FINANCE

NEW YORK — The Metropolitan Transportation Authority has achieved a balanced operating budget through 2027, reversing a projected $2.8 billion to $3 billion deficit from the prior year, MTA Chair Janno Lieber told a joint legislative budget hearing on transportation Wednesday. Lieber credited Governor Hochul's transit-friendly policies and the New York State Legislature's 2023 budget support for the dramatic fiscal turnaround. The agency is now providing significantly more service while spending 3 percent less in inflation-adjusted dollars than pre-COVID levels, he said. The MTA has implemented service increases on eight subway lines, reducing wait times from 12 minutes to 8 minutes between trains. The Long Island Rail Road has added 300 daily trains—a 40 percent service increase—since the opening of Grand Central Madison, while maintaining 96 percent on-time performance across commuter railroads. The agency has completed 25 ADA station projects since 2020, four times the pace of prior eras. Subway crime has declined 10 percent compared to pre-COVID levels, Lieber said, aided by 10,000 cameras throughout the system. The MTA is deploying cameras in subway cars, with 15 percent of the fleet currently equipped and full coverage targeted by mid-next year. However, fare evasion remains a significant challenge, costing the system approximately $700 million annually. The MTA has deployed unarmed gate guards at 35 stations, generating a 2-to-1 return on investment in recovered fares. The agency is also piloting delayed exit gates and has reconfigured turnstiles to prevent fare evasion, though Sen. Leroy Comrie raised concerns about security vulnerabilities in new turnstiles shown on YouTube. Comrie, chair of the Senate Committee on Corporations, Authorities and Commissions, pressed Lieber on transparency regarding congestion pricing prerequisite projects and questioned whether the Outer Borough Transit Account—originally designed for new capital projects—is being redirected to cover bridge fees previously funded by the general MTA budget. Lieber confirmed the MTA is the largest minority and women-owned business enterprise agency in New York State, directing over $1 billion annually to such enterprises. He also noted that major capital projects including the $2.5 billion Third Track Project and the L Train renovation came in under budget and ahead of schedule. The hearing, held January 24 in Albany, included testimony from MTA officials and is the second in a series of joint legislative budget hearings on the Governor's 2024-2025 proposed budget. Additional testimony from the Department of Transportation, Department of Motor Vehicles, Thruway Authority, and various transportation advocacy groups was scheduled but not included in the transcript excerpt provided. The Metropolitan Transportation Authority defended its 2024-2025 budget proposal before a joint legislative committee on Wednesday, with Chair Janno Lieber emphasizing the agency's commitment to keeping 90 percent of capital spending within New York State while addressing concerns about service quality, fare evasion, and infrastructure modernization. Lieber highlighted significant progress on accessibility, noting that the MTA has completed 27 ADA-accessible stations since 2020—four times the prior pace—with 41 more under construction and 70 total to be finished under the current capital program. The agency has also installed approximately 13,000 cameras in subway stations and nearly 48,000 in buses as part of a comprehensive security strategy. On zero-emission buses, Lieber said the MTA is committed to transitioning its entire 6,000-bus fleet by 2040, requiring roughly 200 new buses annually. However, he noted that the agency was forced to delay a larger bus order last month due to uncertainty surrounding congestion pricing funding, which he described as critical to the capital program. Senators pressed Lieber on multiple fronts. Sen. Tim Kennedy, chair of the Transportation Committee, praised the MTA's focus on in-state manufacturing and noted that each billion dollars in capital spending creates 7,500 jobs. Sen. John Liu questioned the pace of bus procurement and called for greater attention to outer-borough bus service, arguing that buses have received insufficient focus compared to subways and commuter rail. On fare evasion, Lieber outlined a strategy emphasizing equity over enforcement, noting that only about one summons is issued for every 1,000 fare evasion instances. He said the MTA plans to use enforcement as an opportunity to move violators into the Fair Fares program for low-income riders. Lieber also addressed the G Train modernization project, defending a proposed six-week summer shutdown to replace signals dating from the Franklin Roosevelt era. He said the alternative—80 weekend closures—would be more disruptive to the growing