“The analysis makes us concerned the NJDOT [...]]]> A new analysis of the NJDOT’s fiscal year 2012 capital program shows that maintenance and repair continue to make up the largest category of spending, but also finds a higher percentage of funds going to highway and bridge expansion than in any year in nearly a decade.

“The analysis makes us concerned the NJDOT is taking on too many new road widening projects that it cannot afford and moving away from smart transportation policies,” TSTC executive director Kate Slevin said in a release.

Last month, New Jersey released its draft 2012 capital program. The plan provides almost $3.5 billion in funding for the state’s road and transit systems, with approximately $2.3 billion going to NJ Department of Transportation and $1.164 billion set aside for New Jersey Transit. In a new report, A Bumpy Road Ahead?, TSTC closely analyzes the NJDOT portion of the capital program, comparing funding levels across project types, and examining trends in past spending priorities. Several themes emerged:

1.  Road and bridge maintenance continue to make up the largest percentage of NJDOT’s capital program budget. The agency is dedicating 44% of the fiscal year 2012 capital spending to rehabilitation, repair, resurfacing, and replacement projects. This compares favorably to previous years. In 2009, TSTC found that the agency dedicated 44% of its budget to maintenance and 36% in 2010. NJDOT must prioritize a “fix-it-first” strategy given the poor condition of the state’s existing infrastructure.

2.  Spending on road and bridge capacity expansion projects makes up 11% of the capital program, the largest percentage in nearly a decade, threatening to undermine the state’s “fix-it-first” goals. Increasing spending on capacity expansions is a troubling, but growing trend in recent NJDOT capital programs:

New Jersey's spending on road and bridge expansion will reach levels not seen in nearly a decade. (TSTC analysis of NJDOT's 2010 and 2012 capital programs; 2011 figure based on NJDOT's projection from its 2010 capital plan.)

3.  Funding for signature smart growth programs has been reduced or eliminated. Cuts to these programs are likely to affect the smart growth efforts of municipalities across the state. The 2012 capital program defunds New Jersey’s Transit Village program, which has helped towns promote sustainable, transit-oriented development statewide. In 2011, the program received $1 million, and in previous years, the program has been allocated as much as $3 million. Also defunded is the Centers of Place program, which has previously provided competitive grants for downtown improvements such as streetscaping, lighting, wayfinding, and pedestrian safety projects. Lastly, funding for the NJ Future in Transportation program, which seeks to build more sustainable communities with state transportation projects, is lacking and a new round of projects has not been announced.

4. Funding for bicycle and pedestrian projects shows NJDOT’s commitment to pedestrian and bicyclist safety. With nearly 3% of the proposed capital program going to active transportation, NJDOT remains a national leader in spending on this area. Some of the 2012 projects include the Riverbank Park Bike Trail in Hudson County, the East Coast Greenway in Middlesex and Union Counties, the New Brunswick Bikeway, and River Road improvements in Camden. In addition, a number of roadway and bridge projects have bicycle and pedestrian additions, such as the Route 50 Tuckahoe River Bridge. However, funding for Safe Streets to Transit, which has helped towns provide safer access to rail and bus hubs, has been decreased from the intended $1 million to $500,000. Sustained funding is critical if the state hopes to continue to reduce bicyclist and pedestrian deaths.

The report offers the following recommendations for the Governor, State Legislature and NJDOT:

• Recommit to the fix-it-first policy mandated in 2000 to reduce the backlog of deficit roads and bridges by half as the state approves the Transportation Capital Program this year.
• Take a hard look at proposed road expansion projects and call off projects that will not offer sustainable congestion relief. If the state could not afford the Access to the Region’s Core tunnel project, it cannot afford paying for road expansion projects that do little to reduce traffic congestion.
• Create a consistent fix-it-first policy among all state transportation agencies, including NJDOT and the New Jersey Turnpike Authority.
• Restore and increase funding for the state’s smart growth programs to ensure continued progress on these initiatives. Dedicate at least $1 million annually to NJ Transit Village program and the Centers of Place program. Launch a new round of NJ FIT projects that help towns plan for the future.
• Continue to fund bicycle and pedestrian projects, targeting financial support to places with the highest number of pedestrian and bicyclist injuries and deaths. Restore funding to the Safe Routes to Transit program to at least $1 million annually.
• Use money previously earmarked for Access to the Region’s Core for its intended purpose of improving the cross-Hudson commute.
• Find new sources of revenue. The proposed capital program relies on $1.8 billion in transfers from the state’s General Fund over five years — revenues that presently do not exist.

The State Legislature must now review, change, and approve the capital plan. The final decisions will be reflected in the state’s annual Appropriation Act, which takes effect on July 1.

