Transit and highway capital programs agreed to in Albany last year face funding shortfalls from the failure of last fall's transportation bond act. Governor Pataki's proposal did not provide any money to fill the holes.

The Senate says the state will bring in about $450 million more next year than Governor Pataki's budget estimates, and sees an even bigger surplus coming from this year's budget. All told, the Senate thinks there is about $1.24 billion more available for 2001-02. The Assembly says the number is even higher, at $2.1 billion.

In comments to a Newsday columnist last month, MTA executive director Marc Shaw suggested that, with interest rates falling, the MTA could further increase its borrowing and cover about $1 billion of the $1.6 billion it would need to fill out its $17.1 billion capital program. According to Shaw, that would leave $600 million to be made up by Albany during the life of the five plan. The MTA plan's heavy reliance on bond refinancing drew intense criticism as the plan was developed during 2000 (see MTR #265).