Albany’s Transit Sins Come Back to Bite America

The new federal money --$12 billion was included in the version passed last week by the House,while the Senate originally proposed less -- is devoted to big capitalprojects, like buying train cars and buses and building or repairingtracks and stations. Money that some lawmakers had proposed to helptransit systems pay operating costs, and avoid layoffs and servicecuts, was not included in the latest version.

The odds that, a year from now, Mr. Obama and Congress will regret not havingbeen more aggressive seem bigger than the odds that they’ll think theyoverdid it. Why not redouble efforts to find a few other ways to spendmoney quickly? More than 50 mass transit agencies across the country are cutting services or raising fares, and the stimulus bill does nothing for them.

Lee Sander has been to Washington at least a half dozen times over the past 3 to 6 months to make a case for Federal investment in transit. Over the last 15 to 20 years, the amount of capital funding that we receive each year from Washington has gone up from about $200 million to about $1.5 billion today. This money has taken the pressure off of our roughly $11 billion annual operating budget because it reduces the need to borrow against fares and tolls to fund capital expenses like maintaining stations and tracks, buying buses and rail cars, and expanding the transit system.

We estimate that the "shovel-ready" stimulus package now being considered would result in about $1.5 billion for the MTA. While this is a most welcome investment, it would represent about 5% of our five-year capital program. That's why our most critical concern is encouraging the State Legislature to enact the Ravitch Commission's recommendations, which would hold down the need for fare and toll increases, eliminate the service reductions, and create a stable revenue stream to fund our capital program. This year, we expect to put forward a 2010-2014 Capital Plan that will call for investment in mass transit of roughly $30 billion over five years. At present that plan has no identified state resources.

While Washington is important, Albany is critical.