Cuomo agrees to do…something…as MTA cuts capital budget gapBy
Shortly after I delved into the back-and-forth regarding potential solutions to the MTA’s capital funding woes, the latest episode in this soap opera unfolded as MTA CEO and Chair Tom Prendergast and Gov. Andrew Cuomo engaged in a very public dance regarding financing solutions. While Prendergast discussed the MTA’s commitment to cutting a few billion out of its spending plans, the Governor seemed to accept the idea that the state would have to cover around $8 billion if the MTA’s proposal falls into place. But as the dust settled, we were all no closer to understanding just how this gap will be closed.
The first move on Thursday afternoon came in the form of a letter from Prendergast in response to City and State comments issued earlier this week. He wrote to Mary Beth Labate and Anthony Shorris, agreeing to cut costs through the design-build process, but Prendergast noted that a significant funding gap of around $9.8 billion remained. It’s both admirable and telling that the MTA could trim the gap from $15 billion a few weeks ago to under $10 billion today, but that’s still a sizable gap.
To ensure full funding, Prendergast proposed a two-prong solution of sorts. First, he asked the city to contribute an additional $200 million per year over the next five years in addition to $1.5 billion for the non-Federal share of the next phase of the Second Ave. Subway. The state would then have to come up with only $8.3 billion over five years. “We believe this split is more than equitable to the City, particularly given that $22 billion of the $26.8 billion Capital Program is for projects in New York City,” Prendergast said.
A little more than an hour later, Gov. Cuomo took to the airwaves in a short interview with New York 1 to respond to Prendergast’s letter. He begrudgingly accepted Prendergast’s split of the funding burden: “The MTA divides the $9.8 billion by what they think is fair for the state and fair for the city and I could argue that it’s a little burdensome on the state. But I would accept the MTA’s numbers just to get it done and to go forward.”
He went on in this vein for a while:
Historically, the city was broke…Secondly, something like 90% of the MTA ridership is in the city and of the $26 billion in work, $22 billion of the $26 billion is in New York City. So New York City is a lion share of the riders. They’re a lion share of the assets and I understand they haven’t paid much historically, but the city’s financial condition is much different than it was and I think the MTA is asking for $200 million per year for five years. The city ends up paying a fraction of what the state would be spending, so I think it is fair and it allows us to resolve the matter and move forward. It’s a much larger number for the state, the state ends up paying $8 billion and the city would be a total of about $3 billion at the end of the day so it is, I think, more than fair to the city.
This was his way of slamming New York City — something Cuomo has done repeatedly in recent days as the relationship between he and the mayor has devolved into something you might find in a high school cafeteria. But Cuomo isn’t exactly correct. As the Citizens Budget Commission recently highlighted, the overwhelming majority of all MTA funding comes from the city. Perhaps Cuomo doth protest too much, but that’s politics.
Unfortunately, for here, the NY1 interview veered off the proverbial tracks. The host asked about Uber and then returned to the MTA. Cuomo indicated that he wasn’t keen on seeing the agency raise fares to fund the capital plan and has accepted that the state will fill a $8 billion gap. But the key question remains unanswered. Despite Thursday’s politicking, we still don’t know how the state will find $8 billion or if the city will do its part here. These are major questions that leave $10 billion in the five-year plan still unaccounted for.
So have we gotten anywhere? On the one hand, the Governor has committed to solving the MTA funding gap, and as we know, what Cuomo wants, he seems to get. But the mechanisms of the revenue streams will have to be hashed out amidst the halls of Albany and City Hall. We’re inching towards a resolution, but this saga is far from over. Cuomo is no savior yet.