FINANCE

NEW YORK — The Metropolitan Transportation Authority faces a $2 billion deficit in 2024 that will balloon to $3 billion by 2026, MTA Chair and CEO Janno Lieber told a joint legislative hearing on the state's 2023-2024 transportation budget on Monday, warning that without action, the agency would be forced to slash service, hike fares dramatically, or raid its $55 billion capital plan. Lieber presented Governor Hochul's proposed balanced funding plan, which combines $400 million in MTA operational savings, a payroll mobility tax increase affecting only 5 percent of businesses, state general funds, and future casino revenues. He emphasized that the plan would preserve service levels while addressing the agency's financial crisis, which he attributed directly to the persistence of remote work post-COVID. "For New Yorkers, transit is like air and water. We need it to survive," Lieber told the Senate Finance Committee and Assembly Ways and Means Committee in Hearing Room B of the Legislative Office Building. "It doesn't make sense that low-income folks should see service slashed because others can work from home or dial it in from East Hampton or Aspen." Lieber highlighted recent operational successes: subway on-time performance reached its highest level in 10 years in January, Metro-North commuter railroads achieved 97 and 96 percent on-time performance, and crime in the transit system dropped 30 percent in January compared to the prior year following the Cops, Cameras and Care initiative. He noted that 70 separate ADA accessibility projects are either in contract, under construction, or completed since the pandemic onset—an unprecedented pace. The MTA is pursuing the $400 million in savings through technology-driven maintenance scheduling and improving worker availability, which has declined from 205 days annually before COVID to 195 days currently. Lieber said that 10-day loss costs the agency approximately $200 million annually. Sen. Leroy Comrie, chair of the Senate Committee on Corporations, Authorities & Commissions, pressed Lieber on specifics, asking how the MTA would achieve $400 million in efficiencies without service cuts and whether the agency had addressed reported waste. Comrie also introduced S2872, which would exempt the MTA from bond issuance charges. MTA CFO Kevin Willens explained that debt restructuring has reduced debt service costs to 15 percent of the total budget, down from higher levels in recent years, and that waiving bond issuance charges would further reduce capital program costs. Comrie also questioned Lieber about West of Hudson capital projects, system cleanliness, and alternative proposals such as free bus service. Lieber expressed caution about the free bus proposal, preferring targeted affordability programs like the Fair Fares Program. The hearing was the first in a series of 13 joint legislative hearings on the Governor's proposed 2023-2024 budget. Testimony from the state Department of Transportation, Department of Motor Vehicles, Thruway Authority, and various transit advocacy groups was scheduled to follow. MTA Chair Janno Lieber defended the Governor's 2023-2024 transportation budget before a joint legislative committee on February 6, asserting that the proposal balances the agency's budget through 2026 while maintaining service quality and advancing safety improvements. The hearing revealed sharp disagreements over fare increases, cost-sharing with New York City, and funding mechanisms to address the MTA's $2 billion deficit. Liber stated that the Governor's plan balances the budget for calendar fiscal 2023 and the remaining years of the financial plan through 2026, with additional security projected through 2028-2029 using potential casino revenues. He emphasized that the MTA has made "tremendous progress" on subway safety in three months, reversing concerning trends, and noted that yesterday there was only one felony crime in the NYC Transit system. Sen. Tim Kennedy, chair of Transportation, pressed Lieber on the cost of preventing fare increases entirely, learning that $350 million in additional annual funding would be needed. Kennedy also questioned the $500 million cost-sharing proposal for paratransit services, which the city has not yet agreed to assume. Lieber acknowledged this represents a potential budget gap if negotiations fail. Sen. Roxanne Persaud and other lawmakers raised concerns about service gaps and reliability. Persaud criticized express bus performance, noting the BM2 bus is on time only about 2 percent of the time, and questioned improvements to the Access-A-Ride paratransit system for disabled riders. Sen. Ramos challenged the fare increase approach, noting that New York has 120 billionaires with $478 billion in collective