Management & Operations

NY MTA reaches agreement on funding for Capital Program

Posted on October 14, 2015

Gov. Andrew M. Cuomo, Mayor Bill de Blasio and Metropolitan Transportation Authority (MTA) Chairman Tom Prendergast announced an agreement has been reached on the remaining funding for the MTA Capital Program, with New York State committed to provide $8.3 billion and New York City has committed to provide $2.5 billion.

The program, which totals $26.1 billion, outlines the next five years’ worth of vital investments to renew, enhance and expand the MTA network. This marks the largest investment in MTA infrastructure in history.

“This MTA Capital Plan is what we need to make the system smarter and more resilient, facilitating major upgrades, expansions and building crucial pieces of equipment so that riders are not forced to accept the failures of outdated infrastructure,” said Gov. Cuomo. “This plan will mean a safer, stronger, more reliable transit system for people all over New York, and is crucial in supporting our growing economy. And, this program would not have been possible without everyone stepping up to pay their fair share.”

At the State’s direction, the MTA recently reduced the Capital Program Review Board component of the Capital Program from $29 billion to $26.8 billion by utilizing alternative delivery methods such as design-build and public-private partnerships, as well as streamlined and negotiated procurement processes. The remaining $700 million (difference between the program scope of $26.8 billion and the agreed to $26.1 billion) will be closed by MTA efforts to seek further efficiencies or necessary program reductions.

Under the agreement reached by the State and City, parties agree to the following:

  • The State guarantees $8.3 billion to the MTA Capital Program to be provided by State sources. The City guarantees $2.5 billion to be provided to the MTA by City sources. City sources include a guarantee of $1.9 billion from direct City sources and a guarantee of $600 million through alternative non tax levy revenue sources. This agreement is dependent upon all of the conditions below.
  • The City and State will fund on the same schedule on a proportionate basis.
  • Projects in the City which are funded by the $2.5 billion committed by the City (including projects funded through non tax levy sources agreed to with the MTA) will be planned by the MTA Board in collaboration with the City representatives on the MTA Board, with priority consideration given for projects and timing based on input from the City.‎ Likewise suburban projects which are funded by the suburbs will be planned by the MTA Board in collaboration with suburban representatives on the MTA Board and with priority consideration given for projects and timing based on input from the those suburban communities. ‎
  • The State will not divert any funds or fail to provide any funding committed to this Capital Program or due and owing to the MTA for any other expenses unless in accordance with the provisions of Executive Law 182 passed in 2011. Likewise, the City will not divert any funds or fail to provide any funding committed to this Capital Program or due and owing to the MTA for any other expenses.
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