Metropolitan Transportation Authority

Issuers are grappling with struggling transit systems in post pandemic.

New Jersey sued the federal government to block a plan to charge drivers entering midtown Manhattan, claiming federal regulatory approval was ill-considered.

After a tax increase, the Metropolitan Transportation Authority projects five straight years of balanced budgets for the first time in more than 20 years.

The new toll on vehicles entering large swathes of Manhattan will be a key part of the MTA's future capital plan.

"His key role in the financial rescue of New York City following its near-bankruptcy in 1975 set Dick on a nearly five-decade path making sure such an event would never happen again in the city and elsewhere," said William Glasgall of the Volcker Alliance.

The controversial idea has taken on more urgency as transit agencies nationally struggle with low ridership.

If implemented, New York's congestion pricing plan will be the first in the nation.

The MTA, which expected to begin collecting the tax next year, has revised downward its 2024 projections as federal review is taking longer than expected.

Deposits to reserves that had been planned for fiscal 2024 and 2025 would be completed by the end of the current fiscal year, bringing the total to $24 billion.

Transportation sectors from airports to toll roads are expected to remain stable despite a likely recession and high inflation and interest rates, ratings analysts said.

"The good news in this budget is that the MTA has increased its effort to find efficiencies, so that's now a larger portion of the plan. The challenge is that efficiency portion of the plan should be much, much bigger," said CBC President Andrew Rein.

"I'm thrilled to have that opportunity to join the team," Patrick McCoy says. "It's a very important project with regional implications. To be part of that team is going to be very exciting."

"The MTA's structural gaps remain huge and demand immediate action and a multi-party, multi-year plan" says Citizens Budget Commission President Andrew Rein.

Municipal to UST ratios have risen this week with the 10-year approaching 90% and the 30-year topping 100%.

The congestion pricing plan that puts tolls on vehicle traffic coming into lower Manhattan still faces many hurdles before it would take effect.

Don't expect much new information to come from Jackson Hole this year analysts say, as the data-dependent FOMC will rely on incoming economic numbers in September to decide the proper size rate hike.

Because revenue from riders at the farebox has not recovered as well as the MTA had expected, budget gaps are rising as federal funds are falling.

Tom Wright, president and CEO of the Regional Plan Association, talks with Chip Barnett about the ongoing Gateway transportation project and its importance to the tri-state region. He also discusses the challenges and opportunities in transit, infrastructure, affordable housing, climate change and ESG. (30 minutes)

The new credit received a triple-A from Fitch Ratings and a AA+ from S&P Global.

MTA finance director Pat McCoy said issuers need to ask if they are prepared to deal with the requirements attached to federal money.