11 replies to this topic

[CNJRoss]

NY MTA news release, 7/23:

 

MTA Chairman Suggests Resolution For Capital Program Funding

Commits To Reducing Costs Of Program With New Efficiencies

 

Metropolitan Transportation Authority (MTA) Chairman and CEO Thomas F. Prendergast today sent the following letter to New York State Budget Director Mary Beth Labate and New York City First Deputy Mayor Anthony Shorris:

 

 

Dear Director Labate and First Deputy Mayor Shorris:

 

I am in receipt of Mary Beth’s letter dated July 20, 2015 suggesting a reevaluation of MTA Capital Program costs that would include greater use of design-build contracting, commitments of additional funding sources and adjustments of spending rates. I am also in receipt of Tony’s letter dated July 21, 2015 urging a resolution to the 2015-19 MTA Capital Program and offering the City’s financial assistance. I have discussed these issues with the MTA Board and have the following suggestions.

 

The MTA will incorporate the State’s suggestions to use alternative delivery methods such as design-build and public-private partnerships, streamlined procurement processes and a negotiated procurement process in non-traditional areas. Our preliminary review suggests we can reduce the cost of the Capital Program by roughly 6% to 8% by adopting these State suggestions. That would reduce the Capital Program Review Board (CPRB) component of the Capital Program from $29 billion to $26.8 billion. We can also work with the State on the timing of spending, given the current pace of capital spending as pointed out by Mary Beth, and we understand the State is continuing its review.

 

Governor Cuomo has made it clear that he believes we must solve this problem without raising fares beyond the scheduled increases. The MTA has taken this challenge seriously. Of the CPRB capital budget of $26.8 billion, the MTA can cover approximately $17 billion from its currently available resources (principally Federal aid, previously committed State and New York City aid, and MTA cash and bonding capacity). This includes $2.4 billion of funding in our new Financial Plan thanks to unanticipated revenues, aggressive cost-cutting and more efficient operations. This leaves an approximately $9.8 billion gap which must be filled by State and City funds.

 

City funding of the MTA’s operating and capital finance needs has been seriously deficient for many years despite the fact that more than 90 percent of the MTA’s daily customers are on MTA New York City Transit (NYCT) subway and bus services, and 80 percent of the MTA’s physical infrastructure is in New York City. The lower City funding was due to the fact that for years New York City was in dire financial condition. However, over the past decade the City’s finances have greatly improved and today the City has greater revenue surpluses than the State.

 

With that in mind, we suggest the City fund an additional $200 million per year for five years (supplementing the City’s base contribution of $657 million over that period) as well as the non-Federal share of $1.5 billion to begin building the next phase of the Second Avenue Subway. Should the City offer this assistance, the remaining $7.3 billion gap would need to be covered by State resources (supplementing the State's $1 billion base contribution). Therefore the City would contribute a total of $3.2 billion. The State, in turn, would contribute a total of $8.3 billion. We believe this split is more than equitable to the City, particularly given that $22 billion of the $26.8 billion Capital Program is for projects in New York City.

 

Everyone agrees the Capital Program is vital to the future of the City and the State. We know that the Governor is anxious to resolve this matter. Our revisions to the plan will maximize its efficiency, and we believe they form a more than reasonable request. The MTA respectfully awaits your response.

 

Sincerely,

Thomas F. Prendergast

 

 

 

[CNJRoss]

NY1 (Time Warner Cable), 7/23

 

NY1 Online: Cuomo Calls In to NY1 to Discuss MTA Funding

 

On The Phone:  Governor Andrew Cuomo  (8:33)

 

NY1 VIDEO: Governor Andrew Cuomo called into NY1 Thursday to discuss funding for the MTA after MTA Chairman Thomas Prendergast sent a letter Thursday detailing how the city and state can better meet the MTA's multi-billion-dollar funding needs.

 

Note:  Time-Warner provides 10 "free" video views.  Transcipt next post if you are unable to view.

[CNJRoss]

NY MTA news release, 7/23:

 

RUSH TRANSCRIPT: Governor Cuomo Responds to Letter from MTA Chairman Prendergast Regarding MTA Capital Plan

 

This evening, Governor Andrew M. Cuomo called in to NY1 to respond to a letter from MTA Chairman Tom Prendergast regarding the MTA’s Capital Plan. A rush transcript of that NY1 interview is available below:

 

QUESTION: Tom Prendergast sent a letter detailing how the city and state can better meet the MTA’s multi-billion dollar funding needs. Governor, how do you respond to that letter and can you walk us through what the MTA is looking for now?

