of Transportation (DOT) will spend on SOGR for bridge and highway repair, as well as the upgrade of aviation and port facilities.
$1.2 billion
— The amount spent to maintain highways and bridges in fiscal year 2012.
$95.4 billion
— The total assets net of depreciation reported by New York State in fiscal year 2012.
NY1 The head of the Metropolitan Transportation Authority warns that subway tubes flooded during Hurricane Sandy likely still need repairs on equipment damaged by saltwater.
New York City's Ten-Year Capital Strategy allocates $24.5 billion to maintain infrastructure in a state of good repair, yet reports indicate that funding for these essential repairs remains insufficient to meet growing needs. The next mayoral administration must navigate difficult trade-offs between necessary infrastructure maintenance, climate resiliency investments, and an already high and rising debt burden.
Recommendations related to State of Good Repair
The next mayor will have to make difficult trade-offs between competing priorities while ensuring the city’s debt does not become unaffordable.
The next mayor will have to determine a level of long-term capital investment that takes into account the city’s already high debt burden.
Future resiliency proposals will need to be incorporated into the city’s long-term capital agenda to address threats from climate change.
Key Data
$24.5 billion
— Funding devoted to rehabilitating schools, repairing bridges, repaving roads and bringing other assets to a state of good repair.
$6.4 billion
— Needs for state of good repair in 2014, which have grown from $4.6 billion in 2003.
58 percent
— Required state of good repair work that will be funded according to the fiscal year 2014 report.
$67.9 billion
— City debt outstanding in fiscal year 2013, which is up 45 percent since 2003.
14.6 percent
— Share of city-funded expenditures currently made up by debt service.
$53.7 billion
— Total capital commitments proposed in the Ten-Year Capital Strategy for Fiscal Years 2014-2023.
The Metropolitan Transportation Authority requires a new funding model to address its significant deficits and ensure the system is maintained in a state of good repair. By implementing a '25-50-25' approach—relying on user fees, fare revenue, and tax subsidies—the system can secure necessary capital investments while distributing costs more equitably among riders, motorists, and the broader public.
Recommendations related to State of Good Repair
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.
Auto user fees should pay for the facilities available to drivers, meaning 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.
Key Data
$17.1 billion
— The annual operating and financing expenditures of the MTA's agencies in 2012.
$3.6 billion
— The projected deficit for the MTA in 2016.
$2.6 billion
— The amount of additional annual revenue the '25-50-25' approach would provide by 2016.
39 percent
— The amount of operating expenses the MTA currently recovers through fares.
33 percent
— The amount of operating expenses the Long Island Rail Road recovers through fares.
$2.75
— The cost of a single-ride subway ticket by 2016 under the proposed plan.
The Metropolitan Transportation Authority faces significant financial challenges, with inadequate capital investment preventing the system from reaching a state of good repair. To address this, a new financing formula is proposed that balances costs among riders, motorists, and taxpayers to ensure long-term fiscal stability and infrastructure maintenance.
Recommendations related to State of Good Repair
The cost of bridge and tunnel facilities should be funded entirely through user fees paid by motorists.
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.
New York should adapt and implement new policies imposing fees for vehicle access to the central business district.
Key Data
$79.8 billion
— Total amount the MTA was authorized to commit to capital investments from 1982 through 2009.
35 percent
— Portion of capital spending devoted to state of good repair projects from 1982-2009.
67 percent
— Combined total of capital spending devoted to bringing assets to and keeping assets in a state of good repair.
$2 billion
— Annual depreciation at the MTA, which represents the day-to-day decrease in the value of assets.
$16.8 billion
— Total investment in five major "megaprojects" that have consumed more resources than initially anticipated.
$3.6 billion
— Total cost overruns for the five major "megaprojects".
The MTA's financial instability has delayed plans to achieve a state of good repair for critical infrastructure like signals and line structures until after 2024. Consequently, the agency faces significant capital funding challenges that threaten the long-term maintenance and safety of the transit system.
