MTA Chair Janno Lieber painted a stark picture of the MTA's financial landscape in his first public appearance since Governor Hochul's sudden halt on congestion pricing last week. Addressing reporters at MTA Headquarters in Lower Manhattan, Lieber emphasized the pressing need to sustain the transit system amidst looming uncertainties.
Since the governor's video announcement last Wednesday and the conclusion of the legislative session on Friday, there have been a lot of questions and concerns," Lieber remarked, underlining the gravity of the situation. "We have to keep the system running," he stressed.
The abrupt loss of $15 billion in anticipated capital funding, originally earmarked for essential projects and derived from $1 billion in projected annual revenue from congestion tolls, presents a formidable challenge for the agency. "We have to do an intensive review about the best way to re-prioritize and shrink the current 2020-2024 capital program," Lieber explained. "This is not something we do lightly, but we simply cannot award contracts without dedicated funding in place.
To navigate this financial setback, the MTA has mobilized a specialized team within its construction and development division to assess project feasibility. With $27 billion already allocated from the current $55 billion capital budget, the agency now grapples with covering $28 billion in planned but unawarded projects, with only $13 billion remaining.
Faced with these constraints, Lieber affirmed the agency's commitment to sustaining the system's operational integrity. "We have to prioritize the 'state-of-good-repair' work that assures the safety of our transit system," he emphasized. This entails focusing on critical infrastructure such as concrete and elevated structures, signals, tracks, and power systems—foundational elements crucial for system reliability.
Acknowledging the inevitability of prioritization amidst limited resources, Lieber underscored the importance of discerning what maintenance is most "safety-sensitive." In this endeavor, he has enlisted the expertise of Tom Prendergast, former MTA chairman and current executive at consulting firm AECOM, to assist in strategic decision-making.
As the MTA grapples with financial constraints, Lieber's emphasis on prioritizing safety underscores the agency's unwavering commitment to ensuring the reliability and integrity of New York's vital transit infrastructure.
The chair has also charged his agency with the critical task of securing federal grant funding, a significant portion of which requires matching funds from the MTA. Of particular importance is the continuation of phase 2 of the Second Ave. subway project, slated to receive $3.4 billion in federal grants, contingent upon the MTA's ability to contribute $4.3 billion towards the total $7.7 billion project cost. Completion of this project holds immense promise for East Harlem, which has endured over fifty years without rapid transit access.
We're committed to safeguarding these projects from jeopardy, despite the challenges," Lieber affirmed. Leading the agency since his appointment by former Governor Andrew Cuomo in 2021, Lieber remained circumspect about Governor Hochul's sudden decision to indefinitely halt the congestion tolling program last week. "Our role at the MTA isn't to delve into political analysis," he remarked. "The governor operates on a broader scale, which sometimes diverges from our immediate focus.
Governor Hochul, addressing concerns about the MTA's financial stability, assured Monday that alternative funding avenues would be explored. "To assume that congestion pricing was the sole solution displays a lack of imagination regarding other financing possibilities," Hochul remarked during an unrelated press conference in the Bronx. "I am committed to advancing these projects.
Confirming previous reports, Lieber disclosed that Hochul's decision caught the MTA leadership off guard, though he dismissed rumors of potential resignation as unfounded. "I've weathered daunting challenges before, notably during my tenure at the World Trade Center project," Lieber quipped. "Walking away isn't in my nature; resilience is ingrained in me.
Despite the setback, Lieber hinted at the prospect of congestion pricing resurfacing, despite Hochul's decision not to endorse federal approval. "The MTA board acknowledges our obligation under state law to implement congestion pricing," he noted, leaving the door ajar for potential future developments.
At present, the stumbling block lies in securing the necessary federal approval," remarked Lieber. "While the intent remains steadfast, the current landscape presents obstacles to its realization.
In conclusion, while facing formidable challenges and unexpected setbacks, the MTA under Chair Janno Lieber's leadership remains resolute in its commitment to sustaining and advancing vital transportation infrastructure projects. Despite the temporary pause on congestion pricing and uncertainties surrounding federal approvals, Lieber and his team are actively strategizing to mitigate risks, secure alternative funding sources, and prioritize essential initiatives. With a steadfast dedication to resilience and innovation, the MTA presses forward, unwavering in its mission to serve the needs of New Yorkers and ensure the reliability and efficiency of the city's transit system for generations to come.