wealth, and questioned the impact on seniors and disabled riders on fixed incomes. Sen. Hoylman-Sigal highlighted that Madison Square Garden pays no property taxes—worth $43 million annually—and proposed $40 million in annual state and city funding for Penn Station redevelopment, estimated at $6 to $7 billion. Lieber indicated the MTA is committed to starting work soon, as Metro-North is projected to arrive at Penn Station in 2027. The hearing underscored tensions between the MTA's fiscal constraints, service expansion demands, and equity concerns, with lawmakers questioning whether modest fare increases and cost-shifting to the city represent the best path forward. NEW YORK — The Metropolitan Transportation Authority's proposed 5.5 percent fare increase and 47 percent payroll tax hike faced intense scrutiny from state legislators on Monday during a joint budget hearing, with senators from rural and outer-borough districts questioning the equity of the funding plan and pushing for alternative revenue sources. MTA Chair Janno Lieber defended the Governor's budget proposal as necessary to maintain current service levels through 2026, but encountered pointed challenges from multiple lawmakers. Sen. John Liu pressed Lieber on free bus proposals, citing recent implementations in Washington D.C., Boston, and Denver. Lieber countered that free buses without corresponding subway fare elimination would shift 5 percent of subway ridership to buses, creating longer commutes and fare evasion problems—noting that when the MTA suspended bus fares during COVID, it became difficult to restore the "ethos of fare payment." Sen. Gustavo Skoufis of Orange County delivered a sharp critique, arguing that West of Hudson constituents pay the same 47 percent payroll tax increase despite receiving minimal service—no overnight trains and hours-long daytime waits. He noted the MTA already receives funding from congestion pricing, DMV transaction fees, petroleum taxes, and a COVID bailout, questioning why riders should bear additional burden. Sen. Alessandra Gounardes highlighted a fundamental tension in the MTA's position: seeking increased public funding while simultaneously raising fares on riders. She calculated that avoiding the fare hike and city contribution would require the state to cover approximately $850 million, and suggested restoring the $375 million annually swept from the Transit Assistance Fund. Sen. Julia Gonzalez, a cosponsor of the "Formula 3" Act that would provide billions in additional operating aid and make buses free, secured a commitment from Lieber that the MTA is not using facial recognition technology in its $150 million camera expansion. Lieber emphasized that the 10,000 existing cameras operated at 99 percent uptime and provided crucial images that helped police apprehend the N line suspect. On service frequency, Assemblyman Tony Simone challenged Lieber's characterization of current service, noting the C Train often has 20-minute waits. Lieber responded with detailed statistics: 77 percent of daytime riders receive six-minute or better service, 98 percent get 10-minute or better morning service, and on-time performance reached 85 percent—the best in 10 years. The hearing revealed deep divisions over how to fund mass transit, with rural and outer-borough legislators resisting fare and tax increases while urban legislators pushed for free or reduced fares and service improvements. The MTA's budget proposal now heads to legislative negotiations between the Assembly, Senate, and Governor's office. The New York State Legislature's Joint Finance Committee held a hearing on the Governor's 2023-2024 executive budget for the Metropolitan Transportation Authority on February 6, with MTA Chair Janno Lieber defending the administration's revenue proposals and capital plans amid pointed questioning from lawmakers about equity, feasibility, and workforce impacts. Chair Lieber characterized the Governor's budget as essential to avoiding a "death spiral" of service cuts and layoffs, emphasizing that the Payroll Mobility Tax targets only the largest 5 percent of companies and that the proposal maintains a critical distinction between operating and capital funding. He projected ridership recovery to 80 percent of pre-COVID levels by 2026 and highlighted major capital projects including the opening of Grand Central Madison, which will increase Long Island Rail Road service by 40 percent within weeks. Sen. Fernandez (D-Bronx/Westchester) challenged the equity of the revenue proposal, questioning why working New Yorkers and taxpayers should bear increased fare and tax burdens rather than billionaires. She also raised data privacy concerns about the OMNY payment system and advocated for modernizing the Access-A-Ride