Albany – Are You All on Debt Trains?
Governor Kathy Hochul celebrated a return of train service in Rockaway on Monday morning, but the method the struggling MTA will use to address a significant funding gap in its five-year capital plan remains unclear.
Last week, Hochul confirmed that funding deals included in the state budget would contribute to the funding of a massive $68 billion capital proposal, marking a new peak for the MTA.
“We asked the MTA to identify savings of $150 million, which we believe they are capable of achieving, and that could generate another $3 billion,” Hochul stated.
While interacting with reporters, she posed for photos and distributed stickers to A train riders. Later, she made remarks at a press conference alongside MTA Chairman Janno Lieber before leaving in a State Police SUV without further questions.
A representative for Hochul shared comments from Lieber, who responded to the Congress and the Governor’s challenge to evaluate the feasibility of their extensive $68 billion program.
Watchdog groups, like Rachael Fauss from Reinvent Albany, voiced concerns that the MTA might need to set precedents by using operational revenue—such as from metro fares—to fund multi-year projects within this substantial capital plan.
“The future of the economy is uncertain, and relying on operational savings to support long-term debt could be risky,” Fauss noted. She emphasized that, as Hochul mentioned, a potential recession could lead to decreased fares and services.
“You really want to avoid using bonds if there’s no need to dip into operational or fare revenue, as that could strain the budget and reduce funds for daily operations,” she added.
Lieber reassured that he aims to keep MTA debt below 15% of operating revenue, echoing his stance from last week.
“There are numerous avenues to achieve the savings and efficiencies we mentioned, but we’re just beginning this process, so we don’t want people to think we’re solely resorting to borrowing,” Lieber asserted.
Several lawmakers shared frustrations regarding the MTA’s plans, mentioning a lack of communication and transparency.
Some raised similar worries about intertwining capital plans with operating revenue. “Generally speaking, that’s not a sound financial practice,” commented Congressman David Weplin (D-Queens).
