The Governor's budget, which contained recommendations for 5-year highway and transit capital plans, took the smart step of de-linking capital funding levels for highways and transit, and prioritizing transit expansion. Previous multi-year capital programs maintained the political formula of funding NY State DOT and the MTA at equivalent levels. In contrast, Governor Pataki's budget this year backed the MTA's $16.5 billion capital program proposal, and called for a 5-year NY State DOT capital budget of $14.3 billion.

The State Senate and the highway industry have objected to the Governor's emphasis, calling for DOT spending levels that maintain highway-transit "parity." Their arguments do not recognize MTA Bridge & Tunnel and Thruway capital programs, each about $1 billion. With these in the mix, highway-transit parity already exists in the program proposals on the table.

However, it's unclear that Assembly and Senate budget resolutions will address multi-year capital budget issues. It's possible the Senate may use its higher revenue estimate to call for greater highway spending in 2000-2001, but there are strong signs that thorny long-term revenue problems will be put off until next year. This year, the Governor and legislature have already deep-sixed a modest Thruway toll increase (MTR #258).

Senate leaders had talked about putting a transportation bond issue before voters as a way to hike the NY State DOT 5-year program. Some Albany sources say the Senate has decided to put off any action on this initiative until next year as well.

A highway bond act may not find smooth sailing in any case. Transit advocates point to the large unfunded portion of the MTA capital program and to needs the $16.5 billion proposal does not meet, like more rush-hour service, the Second Avenue subway and clean-fuel buses, and will want a piece of any new transportation revenue. Environmentalists will also want to see a DOT project list, to see whether new funds will be directed to needed maintenance or to more highway lanes.