 

GOVERNOR: My pleasure. First, the MTA is a vital organization for the whole metropolitan region, right? The MTA really is the circulatory system for the City of New York and beyond. It does the entire region and anyone who is familiar with the system at all, knows it has had significant stresses over the years. And really the investment in the MTA, I believe, has not been what it should be. You want to have a top-class mass transportation system that’s actually vital. Tom Prendergast is top-shelf and has done a lot of good work for us. He put together a capital budget of about $32 billion initially. We’ve been going back and forth on the plan that he put forth to try to make sure it is as sufficient and as effective as we can make it. The State recently made a suggestion that the MTA look at what is called “design build” which is a faster and less expensive way of building. To make a long story short, he scrubbed the budget. We believe that this is a sound budget and the fat has been removed and it’s about a $26.8 billion total budget, which is a large budget, but the system needs work, as I mentioned before. Of the $26.8 billion, from the MTA resources without an additional fare increase, which is what I’ve asked them to do – I don’t want to raise fares in addition to the fare increases that they’ve scheduled – that leaves a shortfall at the end of the day of about $9.8 billion that has to be filled by the State and the City. I don’t think we should go to the riders and ask for an additional fare increase. I think that would be a mistake. I think he’s right – that between the state and the city we should make up the $9.8 billion. The MTA divides the $9.8 billion by what they think is fair for the state and fair for the city and I could argue that it’s a little burdensome on the state. But I would accept the MTA’s numbers just to get it done and to go forward.

 

QUESTION: Now, the city has been paying about $100 million per year for probably about the last thirty years into the capital funding. The city upped that to $125 million and then the MTA said that if city could up that to $300 million dollars, then they can get closer to meeting their capital goals. What are the odds of that happening?

 

GOVERNOR: Well what I think the MTA is saying here is that – let’s look at a couple of facts. You’re right. Historically, the city didn’t fund the MTA proportionately. That’s because historically, the city was broke. So many of these programs go back to a time when the city was literally under water and the state had to bail out the city. It’s amazing when you go through the budget, how many agencies are still funded like from the 1970s, when the city went through a fiscal crisis. Secondly, something like 90% of the MTA ridership is in the city and of the $26 billion in work, $22 billion of the $26 billion is in New York City. So New York City is a lion share of the riders. They’re a lion share of the assets and I understand they haven’t paid much historically, but the city’s financial condition is much different than it was and I think the MTA is asking for $200 million per year for five years. The city ends up paying a fraction of what the state would be spending, so I think it is fair and it allows us to resolve the matter and move forward. It’s a much larger number for the state, the state ends up paying $8 billion and the city would be a total of about $3 billion at the end of the day so it is, I think, more than fair to the city.

 

QUESTION: Alright governor, let me switch gears here and ask you about the deal that the city reached with Uber.

 

GOVERNOR: On Uber?

 

QUESTION: Yes sir.

 

GOVERNOR: We have been talking to uber today. Uber is looking to expand throughout the state and it talking to city and counties throughout the state so once they become or seek to become a state wide transportation system then it is fitting for the state to start to talk to them about issue that are going to be common to every city and every county.

 

QUESTION: So your office has been speaking directly with Uber?

 

GOVERNOR: Yes.

 

QUESTION: So what do you think of that deal that uber reached with the city and the votes in the city council today?

 

GOVERNOR: well I don’t know frankly the ins and the outs and the intrigue of the city’s negotiations and the role of the council, etc. I know that I had good conversation with speaker Mark-Viverito yesterday. I thought she was being intelligent and deliberative and responsible. She told me she was going to be speaking to Uber about some ideas that she had which reflected, which were reflected in the final agreement with Uber. So the city is going to be part of it certainly and they are going to be in every part of the state and I think that they are potential assets in every part of the state and we are interested in having them statewide, if we can come to terms with them, I am interested in making sure the cars are safe, that the drivers have insurance that there is access for the disabled in Uber cars and that they are paying their fair share. So, that would be the conversation with Uber, if they say they want to expand statewide.

 

QUESTION: Okay Governor, let’s go back to the MTA here. If the city and MTA doesn’t come to an agreement there are scheduled fare increases over the next few years, will those fare increase be larger if there is no agreement?

