MTA trims capital budget

TRD New York /
Jul.July 21, 2011 04:30 PM

The Metropolitan Transportation Authority is cutting down its capital budget as it seeks to keep its costs down, the Wall Street Journal reported. The agency said yesterday that it had cut the cost of its five-year plan by $2 billion, to $24 billion. The MTA’s capital budget pays for projects such as the Second Avenue Subway, new train cars and buses, subway station rehabilitation and general system maintenance. While the authority and the state Legislature agreed to fund the first two years of the five-year plan last year, it still needs to find another $9 billion to pay for the following years up until 2014.

Richard Anderson, president of the New York Building Congress, told the Journal that the MTA’s budget has big implications for his organization’s members. He estimates that if the MTA gets the $9 billion it’s looking for, it would account for 25 percent of the city’s construction activity next year. Where the MTA funding will come from remains unclear. It reduced by $1 billion its projections for funding from the federal government, which pays for about a third of the capital plan. The agency also so far has yet to ask for new revenue, whether in the form of taxes or higher fares.

Meanwhile, this afternoon, MTA Chairman and CEO Jay Walder abruptly announced his resignation to become CEO of the MTR Corporation in Hong Kong. In a statement yesterday, he had said: “We recognize that there’s no appetite for new taxes in New York today.”
[WSJ] 


Related Articles

arrow_forward_ios
(Getty)

MTA proposes percentage-based rent payments for Grand Central retailers

MTA proposes percentage-based rent payments for Grand Central retailers
TRD's Erik Engquist and MTA Chief Development Officer Janno Lieber 

MTA development chief: Capital budget will be “cannibalized” without federal aid

MTA development chief: Capital budget will be “cannibalized” without federal aid
Related chairman Steve Ross and 35 Hudson Yards (Photos via Getty, SOM, MTA)

Hudson Yards pad sells for $7M; cash-strapped MTA gets a cut

Hudson Yards pad sells for $7M; cash-strapped MTA gets a cut
The MTA says it has the funding to extend the Second Avenue Subway to East Harlem, and the real estate industry is thrilled. (Credit: Getty, iStock)

Developers see dollar signs in Second Avenue subway extension

Developers see dollar signs in Second Avenue subway extension
From left: 1800 and 1815 Park Avenue, MTA's Second Avenue Subway plan, and 160 East 125th Street between 3rd and Lexington (Credit: Google Maps)

Second Ave subway’s next phase could impact Durst, Extell dev sites

Second Ave subway’s next phase could impact Durst, Extell dev sites
Corey Johnson’s MTA reform plan targets controversial Scaffold Law

Corey Johnson’s MTA reform plan targets controversial Scaffold Law

Corey Johnson’s MTA reform plan targets controversial Scaffold Law
MTA renews 50K sf at Forest City’s 1 Pierrepont Plaza in Brooklyn

MTA renews 50K sf at Forest City’s
1 Pierrepont Plaza in Brooklyn

MTA renews 50K sf at Forest City’s
1 Pierrepont Plaza in Brooklyn
Peter Fine pays nearly $30M for East Harlem site along the Second Avenue subway’s next phase

Peter Fine pays nearly $30M for East Harlem site along the Second Avenue subway’s next phase

Peter Fine pays nearly $30M for East Harlem site along the Second Avenue subway’s next phase
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...