MTA Seeks $68.4 Billion for Capital Improvements: Will Albany Find a Way to Fund It?
Good news—The MTA knows it faces serious needs and at its monthly meeting in late September approved a $68.4 billion plan for rehabilitation, climate initiatives and new buses, subway cars and switching equipment with $47 billion earmarked for NYC Transit. The bad News—at least $33 billion still has to be approved by the Albany legislature.
| 30 Sep 2024 | 03:10
The new MTA Capital Plan will include over 1,500 new subway cars, some destined for the 1 and 3 trains, whose equipment started running in 1984. (
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If it ever gets approved by Albany, the MTA’s 2025-29 Capital Plan will be good news for riders on the J and Z trains—new signaling will be installed and power system upgrades in Manhattan to insure fewer delays and quicker trains. (
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“Fix what you have” said MTA Chair/CEO Janno Lieber at the conclusion of the MTA’s monthly board meeting in late September when the board voted unanimously to approve a record shattering $68.4 billion capital improvement plan covering the next five years.
The record setting “ask” was approved by a 10-0 margin (there are 14 voting members, with one seat vacant, and three absences were noted).
But the tough part will be getting the Albany legislature to go along with the request, which is going to be asked to kick in at least $33 billion to fund the plan.
“After years of underinvestment, more than 90 percent of this proposed plan–the largest in MTA history–focuses on bringing the system to a state of good repair,” Lieber noted. “These investments are necessary to serve the following generations and the future of the region’s economy, environment, and social and economic equity.”
The MTA’s capital plans were sent reeling when Governor Kathy Hochul put the congestion pricing toll on indefinite pause only weeks before it was scheduled to start in June. The $1 billion in revenue that was expected to be generated by vehicles entering Manhattan below 60th St. was going to allow the MTA to fund over $16 billion in capital improvement projects by issuing bonds.
A third-party evaluation carried out by JP Morgan determined that in order for the MTA to maintain a capital investment level comparable to private industry peers, the Authority would need to invest $23 billion annually–more than twice the already accelerated pace.
The NYC Transit fleet has two subway car types hitting the end of their 40-year life spans, overdue for replacement: Much of the structure that supports the Grand Central artery that includes the Grand Central Terminal building, the train shed, the Park Avenue Tunnel, and the Park Avenue Viaduct is in bad shape. Additionally, structural defects and aging power systems need to be repaired and replaced. Subway shops need to be brought up to 21st century standard, and new subway signaling to replace 100 year old systems.
The key part of financing for the MTA five-year plan is a proposed $10 billion in MTA-issued bonds to help fund the new plan, $21 billion from federal funding and additional state and city bonds, which is up to the review board. This leaves $33 billion for the legislature and Governor Hochul to either fund the MTA with NYS money or force a less comprehensive program for the agency.
An independent NY State Comptroller’s office report said the MTA would need even more funding, and pegged its cost at $90 billion.
There’s lots in the MTA request that will help Manhattanites including the purchase of 1,500 new subway cars on the 1,3,6, B,D,N and W trains; new 21st Century signaling to the A,J,N,R,Q,W and Z lines. There’s also a requests for 2,500 new buses and better flood protection at subway stations and tunnels
It would also include Grand Central Terminal systems upgrades and structural repairs through its tunnels and new generation fare gates at 150 system stations to prevent fare evasion, which is costing the agency over $700 million a year.
At the end of the MTA Board meeting, a media representative asked Lieber what he would do if the plan did not receive all the additional funding from Albany.
“I’m very optimistic!” Lieber commented on what he deemed was “a very conservative plan.”
The budget request was scheduled to be submitted to the MTA Capital Program Review Board (CPRB) by October 1, for review and approval, which is mandatory under the New York Public Authorities Law.
Investment to rebuild, improve, and expand the MTA system,l enabling the MTA to continue to provide frequent and reliable service by putting the system on a path to state of good repair with investment in railcars, power, and signals. The plan will include investments in accessibility, stations, modern fare gates, take action on climate change, keynoting resilience and sustainability initiatives.
At the end of the MTA Board meeting, a media representative asked Lieber what he would do if the plan did not receive all the additional funding from Albany.
“I’m very optimistic!” Lieber commented on what he deemed as a very conservative plan.
But observers think getting Albany to foot its share of the bill is going to be a tough, uphill battle.