communities the line serves. On congestion pricing, Lieber criticized New Jersey's lawsuit against the program, calling it "frivolous" and noting that 30-plus New Jersey environmental organizations have filed an amicus brief supporting the MTA. He also praised the recently ratified contract with 35,000 MTA workers, calling it a significant wage increase. The hearing, held before the Joint Legislative Committee on Finance, revealed broad legislative support for the MTA's capital priorities, though some lawmakers expressed concerns about the pace of implementation and the need for greater focus on bus service in underserved areas. The New York State Legislature's joint Finance Committee held a hearing on the MTA's 2024-2025 executive budget on January 24, with testimony from MTA Chair Janno Lieber and other agency officials addressing transportation priorities ranging from congestion pricing implementation to infrastructure resiliency and service reliability. Legislators raised sharp questions about the equity impacts of congestion pricing, with several senators and assembly members expressing constituent concerns about the policy's effects on commuters from Rockland County, Long Island, and Westchester. Sen. Weber of Rockland County criticized what he called a $40 million "value gap" between taxes paid to the MTA and services received, noting the lack of direct service to New York City and ongoing safety concerns. Assemblywoman Darling of Nassau County stated that many Long Islanders feel "financially targeted" by congestion pricing. The MTA defended its capital spending trajectory, with Chair Lieber noting that the agency spent $6 billion on capital projects in 2022 and has ramped up to approximately $9 billion annually in recent years. He emphasized that 80 percent of the capital program must remain focused on state of good repair, addressing aging infrastructure across the system. Resiliency emerged as a major concern, particularly for the Hudson Line. Sen. Hinchey and Assemblywoman Shimsky, both representing areas along the line, pressed the MTA on plans to address mudslides, embankment failures, and long-term flooding risks. Chair Lieber acknowledged the urgency, stating that the Hudson Line "is in the cross-hairs" of climate change impacts and that addressing it is "a must-do." Sen. Gonzalez raised pointed questions about the cost-effectiveness of increased police presence in the subway system, noting that NYPD overtime spending for subway policing increased from $4 million to $155 million but resulted in only $104,000 recovered from fare evasion. Chair Lieber countered that police presence is primarily about safety and crime prevention, not fare evasion enforcement. The MTA reported that fare evasion costs approximately $700 million annually. On congestion pricing, Chair Lieber clarified that mass transit buses should be exempt from tolls, but noted uncertainty about whether private operations like the Hampton Jitney—which transports 500,000 passengers annually—would qualify. Assemblywoman Giglio raised concerns that the company could be forced to pass toll costs to riders. The MTA reported progress on several operational fronts: 88 subway bathrooms have been reopened, Long Island Rail Road on-time performance reached 95 percent this year, and 113 of 126 LIRR stations are now ADA accessible. The agency is also conducting pilots on fixed fences at subway platforms to improve safety perception. Assemblyman Slater cited an estimate of 224,000 MTA tolls per month being dodged through fake and obstructed license plates, raising concerns about fare evasion enforcement under congestion pricing. Chair Lieber noted that the Governor has proposed new penalties for plate obstruction. The hearing reflected broader tensions between the MTA's capital priorities and regional equity concerns, with legislators from outer boroughs and suburban areas pressing for greater investment in their communities while supporting the agency's overall modernization efforts. The Metropolitan Transportation Authority faced intense legislative scrutiny on Wednesday over toll collection practices, service equity, and congestion pricing implementation during a joint budget hearing before the New York State Senate and Assembly Finance committees. MTA Chair Janno Lieber acknowledged concerns raised by multiple legislators about the agency's aggressive toll penalty system, which charges $100 per violation—significantly higher than other tolling authorities in the state. Assemblyman Burgos highlighted cases of constituents facing bills exceeding $50,000 due to accumulated penalties and debt collection, while Assemblywoman Walker called the practice "a civil rights issue" and "an attack on the poor." Lieber said the MTA would work with the Legislature on the issue but emphasized that 90 percent of Bronx residents use mass transit and that toll