Both New York City and New York State under numerous past New York Metropolitan Transportation Authority (MTA) Five Year Capital Plans previously cut billions in their own respective hard cash contributions. Leadership repeatedly had the MTA refinance or borrow funds to acquire scarce capital funding, formerly made up by hard cash from both City Hall and Albany, N.Y. On a bipartisan basis, this included past Govs. Mario Cuomo, George Pataki, Elliot Spitzer, David Patterson, Andrew Cuomo and current Gov. Kathy Hochul.
Everyone insisted that the MTA continue financing more and more of the Capital Program by borrowing. Billions more are still needed from the state to make up for past cuts over previous decades. According to previous audits by New York State Comptroller Tom diNapoli, as a result, in future years, 23 percent of the annual MTA operating budget will go for covering debt service payments. Going back six capital programs or 33 years, by the end of this decade, this will continue to grow even higher.
In 2019, former Gov. Cuomo and the State Legislature, instead of providing a significant amount of hard cash, gave the MTA congestion pricing, which was supposed to raise $15 billion toward the $51 billion MTA 2020 - 2024 Five Year Capital Plan. The state's so called financial watch dog, DiNapoli, said nothing.
Under the current $51 billion Capital Program Plan, long-term MTA debt has grown to $42.4 billion. It is anticipated to grow to $59.9 billion by 2028. The MTA has to spend $3 billion annually for debt service payments to pay down the debt.
This represents 16 percent of the yearly operating budget. The result is less money is available for operations to provide more frequent reliable service to riders at a reasonable price. It also means there is less cash to maintain the state of good repair and safety due to annual debt service payments on the ever-increasing agency long term debt.
At the end of the day, the cupboard is bare for any system expansion. This includes the $7.7 Second Avenue Subway Phase 2, $7.5 Second Avenue Subway new Phase 3 West 125th St. Extension, $5.5 billion Brooklyn Queens Light Rail Connector and other new proposed projects as contained in the MTA's 2025 - 2044 Twenty Year Capital Needs Plan.
Contrast City Hall and Albany with Washington, D.C. Federal support for transportation has remained consistent and growing over past decades. It is usually in hard cash. When a crisis occurred, be it 9-11 in 2001 or Hurricane Sandy in 2012, Washington was there for us.
Additional billions in assistance above and beyond yearly formula allocations from the Federal Transit Administration (FTA) was provided. In 2009, the American Recovery and Reinvestment Act provided billions more.
Most federal transportation grants require a 20 percent hard-cash local share. In many cases, the FTA accepted toll credits instead of cash for the local share. In 2024, the FTA will provide MTA $1.8 billion in various formula and national competitive discretionary grant programs. The Federal Highway Administration has funding under several programs, including Congestion Mitigation Air Quality, Surface Transportation Program and others that can be transferred to FTA to finance MTA transit capital projects.
When it comes to MTA financing, too many elected officials remind me of the old cartoon character Wimpy. He was fond off saying, "I'll gladly pay you on Tuesday for a hamburger today", or in this case, $15 billion worth of MTA capital transportation projects.
