Oct
09

Paterson: MTA capital plan ‘unaffordable’

By · Published in 2009

Every five years since the mid-1980s, the MTA has presented a five-year capital plan to Albany for approval. Designed to keep the subways up and running while allowing for necessary improvements and expansion, these five-year plans have been vital for the renaissance of the New York City subway system. Coupled with a generally sunny economic outlook, the MTA has never had a problem securing the billions it asks for every half a decade.

Now, though, the MTA is in trouble. Already enjoying the fruits of a multi-billion dollar bailout package that covers its operations budget deficit, the MTA has a giant $10 billion hole in its $28.1 billion 2010-2014 capital plan. When the transit authority went to Albany for the bailout, the state legislatures were well aware of this capital problem, and instead of passing a package that would have funded the capital plan, they put it off for another day when the economy improved.

As the credit markets have not improved as quickly as Gov. David Paterson’s economic team had hoped they would, the governor is now warning that the MTA’s capital plan — and NYDOT’s own five-year $25.8 billion capital plan — are “unaffordable” right now. In a statement about DOT’s plan, he lobbed a grenade at both of these capital programs:

“Today the State Department of Transportation submitted their proposed 2010-2015 five year capital program as required by the MTA financing legislation I signed into law earlier this year…

Unfortunately this plan, and the plan the MTA submitted on October 1, are simply unaffordable given New York’s current fiscal condition. I will not agree to raise taxes, which would be required to fund these plans, as Congress has not renewed the federal multi-year transportation program and State revenues continue to decline.

If the Legislature does not work with me to address the budget deficit, it will become increasingly difficult to enact a necessary and affordable road and bridge plan for New York. We cannot afford a multi-year plan until the economy improves, the federal government provides adequate multi-year funding, and the Legislature joins me to seriously address the structural imbalance in the state budget. This plan must be need based; fiscally prudent without relying heavily on bonding; balance transit, rail and highway needs; and support the economic growth of New York.”

For coverage on the non-renewal of the federal transportation program, check out Transportation for America and Streetsblog Capitol Hill. We’ll focus on what Paterson said about the state’s commitment to its transportation infrastructure.

Now, Paterson’s comments are alarming for the simple reason that he is deeply unpopular and shouldn’t be afraid of a using his veto. He may face a primary challenge next year, and electorally and politically, he may be a lame duck right now. If he doesn’t feel the state can afford these programs, he can veto the eventual Senate and Assembly approval.

For their parts, Assembly members are more willing to explore funding alternatives. Although upstate Republicans were complaining about preferential treatment for the MTA at the expense of roads, downstaters recognize that both systems need to be funded and maintained. “Our infrastructure is the backbone of our economy, and we cannot allow it to be crippled,” Westchester Democrat Richard Brodsky said.

The Senate Transportation Committee too sounds as though it will pass both spending plans. “While I understand the state’s fiscal predicament, and applaud Governor Paterson’s efforts to remedy it, I cannot condone actions on his part to undermine the legislature and be both the judge and jury on an issue as important as statewide transportation,” Martin Dilan (D-Brooklyn) said. “If the Governor wanted a ‘need-based’ priority plan, he should have asked the executive agency responsible for drafting one to do so.”

I am hopeful that the MTA will not be left out in the cold, but if the state fails to guarantee its spending plan, it may be left with having to make some hard choices. The agency will either have to reduce the plan to around three years from its current five-year term or choose to cut some projects. Threatening to eliminate station renewal plans could spur political action as constituents complain to their representatives.

When push comes to shove, Paterson is probably engaged in a bit of politicking. It is, however, dangerous to play with the infrastructure upon which this city is so dependent. Playing with funding will only get him burned.



Categories : MTA Politics

5 Responses to “Paterson: MTA capital plan ‘unaffordable’”

  1. Christopher says:

    he infrastructure upon which this city is so dependent

    And note to upstate politicians: where the city and the metro region go, so goes the state. (And really with the size of NY, so goes the country…).

    NYC is the economic engine that drives the state of NY (and the states of New Jersey and Connecticut too.) It’s a false choice to say we need to “balance spending” — especially with low density parts of the state. (Sure, sure, more effort should be put into revitalizing other urbanized areas in the Western parts of the state by also building up their transit and dense developing patterns — but let’s not have them kid ourselves into thinking that all parts of NY state are created equal.

    This of course is a bad aspect of our political structure, where the rural parts of America have an outside weight in making political decisions. (Other countries have done away with this problem by elevating metro areas to state-like status. Japan for instance. Or taking on a more country wide planning paradigm, like England, but that’s not really feasible in a country as large as ours.)

    So it’s important that leaders in Albany (ha! leaders..) realize the importance of NY and the metro area and in turn the subway as the linchpin with that, while making decisions that will affect the economic vitality of the entire state.

    If they gamble with the NY subway system, they gamble with the entire state economy.

  2. DMIJohn says:

    I saw Lt. Governor Ravitch speak at the SmarterCities conference last week. He suggested that NY State was at the “upper bounds” of what it could bear in terms of taxes. This mirrors Paterson’s comments that he will not raise taxes to fund these capital needs. If the administration is really in the mind that taxes absolutely cannot be raised, there will definitely be trouble ahead.

  3. george says:

    I have an idea, lets give everyone a big fat undeserved raise, on millions in waste and fraud

    then wonder why Albany won’t fund us, and the public at large wont trust us

    then complain

    rinse.repeat

  4. MichaelB says:

    It’s all fine and good to say that the MTA capital plan is a worthy cause. There are lots of worthy causes. The reality is that both city and state tax revenues have declined dramatically, and are likely to remain at a reduced level for several years. It IS unaffordable. Unless you’re willing to make some cuts to other parts of the budget.

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