Key Data
$3.5 billion
— Projected MTA deficit in 2013 under generally accepted accounting principles, which complicates funding for a state of good repair.
$3.8 billion
— Projected MTA deficit in 2014 under generally accepted accounting principles.
$4.0 billion
— Projected MTA deficit in 2015 under generally accepted accounting principles.
$720 million
— Projected savings in 2012 from the MTA's efficiency program, which is intended to help address financial gaps.
Public-private partnerships offer a potential mechanism to improve infrastructure management by focusing on life-cycle costs and ensuring facilities are maintained in a state of good repair. By prioritizing assets with significant maintenance backlogs and enhancing public sector oversight, these partnerships can help address the widespread deterioration of critical infrastructure like bridges, schools, and university facilities.
Recommendations related to State of Good Repair
PPPs should be focused on achieving efficiencies in the life cycle costs of facilities and ensuring their long-term maintenance at standards higher than typically achieved by direct public sector operation.
New York’s leaders should give high priority to assets that are currently in poor condition and have a history of poor maintenance.
In most cases, the PPPs should be initiated as pilot programs and viewed as benchmarks for project delivery times and maintenance standards.
The public sector must develop an enhanced capacity for contract design, performance measurement and monitoring in order for PPPs to be successful.
Public officials can negotiate with the private partner to establish contractually compensation or work conditions similar to that provided to public employees to address labor concerns.
Key Data
$1.6 trillion
— Investment necessary in the next five years to bring the nation’s infrastructure to a good condition.
$3.2 billion
— Critical maintenance backlog identified for the City University of New York system.
$1.7 billion
— Critical maintenance backlog identified for the State University of New York system.
$10.1 billion
— Funding needed over 12 years to address all critical dams.
$220 billion
— Amount needed annually through 2035 to maintain and improve all modes of surface transportation.
$509 billion
— Total value of 1,109 PPP projects launched globally between 1985 and 2007.
New York City faces significant infrastructure maintenance backlogs and should leverage public-private partnerships to address these needs for smaller-scale assets like schools and parks. By bundling these smaller projects into larger agreements, the city can better utilize private sector resources to upgrade and maintain aging public infrastructure.
Recommendations related to State of Good Repair
The city should move toward negotiating agreements that bundle together several schools or small parks.
New York City should harness best practices to apply public-private partnerships to assets of a smaller scale, notably schools, parks and bridges.
Key Data
$1.4bn
— Value of the deal negotiated by the Port Authority of New York and New Jersey for Terminal Four at John F. Kennedy International Airport.
$20m
— Annual payments provided by Cemusa for the design, construction, and maintenance of bus shelters and newsstands.
5,800
— Miles of streets and highways in New York City.
790
— Number of bridges in New York City.
1,000
— Number of public school buildings in New York City.
New York City faces a $5.6 billion backlog in infrastructure repairs, with current capital budgets covering only about half of the necessary funding to maintain assets in a state of good repair. To address this, the city must prioritize full funding for routine maintenance and utilize condition assessments to create a long-term strategy for upgrading public infrastructure.
Recommendations related to State of Good Repair
The city should make full funding of maintenance requirements an explicit priority.
The city should use the AIMS condition assessments as the starting point for developing the next 10-year capital plan.
The city should develop a strategy for upgrading all assets to a state of good repair.
The city should consider a reasonable time-horizon for upgrading each class of assets and identify specific steps to make progress against those goals.
Key Data
$5.6 billion
— Need for state of good repair work for existing facilities.
36 percent
— Increase in the estimated cost of needed repairs since 2000.
$2.9 billion
— Funding for AIMS capital work in fiscal year 2011.
53 percent
— Percentage of required funding for AIMS capital work in fiscal year 2011.
70 percent
— Percentage of maintenance needs funded in the operating budget across all facilities.
$1.2 billion
— Annual amount that could have been devoted to state of good repair between 2006 and 2009 to eradicate the need.
