Share on FacebookTweet about this on TwitterEmail this to someone
Share on FacebookTweet about this on TwitterEmail this to someone

It will be interesting to see if the new Metropolitan Transportation Authority (MTA) Chair Joe Lhota will be any more successful than Jay Walder and his predecessors in dealing with the challenges ahead. 

The original proposed $29 billion Five Year Capital Plan was cut to $24 billion, but still faces a $9 billion shortfall.  Proposed plans to borrow another $9 billion will just increase the MTA’s long term debt from $30 to $39 billion. Yearly service payments on the debt will take an even bigger chunk out of the budget, leaving even less money for routine capital improvements, let alone any system expansion.  

Only Uncle Sam, New York State, New York City, California and several other states carry more long-term debt than the MTA.

For decades, under numerous past MTA Five Year Capital Plans, both the city and state collectively cut billions of their own respective financial contributions.  They repeatedly had the MTA refinance or borrow funds to acquire scarce capital funding formerly made up by hard cash from both City Hall and Albany. 

Will Lhota be able to convince his benefactor – Governor Andrew Cuomo and Mayor Michael Bloomberg – to contribute their fair share?  Time will tell.

 

 

Larry Penner

Great Neck

 

Comments:

Join The Discussion



Related Stories
PHOTOS: Governor Andrew Cuomo’s former mansion in Douglas Manor sells for $2.4M
PHOTOS: Governor Andrew Cuomo’s former mansion in Douglas Manor sells for $2.4M
Nancy Reagan, former first lady was a Queens native
Nancy Reagan, former first lady was a Queens native
Popular Stories
NYPD photo/Google Images
A string of parking lot thefts shake up the Whitestone Shopping Center
Photo via Google Maps
Motorcyclist dies after crashing his ride on the Belt Parkway in Howard Beach
Google Maps
Whitestone Church sells half of its parking lot to pay off its $3M debt
Skip to toolbar