The failure of the New York Legislature to pass a congestion pricing plan that would charge fees on cars in a large part of Lower Manhattan has put some capital projects at the state's Metropolitan Transportation Authority in "some peril," executive director Elliot Sander said yesterday. The MTA faces a tough time on the operating side as well, especially since the enacted state budget passed this week allocated less money to the authority than expected, he said at a luncheon held by the Municipal Forum of New York.
The state budget allocated $2.58 billion as its subsidy to the MTA, $52 million less than the $2.63 billion in the executive budget that was proposed in January.
Debt service, which will grow from a "couple of hundred million dollars" to $2 billion by 2011, will put increased pressure on the operating budget just as the authority also faces reduced dedicated tax revenue, Sander said.
The increase in debt service is due "in large part because previous capital programs particularly the 2000-2004 capital program had no money behind it, it was all refinancing," he said.
The MTA restructured its debt in 2002 which allowed it to increase in its borrowing.
The MTA had counted on using congestion pricing fees to back $4.5 billion of bonds for a $29.55 billion capital plan that already had a $9.31 billion gap.
Apparently not wanting to get out ahead of Gov. David Paterson,who this week announced the creation of a panel to look at funding options for the MTA, Sander wouldn't comment on how the MTA could fill its funding gap beyond looking at fees, taxes, and general funding. He didn't express enthusiasm for a public private partnership, but didn't dismiss it either.
"We certainly entertain public-private partnerships, but at the same time it is public transportation and when you look at the field generally, the P3 recommendations as it relates to public transportation in the United States are somewhat limited," Sander said. "[New York City is] not Hong Kong or Singapore ... but we certainly welcome any intelligent thoughtful proposals."
Assemblyman Richard Brodsky, D-Westchester, said the state budget had not been good for the MTA.
"The MTA is heading toward a crisis on both the operating and capital side," Brodsky said. "This budget was not helpful and we will have to work cooperatively to solve this."
Brodsky, who was an outspoken opponent of congestion pricing, said that there were plenty of good alternative proposals such as a tax on millionaires, congestion rationing which would limit the cars coming into the central business district based on their license plate numbers and hiking yellow cab fares.
"There are lots of good ideas that the Assembly has already advanced," Brodsky said. "We had always met our responsibility to meet [New York City Mayor Michael Bloomberg's] bad proposal with good ones of our own. It's time now to look at those."