New York City lacks a comprehensive, systematic plan to maintain its vast infrastructure, with current assessments failing to prioritize assets in need of repair. To ensure long-term sustainability, the city must implement regular replacement cycles funded by operating revenues and justify new expansion projects through rigorous economic analysis.
Recommendations related to State of Good Repair
The City should improve its needs assessments and develop a systematic plan or timetable for bringing all capital assets to a state of good repair.
The City should place all its capital assets on regular replacement cycles according to their useful lives and fund their replacement with operating revenues.
Expansion projects should be clearly explained and justified with data that demonstrates economic and other benefits, or a high rate of return on the investment of public funds.
The City should expand the AIMS report to cover all capital assets and integrate the condition assessments of major capital asset systems into a comprehensive reporting structure.
Key Data
$5.4 billion
— Estimated funding required to achieve a state of good repair for assets covered by the AIMS report for fiscal year 2008.
$2.8 billion
— The funding gap for state of good repair, representing the difference between the $5.4 billion needed and the less than half currently funded.
$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 in fiscal year 2007 when calculated based on replacement cost.
$6.5 billion
— Unanticipated revenues in fiscal year 2007, which would have been sufficient to fully absorb the cost of asset depreciation.
$23 billion
— Total cost of planned expansion projects for the next ten years.
The fiscal year 2011 budget relies on past surpluses to balance expenditures, necessitating a shift in capital spending priorities. Future capital commitment plans should prioritize state-of-good-repair work on the City's aging infrastructure over less urgent development projects to manage growing debt service costs.
Recommendations related to State of Good Repair
The City should focus its capital commitment plan on key priorities, such as state-of-good-repair work on the City's aging infrastructure, while trimming back on less urgent development projects.
Key Data
$43.5 billion
— Total capital commitment plan for fiscal years 2010-2014.
$13.4 billion
— Record-high capital commitments in FY2010.
New York City faces a significant maintenance backlog, with $5.6 billion in capital work required to bring surveyed assets to a state of good repair. Despite increased capital spending over the last decade, funding for these necessary repairs has consistently fallen short, covering only about half of the required work in recent years.
Key Data
$5.6 billion
— Capital work needed to bring surveyed assets to a state of good repair.
16 percent
— Portion of the net value of all City-owned assets required for state of good repair work.
55 percent
— Portion of the City's capital budget for the current fiscal year required for state of good repair work.
$4.1 billion
— Total needed capital repairs in fiscal year 2000 to reach a state of good repair.
36 percent
— Increase in the cost of needed state of good repair work since fiscal year 2000.
$2.8 billion
— Funding allocated for AIMS state of good repair capital work in the last fiscal year.
The MTA's 2010-2014 capital plan faces a funding gap approaching $10 billion and relies on an adjusted needs estimate of $130 billion over 20 years, which fails to fully address the system's maintenance backlog. Priorities should be re-examined to focus on achieving a state of good repair for critical infrastructure rather than system expansion, while improving project management and transparency.
Recommendations related to State of Good Repair
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.
The composition of the plan should be tied more directly to an unconstrained needs assessment (which the MTA should publish).
Repair of critical infrastructure should be accelerated to the extent possible, which implies fewer resources would be available for other projects that expand the system.
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.
The MTA should commit to greater transparency in informing the public about the status of its capital projects.
Key Data
$130 billion
— Adjusted needs estimate for the 20-year period.
$32.2 billion
— Adjusted needs estimate for 2010-2014.
$22.2 billion
— Adjusted needs estimate for New York City Transit alone.
$10 billion
— Funding gap for the full five-year period.
$28 billion
— Investments outlined in the proposed 2010-2014 plan.
$18 billion
— Funding sources identified for the proposed 2010-2014 plan.
To maintain fiscal health and avoid the service cuts of the 1970s, New York City must prioritize the maintenance of existing infrastructure like sewers, roads, bridges, and schools over ambitious expansion projects. This approach requires a smarter capital budget that focuses on the upkeep of current assets rather than funding poorly justified economic development.
