Transit Funding

The idea of increasing state funding for the MTA is popular in New York City, according to a new Quinnipiac poll released yesterday. Looking at the MTA service region -- NYC plus its suburbs -- more people want to see additional funding going to transit. Statewide, support for increased MTA funding is slightly lower than opposition, but that may not matter much: In recent legislative battles over transit funding, upstate representatives have deferred to representatives from the NYC region.

Last week, the city's Independent Budget Office released a report on the MTA's revenue structure [PDF] which has been getting a bit of play. At Second Avenue Sagas, Ben Kabak focused on the report's main thesis: that the volatility of dedicated taxes and fees threatens the financial stability of the transit agency. Steven Higashide of the Tri-State Transportation Campaign picked out a graph showing that the recently enacted payroll mobility tax already makes up 30 percent of all dedicated revenues, or around one-eighth of all operating revenue.

The MTA capital budget is risky enough as advertised: It requires putting $7 billion of repairs and system expansions on transit riders' credit card. But the total tab may end up being much bigger, because in addition to billions in borrowing, the funding plan relies on a series of highly optimistic assumptions. Just one week after the budget was released, those assumptions look increasingly shaky.

The current MTA capital budget is very bad news for transit riders, who are being asked to shoulder $7 billion in debt all on their own. Where can the 8 million daily riders who count on the MTA turn for help?

Can you spot the flaw in this excerpt from the New York Times' Saturday backgrounder on MTA chief Jay Walder’s pending departure for Hong Kong?

Jay Walder's surprise resignation announcement last week overshadowed some important news about the MTA's finances: The agency has identified $2 billion in savings in its capital program [PDF], which maintains and expands the transit system, but expects $1 billion less in federal assistance. That brings the total gap in the five-year, $26 billion capital plan to $9 billion that must be accounted for by the end of the year. This enormous deficit will define the political context in which Governor Andrew Cuomo chooses Walder's replacement.

Rep. John Mica's proposed transportation bill would take a machete to federal transportation spending, cutting overall transportation funding by a third and entirely eliminating dedicated funds for pedestrian and bike infrastructure.

The transit lockbox bill, designed to prevent future raids on dedicated transit funds, has passed the State Assembly, according to the Assembly's website. Having already passed the Senate, the legislation now only needs the signature of Governor Andrew Cuomo to become law.

In a letter to Finance Committee leaders [PDF], 25 senators today urged adequate funding for mass transit in the next transportation authorization bill.