(The Center Square) — Upgrades to New York City’s public transit system’s infrastructure over the next five years could cost taxpayers more than $92 billion, according to the state’s fiscal watchdog.
The report by state Comptroller Tom DiNapoli pointed to a $15 billion hole in the Metropolitan Transportation Authority’s budget left by Gov. Kathy Hochul’s decision to scrap a congestion pricing plan, which was supposed to raise money from higher tolls for the cash-strapped transit agency.
DiNapoli said the report’s findings highlight the financial impact of that decision and “underscore the priorities and the challenges the MTA faces in paying for the upcoming capital program.”
“The choices that the MTA and the state make in the coming months will determine the future of the transportation system for years to come,” DiNapoli said. “Understanding the options and what’s at stake is key for all stakeholders and riders in particular.”
The report suggested that the capital plan could be whittled down to $57.8 billion if the MTA prioritizes “essential maintenance work” that keeps the existing transit system operational over the construction of new lines and expanded routes.
The MTA’s capital plans outline a list of construction projects aimed at keeping the nation’s largest transit system’s infrastructure running or expanding service. The 2025-2029 plan is expected to include orders of new subway cars to replace the MTA’s half-century-old trains and electric buses.
The MTA’s current capital plan, which runs through 2024, was approved with a $51.5 billion price tag but has since risen to $54.8 billion, according to the transit agency.
There are 1,100 subway cars that will exceed their 40-year useful service life between 2024 and 2027, and another 625 that will hit that milestone between 2027 and 2030, DiNapoli said. The cost estimate ranges from $8.4 to $16.5 billion when combined with the cost of replacing commuter rail cars. Bus purchases would cost another $3.5 to $4.5 billion depending on fleet choices, the report noted.
Meanwhile, increasingly severe weather will continue to threaten the MTA’s system, the report added. The agency’s Climate Resilience Roadmap has put a $6 billion price tag on protections against extreme weather over 10 years, but it remains uncertain if those plans will be accelerated or put off, given funding uncertainties, DiNapoli said.
But DiNapoli said delays in resolving the funding gap caused by the congestion pricing pause could impact the MTA’s ability to fund those projects and potentially increase the agency’s debt burden.
“The analysis finds that the MTA will likely have more in needs, including system improvement and expansion, than funds available,” DiNapoli wrote.
The congestion pricing plan called for charging motorists a new $15 toll to enter Manhattan. The plan was projected to raise $1 billion annually for the transit agency, which had planned to leverage the funds to borrow $15 billion to upgrade subway signals and stations to make them more accessible, among other projects.
But Hochul “indefinitely” paused the tolling initiative in June, citing concerns about the impact of higher tolls on small businesses and working families.
Two lawsuits have been filed challenging Hochul’s decision to indefinitely pause the rollout of congestion pricing.
But lawyers for the Hochul administration argued in a legal filing in response to the lawsuits that congestion pricing in New York City should be decided by voters, writing that the “proper forum” to debate the proposal “is the political realm — including, ultimately, ‘at the voting machine’ — not the courts.”
