OP-ED: A third $39 billion COVID-19 transit agency bailout needs more detailed justification

Are there other solutions for New York Metropolitan Transportation Authority (MTA) Chairman Pat Foye rather than asking for a significant portion of an additional national $39 billion third COVID-19 financial bailout from Washington, D.C.? These dollars are suppose to cover future anticipated deficits for 2022 to 2024. The MTA continues to place its $51 billion, Five Year Capital Plan (2020-2024) on hold due to funding assumptions which were never realistic The only exceptions appear to be $9 billion worth of projects carried over from the previous 2010 - 2014 and 2015 - 2019 Five Year Capital Programs and billions more under various Federal Transit Administration formula and competitive discretionary grant programs.

While Washington continues to deliver, there is little evidence that either New York City Mayor Bill de Blasio or New York Gov. Andrew Cuomo have delivered any of their respective promised $3.5 billion commitments to help fund the current $51 billion NY MTA Capital Plan.

Due to the economic recession as a result of COVID-19, many billions anticipated from congestion pricing, real estate transfer, internet sales, along with other city and state taxes, will be lost. The MTA's original next $8 billion bailout request is on top of $3.8 billion emergency COVID-19 funding that Uncle Sam made available on March 25, 2020, and second $4 billion bailout which will be received under another COVID-19 grant from the Federal Transit Administration in coming weeks. This second bailout is suppose to be sufficient to carry the NY MTA through the end of 2021. A third $8 billion bailout to cover MTA anticipated shortfalls from 2022 to 2024 was originally planned to be part of a $24 billion national package. Now, the price tag appears to have jumped to $39 billion overnight.

MTA Chairman Foye's February 3, 2021 letter, cosigned by 21 other transit agency heads, addressed to Senate Majority Leader Charles Schumer, Senate Minority Leader Mitch McConnell, House Speaker Nancy Pelosi and House Minority Leader Kevin McCarthy for an additional $39 billion COVID-19 bailout makes reference to "without additional federal resources, our agencies could be forced to implement drastic cuts to service, make unthinkable layoffs and/ or delay or cancel critical capital projects" needs to be explored further.

"Drastic cuts to service" requires a public hearing process. Any recipient of Federal Transit Administration funding has to be in compliance with federal Title 6 and other civil fights requirements. Service cuts can't have an adverse impact on minority, low income and physically challenged communities. Does anyone really believe that riders, transit union members and elected officials would not fight this?

"Unthinkable layoffs" are highly unlikely. While it easy to layoff non union management employees, it is not the same with with union employees. Elected officials depend upon transportation union endorsements, campaign contributions, phone banks and volunteers. At the end of the day, they will not stand up against their benefactors and openly support any transit agency management in instituting significant layoffs. Riders do not have the stomach to put up with potential work slow downs, service disruptions, employee sick outs and possible strikes by unions who are not going to give up what they have. Management would quickly cave to union demands against layoffs.

"Delay or cancel critical capital projects" needs to be documented for every transit agency. Use the New York Metropolitan Transportation Authority as an example. The NY MTA is comprised of New York City Transit subway, bus and Staten Island Railway, MTA bus (former NYC DOT private franchised bus operators), Long Island Rail Road, Metro North Railroad and Capital Construction. The MTA has both Five Year and Twenty Year Long Range Capital Plans, which are periodically updated. (For whatever reason, the MTA has refused to make public the updated 2020 - 2040 Twenty Year Long Range Capital Plan which was promised to be released in December 2019 and is now 14 months late). Both documents clearly outline what capital funding is needed to maintain both a State of Good Repair for existing equipment, facilities and services along with safety, security and any future system expansion projects and programs. Specific costs and individual MTA operating agencies are also identified for both projects and programs. Which critical capital projects would be "delayed or canceled"?

