CHSRA, MTA projects to bring economic growth to respective regions

The California High-Speed Rail Authority (CHSRA) and the Metropolitan Transportation Authority (MTA) are each completing projects that will bring economic growth to their respective regions. 

CHSRA

CHSRA released its 2024 Economic Impact Analysis Report on Jan. 23. The report highlights substantial benefits to the state and underscores the high-speed rail project’s role in stimulating economic growth, as work continues to build the first high-speed rail system in the U.S. 

“The benefits of investing in a high-speed rail system continue to ripple through the California economy. This project is creating meaningful partnerships and jobs, lifting up disadvantaged communities and supporting greenhouse gas reduction goals,” said CHSRA Chief Financial Officer Jamey Matalka. 

According to the report, 99 percent of the project’s 2023-24 fiscal year expenditures have gone to California businesses and workers, with two out of every three dollars going to disadvantaged communities, driving substantial economic activity in these areas.  

CHSRA estimates the project has created approximately 109,000 job-years of employment, spurring more than $8 billion in total labor income earned by workers on the project and nearly $22 billion in total economic activity. According to CHSRA, a job-year is defined as the equivalent of a full-time job for one year. 

The authority estimates completing the 171-mile Merced to Bakersfield, Calif., initial passenger service would, in addition to cutting existing trip times in half, add to these numbers, resulting in a total of 333,000 job-years of employment and total economic activity of $70.3 billion. 

According to the CHSRA, estimates show the complete build-out of the 494-mile Phase 1 system between San Francisco to Los Angeles/Anaheim via the underway Central Valley section would cumulatively create a total of 1,034,000 job-years of employment and total economic activity of $221.8 billion. 

CHSRA’s economic impact analysis is updated annually and reflects data as of June 2024. The authority notes construction progresses daily on the project, as there are currently 171 miles under design and construction from Merced to Bakersfield. CHSRA notes more than 60 miles of guideway is completed and, of the 93 structures needed, 50 are complete and more than 25 are under construction between Madera, Fresno, Kings, Tulare and Kern counties. 

Earlier this month, CHSRA began its railhead project in Kern County. According to the CHSRA, construction of the railhead is a major step in the track and systems process and signifies the next phase of the high-speed rail program and includes the installation of temporary freight tracks that will help transport materials needed to build the future electrified, high-speed rail tracks. CHSRA notes the railhead project is possible due to the completion of Construction Package 4, which is comprised of 22 miles and 11 structures. 

The authority says that since the start of high-speed rail construction, the project has created more than 14,500 construction jobs, mostly going to Central Valley residents. CHSRA notes it has full environmental clearance on 463 miles of the high-speed rail program from the Bay Area to downtown Los Angeles. 

The full 2024 Economic Impact Analysis Report can be found on CHSRA’s website. 

MTA 

MTA’s 2025-2029 Capital Plan will generate $106 billion in economic activity and more than 70,000 jobs statewide, according to a new analysis conducted by EY and commissioned by the Partnership for New York City. 

The report describes the impact of the MTA’s proposed capital investment if the plan is approved and fully funded during budget negotiations between New York Gov. Kathy Hochul and the state legislature. 

The MTA plan proposes investing $68.4 billion in capital improvements and state of good repair for the regional mass transit system. If fully funded, MTA notes the 2025-2029 Capital Plan will generate new economic activity for all 10 regions of the state. The authority says more than one in four jobs will be created outside of New York City, and the average direct labor income would be roughly $119,000 per worker. 

“This analysis indicates that fully funding the MTA’s proposed capital program will be a ‘win-win’ that will catalyze critical improvements in transit service and provide a major boost to the state’s economy,” said Partnership for New York City President and CEO Kathryn Wylde.   

MTA notes that while most of the direct spending will be in New York City, Long Island stands to gain more than $7.5 billion in GDP and more than 10,400 jobs. The other regions will also realize substantial benefits, including:  

• $6.1 billion in GDP and an estimated 9,160 jobs in the Hudson Valley 
•  $50 million and 90 jobs in the North Country 
•  $120 million and 200 jobs in Western New York 
•  $80 million and 140 jobs in the Finger Lakes 
•  $60 million and 100 jobs in Central New York 
• $60 million and 100 jobs in the state’s Southern Tier 

 MTA says the proposed Capital Plan is expected to include major purchases of key equipment from manufacturers in New York, including new rail and subway cars, buses, new signaling equipment and additional tracks. According to the MTA, implementation of the plan relies on the expertise and services of New York-based construction, engineering and professional services firms and thousands of New York workers, which collectively supports both direct and indirect jobs and business revenues throughout the state. MTA notes every $1 billion of spending from the authority would support nearly 5,900 New York jobs, half direct and the remainder through indirect or induced economic effects. Furthermore, for every $1 billion spent on new rail cars, 900 New York jobs are created. 

“The MTA carries over 5.5 million passengers every weekday across its network of subways, buses and commuter rails, but its impact is far greater. We are pleased to have assisted the Partnership for New York City in analyzing the economic impact of the proposed MTA Capital Plan, and how the MTA serves as an economic engine beyond the borders of its service area and throughout the state of New York,” said EY US Transactions Infrastructure Leader Tom Rousakis. 

“It’s no secret the MTA is the economic engine of the region, and this report confirms once again that investing in transit is a smart play for all New Yorkers,” said MTA Chair and CEO Janno Lieber. “The 2025-2029 Capital Plan will not only bring the system into the 21st century, but supports more than 70,000 jobs and generates billions of dollars in economic activity in every corner of the state. Now, it just needs to be fully funded.”