If the Metropolitan Transportation Authority’s budget debate is not resolved in the next 18 months, the agency could be forced to refund money to contractors on expansion projects, its chairman said Wednesday.
It’s an ominous refrain, repeated endlessly in the same automated monotone: “Ladies and gentlemen, we are delayed because of train traffic ahead of us.”
Every New Yorker who rides the subway to work each day—all 6 million, on the busiest days—has heard that message echoed over loudspeakers when a train car comes to an unexpected halt. What most commuters don’t realize is that those delays are tied to a contentious political fight playing out over the Metropolitan Transportation Authority’s five-year capital budget plan, which will fund critical improvements and repairs to the city’s sprawling transit system.
Right now, the MTA is struggling to find funding sources for about half of that $32 billion plan. The agency could be forced to refund money to contractors on expansion projects like the East Side access project—which will connect the Long Island Rail Road to Grand Central Terminal—if the budget debate isn’t resolved 18 months from now, MTA Chairman Thomas Prendergast said at a board meeting Wednesday.
“A year or two, we’re OK,” Mr. Prendergast said. “But as you start to get down that path, we get to the point where we don’t have that money, we can’t award design contracts, we can’t award construction projects.”
Another major project at risk is the new subway line that will run along Second Avenue, Mr. Prendergast said.
“Could we start the next phase of the Second Avenue subway? That would be one that would be up on the table,” he said.
But Mr. Prendergast said the agency has never found itself in that position before, and he doesn’t expect it will happen this time around.
“New York gets the money it needs to get the MTA to keep running,” he said. Probably more so than any other entity in the United States.”
Experts say the city’s aging trains and buses, which already lag far behind other global metropolises, will deteriorate considerably if the transit authority is unable to digitize a century-old subway signaling system, replace miles of subway tracks and cars and fix tunnel lighting, among many critical repairs.
“We will start sliding backwards,” said Richard Barone, director of transportation programs for the Regional Plan Association, an independent civic group that shapes transit policy across the tri-state area. “Stations will be looking worse. We won’t have the money to maintain the track infrastructure to where it should be, and therefore it will result in greater delays. If we don’t upgrade our signaling system, well, that’s really bad because these are signals that are in some cases over 80 years old.”
New York City Mayor Bill de Blasio also weighed in on the funding crisis in Albany on Wednesday, calling MTA’s capital plan “woefully underfunded.” The mayor criticized Gov. Andrew Cuomo’s current contribution of $750 million toward the budget, saying it does not begin to address the transit authority’s critical needs.
“We cannot ask riders alone to sustain the system with fare increases,” Mr. de Blasio said.
Politicians and policymakers are divided over how to come up with the remaining $15 billion needed to fund the plan. Mr. Cuomo, who controls the MTA, has described it as “bloated,” which implies that he will expect significant cuts in order for it to pass muster in the Legislature this summer. But the consensus among transportation experts is that the price tag actually isn’t high enough to cover the massive amount of work that needs to be done.
Mr. Cuomo’s office declined to comment on how the governor believes the budget ought to be funded. None of the options are politically popular: raising taxes, tolls or fares, for example. Funding also could be diverted from other state projects and funneled toward transportation.
The most fully formed alternative funding plan was announced last week by a coalition spearheaded by former transportation commissioner Sam Schwartz, known as “Gridlock Sam.” The group proposed implementing tolls for all cars that cross 60th Street in Manhattan and the free bridges spanning the East River. That plan was endorsed by several local politicians and major transportation groups, but notably did not receive support from either the governor or Mayor Bill de Blasio.
For subway riders, perhaps the most important improvement included in the capital plan is the installation of communications-based train control system on several subway lines, which will effectively digitize the trains. That means they’ll be able to run much closer together and more efficiently, rather than stopping and waiting for other trains to pass ahead of them.
Throughout 2nd Avenue Subway Build, Local Businesses See Fewer Customers, No Aid
With the first phase of the 2nd Avenue subway line set to be completed by December 2016, construction-weary business owners and residents are beginning to see the light at the end of the tunnel, even through the drilling smoke and fences that have become ubiquitous on the Upper East Side. Even so, the damage of a process that is approaching its eighth anniversary has left the surrounding area worse for wear, with businesses leaving in droves and residents finding the essence of their neighborhood completely disrupted.
And it’s just the first section, from 63rd Street to 96th Street, of the new line aimed at increasing transportation options and reducing overcrowding on the Lexington Avenue lines.
The process has left local businesses suffering the adverse effects. Almost half of the businesses between 68th Street and 95th Street that saw the beginning of the 2nd Avenue construction have moved or closed within the last 5 years due to declining revenues, according to the Manhattan Chamber of Commerce (MCC). Of the 441 storefronts that are currently situated on the Upper East Side stretch, 242 have been operating there since 2009, MCC says.
The Chamber has kept a steady record of declining foot traffic on 2nd Avenue since the commencement of the subway project, in April of 2007. MCC President Nancy Ploeger said the biggest disappointment to come from the past eight years has been the lack of tax credit for business owners.
“We would have hoped there would be more support for these businesses during a ten-year project,” Ploeger said. “It wasn’t an eight-month project, it was ten years.”
The general consensus among businesses owners on 2nd Avenue that spoke with Gotham Gazette is that the current construction obstructs everything in the area. Most businesses have taken a hit from the lack of walk-in customers, people simply no longer walk down 2nd Avenue unless it’s absolutely necessary. “In the time since the construction, our delivery business has continued to improve, while our dine-in business has stayed flat or fallen,” said Danny Marquez, the ten-year manager of Nick’s Restaurant and Pizzeria on 94th Street. “We may have experienced improvement in both areas were it not for the construction.”
Chris Tripoulas, four-year manager of Dorrian’s Red Hand on 84th Street, said that business has dramatically decreased, estimating about a 50% loss overall, possibly even more in daytime business during construction hours. “They haven’t done anything to help us out,” Tripoulas said of the Metropolitan Transportation Authority’s involvement with businesses on 2nd Avenue. Tripoulas, like Ploeger, expressed disappointment over the lack of tax credit for businesses in the construction zone. “A lot of the time people don’t even think we’re open, because [the construction] is covering us up,” he said.