New York's Transportation System: Maintenance Before Expansion

A new report from an independent fiscal watchdog panel recommends that New York City's transportation system prioritize repairing existing infrastructure over investing in expansion projects. The Metropolitan Transportation Authority (MTA) faces a staggering $115 billion funding requirement, far exceeding available resources. The MTA operates New York's subways, buses, and commuter trains and is currently working on a capital budget for 2025-2029 to modernize the more than 100-year-old system. According to a report by the Citizens Budget Commission (CBC), this budget should total $62.4 billion and focus exclusively on maintaining the condition of existing facilities. MTA officials have already indicated that the next capital program will be larger than the current $51.5 billion budget. CBC estimates a funding shortfall of $36.4 billion in the new budget. The needs of the MTA are overwhelming. According to CBC, it would cost up to $115 billion over five years to fully repair and improve the existing system. A report by Thomas DiNapoli, the state comptroller, estimates the total infrastructure needs at $92.2 billion over five years, including some expansion projects such as the extension of the Second Avenue Subway to 125th Street. “A decline of the MTA system—a critical component of the regional economy—would be devastating for the entire region,” the CBC report states. “Nevertheless, New York must make wise decisions about which projects to fund and how to pay for them.” The MTA is attempting to make up for years of neglect. Necessary measures include refurbishing the 110-year-old Grand Central Terminal, modernizing power substations, fortifying the system against flooding and extreme heat, and replacing thousands of outdated railcars. State legislators will review funding strategies for the MTA’s 2025-2029 budget while also addressing a deficit in the current capital plan, after Governor Kathy Hochul temporarily paused a planned toll initiative in June that was expected to raise $15 billion for the MTA. This initiative proposed charging most drivers $15 when entering Manhattan’s central business district. The CBC advises Hochul to advance the toll initiative to generate revenue for the MTA. Other funding ideas include additional direct allocations from the state and city, extending last year’s corporate tax increase to businesses outside New York City, expanding the mansion tax, further fare and toll hikes beyond the planned 4% increase, and higher fees for driver licenses and vehicle registrations.