collection funds essential services. The MTA reported collecting $34 million in unbillable toll revenue in 2023, with covered license plates accounting for a growing portion. Lieber said the agency issued 3,300 summonses for covered plates last year—a dramatic increase—and recovered 68 percent of bills from repeat offenders. He called for stronger enforcement tools, including the ability to confiscate illegal plates. On congestion pricing, Lieber said the MTA has infrastructure and back-office systems ready but cannot award contracts dependent on the revenue due to ongoing lawsuits creating legal uncertainty. Environmental studies show between 100 and 400 additional trucks per day could be diverted to the Bronx under a worst-case scenario, though the MTA proposed mitigation measures including replacing diesel refrigeration units. Sen. Persaud pressed for details on expanding the OMNY contactless payment system to paratransit users, who currently must pay cash for Access-A-Ride. Lieber confirmed a pilot program is coming this year, with full rollout expected to follow. NYCT President Richard Davey reported that nearly 50 percent of subway customers already use OMNY daily without dedicated machines yet deployed. Assemblyman Carroll challenged the MTA's funding allocation, arguing that New York City businesses and residents pay the vast majority of MTA revenue but receive disproportionate service compared to commuter railroads. Lieber said the allocation involves the Legislature and board but emphasized the agency's commitment to prioritizing subway and bus service within the city. Chair Krueger raised concerns about motorcycles accessing subway elevators—facilities designed for people with disabilities—and said an NYPD officer incorrectly told her they were permitted. Davey called the officer "misinformed" and said station agents would be instructed to report such vehicles as safety hazards. On climate resilience, Lieber presented a detailed risk assessment analyzing six million system components for vulnerability to extreme heat, torrential rainfall, and sea-level rise. He said the agency is prioritizing interventions for the next capital program but the funding envelope has not yet been determined. The hearing, held January 24, also addressed service improvements across the five boroughs, elevator accessibility at ADA stations, and the ongoing free bus pilot program, which has shown ridership increases of 7-20 percent on participating routes. NEW YORK STATE DEPARTMENT OF TRANSPORTATION DEFENDS RECORD INFRASTRUCTURE INVESTMENT AMID LEGISLATOR CONCERNS OVER FUNDING GAPS Albany — New York State Department of Transportation Commissioner Dominguez defended the Hochul administration's transportation budget during a joint legislative hearing Wednesday, highlighting record infrastructure investments while facing pointed questions from lawmakers about whether funding adequately addresses inflation and local road maintenance needs. The Commissioner reported that DOT improved 1,586 lane miles and replaced or improved 2,833 bridges in 2023 alone, representing $754 million and $1.7 billion in investments respectively. She emphasized that the state's $32.8 billion five-year capital plan represents a historic 40.2 percent increase over the prior plan and includes $8.8 billion in mass transit operating support. However, legislators expressed skepticism about whether the budget accounts for construction cost inflation estimated at 20-25 percent. Sen. Timothy Kennedy, the Transportation Committee chair, pressed Dominguez on whether an additional $400 million would be necessary to close the inflation gap, noting that double-digit inflation would significantly reduce the plan's purchasing power. The Commissioner declined to commit to the figure, saying the department would "monitor the inflationary rates" and work with the Legislature. Assemblyman Miller raised concerns that the Governor's proposed 10 percent decrease to CHIPS funding—which local governments rely on for highway work—comes at a time when construction costs have surged. He argued the state has historically "barely funded our highways and bridges to manage the decline" and questioned whether the five-year plan should have been adjusted for inflation. Sen. Kennedy also advocated for restoration of $100 million in CHIPS and State Touring Routes funding that was removed from the proposed budget, citing recent severe weather in Western New York that demonstrated the need for robust local road maintenance. Assemblyman Magnarelli raised separate concerns about a proposed Article VII provision that would allow DOT to transfer state property in the Town of Babylon without standard surplus property procedures. He challenged the Commissioner on why existing legislative oversight mechanisms were being bypassed and requested specifics on the intended use and recipient of the