program with app-based technology to address long wait times for seniors. Sen. O'Mara (R-Southern Tier) expressed support for bus electrification in principle but raised significant feasibility concerns, citing reports that MTA's electric bus charging costs 2-3 times more than diesel fuel. He questioned the $2.2 million per-bus cost for a recent 500-bus contract and emphasized the need to flesh out overall costs and timelines before full implementation of the 2040 all-electric fleet goal. Chair Krueger (D-Manhattan) demonstrated deep engagement with MTA finances, pressing for efficiency improvements on the Long Island Rail Road and advocating for equitable transit distribution across the 12-county region rather than concentrating service on Manhattan. She expressed support for the Interborough Express project connecting Brooklyn and Queens. Sen. Comrie (D-Queens) focused on Penn Station renovation, advocating for federal coordination with Senator Schumer and expressing disappointment with Amtrak's limited through-running plans. He praised the MTA's MWBE leadership, noting the agency does about $1 billion annually in contracting with minority and women-owned enterprises. Sen. Kennedy (D-Buffalo), chair of Transportation, emphasized the critical role of MTA workforce during the pandemic and sought assurance that the budget would protect jobs and avoid layoffs. He raised concerns about Penn Station Access project delays caused by Amtrak's inability to provide scheduled outages and workforce support, noting that similar issues cost the East Side Access project approximately $1 billion. Assemblywoman Sillitti (D-Port Washington) raised concerns that the new Long Island Rail Road schedule still falls short of pre-COVID service levels on the Port Washington line, with only 11 morning trains compared to 18 in 2019, and urged the MTA to monitor ridership and address overcrowding in an expedited manner. The hearing revealed significant tensions between the administration's revenue proposals and lawmakers' concerns about equity, feasibility, and service adequacy, particularly regarding fare burdens on low-income riders, outer-borough communities, and suburban commuters. NEW YORK — State transportation officials faced tough questions on fiscal sustainability and service improvements during a joint legislative budget hearing Monday, with MTA Chair Janno Lieber defending proposed fare increases and a controversial payroll tax while DOT Commissioner Marie Therese Dominguez outlined a historic $32.8 billion five-year infrastructure investment. Lieber told lawmakers the MTA is pursuing a 5 percent fare increase that would generate $350 million annually across all modes—subways, buses, commuter rail, and tolls—to help close a structural budget gap exacerbated by pandemic-driven ridership losses. The agency also is proposing a payroll tax on the largest businesses, which Lieber characterized as affecting only 5 percent of businesses, primarily those with white-collar workers benefiting from reverse commuting on the newly completed Third Track project. But the proposal drew skepticism from Assembly members representing Long Island and New York City. Assemblyman Ra questioned whether the revenue solutions would address long-term structural deficits, noting that the state "tends to end up here" seeking new revenue streams every decade. Assemblywoman Gonzalez-Rojas advocated for dedicating internet marketplace sales tax revenue—which generates $320 million annually—directly to transit improvements rather than the capital lockbox. Assemblyman Cunningham raised safety concerns, questioning MTA worker protocols after incidents at Winthrop Station, and noted that 24 percent of state residents struggle to afford essential services like doctor visits, complicating fare increase discussions. Lieber also addressed ongoing negotiations for the R262 next-generation railcar contract, saying the MTA is "in the middle of negotiations" with manufacturers including Alstom and Kawasaki over pricing. Assemblyman Palmesano pressed for timelines, highlighting Alstom's $40 million investment in the R211 project at its Hornell facility. On the DOT side, Commissioner Dominguez highlighted the agency's response to historic winter storms—including a November lake-effect event that dumped 7 feet of snow on Buffalo and a December blizzard with 37 hours of zero visibility that killed 47 people. She noted DOT cleared 3.4 million lane miles this season and said the capital plan will improve road and bridge conditions, with 57 percent of roads and 74 percent of bridges currently in good to excellent condition. The $32.8 billion five-year plan represents a 40 percent increase from the previous plan and includes $6.1 billion for local roads and