Issue 495 April 4, 2005

Prospects for MTA Fix-It Budget Looking Up

— Transit Expansion Left for Another Day —

As the New York State legislature passed its first on-time budget since 1984, hopes for critical work needed to maintain and improve downstate New York’s huge mass transit system rose. Though numbers reported by the press can be tough to follow with no accounting of various elements counted or excluded, indications are that the New York State legislature has come close to raising the full amount needed to fund the MTA’s 2005-2009 "core" maintenance and improvement program.

That is relieving news to advocates worried that Albany might sacrifice humdrum modernization of tunnel and track infrastructure in favor of expansion projects like the Second Avenue subway.

The legislature approved $17.9 billion each for the MTA and the NY State DOT five year programs. Reports indicate that a .125% sales tax increase in the downstate region, along with higher mortgage taxes and auto fees, will help raise additional revenue. Gov. Pataki, who has until April 12th to veto any measures, told the Daily News he "reluctantly supports" the sales tax hike. Part of the total would be $2.9 billion in state bonds that voters will have to approve in November. Specific projects to be included in the bond act are not now known.

Political face-saving, good use of money, both?

Over $2 billion in the plan that legislative leaders reportedly want to devote to transit system expansion projects is murkier. It’s unclear what exactly the money would pay for, or even what projects. In addition to the Second Ave. subway and the LIRR connection to Grand Central Terminal, the MTA is working on a plan to connect the LIRR to lower Manhattan, which is favored by business groups. The MTA could also end up being stuck with any cost overruns from the Bloomberg administration’s plan to finance the extension of the #7 subway line.

The $2+ billion won’t advance either the Second Avenue line or the LIRR-Grand Central project very far. It could keep some work going on them as a sort of down payment that would require a far greater allocation in the 2010-2014 program. That scenario, however, relies on faith that future politicians in Albany will do much heavier fiscal lifting than today’s have been able to accomplish. 

 

 

 

 

 


MTR #495 portable document format (PDF) file version
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