Recommendations related to State of Good Repair
The City should continue to invest in the maintenance of sewers, roads, bridges and schools.
A smarter, rather than bigger, capital budget will focus on better use and maintenance of existing assets rather than ambitious plans for expansion.
The Metropolitan Transportation Authority's capital plans, which have grown to $28.1 billion for the 2010-2014 period, are intended to bring transit systems to a state of good repair, yet the agency lacks a transparent, consistent system for tracking project progress and budget adherence. Despite significant investments, many subway stations and critical infrastructure components remain in poor condition, with the most neglected element, the signaling system, not expected to reach a state of good repair until at least 2025.
Recommendations related to State of Good Repair
The MTA should commit to an improved management information system for tracking capital projects and to greater transparency in informing the public about the status of its capital projects.
The MTA should improve its capacity to manage mega-projects and improvements in signaling and communications systems, as these are the areas of greatest delays and cost increases.
The next five-year plan should be based on a realistic assessment of what can be accomplished to avoid the pattern of deferring projects into future years.
Key Data
195
— Number of subway stations in a state of good repair in 2005, representing about four of every ten stations.
64%
— Portion of the 2010-2014 capital plan allocated for state of good repair and regular replacement projects.
2025
— Year by which the signaling system, the most neglected element of the transit system, is expected to be restored to a state of good repair.
468
— Total number of subway stations in the MTA rail network.
The Metropolitan Transportation Authority 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 the system's neglected infrastructure, state taxes should cover costs stemming from past policy failures, while regular maintenance should be funded through a balanced mix of fares, subsidies, and auto-user fees.
Recommendations related to State of Good Repair
We recommend that state taxes underwrite the needs that arise from bad policy decisions made by the MTA and state officials in the past to bring the system to a state of good repair; this is not a burden that should be imposed on current riders.
The 50-25-25 approach should be the basis for investments in the regular repair and replacement of facilities now in a state of good repair, with spending handled on a pay-as-you-go basis or the debt service for any associated borrowing being raised from that mix of sources.
The MTA’s leaders should give greater attention to improved planning and implementation, as the current 20-year needs assessment does not fully disclose the system’s state of good repair investment needs.
Key Data
$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.
25 percent
— Portion of work in the 2005-2009 capital plan that may not be started by the end of the period.
A coalition of organizations advocates for a mobility tax to fund the MTA's long-term capital needs, insisting that revenue be used for operating expenses only in the first year and contingent upon fare and toll increases of at least 8%. Following this initial period, the funds must be dedicated exclusively to the capital program and debt service to ensure the system's maintenance and modernization.
Recommendations related to State of Good Repair
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%
— The minimum level of toll and fare increases required if mobility tax revenues are used to support MTA operating needs during the first year.
Public-private partnerships offer a mechanism to improve infrastructure management by leveraging private sector expertise for design, construction, and maintenance, particularly for assets in poor condition. By focusing on life-cycle efficiencies and avoiding the misuse of up-front payments, these partnerships can help address significant infrastructure needs without relying solely on user fees.
Recommendations related to State of Good Repair
PPPs should be focused on achieving efficiencies in the life-cycle costs of facilities and ensuring their long-term maintenance at standards higher than typically achieved by direct public-sector operation.
Effective PPPs can be structured for assets without user fees through availability payment or shadow toll models, in which the public partner pays the private partner directly for the availability of usage of the asset.
Smaller assets can work as well when several similar assets are grouped together for a partnership with a single private partner.
New York’s leaders should focus on assets that are in poor condition and have a history of poor maintenance.
Large up-front payments should be avoided, as the temptations to use the proceeds for political expedient purposes or short-term budgetary balance, rather than for infrastructure investment, are too great.
The public sector must enhance its management capacity—particularly with respect to contract negotiation, design of performance outcomes, and monitoring—in order to be successful.