bridges, $230 million for regional airports, and $170 million in federal electric vehicle charging infrastructure funding. Dominguez also highlighted Complete Streets investments, with 1,266 ADA ramps, 166 miles of bike lanes, and 27 miles of sidewalks completed. Assemblyman Magnarelli pressed DOT on Complete Streets education and funding, noting the state should lead on walkability and bikeability. He also raised concerns about CSX removing railroad sidings, which could impact passenger rail service expansion. Chairwoman Assemblywoman Weinstein challenged MTA's fare revenue projections, citing estimates showing $245 million versus the agency's $350 million claim, and requested detailed breakdowns by mode and year. MTA CFO Kevin Willens explained the $350 million includes all modes and committed to providing clarification in writing. NEW YORK STATE SENATE FINANCE COMMITTEE HEARS TRANSPORTATION BUDGET TESTIMONY; LAWMAKERS PRESS FOR INCREASED INFRASTRUCTURE FUNDING AMID INFLATION CONCERNS DOT Commissioner Marie Dominguez defended the state's $32.8 billion five-year transportation capital plan during a joint legislative hearing on the 2023-2024 Executive Budget on Monday, but faced pointed questioning from lawmakers who argued the funding falls short given rising construction costs. Sen. Kennedy challenged the commissioner on whether the state should increase the capital plan by $10-12 billion to address inflation impacts on concrete, asphalt, and steel. "We're hearing from industry leaders, those on the ground, that especially due to the cost of inflation, supplies, the cost of doing business, particularly in the implementation of this funding, is much higher than was originally anticipated," Kennedy said. Dominguez countered that the plan's flexibility and the state's work with industry on contract adjustments would help manage costs, noting the plan includes 589 bridges and 1,353 lane miles of pavement in the first year alone. Multiple lawmakers expressed frustration that local road funding programs—CHIPS, PAVE-NY, Bridge NY, and Extreme Winter Recovery—received no increases despite inflation. Assemblyman Jacobson directly challenged Dominguez: "Are you going to tell the Governor, Hey, it's a great budget, but I really think you should change this funding and help the people that need help so we can do the paving?" The BQE triple cantilever reconstruction emerged as a contentious issue. Assemblywoman Gallagher, whose Brooklyn district borders the deteriorating structure, expressed frustration that her community wants the highway "revisioned and totally changed," not simply repaired. "We do not feel like we are being heard or seen," she said, noting 10 years of unsuccessful attempts to engage with State DOT. Dominguez confirmed the state is working with the city on environmental impact statement requirements and supporting federal discretionary grant applications. Dominguez highlighted the plan's achievements: $6.1 billion for local highway programs (a 78% increase over the previous five-year plan), $1.2 billion invested along the BQE over the past decade, and $175 million in federal funding for EV charging infrastructure. He also noted the state is rehabilitating over 400 culverts statewide. Sen. Oberacker proposed expanding Extreme Winter Recovery funding to cover broader extreme weather events, citing spring storm damage in his upstate district. Dominguez expressed openness to discussing resiliency improvements. The hearing revealed a broader legislative push for increased transportation investment, with multiple senators and assembly members advocating for additional funding to address inflation and deferred maintenance across the state's infrastructure. NEW YORK — The state Department of Transportation defended its 2023-2024 transportation budget before a joint legislative committee on Monday, emphasizing significant capital investments and federal funding while facing sharp criticism from lawmakers over the agency's limited role in the Brooklyn-Queens Expressway reconstruction and concerns about underfunded upstate transit. DOT Commissioner Dominguez told the Finance Committee that the state is investing $3.1 billion in state and local projects in the first year of a five-year capital plan, matched with $1.8 billion in federal funding. He highlighted new programs including a $3 million Innovative Mobility Fund for upstate transit and doubled bridge program funding to $200 million. But the hearing revealed deep frustration from Brooklyn and Queens lawmakers over the BQE, a 20-mile highway that has divided communities for 70 years. Sen. Roxanne Persaud (D-Brooklyn) and Sen. Zellnor Gonzalez (D-Queens) demanded the state take a more visible role in planning the highway's reconstruction, not just