 

GOVERNOR: Yeah what the MTA is saying is, “look we have to make up a gap.” They a have shrunk the gap as much as they can. As the Governor I have made it clear to them, I do not want them raising fares again. You know, that is government, it is always too easy to go to the fare payer or the taxpayer and say, “I need more money.” That is the default position for government. So I said, “I don’t want to see anymore fare increases. Let’s find out how to do it from existing resources.” The MTA scaled back their budget, I think intelligently I believe, there is about a $9 billion dollar gap. They suggest a split between the state and the city and I am willing to do my fair share and I accept their terms because I don’t want to see a fare increase. If they can’t close the gap between the state and the city, I assume the MTA is going to say, “The only alternative is then to raise fares,” and that it unacceptable to me.

 

QUESTION: Okay Governor thank you for joining us. We will be watching this very closely.

 

GOVERNOR: Thanks for having me.

[CNJRoss]

WNYC (NPR) New York, NY 7/29:
 

 

Cuomo Says He Doesn't Control the MTA

 

Speaking Wednesday morning on the show Capitol Pressroom from WCNY public radio in Syracuse, New York Governor Andrew Cuomo continued his push to convince the city to help close the MTA's capital budget gap.

 

His argument: despite what you might have heard growing up, the Metropolitan Transportation Authority is not controlled by the state.

 

SNIP

 

"But isn't the MTA a state entity?" she asked.

 

"It's not, actually," the governor responded. "The city has four appointments. The state has six appointments [to the MTA board]. There are something like 17 members. So it is a metropolitan, downstate region. Nassau, Suffolk, Westchester. But in this capital plan, the predominance of the money goes to New York City. And the predominance of the riders are New York City."

 

(Cuomo neglected to add that the city and counties merely recommend board members; they are actually appointed by the governor and confirmed by the state Senate. What's more the authority's chairman and chief executive is appointed by the governor.)

 

Continue here.

[KevinKorell]

ABC News, 10/9/15:

 

Future of New York City Mass Transit Hinges on Funding Fight

 

 

The New York subway system was a gleaming symbol of American ingenuity when it opened in 1904. Now it rattles along past aging stops, controlled by cloth-insulated electrical wiring and signal devices almost as old as the tunnels themselves.

 

More

[CNJRoss]

NYMTA news release, 10/10/15:

 

Governor Cuomo, Mayor de Blasio and MTA Chairman Prendergast Announce Agreement on Funding for MTA Capital Program

 

Governor Andrew M. Cuomo, Mayor Bill de Blasio and MTA Chairman Tom Prendergast today announced that an agreement has been reached on the remaining funding for the MTA Capital Program. New York State has committed to provide $8.3 billion, and New York City has committed to provide $2.5 billion. The program, which totals $26.1 billion, outlines the next five years’ worth of vital investments to renew, enhance and expand the MTA network. This marks the largest investment in MTA infrastructure in history.

 

Governor Cuomo said, “The MTA is the lifeblood of New York, helping millions of people travel throughout the city and the surrounding suburbs, and fueling one of the largest economies on the globe. Our challenge is not only to help the system continue to fuel the region’s growth, but to keep up with and respond to that growth as it happens. This MTA Capital Plan is what we need to make the system smarter and more resilient, facilitating major upgrades, expansions and building crucial pieces of equipment so that riders are not forced to accept the failures of outdated infrastructure. This plan will mean a safer, stronger, more reliable transit system for people all over New York, and is crucial in supporting our growing economy. And this program would not have been possible without everyone stepping up to pay their fair share. Today with this agreement, we are making an historic investment not only in the MTA, but in the future of New York.”

 

Mayor de Blasio said, “Our transit system is the backbone of New York City’s, and our entire region’s, economy. That is why we’re making an historic investment – the City’s largest ever general capital contribution – while ensuring that NYC dollars stay in NYC transit, and giving NYC riders and taxpayers a stronger voice. I look forward to continuing to partner with the Governor and the MTA to ensure a transit system that reliably, effectively, and safely serves all of its riders.”

 

Chairman Prendergast said, “Almost three years ago, as the floods of Superstorm Sandy receded, the MTA’s system sprang back to life, and so did New York City and the entire region. That storm dramatically demonstrated two important truths: the absolutely essential role that the MTA’s integrated transit system plays in the regional economy, and the challenges of keeping the assets of such a trillion-dollar system running safely and reliably. Today, with agreement on the largest Capital Program ever committed to the future of the MTA, we take a giant step toward making sure that this one-of-a-kind jewel of a system will continue doing what it must – keeping New York and the region moving, and moving ahead. We are grateful to the State and City for making possible the largest MTA Capital Program in its history. The MTA’s challenges have never been greater. We have plenty of work to do and we’re eager to get started.”