property. Dominguez said the provision was intended to provide a legal framework for future property transfers but offered few details. On traffic safety, Dominguez reported that the Automated Work Zone Speed Monitoring Pilot Program, which began in April, issued more than 102,000 violation notices through December, including one motorist clocked at 139 mph on Route 104. She said workers are reporting "a noticeable reduction in overall speeds" at work sites. Sen. Leroy Comrie sought specific data on minority and women-owned business enterprise participation in DOT contracts, requesting that the department provide participation rates by region. Dominguez acknowledged the department is "getting closer every year" but said progress is "incremental" and committed to providing detailed numbers. The hearing, held before the joint Finance Committee, also addressed EV charging infrastructure, bridge conditions, upstate transit funding, and broadband integration into road projects. The Legislature is expected to negotiate with the administration on final transportation funding levels in coming weeks. NEW YORK STATE TRANSPORTATION BUDGET HEARING HIGHLIGHTS INFRASTRUCTURE CONCERNS, FUNDING CUTS Albany — The New York State Senate Finance Committee held a joint legislative hearing on the 2024-2025 Executive Budget for Transportation on Wednesday, with DOT Commissioner Dominguez facing pointed questions from lawmakers about CHIPS funding cuts, transit equity, and pedestrian safety. The most contentious exchanges centered on the proposed reduction to CHIPS (Consolidated Highway Improvement Program) funding, which rural upstate lawmakers said would devastate local communities. "Many of them their entire road budget for the year is CHIPS, and that's all they have," said Sen. Tom O'Mara, a ranker who received five minutes for questioning. "A cut to them is a hit that those communities really can't sustain." Sen. Mattera raised concerns about the Country Pointe project in his district, where design changes tied to sewer litigation are forcing the elimination of sound walls. "My residents are being penalized because of a situation that happened with something else," he said, pressing the Commissioner multiple times to protect the sound walls. On transit, Sen. Jeremy Cooney highlighted low ridership in upstate cities like Buffalo, Rochester, Syracuse, and Albany, asking the Commissioner about dedicated revenue models that could fund more frequent, reliable service. The Commissioner noted the Governor increased Statewide Operating Assistance by 5.4 percent but acknowledged the difficulty of finding new dedicated revenue sources. Pedestrian safety emerged as another major concern. Sen. Jessica Ramos criticized the DOT's e-bike safety campaign for focusing on helmet use rather than speed and sidewalk riding, and called for more direct outreach to delivery workers. She also raised alarm about child fatalities on Northern Boulevard, noting 12 children have been killed there in recent years. "We have to work urgently and hard to make sure this doesn't continue as a trend," said Assemblyman Cunningham, who noted 2022 was the deadliest year for children in vehicular incidents. Sen. Brad Hoylman-Sigal questioned DOT oversight of double-decker tour buses, citing a crash that hospitalized 32 people and noting that tour bus drivers may not meet the same training standards as regular bus drivers. On the BQE, Commissioner Dominguez said DOT has invested $200-300 million in structural integrity and is pursuing a federal Reconnecting Communities grant to study alternatives for the majority state-controlled portion. The Commissioner also disclosed that DOT averages 18 percent of contracts to minority and women-owned businesses over the last three years, though Sen. Persaud requested a breakdown showing how many of those contracts go specifically to minority-owned firms. The hearing underscored tensions between the Executive's fiscal austerity approach and legislative priorities for infrastructure maintenance, transit expansion, and pedestrian safety. New York State transportation officials defended their 2024-2025 budgets before a joint legislative committee on Wednesday, with DOT Commissioner Dominguez facing pointed questions about regulatory gaps and climate commitments, while DMV Commissioner Schroeder touted modernization efforts and the Thruway Authority highlighted a $2.4 billion five-year capital plan. Dominguez acknowledged he lacked immediate answers on whether double-decker buses registered out-of-state can be held to the same safety standards as in-state operators—a concern raised by Chairwoman Liz Krueger, whose Manhattan district is affected by the vehicles. He committed to providing specifics on the buses' registration and oversight. On environmental concerns, Dominguez described the Adirondack Salt Task Force's pilot programs