On September 16th, the non-profit fiscal oversight organization “Citizens Budget Commission” released a report pointing out that the comprehensive maintenance and upgrading of New York City’s public transportation system, including buses, subways, and commuter railroads, will require up to $115 billion over the next five years. This amount far exceeds the available funding of the Metropolitan Transportation Authority (MTA). With congestion pricing indefinitely postponed, the report suggests that MTA should prioritize the repair of existing infrastructure rather than investing in expansion projects.
MTA is currently developing a capital plan for the years 2025 to 2029, which will be submitted for review to the New York State Legislature before October 1st. Last week, State Comptroller Thomas DiNapoli estimated that the total funding needed for the next five years of the capital plan is around $92.2 billion, including expansion projects such as the Second Avenue subway extension to 125th Street.
According to the report released by the Citizens Budget Commission on September 16th, the total funding required for the comprehensive maintenance and upgrading of the existing MTA system over the next five years could reach $115 billion. Just to maintain stable operational conditions by repairing the current system, an estimated $62.4 billion would be needed. Continuing major upgrade projects paused due to the delay in congestion pricing would require $16.5 billion, and new upgrade projects would need $36.4 billion. Therefore, the report recommends that MTA and the state of New York adhere to a conservative plan of prioritizing the repair of existing infrastructure, with an expenditure of $62.4 billion from 2025 to 2029.
The report also advises Governor Hochul to resume pushing for congestion pricing to help raise the necessary $15 billion for MTA, while urging MTA to find ways to cut operating costs by over $500 million annually. Furthermore, the report suggests that New York State and City increase direct funding sources for the MTA capital plan, including expanding the “congestion tax” imposed on large enterprises beyond New York City, extending the luxury real estate tax beyond the city, raising fares and tolls to exceed 4% for the capital plan, and increasing driver’s license and vehicle registration fees to support the capital plan.
MTA spokesman John McCarthy responded by expressing appreciation for the reports presented by State Comptroller DiNapoli and the Citizens Budget Commission, stating that they will be crucial references in formulating the capital plan this month.