OP-ED: New York Gov. Cuomo is the king of transit deficit financing

In his 2021 State of the State speech, New York Gov. Andrew Cuomo said, “We will commence the most aggressive construction and transportation development program in the United States of America."

He said his infrastructure plans included new air, road and rail systems, upstate and downstate. The devil is in the details, which are missing. Just which specific transit projects is he promising? How many have already been granted permission to enter the Federal Transit Administration New Starts or Core Capacity discretionary grant programs? Will U.S. Sen. Majority Leader Charles Schumer (D-NY) agree with Gov. Cuomo's list of projects. Does Sen. Schumer share the same priorities as Gov. Cuomo? Just how much federal money will Sen. Schumer be able to deliver so Gov. Cuomo can keep his promises? How will Sen. Schumer balance the needs of the Metropolitan Transportation Authority and other New York transit agencies with those from other states represented by other senators, especially members of his own democratic majority?

Ninety eight other senators and 435 voting members of the House of Representatives will be lobbying for their own favorite transit projects and agencies. Members of the New York congressional delegation have their own competing priority list of transit projects all looking for federal funding. Gov. Cuomo never identified any basis for cost, funding source and schedule for planning, environmental review, design and engineering, land acquisition, business relocation, procurement process, award of construction process, start and completion of construction followed by first day of passenger service for his wish list of projects for Washington to fund. This includes the $51 billion MTA 2020 - 2024 Five Year Capital Plan, $29 Billion Gateway Tunnel, $16 Billion Penn Station South, $10 Billion Manhattan Port Authority Bus Terminal, $6.9 billion Manhattan Second Avenue Subway Phase Two and $1.1 Billion Buffalo New York Amherst Light Rail Extension just to list a few of the many transportation projects he promised.  

U.S. Rep. Jerry Nadler (D-NY-10) may be very unhappy. There was no mention of the $10 billion New Jersey New York Cross Harbor Freight Tunnel project. Rep. Nadler has championed this project for 30 years as his number one transportation priority. Will Gov. Cuomo find funding to finance the many transportation projects contained within his promised $306 billion worth of infrastructure goals should be of concern to taxpayers. A look at past history tells the story.

He will have to pay back the $1.6-billion federal loan and $1 billion New York State Thruway Authority Bond, which financed the $3.9 billion Tappan Zee Bridge, along with several hundred million in contractor final bills. Tolls starting in 2021 have increased. They will go higher over coming years.  

The MTA paid for Positive Train Control on the Long Island Rail Road (LIRR) and Metro-North Railroad by a $967.1 million Railroad Rehabilitation Improvement Financing loan from the Federal Railroad Administration. It is a 22-year loan at 2.4 percent interest. The loan will have to be paid back over future MTA Five Year Capital Plans.  

The MTA had to borrow $1.95 billion for the $2.6 billion LIRR Main Line Third Track.

The Empire State Development Corporation has to pay back a federal $550 million Transportation Infrastructure Finance and Innovation Act (TIFIA) loan, for the $1.6 billion new Penn Station Moynihan Train Hall .

Gov. Cuomo would pay for his 25-percent share of the $13 billion Hudson Tunnels Project (two new tunnels and rehab the old tunnels) or full scope $29 billion Gateway Program via federal loans.

When it comes to paying for all his transportation promises, Gov. Cuomo reminds me of J. Wellington Wimpy who famously said, “I’ll gladly pay you Tuesday for a hamburger today.”

Tuesday may never come for taxpayers and commuters who continue to deal with higher fares, taxes, more debt and borrowing in coming years to cover the costs for all of his transportation improvements. Gov. Cuomo has never believed in pay as you go, balanced or transparent budgets.

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Larry Penner is a transportation advocate, historian and writer who previously worked for the Federal Transit Administration Region 2 New York Office. This included the development, review, approval and oversight for billions in capital projects and programs for the MTA, NYC Transit, Long Island Rail Road, Metro-North Railroad, MTA Bus, NYC DOT, NJ Transit, along with 30 other transit agencies in New York and New Jersey.