provide technical assistance on the city's application for federal Reconnecting Communities grants. "State DOT officials are on the calls but they can't reveal themselves, they can't show up on a Zoom meeting," said Sen. Gounardes, who represents 11 of the 19 miles of the BQE. "How do we go back to our communities that have been crying in pain and say, Don't worry, we're fighting for you, but the state agency responsible to help us, that owns this highway, won't even show their face?" Upstate lawmakers raised separate concerns about rural transit. Sen. Maurice Hinchey (D-Kingston) questioned whether $3 million for innovative transit options is sufficient for the Hudson Valley, which lacks a transit authority. Sen. Tom O'Mara (R-Big Flats) pressed the Commissioner on the ongoing crisis in rural transit systems, which lost significant revenue when non-emergency Medicaid transportation was shifted to private car services years ago. Dominguez said the state increased upstate transit funding by 7 percent to $286-287 million annually and is working with the Department of Health to create more flexible on-demand services in rural areas. He also noted that the Legislature passed a rural transit working group bill that has not yet convened. Long Island lawmakers raised concerns about road capacity. Assemblyman Durso cited a 6 percent decline in pavement conditions on Long Island from 2020-2021 and a 20 percent decline since 2017, questioning whether roads can handle population growth, heavier electric vehicles, and new transit-oriented development. Dominguez said the state invested $121 million in Long Island roads last year, improving 442 lane miles, and that roads are engineered to handle 80,000 pounds. Assemblywoman Giglio, an operating engineer, raised technical concerns about electric vehicle conversion for snow removal equipment, noting that electric plows may only operate four hours versus 12 hours for diesel vehicles. She asked whether the budget accounts for needing three times as many vehicles. Sen. Krueger, the committee chair, pressed Dominguez on claims that road funding is flat, noting that $32 billion in additional capital over five years plus $13.5 billion in federal highway and bridge formula aid contradicts that narrative. Dominguez acknowledged the significant infusion of dollars and credited Governor Hochul and the Legislature for providing "remarkable" funding stability. The hearing also touched on electric vehicle fleet conversion, with Dominguez reporting the DOT light-duty fleet is approximately 75 percent converted to electric vehicles, with completion expected in a couple of years. The state is working with manufacturers on heavy-duty vehicle conversion. The hearing was held Feb. 6, 2023. New York State legislators sharply questioned whether the Governor's proposed transportation budget adequately addresses inflation and upstate needs during a joint Senate-Assembly hearing on the 2023-2024 Executive Budget on Monday. The hearing centered on the Department of Transportation's $32.8 billion five-year capital program, with Senator Tim Kennedy and Assemblyman Magnarelli arguing that when adjusted for inflation running at 16 to 20 percent, the funding remains underfunded. Kennedy called for an additional $10 billion and a 20 percent increase in State and Local Transportation Assistance (STOA) funding for upstate non-MTA transit authorities, which received only a 7 percent increase in the proposed budget. Assemblyman Palmesano raised concerns about the impact of soaring material costs on local communities, noting that fuel costs have risen 256 percent, asphalt 77 percent, and steel 115 percent. He criticized the lack of increased funding for CHIPS, the Consolidated Highway Improvement Program, which he called "the lifeblood of our upstate transportation network." Palmesano also posed a pointed ethical question to DOT Commissioner Dominguez about child labor in mining cobalt for lithium-ion batteries used in electric vehicles, asking whether the state has an obligation to ensure materials are sourced responsibly. DOT Commissioner Dominguez defended the capital program and explained that the department uses data-driven asset management, including LiDAR technology, to continuously assess road and bridge conditions. He noted that upstate STOA funding differs fundamentally from MTA financing because upstate systems lack access to dedicated local revenue sources. The hearing also featured testimony from DMV Commissioner Mark Schroeder and Thruway Authority Interim Executive Director Frank Hoare. Schroeder highlighted the DMV's transformation efforts, reporting that the agency serves nearly 16 million New Yorkers annually through 35 million customer interactions and collects $2 billion in yearly