Graphs: TSTC.

Prompted by NJ Future during an April 7 roundtable discussion at TransAction, a statewide transportation [...]]]> As we reported last week, NJDOT’s proposed fiscal year 2012 Capital Plan currently eliminates all funding for New Jersey’s Transit Village program; however, there may be a glimmer of hope that the money for this program will be reinstated.

Prompted by NJ Future during an April 7 roundtable discussion at TransAction, a statewide transportation conference, NJDOT Commissioner James Simpson began by echoing his previous justification for doing away with all financial backing for Transit Villages—essentially, that the program hadn’t been funded properly to begin with. However, Commissioner Simpson was quick to reaffirm the state’s commitment to transit and smart growth-related projects, and admitted that by failing to provide any money for the Transit Village program, NJDOT had “made a mistake” and was clearly “sending the wrong message.” When asked whether this meant that funding for the program would be restored, he responded with “no comment.”

What does this mean? It would appear that NJDOT has not ruled out reinstating funding for the Transit Village program. NJDOT’s position may become clearer after Commissioner Simpson testifies before the Senate Budget Committee on Wednesday.  In anticipation of the hearing, TSTC has reached out to each member of the committee; six have designated Transit Villages in their districts.

With the state funding crisis in mind, the letter is focused on maintaining transit funding and [...]]]> Earlier this week, TSTC sent a letter to Governor-Elect Cuomo outlining transportation priorities for 2011 and beyond. Many items fit directly into his campaign promises of encouraging smart growth, reforming government, expanding transit, and encouraging biking and walking.

With the state funding crisis in mind, the letter is focused on maintaining transit funding and offers incremental and relatively affordable ways to  improve the transportation network in New York State. The entire letter is posted below.

December 22, 2010

Hon. Andrew Cuomo

Governor-Elect

Church Street Station

P.O. Box 683

New York, NY 10008

Re: Transportation priorities

Dear Governor-Elect Cuomo:

Congratulations on your victory. The Tri-State Transportation Campaign (TSTC), a non-profit policy organization working for a more sustainable transportation network in New York, New Jersey and Connecticut, looks forward to working with you. Over 15 years, we have helped elected officials and transportation departments direct spending toward transit, cycling, walking, and infrastructure repair projects and away from sprawl inducing highway expansion.

As you consider policy and staffing for your Administration, we offer the recommendations below:

Turn NYS DOT into a smart growth leader. Appoint a reformer to run the agency and direct her or him to implement the Smart Growth Infrastructure bill passed last year. To do this, the agency should:

-          Make sustainability programs that connect land use and transportation – such as NYS DOT’s GreenLITES and PennDOT’s Smart Transportation program – the norm for project selection rather than independent programs. Ensure the vast majority of transportation resources are directed to towns working toward smart growth visions;

-          Report to you, the State Legislature, and the public quarterly on performance measures including road, bridge and transit conditions, vehicle miles traveled, greenhouse gas emissions, and road safety. A good model is Washington State Department of Transportation’s Gray Notebook which is easy to read and available online;

-          Redo the state’s street design criteria using NYC Department of Transportation’s Street Design Manual and the Institute for Transportation Engineers and the Congress for the New Urbanism’s manual, Designing Walkable Urban Thoroughfares, as models.

-          Take control of NYS DOT regional offices to ensure that a cohesive transportation vision is being implemented. The eleven regional offices of NYSDOT function with their own institutional culture and policy focus. Streamlining these offices and ensuring they are following the direction of headquarters in Albany is critical to realizing a 21st century transportation policy across the state.

Support innovative projects such as the transformation of the Sheridan Expressway in the South Bronx into parks and housing. The underused 1.25 mile highway was never completed and remains a stub bisecting an environmental justice community in the Bronx. A coalition of groups, including TSTC, has been urging the NYS DOT to remove the highway as part of the Sheridan Bruckner Sheridan Environmental Impact Study (PIN X730.39) and replace it with more appropriate urban uses. Such a move could become a model of smart growth investment for the state and nation. NYC DOT recently won a TIGER II award to study potential uses of the roadway but the City requires state cooperation.

Stop the diversion of transit dollars. New York State has redirected hundreds of millions of dollars in dedicated transit funding resulting in fare increases, cuts to dozens of bus routes, and the elimination of two NYC subway lines. Transit funding should be increased, not decreased. We urge you to retain transit funding in your Executive budgets.

Increase support for transit operations and capital projects and consider a NYC congestion pricing program as a possible funding stream. The state’s economy is dependent on reliable transit service yet both MTA and non-MTA systems face drastic funding challenges in coming years. The MTA’s capital program deficit is $10B of a $25B program. New revenue sources will be necessary to stop the system from becoming unsafe and unreliable. An NYC congestion pricing program would align with state goals to reduce greenhouse gas emissions and create more transportation choices.

