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Joint Legislative Hearing - Senate Finance Committee and Assembly Ways and Means Committee

2025-02-06 Joint Legislative Hearing In the Matter of the 2025-2026 EXECUTIVE BUDGET ON TRANSPORTATION Chair: Sen. Liz Krueger (Senate Finance) / Assemblyman J. Gary Pretlow (Assembly Ways and Means) View full transcript → Archive

Wire Brief

New York State legislators held a comprehensive joint budget hearing on transportation on February 6, 2025, examining Governor Hochul's proposed 2025-2026 budget with testimony from state agencies and advocacy groups. The hearing revealed significant infrastructure funding challenges and competing priorities across the state's transportation systems. The Department of Transportation presented its $34.1 billion five-year capital plan, the largest in agency history, with an additional $800 million proposed to restore purchasing power lost to inflation. Commissioner Marie Therese Dominguez highlighted major projects including the I-81 viaduct removal in Syracuse and Inner Loop revitalization in Rochester, while emphasizing worker safety initiatives. However, local government representatives testified that CHIPS funding—which supports local roads and bridges—remains flat despite 70 percent increases in highway construction costs over three years, creating a significant disparity in infrastructure investment. The Metropolitan Transportation Authority reported strong operational improvements, with subways carrying 4-4.5 million daily riders and commuter railroads achieving record on-time performance. MTA Chair Janno Lieber noted the agency's budget is 3 percent lower in real terms than pre-COVID despite providing substantially more service. However, the MTA's proposed $68 billion capital plan faces a significant funding gap, with no dedicated state funding proposed in the Executive Budget. Lieber emphasized that the capital plan is essential to prevent system deterioration, noting that without investment, elevated structures and power systems risk failure. Local government officials from towns and counties testified that flat CHIPS funding combined with inflation is forcing them to postpone projects or increase property taxes. The Saint Regis Mohawk Tribe reported that State Route 37 in their territory has not received state funding since 2011 despite carrying 15,000 vehicles daily, highlighting equity concerns in transportation funding. DMV Commissioner Mark Schroeder reported significant modernization progress, with a $495 million technology upgrade underway and REAL ID compliance efforts accelerating ahead of the May 7, 2025 deadline. The Thruway Authority reported its 2025 budget of $1.4 billion is entirely funded by tolls, with toll rates remaining among the lowest in the nation. Advocacy groups presented competing priorities: transit advocates pushed for full MTA capital funding and expanded service, construction industry representatives supported the DOT increase but called for CHIPS funding parity, and disability advocates emphasized the importance of continued accessibility improvements. BAE Systems challenged the MTA's bus procurement strategy, arguing that hybrid buses manufactured in New York would keep more funding in-state than battery electric buses. Legislators expressed concern about the flat CHIPS funding despite inflation, with multiple members calling for a $250 million increase to match the DOT's purchasing power restoration. The hearing underscored the tension between maintaining aging infrastructure and funding new initiatives, with particular focus on how to fund the MTA capital plan and address local government infrastructure needs.

Topic Summary

This joint legislative hearing examined Governor Hochul's 2025-2026 Executive Budget proposal for transportation, covering the New York State Department of Transportation, Metropolitan Transportation Authority, Department of Motor Vehicles, Thruway Authority, and various transit and infrastructure organizations. Key topics included the $800 million increase to DOT's capital plan, the MTA's $68 billion capital program funding gap, CHIPS program flat funding, congestion pricing implementation, work zone safety, and accessibility improvements across the transportation system.

Testimony (21)

Marie Therese Dominguez agency_official informational

New York State Department of Transportation, Commissioner

Commissioner Dominguez presented the DOT's accomplishments and budget priorities, highlighting the $34.1 billion five-year capital plan with an additional $800 million to restore purchasing power. She discussed major projects including the I-81 viaduct removal in Syracuse, Inner Loop revitalization in Rochester, Cross Bronx Expressway improvements, and the Livingston Avenue Bridge replacement. She emphasized worker safety initiatives, including the Automated Work Zone Speed Enforcement pilot program, and discussed efforts to address climate goals through low-carbon construction materials and transit investments.

Janno Lieber agency_official informational

Metropolitan Transportation Authority, Chairman and CEO

MTA Chair Lieber discussed the agency's accomplishments and capital funding needs. He highlighted ridership recovery, with subways carrying 4-4.5 million people daily, and improvements in on-time performance for commuter railroads. He emphasized the MTA's efficiency gains, noting the agency's budget is 3 percent lower in real terms than pre-COVID despite providing 40 percent more service on LIRR and 20 percent more on Metro-North. He addressed the $68 billion capital plan proposal and discussed fare evasion reduction efforts, congestion pricing implementation, and accessibility improvements.

