Gov. Kathy Hawkle has freed up $54 million to restart the Second Avenue subway construction project that was stalled by the abrupt halt to congestion pricing, but she acknowledged Tuesday that the question of how to fill a $15 billion hole in the MTA’s budget will drag on into next year.
The state Legislature ended its June session without a plan to replace the billions of dollars in revenue that the Manhattan toll road project was expected to bring to transportation agencies starting June 30 before Governor Hawke slammed on the brakes.
Asked by The Washington Post about the plan, Hochle acknowledged that the issue has been postponed until 2025 state budget negotiations.
“This plan will be implemented in next year’s budget,” she said at a news conference in Albany on Tuesday morning.
The exchange came shortly after Hokel’s office announced that construction on the expansion of Harlem’s Second Avenue subway line would continue using state funds.
Haukle raised $54 million from the remaining Infrastructure Capital Fund allocations from 2016-17.
“This shows Governor Hockle is serious about her East Harlem constituents and that she’s committed to eliminating the transportation desert,” Assemblyman Eddie Gibbs, a Manhattan Democrat, told The Post. “I supported congestion pricing, and this shows the governor was right. She can move forward with the project while protecting middle-class New Yorkers who don’t want congestion pricing.”
Harlem Councilman Adriano Espaillat also told X, “I’m grateful. [Gov. Kathy Hochul] “We appreciate the state furthering its commitment to the Second Avenue Subway by allocating $54 million in state funding to ensure critical support for the project continues.”
“Governor Kathy Hawkle proved the sky isn’t falling by raising $54 million to continue construction on the Second Avenue Subway,” anti-congestion fee group Keep NYC Congestion Tax Free said in a statement.
Others used the announcement to once again denounce Haukle’s “indefinite suspension” of congestion pricing and the $15 billion hole it put in the MTA’s 2020-2024 capital plan.
“Fossil fuel money is the same as fuel. [Hochul] The Riders Alliance, which supports the introduction of congestion pricing, Post to X.
“If we could do this 277 more times, we could close a $15 billion hole in the capital budget,” said Open New York, a congestion pricing advocate. Post to X.
“I continue to believe this is an issue that cannot wait until next year’s session,” state Senate Transportation Committee Chairman Jeremy Cooney (D-Monroe) told The Post in a statement. Repeat the argument He posted an article on lohud.com last week.
Financial experts have scoffed at the idea of putting off the issue of congestion pricing until next year, especially as Albany must figure out how to pay for much of the roughly $70 billion in capital projects the MTA estimates it will implement over the next five years.
“The governor may have taken on more than he can handle, as the MTA’s capital needs over the next five years are well over $15 billion,” Rachel Faust, senior policy adviser at Reinvent Albany, wrote in the Post.
“In addition to dealing with the impacts of the Governor’s decision to halt congestion pricing, state budget negotiations will also require fully funding the MTA’s 2025-29 capital plan, which likely costs around $70 billion.”
“It’s a big part of the problem, but it’s only part of the problem,” said Citizens Budget Committee Chairman Andrew Lane, pointing to next year’s capital planning debate.
The cost, estimated at about $70 billion over five years, would likely include some federal funding.
The amount of federal funding could vary greatly depending on whether Democrats control Congress and the White House, leaving the rest up to Albany.
Lyne said federal funding is certainly a factor, but either way “we still have big problems” and will ultimately need new revenue sources or a rethinking of revenue sources.
“They’re going to need a lot more resources, but where will they come from? That could be the $80 billion question.”