Appoint MTA board members who ride public transportation and reflect the diversity of transit riders. As Governor, you appoint the MTA’s 17 member board with six members being under your direct control. We urge you to recommend effective, diverse, and qualified representatives who represent riders.

Improve suburban transit, especially for bus riders, and consider scaling down the Tappan Zee Bridge project. Nassau County’s Long Island Bus is facing cuts that could destroy the system and Westchester’s Bee-Line Bus cut service this spring. A new funding agreement between Nassau County and the MTA, along with more state support for all county systems, could offer cost savings and protect service for riders.

On the capital side, the next Governor should also support the LIRR third track project (key for Long Islanders to reap the benefits of East Side Access) and plans for bus rapid transit in the Tappan Zee Bridge/I-287 corridor. Additionally, plans for Tappan Zee Bridge replacement could be scaled down and proceed without the commuter rail connection from Rockland to NYC.  Most commuters using the Tappan Zee are travelling to suburban destinations, not ending their trips in Manhattan, so the bus rapid transit connection, which provides much greater utility at the most affordable cost, should be retained.

Redirect Port Authority ARC funds to projects that improve bus service between New Jersey and NYC. NYC and New Jersey both benefit from strong transit connections across the Hudson River. Governor Christie’s killing of the ARC tunnel project increases the urgency of improvements for cross-Hudson commuters. While NYC investigates a possible #7 extension to NJ, there remain important improvements for the 192,000 bus users each day. Bus improvements are the most affordable and fastest method to reduce commute times, alleviate congestion, and provide better transit service. We urge you to redirect the Port Authority’s $3 billion contribution to ARC to projects that would benefit cross Hudson commuters. These include a second Manhattan-bound bus lane through the Lincoln Tunnel in the morning, a westbound bus lane during evening rush hours, additional NJ TRANSIT buses, a bus garage on the West Side of Manhattan, and a reconstructed Lincoln Tunnel helix.

Make roads safer, adopt a complete streets policy, and recommend speed enforcement cameras in your first executive budget. Each year, roughly 1,200 people die in traffic accidents in New York State, 300 of them while walking. Traffic calming offers tremendous safety enhancements on dangerous roadways for limited capital investment. We strongly urge you to support complete streets legislation (A8587-B/SB5711-B) that passed the Senate earlier this year, use federal dollars to fix the state’s most dangerous roads for walking, expand affordable and effective programs like the NYS DOT’s Local Safe Streets and Traffic Calming Grant and SafeSeniors programs and start a new statewide Safe Routes to Transit program. Also, speed enforcement cameras can improve safety on highways and in urban areas while raising revenue.

Retain Port Authority Executive Director Chris Ward and MTA CEO Jay Walder, both innovative leaders who have proven themselves as adept and highly capable leaders during challenging times.

Sincerely,

Kate Slevin

Executive Director

Veronica Vanterpool

Associate Director

New Jersey [...]]]>

Borrowing against the toll revenue which would have been used to fund ARC would result in a capital plan about half the size of 2010's if the funding was spread out over 3 years -- or a plan one-third the size of 2010's if it was spread out over 5 years.

New Jersey is still reeling from the recent cancellation of the ARC tunnel project, which would have doubled train access to Manhattan. As Governor Christie and transit officials reviewed the project prior to the final determination, transportation advocates and industry experts speculated the move was, in part, an effort to use NJ’s $1.25 billion ARC obligation to replenish the state’s beleaguered transportation capital fund, the Transportation Trust Fund (TTF). The ARC funds were generated through a toll increase under the Corzine administration and are at the Governor’s disposal, but a TSTC analysis shows that cannibalizing America’s largest public works investment won’t be nearly enough to give NJ the capital plan it needs.

The Coming Crisis

As of July 1, 2011, every cent of the $895 million in incoming gas tax and other revenue which pays for transportation will go to debt service, meaning the TTF will be completely broke, without the ability to bond. Without new revenue, NJ will not have a capital plan. Raiding the ARC funds might have looked like an attractive source of revenue for a Governor adamantly opposed to increasing taxes, tolls or fees (unless you count transit fare hikes…). But a closer look shows how infeasible this proposal is.

Why ARC Funds Can’t Fill the Gap

First, the state is required to repay about $270 million to the federal government for work already completed on ARC, so the state’s $1.25 billion looks a bit more like $980 million. Next, NJ generally approves a 5-year transportation capital plan, further parsing out the funds at hand. In an early October legislative hearing, the Treasurer said Gov. Christie will present a 3- to 5-year plan.