Subways regularly carry 4 to 4.5 million people a day, more than the entire United States aviation system verifiable

Long Island Rail Road on-time performance was about 96 percent, with 13,000 more trains per annum verifiable

Metro-North on-time performance was 98 percent, with ridership growth of more than 12 percent year over year verifiable

Fare evasion on subways is down 25 percent in the last six months verifiable

Fare evasion on buses is down 12 percent verifiable

The MTA budget is 3 percent lower in real terms than before COVID verifiable

Almost 40 percent of MTA contracts were awarded to MWBEs in 2023 verifiable

The MTA is the most efficient transit organization in the United States based on cost per rider and subsidy per rider verifiable

There are now more than 150 fully accessible subway stations, with another 36 in construction verifiable

Mark J.F. Schroeder agency_official informational

New York State Department of Motor Vehicles, Commissioner

DMV Commissioner Schroeder discussed the agency's modernization efforts and customer service improvements. He highlighted the technology modernization plan with $495 million in the Executive Budget, the launch of Mobile ID, REAL ID compliance efforts ahead of the May 7, 2025 deadline, and initiatives to combat ghost plates and toll evasion. He discussed the agency's work on traffic safety, drugged driving prevention, and diversity in procurement, noting that 79 percent of current fiscal year spending is through MWBEs.

Frank G. Hoare agency_official informational

New York State Thruway Authority, Interim Executive Director

Thruway Authority Executive Director Hoare discussed the agency's 2025 budget of just under $1.4 billion, funded entirely by toll revenue with no dedicated federal or state taxpayer dollars. He highlighted the $2.7 billion five-year capital plan with a $742 million increase since 2023, covering work on 60 percent of pavement lane-miles and 20 percent of bridges. He discussed safety initiatives including the Automated Work Zone Speed Enforcement program and commercial vehicle enforcement, and addressed challenges with medium and heavy-duty electric vehicle charging infrastructure.

James Morrell advocate supportive

New York Public Transit Association, President

Morrell testified on behalf of non-MTA transit systems across upstate New York and downstate suburbs. He highlighted increased ridership and demand for more service, and recommended a 15 percent increase in state operating assistance, enactment of the Governor's proposed $219 million capital funding for non-MTA systems, and restoration of $26 million annual appropriation for NFTA rail infrastructure.

Michael Burridge advocate supportive

ACEC New York, Director of Government Relations

Burridge testified on behalf of the American Council of Engineering Companies New York, supporting the $800 million increase to DOT's capital plan and the MTA capital plan. He cited the Annual Highway Pavement and Bridge Conditions Report showing 65 percent of state bridges in fair or poor condition and 45 percent of lane-miles in fair or poor condition. He advocated for alternative delivery methods and work zone safety initiatives.

Gary Prophet advocate supportive

Empire State Passengers Association, President

Prophet testified on behalf of the Empire State Passengers Association, advocating for improved intercity rail service. He thanked the Governor for funding the Livingston Avenue Rail Bridge replacement and discussed the need for increased Amtrak speeds north of Cold Spring, development of a robust state rail passenger plan, and funding for the high-speed rail Tier 1 EIS project.

Richard O'Malley advocate supportive

New York Building Congress, Senior Director of Public Affairs

O'Malley testified on behalf of the New York Building Congress, representing over 500 constituent organizations and 25,000 skilled professionals. He advocated for full funding of the MTA's five-year capital plan and a robust DOT capital plan, and supported innovative transportation initiatives and alternative delivery methods.

Lisa Daglian advocate supportive

Permanent Citizens Advisory Committee to the MTA, Executive Director

Daglian testified on behalf of PCAC, representing riders on NYC's subways, buses, Staten Island Rail, LIRR, and Metro-North. She emphasized the importance of fully funding the MTA's capital plan and advocated for five affordability platforms including expanding Fair Fares to 200 percent of federal poverty level, implementing family fares, restoring CityTicket Weekly, and increasing rider representation on the MTA Board.

Colleen Thomas advocate opposed

Saint Regis Mohawk Tribe, Director of Planning and Infrastructure

Thomas testified about the poor condition of state highways within the Saint Regis Mohawk Tribe's territory, particularly State Route 37, which has not received DOT funding since 2011. She requested annual set-aside funding for NYSDOT to fulfill its legal obligation to maintain roads in and around Akwesasne. She noted that the tribe receives no state funding for transportation, only federal Bureau of Indian Affairs funding.

