Governor Cuomo’s Executive Budget: $40 Million Taken from Transit, No Dedicated Pedestrian and Bicycling Safety Funding

January 23rd, 2014

The following post was originally published on 1/22/2014, by Ryan Lynch of the Tri-State Transportation Campaign 

Governor Andrew Cuomo released his 2014-2015 Executive Budget yesterday and a preliminary look suggests transit riders, pedestrians and bicyclists are seeing a lot more take than give.

Metropolitan Transportation Authority

While the budget increases MTA funding by $85 million, Governor Cuomo proposes to use $40 million in ”surplus” transit funds to pay off bonds issued by the State on behalf of the MTA. Until last year, these bonds were serviced with General Funds. In 2013, when Governor Cuomo swept $20 million in transit funds, the move was criticized by transit advocates as well as State Comptroller Thomas DiNapoli as a diversion of funds. The use of “surplus” funds to service this debt is something the Governor plans to do every year, beginning in FY2016:

Metro Mass Transportation Operating Aid (MMTOA) Debt Service Offset: The budget proposes to offset General Fund support for the MTA debt service costs by utilizing $40 million in dedicated resources from the MMTOA account to the General Debt Service Fund, with $20 million in resources available for the same purpose on an annual basis beginning in FY 2016.

While the Governor’s budget includes $310 million from the State’s General Fund to the MTA to compensate for lost revenue resulting from the rollback of the payroll mobility tax (PMT) in December 2011, this flat amount (which has been included every year since 2012) could be actually shortchanging potential revenue. The New York State Department of Labor estimates that 218,300 jobs were created in the downstate MTA region from November 2011 to November 2013, which means that additional PMT revenue likely would have been generated from these additional jobs, in excess of the $310 million. This additional revenue may have been enough to offset the proposed four percent MTA fare increase in 2015.

Non-MTA Transit Systems

Upstate transit systems will receive a total of $175.9 million from the budget, an increase of only $2.3 million over last year’s allocation. In addition, according to the budget, non-MTA downstate transit systems like Nassau Inter-County Express, Westchester Bee Line and Suffolk County Transit, will be sharing an increase of only $5.6 million. As a point of comparison, last year, NICE bus alone received $5.1 million in additional state support for transit operations.

New York State Department of Transportation

The Executive Budget provides $3.4 billion to cover the second year of NYSDOT’s two year capital program. The budget allocates $155 million in funding for the New York Works program that will accelerate future projects into 2014-2015. The budget does maintain Consolidated Highway Improvement Program (CHIPS) and Marchiselli program funding at $477.8 million. These programs are key sources of funding for local public works departments for projects like repaving and maintenance of roadways. Unfortunately for pedestrian and cycling advocates, the Governor did not consider an ask for $20 million in annual dedicated pedestrian and cycling funding that advocates have called for in recent weeks. While the Transportation Enhancements Program, which helps pay for municipal pedestrian and bike projects, received a more than 50 percent increase from the Governor last week, this one time increase does not sustain the growing demand for these projects as an annual appropriation would.

New York State Thruway Authority

For another year, taxpayer funds will be used to offset the New York State Thruway Authority’s truck toll hike proposal that was dropped from consideration in December 2012. The State will continue to pay the costs of NYSTA State Trooper obligations out of the General Fund, keeping $86 million in NYSTA’s budget, and negating the need for a commercial toll increase.