Yesterday, Governor Andrew Cuomo called the region’s transit investment plan “bloated” and rejected calls for new revenue. Today, MTA Chairman and CEO Tom Prendergast, speaking at a forum on best practices in regional transit governance, hammered home the need for elected officials to find new money to fill the half-funded capital plan’s $15 billion gap.
“This is the start of a process. This is the start of a dialogue,” Prendergast told reporters when asked about the governor’s comments. He refused to agree with the governor’s assertion that the capital plan should be trimmed, and indicated that without new funding, the MTA would resort to increasing its debt load above already record levels. “I don’t like greater debt finance, but I’ll tell you what,” he said during the panel, “I’ll treat that finance as a bridge to another day.”
Today, debt service eats up an ever-greater share of the authority’s budget, with the MTA spending almost as much in debt service as it does to operate Metro-North and Long Island Rail Road service combined. During his comments yesterday, Cuomo also repeated his rejection of toll reform or other new sources of revenue to help fill the capital program’s gap and reduce the MTA’s reliance on debt.
“At some point the interest payments on MTA debt are going to completely implode any capacity to do anything for the MTA going forward,” said Chris Ward, Dragados USA executive vice president and former Port Authority executive director. “The toll structure has reached [the end of] its useful life,” he said. “Public transit is going to have to face, fundamentally, a question of funding, and what the mechanisms are going to be.”
The panel this morning, hosted by the Eno Center for Transportation, TransitCenter, and the Regional Plan Association, marked the release of a new report examining the governance of regional transit systems in New York, Boston, Chicago, San Francisco, Dallas, and the Minneapolis-St. Paul area [PDF].
While panelists noted that New York often serves as a model for other systems, the MTA came in for serious criticism on the way it is governed by its board members and the governor who appoints them.
New York’s governor calls the shots with state authorities, noted Robert “Buzz” Paaswell, director of the University Transportation Research Center at City College. During a training for board members of state authorities, Paaswell asked them if they would disagree with the governor if his wishes contradicted the best interests of the authority. ”Ninety percent of the board members would say, ‘I would do what the governor says; he appointed me,’” he said. “Even if that goes against the interest of the authority.’”