Matt Mustico advocate opposed

New York State Association of Town Superintendents of Highways, President; Town of Elmira Highway Superintendent

Mustico testified on behalf of town highway superintendents, noting that local governments maintain 87 percent of state roads and half of bridges. He stated that CHIPS funding has been flat while highway construction costs have increased 70 percent, and requested an additional $250 million for CHIPS and consolidation of local road assistance programs.

Kevin Hajos advocate opposed

New York State County Highway Superintendents Association, President; Warren County Superintendent of Public Works

Hajos testified on behalf of county highway superintendents, discussing the BRIDGE-NY program and the need for increased CHIPS funding. He noted that of applications submitted for all five rounds of BRIDGE-NY, only 41 percent of bridges and 19 percent of culverts were funded. He requested a $250 million increase to CHIPS and consolidation of local road assistance programs.

Walter Pacholczak advocate supportive

Associated General Contractors of New York State, Vice President of Government Affairs

Pacholczak testified on behalf of AGC, thanking the Governor for the $800 million increase to DOT's Core program and supporting the Work Zone Speed Camera Program and enhanced transportation worker protections. He emphasized the importance of the MTA capital program as a vital part of the state's multimodal transportation infrastructure.

John Cooney, Jr. advocate supportive

Construction Industry Council of Westchester and Hudson Valley, Executive Director

Cooney testified on behalf of the Construction Industry Council, supporting the $800 million increase to DOT's Core program and advocating for a $250 million increase to CHIPS. He emphasized the need to address the funding formula for Region 8, which has the worst road and bridge conditions in New York State.

Fred Hiffa advocate supportive

Rebuild NY Now, Consultant

Hiffa testified on behalf of Rebuild NY Now, supporting the Governor's $800 million increase to DOT's Core program and advocating for a $250 million increase to CHIPS. He discussed the impact of inflation on highway construction and the challenges of electrifying the state's snowplow fleet under the Clean Trucks Act.

Sawyer Bailey advocate supportive

AdkAction, Executive Director

Bailey testified on behalf of AdkAction, advocating for sustainable winter road maintenance methods to reduce salt pollution. She cited data showing that 64 percent of nearly 500 wells tested in the Adirondack Park exceeded EPA sodium levels, with the most significant contamination zones downslope of state highways. She advocated for funding recommendations from the Adirondack Road Salt Task Force Report.

Ronald L. Epstein advocate supportive

New York Construction Materials Association, President and CEO

Epstein testified on behalf of the New York Construction Materials Association, supporting the $800 million increase to DOT's capital plan and the $250 million increase to CHIPS. He discussed the importance of sustainable construction materials and recommended developing a comprehensive needs assessment for NYSDOT similar to the MTA's.

Mark Heefner advocate supportive

New York Aviation Management Association, President; Greater Binghamton Airport Commissioner of Aviation

Heefner testified on behalf of NYAMA, advocating for increased funding for the Aviation Capital Grant Program. He cited data showing the aviation industry contributes over $80 billion in annual economic activity in New York State, with 454,000 jobs and $25.8 billion in payroll. He noted the program has been $12.5 million for eight years and advocated for a minimum of $40 million per year.

John Hroncich industry opposed

BAE Systems, Director of North American Transit Sales

Hroncich testified on behalf of BAE Systems, which manufactures electric propulsion systems for heavy-duty transit vehicles in Endicott, New York. He challenged the MTA's capital plan, noting that it includes 1,746 diesel buses and zero hydroelectric buses, while only 500 battery electric buses are planned. He argued that hybrid buses, manufactured in New York, would keep more funding in the state.

The MTA represents about 10 to 12 percent of total bus production between the U.S. and Canada each year verifiable

The current 2025-2029 MTA capital plan includes 1,746 diesel buses and zero hydroelectric buses verifiable

1,746 diesel buses represents more diesel buses than the combined 10-year purchases from Boston, Montreal, Toronto, Philadelphia, and Washington, D.C. verifiable

The MTA fleet is about 75 percent diesel buses, the highest percentage in about 20 years verifiable

When the MTA buys a diesel bus, 76 percent of that money leaves the state verifiable

When they spend incremental money to buy a battery electric bus, over 90 percent leaves the state verifiable

If they buy a hybrid electric bus, the incremental spend would be 80 percent kept in New York State verifiable

Kevin Byrne elected_official neutral

Putnam County Executive

Byrne testified as Putnam County Executive, discussing the impact of congestion pricing on Putnam County businesses and residents. He noted that Putnam County maintains 83 culverts, 31 bridges, and 116 centerline miles of county roadway, and thanked the Legislature for CHIPS funding. He advocated for expanded paratransit services and highlighted the Parents as Driving Partners program.

