Governor Pataki’s proposed 2004-2005 budget continues road and transit capital spending at roughly the same level as last year, though highway construction funding is somewhat less due to expiration of a one year addition of $137 million. A one-year hike of $34.9 million in highway local aid also expires. The plan’s rather staid nature may be the calm before the storm that will ensue when the MTA and state highway capital programs are reauthorized in Albany next year — a doing that is likely to require new revenue.

The transit budget highlight is an additional $46 million in state operating aid for the MTA ― over $39 million for NYC Transit and about $7 million for the commuter railroads (about 3.8% and 1.8% increases, respectively).

Our preliminary look at the budget bills indicated sizeable cuts for mid-sized agencies ― the Westchester and Nassau bus operations and the larger transit agencies in upstate cities looked to take significant hits. However, Westchester and Nassau officials we contacted seemed unconcerned, so it may be that funding reduced in regular transit operating assistance accounts are made up in more opaque passages of the document. NY State budgets are notoriously difficult to follow and interpret.

A "reappropriations" section includes funding for study work for a rail freight yard at the Pilgrim State Hospital site in Suffolk County. NY State DOT has completed a feasibility study for it and needs to move ahead with environmental review. Money for this next phase was reportedly held up by Governor Pataki’s budget office last year.

Text in the MTA’s section of the budget overview reiterates the umbrella agency’s determination to consolidate Metro-North and the Long Island Railroads into one operating entity, and to merge Long Island Bus into the NYC Transit bus division. The concept was heavily criticized last year, and it is unclear how far the issue can proceed in Albany.

Budget documents also vaguely refer to the reorganization of the NYS DOT, announced at this time last year (MTR #401). The discussion also notes the uncertainties of future federal aid levels, given the prolonged reauthorization of federal transportation funding legislation (see article, last page).

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