launched this winter to reduce road salt's impact on water tables, including tests using all-salt brine in Central New York and cameras on plows to monitor salt spread. However, Krueger pressed him on whether findings would be publicly reported, and Dominguez said analytics have not yet begun. Assemblyman John Palmesano criticized a $60 million cut to the CHIPS program, which provides critical funding to rural communities for road and bridge repairs. He noted that highway construction inflation has reached 58 percent over 30 months, yet the Governor cut the program—a first in his 15 years in government. Palmesano also raised concerns about child labor in cobalt mining for EV batteries, questioning whether New York should support electric vehicle purchases without assurances that child labor is not being used in the Democratic Republic of Congo, which supplies 70 percent of the world's cobalt. Sen. Tim Kennedy advocated for $150 million in state funding for the Niagara Frontier Transportation Authority's next five-year capital plan, noting the authority received only $100 million in the previous 35 years. He sought DOT commitment to support a light rail expansion from downtown Buffalo into Amherst and to pursue federal funding opportunities. DMV Commissioner Schroeder reported that the agency generated approximately $2 billion annually and completed 8 million online transactions in 2023. She highlighted recovery of $8.7 million in stolen vehicles and vehicle parts, and noted that more than 15 arrests have been made related to illegal stretch limousine operations. The DMV also expanded its Jails to Jobs initiative, issuing more than 700 non-driver IDs across all 43 state correctional facilities. Thruway Authority Acting Executive Director Frank Hoare announced a $2.4 billion five-year capital program—a $500 million increase from 2023—made possible by a toll adjustment. The authority is expanding EV charging infrastructure from 59 stations to 97 by summer, with plans for 130 fast-charging stations and 320 total stations over the next decade. Hoare also reported that the authority's Automated Work Zone Speed Enforcement program has mailed 40,000 violations and collected $1.6 million, with fewer than 360 disputes. Assemblywoman Alessandra Gallagher challenged DOT's climate commitments, citing a Comptroller's report showing half of highway formula funds have been used to expand highways. She questioned the Van Wyck Expressway project, which adds two lanes. Dominguez responded that the project stays within the existing footprint and creates a managed-use lane that could eventually support electric buses. The hearing, held before the Joint Legislative Committee on Finance, reflected ongoing tensions between transportation infrastructure needs and climate goals, with lawmakers pressing officials on funding priorities, safety oversight, and environmental accountability. NEW YORK STATE TRANSPORTATION AGENCIES DEFEND 2024-2025 BUDGET PROPOSALS AT JOINT LEGISLATIVE HEARING State transportation officials defended their 2024-2025 budget proposals before the Legislature on January 24, highlighting technology investments and operational improvements while facing pointed questions about toll enforcement and service capacity. The Department of Motor Vehicles is seeking $168 million for a comprehensive technology overhaul that Commissioner Schroeder described as a "five-year comprehensive plan of excellence" expected to take four years to implement. The agency has expanded online services from 47 to 77 transactions and aims to move all services online except those requiring federal Real ID verification. Schroeder also reported that the DMV has cleared 3.2 million New Yorkers from driver license suspension and is pursuing driver's license reciprocity agreements with France, Taiwan, and the Dominican Republic. The Thruway Authority reported progress on its $2 billion rest stop reconstruction project, with 13 of 27 facilities completed and operational. Acting Executive Director Frank Hoare acknowledged an 8-to-10-month delay attributed to COVID and geopolitical events, but said the project should be completed by end of 2025. The authority is also planning to install 4-6 EV chargers at each service area, with plans to add 320 more chargers over the next decade. Toll policy changes drew scrutiny from Sen. Comrie, who raised concerns about good-faith customers facing thousands of dollars in fines due to payment processing issues. Hoare defended recent reforms that capped fines at $50 per bill ($600 annually), down from previous structures that charged per-trip penalties. He noted that 96 percent of tollpayers comply and that a tollpayer advocate has assisted over 7,000 customers in the past two years. Sen. Mattera pressed Schroeder on drugged driving enforcement, expressing frustration that cannabis use while driving remains "out