Next Stop: Trouble

Sources of funding for the agency and its capital plan are not all that numerous, coming from taxes—some combination of city, state and federal—and the system’s users, via fares and tolls.

The federal government often accounts for a sizable chunk of the capital plans, and transit advocates express optimism that that chunk could grow this time around, given that Congress is in the hands of Democrats, who tend to be less frugal when it comes to infrastructure.

At the center of the Congressional efforts is Mr. Nadler, the infrastructure devotee who is now the most senior Democrat from the Northeast on the House Transportation Committee, which is slated to reauthorize a 12-figure, six-year transportation bill in 2009 that would likely steer substantial money to the M.T.A.

“What helps is that not only am I very senior, but compared to five years ago or six years ago, we’re in the majority now, not the minority, and we have five Democrats from New York on the committee,” he said.

The M.T.A. is planning on more than $8 billion from the federal govern
ment, an amount Mr. Nadler said seemed reasonable. But much will depend on who wins the presidential election.

Mr. Nadler also emphasized that he would be pushing for money as well to go to a multibillion-dollar freight-rail tunnel from New Jersey to Brooklyn, a pet project of his that he says will address the often overlooked problem of freight transportation in the city.

“That’s a major, major project that I hope to get major funding for,” he said.

But even if the federal government is generous to New York, most of the M.T.A.’s money will likely come from some revenue source yet to be determined within the state, a mess that Governor Paterson has enlisted Richard Ravitch, the former M.T.A. chairman, to sort out. Mr. Ravitch is leading a commission to recommend a path forward with the cash-poor operating and capital budgets of the M.T.A., and those in the industry widely expect him to recommend a tax or combination of taxes and fees to bring in the new revenue.

The commission, which has its first meeting scheduled this week, is due to report back to the governor late in the year.

One item Mr. Ravitch said the commission will likely take another look at is some form of congestion pricing. Under Mayor Bloomberg’s failed plan, charging drivers in much of Manhattan a daily fee would have reaped around $400 million annually in transit funds.

Congestion pricing was a key part of the Bloomberg administration’s strategy to solve the city’s transit needs for the next 25 years, needs the city priced at about $50 billion in its PlaNYC sustainability plan last year.

To help find and manage the necessary funds for the M.T.A. and other agencies, the city proposed a new city-state transportation authority, a concept that has not gained traction in Albany.

“There has to be a big pool of money, but if it’s only for the M.T.A., it still leaves other needs unmet,” said Rohit Aggarwala, director of the mayor’s Office of Long-Term Planning and Sustainability.

Another concept, pushed by veteran transit advocate Ted Kheel, calls on the Port Authority, with its great revenue-raising capacity, to spend more of its money on regional transportation projects.

“That agency is the ideal agency to come to grips with this problem of congestion,” Mr. Kheel said.

Another source of money could be within the M.T.A. itself, as officials will likely consider any cuts or ways to reduce inefficiencies. An M.T.A.-commissioned panel delivered a report earlier this year that highlighted a lack of competition in bidding for major projects as a source of inflated costs, and recommended ways the agency could increase competition. Labor accounts for a huge part of the agency’s total expenses, comprising about $7.2 billion of $10.1 billion in total expenses in 2008. Union contracts make it difficult to make cuts.

But, generally, it seems the M.T.A. is unlikely to pursue anything but new revenues to fill the gap, at least at first, as Mr. Sander indicated the agency may be done with any fat trimming.

“The M.T.A. has already taken significant steps to tighten our belts,” he said Monday.

ebrown@observer.com

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topics: Elliot Sander, MTA
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