[Updated 12/10.]

The Port Authority’s preliminary 2010 budget reflects the tough economic climate but continues investment in vital needs like the Access to the Region’s Core rail tunnel and the PATH rapid transit system. The $6.3 billion budget includes a $3.1 billion capital budget. Some highlights:

• $504 million for the ARC tunnel, an increase from the $340 million provided in last year’s budget. Both contributions go towards the $3 billion that the Port Authority has pledged to the tunnel.
• $357 million to continue the overhaul of the PATH system, including new cars and signals, a new station entrance at 9th Street in NYC, and preparation for new development around the Harrison, NJ station.
• $56 million for “Cross-Harbor Rail Freight.” This will likely fund improvements to the New York New Jersey Rail float operation connecting Brooklyn and Jersey City, and prepare for the rail freight tunnel being studied by the Port Authority. NJDOT’s 2010 capital budget includes money for a related project.
• $7.6 million to continue to equip the George Washington Bridge for all-electronic tolling.

One prominent omission from the capital program is money for a bus parking garage that is needed to support cross-Hudson bus transit and could help alleviate some of the concerns many NYC residents have regarding increased bus traffic in the city. This project has been deferred out of the 10-year capital program and will be built by 2016 at the earliest, the Port Authority announced at its December board meeting. In a statement, the Tri-State Campaign called the announcement “bad news for the dozens of Manhattan communities seeking relief from the onslaught of private, interstate buses in their neighborhoods.”

Due to fiscal constraints, there is zero growth in the operating budget, which stays flat at $2.5 billion. Staff levels have been reduced to the lowest level in 40 years, according to the Port Authority’s accompanying press release.  Comments on the budget will be accepted until December 10 via e-mail.