The desire to innovate should not lead to the design of PPPs in ways in which integral responsibilities are divided, as such partnerships are prone to failure.
Any labor concerns can be addressed in PPP contracts, by offering protections to workers for prevailing wages, similar terms of employment, or guaranteeing employment in other city agencies.
Key Data
$1.8 billion
— contract to build the Airtrain from Kennedy Airport to the Jamaica Station of the Long Island Rail Road
20-year
— partnership to rebuild and operate JFK Airport Terminal Four
20-year
— partnership with Cemusa, Inc. for the design, construction and maintenance of street furniture
New York's infrastructure faces significant maintenance challenges, with billions of dollars in backlogs across public university systems and national transportation networks. Public-private partnerships offer a potential mechanism to improve asset management and ensure facilities are kept in a state of good repair by leveraging private sector efficiencies and long-term maintenance incentives.
Recommendations related to State of Good Repair
PPPs should be focused on achieving efficiencies in the life cycle costs of facilities and ensuring their long-term maintenance at standards higher than typically achieved by direct public sector operation.
New York’s leaders should give high priority to assets that are currently in poor condition and have a history of poor maintenance when selecting opportunities for effective PPPs.
In most cases, the PPPs should be initiated as pilot programs and viewed as benchmarks for project delivery times and maintenance standards.
The public sector must develop an enhanced capacity for contract design, performance measurement and monitoring in order for PPPs to be successful.
Key Data
$1.6 trillion
— Estimated investment necessary in the next five years to bring the nation’s infrastructure to a good condition.
$220 billion
— Amount needed annually through 2035 to maintain and improve all modes of surface transportation in the United States.
$3.2 billion
— Critical maintenance backlog for the City University of New York system.
$1.7 billion
— Critical maintenance backlog for the State University of New York system.
$10.1 billion
— Funding needed over 12 years to address all critical dams in the United States.
A Panel Discussion A forum discussion on the efficacy of New York City's infrastructure plan and what steps it should take to ensure that current infrastructure is kept in a state of good repair. Mayor Michael Bloomberg delivers the keynote speech and CBC President Carol Kellermann gives the presentation on…
New York City's capital planning process is currently fragmented and lacks a comprehensive strategy, leading to inadequate maintenance of critical infrastructure. To ensure long-term sustainability, the city must implement systematic condition assessments, prioritize regular asset replacement cycles funded by operating revenues, and justify expansion projects through rigorous economic analysis.
Recommendations related to State of Good Repair
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 expand the AIMS report to cover all capital assets and integrating the condition assessments of major capital asset systems into a comprehensive reporting structure.
The City should place all its capital assets on regular replacement cycles according to their useful lives.
Key Data
$5.4 billion
— Estimated cost to achieve a state of good repair for assets covered by the AIMS report for fiscal year 2008.
$2.8 billion
— The funding gap for maintenance and repairs identified in the AIMS report.
$3.0 billion
— Depreciation of the City's major assets based on historical cost in fiscal year 2007.
$4.9 billion
— Estimated depreciation of the City's major assets when based on replacement cost in fiscal year 2007.
$60.5 billion
— Total value of City-controlled capital assets.
$18.4 billion
— Value of the water and sewer system.
New York City faces a growing backlog of structural repairs for its park facilities, with the estimated cost to bring major assets to a state of good repair reaching $394 million in fiscal year 2007. To address this, the city should shift funding for routine repairs from the capital budget to the operating budget and establish objective standards for maintenance to ensure all parks reach an acceptable condition.
Recommendations related to State of Good Repair
Bring all parks to an acceptable condition by creating a strategic plan that includes a timetable for bringing all park facilities to an acceptable condition and targeting new resources to the parks with the greatest need.
Encourage preventive maintenance and longer periods of usefulness by funding routine repairs and replacements in the operating budget rather than relying on the capital budget.
Improve productivity in parks maintenance and operations by establishing measures of park use and unit costs, and experimenting with contracting-out and other innovations to lower unit costs.
