A report from New York State’s top fiscal authority warns that the Metropolitan Transportation Authority (MTA) may face a financial gap between the construction and maintenance it requires and the funds it has available.
State Comptroller Thomas DiNapoli, in a report released Thursday, projected that the MTA’s upcoming five-year capital plan could cost as much as $92.2 billion. This estimate does not include a $15 billion shortfall created by Governor Kathy Hochul’s decision to pause congestion pricing.
Every five years, the MTA releases a new capital plan outlining construction and maintenance projects aimed at keeping the mass transit system operational and improving services. The upcoming 2025-2029 plan may include funding for projects like the Interborough Express light rail line between Brooklyn and Queens, an expansion of Penn Station, subway accessibility upgrades, and new subway cars to replace aging trains, along with modern buses.
“The decisions made in the next capital plan will impact New Yorkers for years, affecting the comfort, safety, reliability, and frequency of the transit system,” DiNapoli’s report emphasized.
The report also indicated that the capital plan could cost as little as $57.8 billion if the MTA prioritizes essential maintenance to maintain current services over new projects like the Interborough Express.
The current MTA capital plan, which covers 2020-2024, was originally budgeted at $51.5 billion, but the cost has since risen to $54.8 billion.
DiNapoli pointed out that state lawmakers must address the funding gap left by the congestion pricing pause and determine how to finance the next capital plan.
“The analysis shows that the MTA will likely have more needs, including system improvements and expansions, than available funds,” DiNapoli wrote.
A funding gap could negatively affect the city’s mass transit services, the report warned.
“While investment slowdowns are not new for the MTA, they would have cumulative impacts on the system’s condition and the services it provides over time,” the report said.
DiNapoli proposed that the state explore familiar funding sources for the MTA, suggesting potential tax increases. These could include hikes to the state’s internet sales tax, payroll mobility tax, corporate franchise surcharge, petroleum business tax, and mansion tax.
Despite these proposed increases, DiNapoli noted that the state may still need to introduce a new tax to cover the MTA’s future construction costs.
In response to the report, MTA spokesperson John McCarthy stated, “We appreciate this thorough analysis from the comptroller, and we plan to release a detailed capital plan this month following the needs-based approach outlined in his report.”
Written By Stephen Nessen, Gothamist
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