revenue. He announced plans to add 200 staff positions and expand digital services to 74 online transactions, including a new mobile driver's license by year's end. Hoare defended the Thruway Authority's proposed toll increase—the first outside the Governor Mario Cuomo Bridge since 2010—as necessary to maintain operations. He noted that the Thruway received no portion of the $13 billion in federal infrastructure funds New York received and operates solely on user fees. The proposed increase would raise passenger vehicle tolls from 4.5 cents to 4.9 cents per mile over four years. Hoare reported that cashless tolling has processed 744 million transactions since November 2020, with E-ZPass usage now at 84 percent of all users. NEW YORK STATE THRUWAY AUTHORITY DEFENDS FIRST TOLL INCREASE IN 14 YEARS AT BUDGET HEARING Thruway officials defended a proposed toll increase before the Senate Finance Committee on Monday, arguing that dramatic cost escalations in materials and labor—combined with pandemic-related revenue losses—make the increase unavoidable despite public opposition. Interim Executive Director Hoare told lawmakers that structural steel costs have surged 212 percent since 2010, from $1.31 to $4.08 per pound, while equipment and vehicle costs have jumped 40 percent in just the last two years. The authority lost $125 million in toll revenue in 2020 due to COVID-19, with losses projected to reach $240 million over five years—money "we will never see again," Hoare said. The proposed toll increase would raise the base rate from 4.5 cents per mile to 4.9 cents per mile by 2027, bringing a Buffalo-to-Albany trip from $12 to approximately $13. Thruway CFO Howard noted that even with the increase, New York's rates remain far below comparable highways: the Pennsylvania Turnpike charges 14.5 cents per mile, and the Indiana Toll Road charges 8.6 cents per mile. Without toll increases, the authority projects a $4 million funding gap beginning in 2024, growing to $250 million by 2031. Hoare said 95 percent of Thruway revenue comes from tolls, with only 5 percent from leases of cell towers and fiber optic infrastructure. Sen. Kennedy, chair of the Transportation Committee, pressed Hoare on alternative revenue sources, noting that Comptroller DiNapoli recently called toll increases "an absolute last resort." Hoare acknowledged the sentiment but said the authority has explored alternatives for years. The Thruway has applied for two federal discretionary programs totaling approximately $42 million but was excluded from the state's major infrastructure funding allocation. The hearing also addressed service area renovations, which are running 8-10 months behind schedule and are now projected to finish in late May or early June 2025. Three service areas are currently open west of Albany, with seven more opening by Memorial Day weekend. The $450 million renovation project is entirely funded by the private operator, not by toll revenue or state funds. DMV Commissioner Schroeder testified on separate initiatives, including a new Donate Life enrollment program targeting 2.5 million additional New Yorkers and expanded training for drug recognition experts to address impaired driving concerns, particularly related to cannabis use. The Thruway Authority is required to hold a minimum of three public hearings on the toll increase proposal, expected in mid-to-late spring. NEW YORK STATE LEGISLATURE — A joint legislative committee hearing on the 2023-2024 Executive Budget for transportation agencies revealed significant tensions over toll increases, infrastructure funding, and administrative failures at the Thruway Authority, while transit advocates praised new funding commitments for the MTA. Interim Executive Director Mark Hoare of the Thruway Authority faced pointed questioning from Sen. Borrello (R) over a projected $4 million deficit and what he characterized as wasteful spending on non-functioning wind turbines at Thruway exits. When pressed for specifics on the turbine costs, Hoare declined to provide figures, saying he would follow up. Borrello also challenged the authority's claim that cashless tolling would save money, noting that the transition to all-electronic tolling (AET) should have generated "hundreds of millions of dollars in savings" from eliminating toll booth positions. Hoare responded that AET was designed for safety and environmental benefits, not cost savings, and that back-office expenses and Tolls By Mail processing still required significant personnel. Assemblyman Burgos raised constituent complaints about E-ZPass billing failures, citing a case where 59,000 people were overcharged at the Lackawanna toll gantry near Buffalo. He described receiving complaints from constituents facing bills of $6,000 