Create a stronger incentive for increasing concessions and other earned revenues by dividing growth in these revenues between the City’s general fund and a new fund dedicated to parks improvements.
Institutionalize responsibility for strategic planning for parks by engaging an entity within municipal government with a clear mandate from City Hall.
Common principles should guide the relationships between the DPR and its nonprofit partner organizations to ensure transparency and consistency.
Key Data
$394 million
— Amount needed to bring major DPR assets to a state of good repair in fiscal year 2007.
$178 million
— Amount needed to bring major DPR assets to a state of good repair in fiscal year 1997.
$44 million
— Amount the City funded in fiscal year 2007 to bring all covered facilities to a state of good repair.
$219 million
— Amount of priority A projects in fiscal year 2007.
$62 million
— Amount of priority A projects in fiscal year 1993.
The Metropolitan Transportation Authority faces significant financial challenges, with billions of dollars in deferred maintenance and a need for consistent funding to bring its aging infrastructure to a state of good repair. To address these deficits, a new financing model is proposed that relies on increased user fees from motorists and higher farebox recovery ratios to fund both operations and necessary capital improvements.
Recommendations related to State of Good Repair
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 subsidies 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.
The MTA should phase-in a policy of funding the estimated current cost of replacing capital used in operations from operating revenues and federal grants.
Key Data
$23 billion
— Total amount spent on state of good repair projects between 1982 and 2004.
$1.3 billion
— Estimated annual cost of normal replacement needs for the MTA.
$5.005 billion
— Amount allocated to state of good repair projects in the 2005-2009 capital plan.
$8.945 billion
— Depreciation amount projected for the 2005-2009 period.
The New York region's transportation infrastructure faces a significant backlog of maintenance and repair needs that will take years to address under current plans. To ensure a sustainable and efficient system, the region must adopt a comprehensive, regional approach to financing that relies more heavily on user fees and dedicated funding streams rather than unpredictable general fund appropriations.
Recommendations related to State of Good Repair
The governors of New York and New Jersey should create a new entity with authority to set and enforce regional transportation policies and priorities.
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
39 percent
— of urban roads in New York are in unacceptable condition.
37 percent
— of the bridges in both New York and New Jersey are structurally deficient or obsolete.
2019
— is the year the MTA expects to reach a state of good repair.
2025
— is the year mass transit lines in New Jersey will require for completion of all rehabilitation and improvement projects.
$1.2 billion
— was the total mass transit deficit in 2001.
New York City faces a significant funding gap in maintaining its transportation infrastructure, with an estimated $12.2 billion required for highway repairs and over $20.4 billion needed for mass transit to reach a state of good repair. Current capital plans fall billions of dollars short of these requirements, necessitating difficult decisions regarding how to balance the maintenance of existing systems with the demand for new capacity.
Recommendations related to State of Good Repair
New York's leaders should address the issue of how rapidly to achieve a state of good repair for the existing infrastructure.
Transit leaders should learn from the operations of other systems to identify modern human resource measures that could help enhance New York's future competitiveness.
Efforts to increase ridership should focus on off-peak hours since peak hour trains are already relatively crowded.
New York's leaders should address the issue of how much new mass transit capacity is necessary alongside the goal of achieving a state of good repair.
The city should modernize signaling and train control systems to increase the number of rush hour trains on the busiest subway lines.
Key Data
$12.2 billion
— Estimated cost needed to achieve a state of good repair for New York City highways over the ten-year period spanning fiscal years 1998 to 2007.
$8.1 billion
— Amount allocated by the City for highway repairs over the ten-year period spanning fiscal years 1998 to 2007.
$4 billion
— The funding gap between the estimated cost of highway repairs and the amount allocated by the City.
$20.4 billion
— Estimated cost needed to achieve and maintain a state of good repair for the facilities operated by the Transit Authority.
$9.7 billion
— The funding gap in four capital budget categories—line structures, signals, line equipment, and stations and communications—for mass transit.
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