of control" despite legalization. Schroeder noted the DMV has trained nearly 500 drug recognition experts and over 800 officers in impaired driving detection through the ARIDE program, and that 44 percent of fatal crashes in New York involve alcohol or drugs. Work zone safety cameras proved effective, with Hoare reporting approximately 40,000 repeat offenders cited, though only 360 citations were challenged, suggesting public awareness of the program. NEW YORK STATE SENATE FINANCE COMMITTEE — The New York State Department of Motor Vehicles and Thruway Authority faced scrutiny over transportation infrastructure and safety initiatives during a joint legislative budget hearing on Wednesday, with lawmakers pressing officials on electric vehicle charging, road safety, and enforcement of existing regulations. DMV Commissioner Schroeder highlighted modernization achievements, reporting average wait times have dropped to under 15 minutes and 77 transactions are now available online. The agency has trained inspectors at 11 SUNY colleges to service electric vehicles and is working with auto dealers statewide to enforce catalytic converter theft prevention laws. However, Chairwoman Krueger raised pointed questions about enforcement of existing moped registration requirements, noting thousands of mopeds operate illegally with no state license plates or driver licenses. Thruway Authority Acting Executive Director Frank Hoare reported 1.2 billion cashless tolling transactions over three years and announced the agency received three federal grants for the first time in its history. He confirmed EV charging stations are being installed at service areas with Level 3 chargers capable of full charges in 30 minutes, though he acknowledged permitting and utility coordination delays. Sen. O'Mara pressed for a 70 mph speed limit on the Thruway to reduce accident-causing speed differentials and advocated for mile marker exit numbering, which Hoare said was complicated by the system's configuration. Assemblywoman Simon cited 7,000 alcohol-related crashes last year resulting in 335 deaths and urged the commissioner to support lowering the blood alcohol content threshold from 0.08 to 0.05, noting legislation is pending. Assemblyman Palmesano questioned whether the DMV should impose higher registration fees for electric vehicles, which weigh 10 to 30 percent more than gas vehicles and cause greater road wear while avoiding gas taxes. Schroeder deferred to the Legislature, saying DMV would implement whatever policies lawmakers enact. The hearing revealed tensions between modernization efforts and enforcement of existing regulations, with multiple lawmakers expressing frustration over unregistered mopeds and e-bikes operating with apparent impunity in New York City. NEW YORK — A joint legislative hearing on Gov. Kathy Hochul's 2024-2025 transportation budget revealed sharp divisions Wednesday between transit advocates seeking expanded service and infrastructure groups warning of crumbling roads and bridges despite record state spending. Transit advocates praised the administration's commitment to public transportation while requesting additional funding. James Morrell of the New York Public Transit Association urged the Legislature to maintain a 15% annual growth rate in state aid to non-MTA transit systems, noting the Executive Budget proposes only 5.4% growth for upstate and 5.6% for downstate. Lisa Daglian of the Permanent Citizens Advisory Committee to the MTA called for expanding the Fair Fares discount program to Long Island Rail Road and Metro-North, arguing low-income riders should have equal access to commuter rail. Danny Pearlstein of the Riders Alliance defended congestion pricing, noting the MTA spent over two years preparing more than 4,000 pages of environmental studies. He announced a new coalition, "New Yorkers for Transportation Equity," to advocate for redirecting $5 billion in state highway-widening projects to transit improvements. Steve Strauss of the Empire State Passengers Association criticized the budget's minimal attention to an $8.8 billion intercity rail expansion plan, noting the Executive Budget proposes only $90 million for passenger rail with no new staff for the Office of Passenger and Freight Transportation. Infrastructure advocates presented alarming data on deteriorating conditions. Jeff Smith of the County Highway Superintendents Association reported that 1.25 million square feet of local bridge deck declined from good/excellent to fair/poor between 2020 and 2022, while state bridge spending fell $350 million annually. Greg Hallberg of the Town Superintendents Association noted the Executive Budget cuts CHIPS aid by $60 million and State Touring Route aid by $40 million—a $100 million reduction in local road funding. John Cooney of the Construction Industry Council presented stark statistics: New