A former high-level NJDOT official confirmed that in a best-case scenario, current bonding rates have the potential to generate a 3x multiplier. What does all this mean?  It means that with a continued 1-to-1 federal match and ARC money alone as principal,  NJ could use bonds to leverage a 5-year, $1.2 billion/year capital plan, or a 3-year, $1.9 billion/year plan. Either would be minuscule compared to New Jersey’s current level of investment; the 2010 capital program is $3.6 billion.

The Need to Invest

According to NJDOT, it will cost the state $846 million each year just to stop the spread of structurally deficient bridges, and $1 billion in capital improvements — such as track repair and new trains and buses — to bring NJ Transit into a state of good repair. Road repairs will cost additional hundreds of millions of dollars. These are goals NJ will not be able to meet with a diminished capital plan. For the average New Jerseyan, this will mean continued traffic due to slowed construction projects, dangerous intersections for drivers and pedestrians that will remain hazardous, bridges that continue to degrade and weaken, and increased NJ Transit delays caused by old wires, tracks, trains and buses.

In principle, using increased Turnpike Authority contributions for the TTF could be a boon to the fund’s stability —  but relying solely on ARC funds to replenish the fund will require hundreds of millions of dollars in new debt and will not cover the cost of NJ’s transportation needs. During the press conference where he announced the cancellation of ARC, Gov. Christie said he would release a plan for the TTF by the end of this year, but his vehement anti-tax stance has advocates and industry wondering what other options he can turn to.

After the jump, a few more details on the ARC math:

Two highway removal projects in the region got a boost of federal funds today.  USDOT announced that New Haven’s Route 34 and the South Bronx’s  Sheridan Expressway will receive $16 million and $1.5 million respectively to advance plans to convert these underutilized highway corridors into [...]]]>

The area targeted for development in New Haven.

Two highway removal projects in the region got a boost of federal funds today.  USDOT announced that New Haven’s Route 34 and the South Bronx’s  Sheridan Expressway will receive $16 million and $1.5 million respectively to advance plans to convert these underutilized highway corridors into more walkable, vibrant, and viable communities.

The New Haven Register reports that New Haven’s award allows Phase 1 development along Route 34 to begin.  The transformation of Route 34 into an urban boulevard is expected to generate 2,000 construction jobs and 1,000 permanent jobs with hundreds of millions of dollars in future private development.

A press release from South Bronx Congressman Jose Serrano confirms that the award will fund a study for a vision plan of the Sheridan Expressway and Hunts Point area.  The study aims to fill a gap in the NY State DOT’s review of the project alternatives, which currently avoid any discussion of land use or economic development that could occur with a removal of the expressway.

The Congressman is quoted in the release:

Meanwhile, the creation of a vision plan that addresses the current and future needs of our community in the Hunts Point area and the Sheridan Expressway is of vital importance. We are eager to remake this area into a livable, walkable and green section of our community, and this is the first step towards achieving that goal. I am encouraged that this grant specifically states that this ‘City-led, multi-agency, holistic planning process will be designed to respond to the needs and goals of the business and residential communities in the area.’ This is precisely the process that all planning in our borough must undergo as we work to right the development and planning wrongs of many decades.

The official announcement from Secretary LaHood will come next week.

Serrano’s release is available here.

Image: Via City of New Haven.

Lazio told the paper he was for repealing it.

Gubernatorial candidates for Governor, Andrew Cuomo (left) and Rick Lazio (right), offered their positions on the MTA payroll [...]]]> The Times Herald-Record recently asked state gubernatorial candidates Andrew Cuomo and Rick Lazio about their positions on a few key issues, including the MTA mobility tax.

Lazio told the paper he was for repealing it.

Gubernatorial candidates for Governor, Andrew Cuomo (left) and Rick Lazio (right), offered their positions on the MTA payroll tax in a recent interview. (Photo: Times Herald Record)

Cuomo said the following:  “The MTA payroll tax is something we must revisit by coming up with a more equitable system. We cannot place unfair burdens on counties with families and businesses struggling.”

The tax was approved last year as part of a funding measure to stop MTA service cuts and fare increases. It has been controversial in suburban areas. Lower than expected revenues from a variety of transit dedicated sources and a state cut of $143 million masked the benefits of the proposal, forcing the MTA to implement service cuts last month. However, the payroll tax remains a key transit funding measure for the region. Without it, service cuts and fare increases would be more extreme and the first two years of the agency’s capital program would be in jeopardy. Even with the tax, the MTA faces a $10 billion gap in its capital program and riders are on track for another fare increase in 2011.

None of the gubernatorial candidates have said how they intend to address budget deficits at transportation agencies.