The looming state budget deficit and crises is also part of a much larger financial crises facing the Metropolitan Transportation Authority, riders and taxpayers.
According to state Comptroller Tom DiNapoli, Gov. Cuomo and the state Legislature face a potential budget shortfall between $5.2 to $8.6 billion in fully funding the upcoming April 1, 2018 – March 30, 2019 fiscal year budget.
The original $4 billion anticipated deficit discussed earlier this year has grown worse by up to $4.6 billion more.
This is due to new projected shortfalls in personal income tax payments of $1.8 billion this year and $2.8 billion in the next budget. Who knows if continued shortfalls in anticipated tax revenues grow even more in coming months.
If Cuomo will be short between $5.2 up to $8.6 billion, how will he find the billions more in promised funding to fulfill some of his major transit commitments which total up to $100 billion?
Before dealing with any transportation issues, he first will need to find $5.2 up to $8.6 billion just to maintain the same current level of spending $153 billion in his next state budget.
Since this is an election year budget, taxpayers know that both the governor and state Legislature will add billions more in spending.
There is no way anyone will honor his 2 percent percent cap in growth of state spending combined with several billion in cuts to meet this huge shortfall.
Instead, everyone has their own pet projects and programs that they will want increase financing. Incumbent elected officials believe that by “bringing home the bacon”, this will grease the wheels of re-election for another term in 2018. This is not kosher with intelligent voters.
On top of all that, Cuomo will still need to come up with $5.8 billion balance of the $8.3 balance he still owes to fund the $32 billion 2015-2019 MTA Five Year Capital Plan, $1 billion more in new funding to deal with this past summers subway and LIRR Penn Station crises, $4.3 billion toward $6 billion Second Avenue Subway Phase 2, $7.25 billion for New York State’s 25% share of the $29 billion Amtrak Gateway Tunnel along with paying back the $1.6 billion dollar federal loan and $1 billion State Thruway Authority Bond which helped finance the new $3.9 billion Tappan Zee Bridge, just to name a few previous commitments.
Why not have the MTA reprogram $695 million Metro North East Bronx Penn Station Access, $1.7 billion Second Avenue Subway Phase 2, $1.95 billion LIRR Main Line Third Track, $573 million to Cubic Transportation Systems for a new fare collection system to replace Metro Card and $23 million Customer Service Ambassador program worth over $4.9 billion!.
These dollars could be better spent providing $400 million to fully funding the emergency $836 million “Subway Action Plan” to deal with today’s crises.
They could also provide a $4.4 billion down payment against the current $17 billion shortfall needed to bring the subway signal system up to a state of good repair. These funds could also be used toward bringing the East River Tunnels up to a state of good repair.
All five canceled projects can be funded out of the next MTA 2020 – 2024 Five Year Capital Plan. This still provides ample time for both Metro North East Bronx Penn Station Access and LIRR Main Line Third Track project completions to coincide with LIRR East Side Access to Grand Central Terminal by December 2023.
What good do New York City Transit Customer Service Subway Station Ambassadors or a new fare collection system do if you are still stuck on the platform waiting for a subway train or sitting outside of the East River Tunnels waiting for your LIRR train to proceed on to Penn Station?
Motorists and taxpayers are also more concerned about how Gov. Cuomo will find $2.6 billion outstanding balance of $3.9 billion needed to pay for the Tappan Zee Bridge rather than naming rights. TANSTAFL – There ain’t no such thing as a free lunch or in this case, construction of a bridge.
At the end of the day, someone has to pay.
The Citizens Budget Commission report projects that tolls on the new Tappan Zee Bridge will likely increase from $5.00 to $10.50 after 2020 comes as no surprise.
It confirms what I previously predicted. Gov. Cuomo made a cold political calculation by promising not to raise the tolls when running for another term in 2018 or president in 2020 (the world’s worst kept secret).
To pay back the $1.6 billion dollar federal loan and $1 billion New York Thruway Authority Bond which helped finance the new $3.9 billion Tappan Zee Bridge, tolls will have to go up by double or more over several years.
The well respected Moody’s Investment Services previously estimated the tolls will go up to $7.60 by 2021 and $15 by 2026 for the Thruway Authority to be able to pay back both the loan and bond.
Gov. Andrew Cuomo can pay for naming the bridge after his late father by using $2.6 billion out of his $26 billion and growing 2018 campaign reelection fund.
It is a safe bet that taxpayers and commuters will be paying higher fares, taxes and tolls in coming years to cover the costs.
Cuomo continues to remind me of the character Wimpy who famously said “I’ll gladly pay you Tuesday for a hamburger today.” Tuesday never seems to come for commuters and taxpayers.
Larry Penner
Great Neck
(Larry Penner is a transportation historian and advocate who previously worked 31 years for the United States Department of Transportation Federal Transit Administration New York Region 2 Office) .