to $18,000 after the authority failed to mail bills in a timely manner, resulting in collection actions that prevented vehicle registration. Burgos argued that before approving toll increases, the Legislature must address E-ZPass administrative failures. Hoare defended the authority's process, noting that bills are sent three times over 120 days before collections action, and that 90 percent of customers pay within 30 days. Sen. Borrello also questioned the selection of an Irish company to operate new Thruway service areas, suggesting the contract was awarded based on "political donations" rather than qualifications. Hoare stated the company responded to a public RFP and operates service areas in New Jersey, Pennsylvania, and Europe. On the positive side, transit advocates testified in support of the Governor's Executive Budget. The New York Public Transit Association praised the 25 percent increase for the MTA but urged equal commitment to upstate transit systems, which receive only 40 percent of funding from dedicated sources compared to 99 percent for the MTA and downstate suburbs. The Permanent Citizens Advisory Committee to the MTA endorsed the $8.3 billion in state operating aid and the $300 million direct payment, calling for the direct payment to become recurring and inflation-adjusted annually. DMV Commissioner Mark Schroeder fielded questions on vehicle inspection frequency, data privacy, and out-of-state vehicle registrations in New York City. Chairwoman Krueger expressed frustration that half the cars parked on NYC streets appear to have out-of-state plates, particularly from Vermont, suggesting residents are registering vehicles elsewhere to avoid New York fees or insurance costs. Schroeder committed to providing an answer within a month through coordination with AAMVA, a nationwide DMV organization. On vehicle inspections, Schroeder indicated openness to reducing inspection frequency for modern cars, acknowledging that mechanics and gas stations have complained the current system is burdensome and unnecessary for vehicles built in the last 15 years. The Associated General Contractors of New York State testified that inflation in construction materials is severely limiting infrastructure projects across the MTA, DOT, and Thruway Authority. The group referenced historical precedent for legislative action on material cost escalations, including a 2022 COVID-related bill that was vetoed. The hearing, held Feb. 6, 2023, before the joint Finance Committee, revealed deep concerns about Thruway Authority management and administrative failures, even as lawmakers expressed support for increased transit funding. New York State legislators heard urgent testimony on Wednesday that the state's transportation infrastructure is critically underfunded and deteriorating rapidly, with witnesses warning that current budget proposals will leave the state with some of the worst roads and bridges in the nation within five years. At a joint legislative hearing on the 2023-2024 Executive Budget, representatives from highway departments, transit authorities, and infrastructure advocates painted a dire picture of deferred maintenance and inflation-driven cost increases that have rendered recent funding increases obsolete. Fred Hiffa of the ReBuild New York Now Coalition testified that New York ranks seventh nationally in poor pavement conditions and sixth in deficient bridges. He cited a December 2022 New York State Department of Transportation report estimating that $6.7 billion in additional funding is needed just to bring state roads to a state of good repair. "If the funding levels put forth in the Executive's budget proposal for DOT's capital plan were adopted at the current levels, we will very well have, by the end of this five-year plan, the worst bridges and pavements in the country," Hiffa warned. Local highway superintendents testified that inflation has reduced the purchasing power of recent funding increases by approximately 25 percent. David Miller, president of the New York State Association of Town Superintendents of Highways, noted that local governments manage 87 percent of the state's public roads and half its bridges across a system of 97,000 center-line miles and 8,600 bridges. He requested an additional $270 million for the CHIPS and Extreme Winter Recovery programs to maintain 2022 funding levels. Kevin Rooney, president of the New York State Highway Superintendents Association, reported that in 2021, only one in five bridge projects and one in eight culvert projects received funding through the BRIDGE NY program, demonstrating severe underfunding. He requested a $200 million increase to CHIPS (to $738 million annually) and a $70 million increase to Extreme Winter Recovery (to $170 