Christopher D. Greif advocate supportive

ADA Accessibility Transportation Group, President

Greif testified as an advocate for people with disabilities, discussing accessibility improvements in the MTA system. He highlighted the boarding assistance button being tested on Metro-North and LIRR, the NaviLens program for navigation assistance, and the importance of continued investment in accessibility projects. He emphasized the need for full funding of the MTA capital plan to ensure accessibility improvements continue.

Senator Engagement (10)

Senator	Engagement	Stance	Focus Areas	Summary
Sen. Cordell Cleare	low	supportive	Second Avenue Subway Phase 2 Accessibility improvements	Sen. Cleare asked about Second Avenue Subway Phase 2 expansion and accessibility improvements, expressing support for continued transit investment.
Sen. Jeremy Cooney	high	supportive	Worker safety initiatives Public transit expansion Bus rapid transit development Worker Access Transit Fund High-speed rail development Pavement material selection Work zone speed enforcement	Chair Cooney focused on worker safety, transit expansion, and economic development. He expressed strong support for the $800 million DOT increase and advocated for additional transit funding to support worker connections to new economic opportunities. He questioned the effectiveness of work zone speed cameras and discussed implementation details.
Sen. John C. Liu	moderate	supportive	High-speed rail development Amtrak service improvements Federal funding coordination	Sen. Liu focused on rail service improvements and federal coordination. He asked about high-speed rail progress and Amtrak service enhancements, expressing interest in federal funding opportunities.
Sen. Leroy Comrie	high	supportive	MTA police budget and staffing Fare evasion reduction Fair Fares program expansion Bus service reliability Broadband infrastructure Wildlife crossings MWBE procurement Transparency and audits	Chair Comrie focused on MTA operations, equity, and transparency. He questioned the MTA police budget reduction, advocated for forensic audits, and pushed for expanded Fair Fares eligibility. He expressed concern about bus service reliability and requested additional transparency measures.
Sen. Liz Krueger	high	supportive	CLCPA compliance and environmental impacts MTA capital plan funding Design-build procurement Vehicle miles traveled reduction Accessibility improvements Congestion pricing environmental impacts Salt pollution and road maintenance practices Dedicated Highway and Bridge Trust Fund Moped registration and licensing	Chair Krueger engaged extensively on environmental compliance, transportation equity, and infrastructure funding. She questioned witnesses about CLCPA implementation, vehicle miles traveled metrics, and environmental impacts of congestion pricing. She expressed support for MTA capital funding and accessibility improvements while questioning cost-effectiveness of certain programs.
Sen. Monica R. Martinez	low	neutral	Long Island infrastructure Southern State Parkway safety	Sen. Martinez asked about Long Island projects and Southern State Parkway conditions, expressing concern about traffic safety on that corridor.
Sen. Peter Oberacker	moderate	skeptical	CHIPS funding Electric vehicle infrastructure Worker safety Green hydrogen rail	Ranking Member Oberacker expressed concern about flat CHIPS funding and proposed a CLEAR program to address emergency assistance. He questioned EV infrastructure readiness and proposed alternative solutions like green hydrogen rail.
Sen. Roxanne Persaud	low	neutral	Express bus service reliability Accessibility improvements	Sen. Persaud asked limited questions, primarily thanking witnesses for their work and expressing appreciation for DOT responsiveness. She inquired about express bus service improvements and accessibility projects.
Sen. Siela A. Bynoe	low	neutral	Long Island resilience State Touring Routes program	Sen. Bynoe asked about flood resilience funding and the State Touring Routes program, expressing interest in Long Island-specific infrastructure needs.
Sen. Thomas F. O'Mara	moderate	supportive	CHIPS funding increases Electric vehicle infrastructure Railcar manufacturing in New York Advanced Clean Truck Rule implementation	Ranking Member O'Mara focused on upstate infrastructure needs and manufacturing. He advocated for CHIPS funding increases and questioned the feasibility of EV charging infrastructure for heavy-duty vehicles. He expressed support for New York-based railcar manufacturers.