N.Y., N.J. Port Authority Proposes $7 Billion Budget for 2012

The Port Authority of New York and New Jersey has posted its $7 billion preliminary budget for fiscal 2012.

The authority, which posted the budget on its website, said the spending plan keeps expenses virtually flat and maintains staffing at its lowest levels in 40 years.

Its board of commissioners will discuss the budget Thursday.

The spending plan provides for $2.56 billion in operating expenses, $832 million for debt service and $45 million for other expenses. The capital portion of the preliminary budget directs $3.66 billion for capital investment, the authority said in a statement.

Debt service payments are expected to be 18.7% higher because of higher interest payments related to the issue of World Trade Center Tower 4 Liberty bonds and higher scheduled principal payments, the budget summary said.

Capital spending for 2012 totals $3.7 billion. Major projects include the major capital investment in the World Trade Center site; modernizing the Port Authority Trans-Hudson, or PATH system, including signal upgrades; fixing cables on the George Washington Bridge; and renovating the Lincoln Tunnel helix.

Meanwhile, Navigant Consulting and Rothschild were chosen to review the authority’s expenses at a cost exceeding $2 million. Governors Andrew Cuomo of New York and Chris Christie of New Jersey requested the audit in August, when the authority’s board approved a set of fare and toll increases phased in over four years.

Commissioners at the time cited the need to preserve the authority’s access to the capital markets. Moody’s Investors Service affirmed a negative outlook on its Aa2 rating for the authority in March. Fitch Ratings and Standard & Poor’s each assign a AA-minus with a stable outlook to the credit.

The governors want a report by January and a final report finished by June 30.

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