York has a record 4,264 deficient bridges, and 42% of roads were in fair or poor condition in 2022, up from 25% in 2017. Despite a $2.8 billion increase in the current five-year capital plan, conditions have worsened due to 21% inflation in construction costs since 2021. Walter Pacholczak of the Associated General Contractors warned that inflation is eroding the capital program's value by 20% over five years, potentially eliminating a full year of DOT spending. Fred Hiffa of Rebuild New York Now reported that 2.5 million square feet of bridge decking—equivalent to 40 miles of bridges—became deficient in just three years. Sen. John Kennedy, the Transportation Committee chair, pressed Morrell on funding details, asking him to explain the importance of a $150 million NFTA capital request and the need to increase operating aid from the proposed 5% to 15% statewide. Infrastructure groups collectively requested at least $400 million in additional core highway funding and $250 million for local roads and bridges. The hearing underscored a fundamental tension in New York's transportation priorities: advocates want more transit service and frequency, while infrastructure groups warn that without immediate additional funding, the state's roads and bridges will continue deteriorating despite record capital spending. New York State legislators heard urgent pleas Wednesday to restore transportation funding cuts and increase infrastructure investment during a joint Senate-Assembly hearing on the 2024-2025 executive budget. Municipal officials, construction industry representatives, and environmental advocates testified that inflation has eroded the purchasing power of existing transportation programs, leaving roads and bridges in deteriorating condition across the state. The most consistent request centered on a $400 million increase to the Department of Transportation's core construction budget—representing 20 percent of the existing budget—to offset inflationary impacts. Testifiers also sought restoration of a proposed $60 million cut to the Consolidated Highway Improvement Program (CHIPS), which funds local road and bridge maintenance. Mr. Pacholczak and others warned that deferred maintenance costs multiply exponentially. Mr. Hiffa cited Department of Transportation data showing that bridge maintenance costs five times more if deferred to poor condition, while pavement maintenance costs 16 times more. Ron Epstein of the New York Construction Materials Association cited federal statistics showing 1,600 bridges in poor condition—30 percent higher than the national average—and 40 percent of state pavement in fair or poor condition. County Executive Kevin Byrne of Putnam County provided concrete examples of CHIPS' importance, noting his county received $1.2 million in CHIPS funding last year, representing approximately two-thirds of the county's paving program budget. He warned that the proposed $60 million cut would "create tremendous stress" for county governments and could "virtually completely hamstring" smaller municipalities that rely solely on CHIPS for road maintenance. Sen. Tim Kennedy (D) expressed strong support for the funding requests, praising testifiers for consistent messaging and noting the Democratic Conference's commitment to increasing CHIPS at record levels. He specifically advocated for the $400 million DOT request, noting it can be accommodated under the state's bonding ceiling. The hearing also addressed emerging transportation issues. Kevin Chlad of the Adirondack Council testified that road salt reduction through better management practices could save money while protecting water resources. He cited the Town of Hague's success in reducing its winter road maintenance budget by more than 50 percent without reducing service levels. Sawyer Bailey of AdkAction reported that 25 Adirondack town and county highway departments have reduced chloride use by 50 percent, generating $80,000 in savings that departments reinvested in equipment upgrades. Mark Heefner of the New York Aviation Management Association advocated for increased airport funding, noting the aviation industry contributes $72 billion in annual economic activity and supports more than 500,000 jobs in New York. He requested minimum $40 million annual funding for the Aviation Capital Grant Program and $250 million for Round 3 of the Upstate Airport Economic Development and Revitalization Program. The hearing underscored tensions between maintaining existing infrastructure and addressing new challenges like climate resilience. Assemblyman Otis noted that many bridge replacements now include redesign for resilience against extreme weather, adding costs beyond simple replacement. Testifiers emphasized that nine of every 10 roads in the state are maintained by local governments, which lack the resources to absorb inflation without state support.