The New York State Department of Transportation (NYSDOT) maintains the Statewide Transportation Improvement Program (STIP). Each Metropolitan Planning Organization (MPO) for every urbanized area which is affiliated with NYSDOT maintains a local Transportation Improvement Program (TIP). This includes the New York Metropolitan Transportation Council (NYMTC). It is comprised of the New York City, Long Island (Nassau & Suffolk County) and Mid Hudson South (Westchester, Putnam & Rockland County) Transportation Coordinating Committees. Both the STIP and TIP documents contain a complete inventory of potential transportation improvement projects, respective sponsoring agency, estimated cost and funding source. The current TIP/STIP should have a fully programmed Annual Element (2021), Bi Annual Element (2022) along with years 2023, 2024 and 2025 list of MTA capital projects including funding sources. Both the MPO and NYSDOT maintain five-year short range and 20-year long range plans. They include lists of potential capital transportation improvement projects by recipient and operating agency. A careful detailed review of all of these documents is necessary to validate the MTA Chairman Foye's justification for his largest share of the $39 billion.

Every transit agency should maintain an up-to-date Bus, Ferry and Rail Fleet Management Plans. These documents also need to be reviewed. Have they been updated since February 2020? Many transit agencies will not see a return to 80 percent or 90 percent of pre COVID-19 ridership until 2024 or 2025. Anticipated ridership growth based upon expansion of existing or new system projects pre-COVID-19 numbers also need to be reevaluated. How many former commuters will continue to work from home full or part time? How does all this impact ongoing and future bus, ferry, subway, light rail and commuter rail equipment purchases for routine replacement versus system or service expansion? Are any of these projects being counted as part of "canceled or delayed" capital projects?

Transit agencies nation wide must first deal with a backlog of $3.585 billion worth of FTA carryover discretionary allocations that have not completed FTA's Transit Award Management System (TrAMS) used to award and manage federal grants. (Source: January 19, 2021, the Federal Transit Administration Notice of Available Funding for Federal Fiscal Year 2021).

Successful completion of the process results in obligation of funds under an approved grant. The same holds true for several billion in carryover FTA funding under various formula programs made available in 2019 or 2020 that have not yet been obligated under approved grants. Next, is to deal with $13.9 billion in the second round of COVID-19 funding just made available only weeks ago. (Source: January 19, 2021 Federal Transit Administration Notice of Available Funding for Federal Fiscal Year 2021).

There is also $12.788 billion worth of new FTA funding under various formula programs made available in 2021. (Source: January 19, 2021 Federal Transit Administration Notice of Available Funding for Federal Fiscal Year 2021). Grant applications for all of these funds need to be entered in TrAMS for future obligation of funds later this year. Finally, every transit agency needs to conduct a forensic audit of all active FTA grants which nationwide are in the tens of billions. (Source: Federal Transit Administration TrAMS grantee First Quarter January 2021 Quarterly Financial and Milestone Progress Reports for the period October 1, 2020 to December 31, 2020). Ask your local transit agency or FTA Regional Office for a copy of their own reports and see for yourself.

Are there left over funds from previously completed projects or projects not under way? These funds could be reprogrammed to other projects via budget revisions or zero dollar FTA grant amendments entered into TrAMS. Only completing all of the above, can transit agencies and advocates make the case for a third round of FTA CARE COVID-19 relief funding.

Cities, counties and states who also provide capital and operating assistance to the same transit agencies FTA funds should not be using a transit agencies receipt of any CARE COVID-19 dollars as an excuse to renege on their own previous funding commitments as a way to balance their own budget shortfalls. Transit agency funding has always been a partnership between riders paying at the farebox along with combinations of city, county, state and federal funding. Everyone needs to continue doing their fair share.

My old colleagues at the Federal Transit Administration 10 Regional and HQ offices need to conduct their own independent analysis for all of the above to confirm justification for a third national $39 billion CARE COVID-19 bailout. FTA will also need the assistance of Financial Management Oversight (FMO) Consultants to assist Regional Office staff in conducting this exercise, Transit riders, taxpayers, transit advocates and elected officials at all levels of government deserve accuracy and transparency to justify any additional funding. Washington faces a $28 trillion long term national debt. It will grown by trillions more in coming years. Every dollar must be accounted.

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Larry Penner is a transportation advocate, historian and writer who previously worked for the Federal Transit Administration Region 2 New York Office. This included the development, review, approval and oversight for billions in capital projects and programs for the MTA, NYC Transit bus and subway, Staten Island Railway, Long Island and Metro North Rail Roads, MTA Bus, New Jersey Transit along with 30 other transit agencies in NY & NJ.