Funding for NY State DOT capital projects in Governor Pataki’s budget proposal is essentially flat.

It will likely preclude major projects or initiatives on the scale of the L.I.E. HOV lane, which has been the Department’s largest scale capacity project during the 1990’s and 2000’s, and which may be completed next year.

Like the MTA program proposal, revenue sources allocated to a planned DOT 2005-2009 program cannot complete the $17 billion total. The final two years require additional resources. In the DOT case, the administration is considering "public-private partnerships" to bring in new money.

The part of the program that is funded relies in part on refinancing bonds that the DOT sells via the NY State Thruway Authority. Executive budget documents admit that the plan will further encumber the DOT with debt and that it is set up to push fiscal pain off into the future: "As a result of the restructuring, debt service costs will be lower in the early years of the Capital Plan, but the final-term of the existing debt will be extended by about 13 years resulting in higher levels of outstanding debt and future debt service costs."

Also like the MTA program, continuation of current funding levels is unlikely to be sufficient to meet basic infrastructure repair and improvement needs. According to NY State DOT data, pavement conditions in the state improved from 42.8% in "poor" and "fair" condition in 1995 to 30.2% in 2000.  But now they are beginning to worsen again. By 2004, 36.6% of the state’s roads were rated "poor" or "fair," a decline of 21% since 2000.

The state's bridge conditions improved slowly from 30.9% deficient in 1995 to 27.4% in 2004 (with a leveling off from 2003-2004). 

It is unknown at present if the DOT has compiled a specific project list that corresponds with the $17 billion level or some higher requested funding level.

In testimony to the NY State Legislature over the budget proposal, NYSDOT Commissioner Joseph Boardman said it could make sense for the state to seek private involvement in infrastructure projects. According to news reports, Boardman specifically mentioned the Tappan Zee Bridge. Since the span faces major structural problems and a decision about rebuilding or replacing it could entail a hugely expensive project, it remains to be seen whether it can be made attractive to private capital. Toll roads are probably the only transportation systems that could attract private investment, though Boardman seemed unenthusiastic about turning over freeways to private companies that would charge a toll.

Pataki’s budget proposes legislation that would authorize state transportation agencies to enter into partnerships with private companies. 

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