million). Senator Tim Kennedy expressed strong support for increased funding, stating: "I support more, just so you know. This $200 million I support, $70 million for Extreme Winter Recovery I support. I think we need to continue to invest." Kennedy noted that the Senate had increased CHIPS funding by $100 million just a couple of years ago—the first increase in nine years—but that inflation has consumed those gains. Bill Carpenter testified about systemic funding disparities for upstate transit authorities, noting that downstate transit received a 36 percent funding increase last year while upstate received only 15 percent, creating a 20 percent gap. He advocated for 20 percent increases for upstate non-MTA transit authorities to address mobility gaps that prevent residents from accessing healthcare, mental health services, and job opportunities. On the MTA front, Lisa Daglian of the Permanent Citizens Advisory Committee emphasized the need for transparency in how transit funds are spent, urging legislators to support legislation to improve the MTA's capital program dashboard. She also advocated for voting representation on the MTA board from riders. Holly Tanner, Columbia County Clerk and chair of the New York State Association of County Clerks DMV Committee, testified that county clerks have maintained a stagnant 12.7 percent retention rate for DMV services since 1998, despite playing a critical role during the pandemic shutdown. She expressed support for Governor Hochul's proposal to provide equity through a flat rate for DMV services, whether processed in-office or online. The hearing underscored a consistent theme: while the state has made recent investments in transportation, inflation and deferred maintenance have created a growing gap between available funding and actual infrastructure needs. Multiple witnesses warned that without substantial additional investment, New York's transportation system will continue to deteriorate, ultimately costing far more to repair than preventive maintenance would cost today. NEW YORK STATE SENATE TRANSPORTATION BUDGET HEARING EXAMINES RAIL AND AVIATION FUNDING Three transportation industry groups testified before a joint legislative budget committee on February 6, urging state investment in passenger rail, freight rail, and aviation infrastructure as part of the 2023-2024 Executive Budget. Steve Strauss, executive director of the Empire State Passengers Association, told lawmakers that New York State—not the federal government—pays for nearly all Amtrak service within the state under a 2009 federal law, since most routes are under 750 miles. Strauss said the state does not need additional funding but rather "leadership and vision" to develop a strong rail program. He noted that the long-delayed Empire Corridor Environmental Impact Statement will soon be released with a preferred alternative offering speeds of 90 to 110 miles per hour, and urged the Legislature to demand a multiyear capital plan for intercity passenger rail from Governor Hochul and Transportation Commissioner Dominguez. Gregory Topping, president of the New York Aviation Managers Association, praised the Governor's recognition of airport capital needs, citing the 2022-23 capital program's $250 million investment. However, he criticized the Aviation Capital Grant program as "grossly underfunded" at $12.5 million annually when airports need $40 million. NYAMA, which represents over 13,000 members, also requested an increase in maximum grant size from $2.5 million to $5 million. Scott Wigger, executive director of Railroads of New York, expressed support for the Governor's proposed $35.5 million for freight rail infrastructure and emphasized rail's environmental benefits. He cited data showing that moving freight by rail instead of truck reduces greenhouse gas emissions by 75 percent and that railroads are four times more fuel-efficient than trucks—supporting the state's Climate Leadership and Community Protection Act goals. Sen. Liz Krueger and Assemblymember Carrie Weinstein co-chaired the hearing, which lasted nine and a half hours. Sen. Michelle Hinchey raised pointed concerns about the condition of CSX rail lines along the Hudson River and questioned whether state and federal inspectors have sufficient capacity to oversee freight rail safety and hazardous materials transport. Assemblyman John Magnarelli asked about CSX dismantling sidings on the Empire Corridor, expressing concern that infrastructure losses could harm passenger rail reliability—a greater priority than speed increases, he argued. Sen. Diane Kennedy thanked all three testifiers for their ongoing professional collaboration with her office and reaffirmed the state's commitment to investing in all three transportation modes.