While attention to MTA budget matters last week focused heavily on pending fare increases, the MTA released an ambitious five-year capital budget which, if fully funded by Governor Pataki and the state legislature, would make major strides toward linking the Long Island Railroad to Grand Central Terminal and building the Second Avenue Subway without sacrificing the ongoing rehabilitation of NYC’s vast mass transit system.

The $25 billion MTA program would represent a nominal 43% increase over the $17.5 billion 2000-2004 program, and a roughly 33% real boost if inflation from 2000 to 2004 is considered.

Funding the whole program will be a big lift in Albany and City Hall. After anticipated federal funding is counted, the MTA will need to find $11.3 billion for its "core" system repair and maintenance program, and another $4.2 billion for the system expansion projects. The $3 billion-plus per year would have to come in the form of new MTA revenues or support from state and local governments. Under the Pataki administration thus far, the MTA has relied on fare increases and borrowing to fuel its capital programs. New York City is also making its lowest contribution to transit capital improvements since the rebuilding programs began in the 1980s.

The program was criticized in Friday’s papers by State Senator Dean Skelos, the NY Senate’s point person on MTA capital spending. Skelos called it a "Cadillac" plan whose scale is "unsustainable and ill considered."

The MTA staff delivered a strong presentation on the importance of funding the core program of system repair and replacement of ageing infrastructure, describing the "slippery slope" created by neglected maintenance and declining conditions in the transit system. The 2000-2004 capital program devoted $14.7 billion to spending on the core (with the rest of the program going to LIRR East Side Access and other projects). The new proposal calls for $17.2 billion, with $12.1 billion of that for NYC Transit. This core program also contains $22 million for "first phase" NYC bus rapid transit projects, $203 million for the LIRR Main Line third track project and $500 million for new security investments.

The rest of the money would go to the system expansion projects, with $4.6 billion total for LIRR East Side Access and $2.8 billion for the Second Avenue subway. $2 billion is also listed for the #7 subway extension, but it is expected to be fully funded by New York City (we do not include the $2 billion in any of the MTA totals reported here). $400 million would be devoted to the LIRR-downtown Manhattan link. However, it’s unclear in the wake of Thursday’s announcement that the Bush administration will recommend the payment of $2 billion in cash for NY transportation needs in lieu of post 9-11 tax credits that the MTA would still have to fork up this money during the 2005-09 period.

All told, the $25 billion program is not far off of the $26 billion recently recommended by the Regional Plan Association (MTR #466). It devotes more than RPA expected to the LIRR East Side Access project, slightly less for the Second Avenue subway, and about $1.7 billion less for core repair and replacement work.   

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