 

At the State’s direction, the MTA recently reduced the Capital Program Review Board component of the Capital Program from $29 billion to $26.8 billion by utilizing alternative delivery methods such as design-build and public-private partnerships, as well as streamlined and negotiated procurement processes. The remaining $700 million (difference between the program scope of $26.8 billion and the agreed to $26.1 billion) will be closed by MTA efforts to seek further efficiencies or necessary program reductions.

 

Under the agreement reached by the State and City, parties agree to the following:

 

1. The State guarantees $8.3 billion to the MTA Capital Program to be provided by State sources. The City guarantees $2.5 billion to be provided to the MTA by City sources. City sources include a guarantee of $1.9 billion from direct City sources and a guarantee of $600 million through alternative non tax levy revenue sources. This agreement is dependent upon all of the conditions below.

 

2. The City and State will fund on the same schedule on a proportionate basis.

 

3. Projects in the City which are funded by the $2.5 billion committed by the City (including projects funded through non tax levy sources agreed to with the MTA) will be planned by the MTA Board in collaboration with the City representatives on the MTA Board, with priority consideration given for projects and timing based on input from the City.‎ Likewise suburban projects which are funded by the suburbs will be planned by the MTA Board in collaboration with suburban representatives on the MTA Board and with priority consideration given for projects and timing based on input from the those suburban communities. ‎

 

4. The State will not divert any funds or fail to provide any funding committed to this Capital Program or due and owing to the MTA for any other expenses unless in accordance with the provisions of Executive Law 182 passed in 2011. Likewise, the City will not divert any funds or fail to provide any funding committed to this Capital Program or due and owing to the MTA for any other expenses.

[KevinKorell]

Second Avenue Sagas, 10/10/15:

 

Mayor, Governor agree on funding plan to cover MTA capital budget gap but many questions remain

 

In a rare moment of political collaboration that ends months of unnecessary bickering, Gov. Andrew Cuomo and Mayor Bill de Blasio have agreed on a funding scheme that will close the MTA’s capital budget gap, the Governor’s office announced this afternoon. As part of the agreement, the city will contribute $2.5 billion to the 2015-2019 plan, and the MTA will trim $700 million from the spending plan through either “further efficiencies or necessary program reductions.” Although numerous questions remain regarding this deal, the MTA will likely not have to slow down or suspend work on ongoing capital work, and the summer (and early autumn) of endless finger-pointing can draw to a close.

Continue

[CNJRoss]

AP via Yahoo news:

 

NYC, state reach deal on mass transit capital funding

 

NEW YORK (AP) — A deal has finally been struck to fund the New York City region's mass transit capital spending program, ensuring that vitally needed infrastructure upgrades — including repairs to damage wrought by Superstorm Sandy — will be underwritten for the next five years.

 

The $26.1 billion agreement to fund the Metropolitan Transportation Authority was jointly announced Saturday by Gov. Andrew Cuomo and Mayor Bill de Blasio, who had spent weeks sniping at each other about the city's contribution as the Oct. 28 deadline to adopt the plan loomed.

 

In the end, the city upped its offer late this week to $2.5 billion. The state is contributing $8.3 billion and the rest is made up of pre-existing dedicated revenue streams.

 

Continue here.

[KevinKorell]

Second Avenue Sagas, 10/12/15:

The politics behind the MTA capital funding deal

 

For those of you who like to unplug during the weekend, you may have missed New York City’s biggest Saturday news drop in years. After months of unnecessarily feuding over MTA financing, the governor and mayor agreed on a capital funding split that puts the city on the hook for $2.5 billion and presents a clear win for Andrew Cuomo.

Continue

[CNJRoss]

Railway Age, 11/1:

 

New York MTA board approves five-year capital plan

 

The New York Metropolitan Transportation Authority (MTA) board has approved its 2015-19 Capital Program, the MTA reported on Oct. 30, 2015.

 

The $29 billion program—a revised figure roughly 10% lower than the $32 billion first proposed a year ago—still represents the largest investment ever in the subways, buses, railroads, bridges and tunnels, NYMTA said. It is the result of an agreement between MTA, New York City and New York State. The program is fully funded with $11.8 billion in MTA funds, an $8.3 billion commitment from the state, $6.4 billion in federal funds and a $2.5 billion commitment from New York City. It now must be approved by the New York State Capital Program Review Board.

 

Continue here.