The New York Metropolitan Transportation Authority recently unveiled its proposed $32 billion 2015-2019 Capital Program, subsequently adopted by the MTA Board at today’s meeting. The proposal is made up of “vital investments” derived from the 2015-2034 Twenty Year Capital Needs Assessment that will “renew, enhance, and expand the MTA network” by “addressing evolving customer needs and expectations, while at the same time reinforcing the importance of investing to keep MTA safe and reliable.”

A significant portion of the proposed plan is dedicated to the completion of large-scale transportation infrastructure projects, including the LIRR Ronkonkoma branch Double Track project, the Metro-North Harmon Shop replacement project, East Side Access and the expansion of the Metro-North New Haven Line to Penn Station. Each of these projects has its own major implications for regional transportation service. For the proposed 2015-2019 Capital Plan to include so many major capital investments sets the stakes a lot higher for this program being approved, and being fully funded.

In addition to high-profile network expansion projects like the LIRR double track and the Second Avenue Subway, the Capital Program also calls for spending $30 million on equipment to expand Select Bus Service along key routes in partnership with the NYC Department of Transportation.

Of particular interest in the Capital Program is the reconstruction of the Henry Hudson toll plaza to fully and permanently implement cashless open road tolling along the bridge. The pilot program, supported by Tri-State, was widely applauded, but in order for the program to expand successfully, toll evasion legislation is needed.

These projects aside, safety and reliability are the true focus of the Capital Program, with $22 billion of the $32 billion plan slated for new rail cars, ferries and buses and state of good repair investments for the network’s seven bridges and two tunnels, as well as viaducts and rail line structures.

Unfortunately, as it proposes these reliability projects, the agency is also proposing a Capital Program with the largest funding gap in MTA history – nearly 50 percent of the $32 billion plan is currently unfunded. The current financial situation is as unreliable as ever – federal funding constitutes 20 percent of the Capital Plan program costs, but Congress has yet to advance a multi-year bill to replace MAP-21 (which was extended through May 2015). The MTA Capital Program has attempted to account for this uncertainty in its funding assumptions.

As government contributions have declined in recent years, the MTA has had to take on greater debt to fund its capital projects. Borrowing accounts for another nearly 20 percent of the Capital Program’s currently projected funding. The increasing debt and detrimental funding gap have led to some creative funding strategies, such as moving the agency’s payroll tax from operating costs to its capital budget as a means of stabilizing some funding as well as reducing interest rates. This puts added pressure on fares and service levels in the event that these gaps are not filled.

Meanwhile, New York City’s annual contribution to the MTA’s Capital Plan remains a pittance. The City provided as much as 10 percent of total Capital Funds in the 1980s, but the City’s contribution dropped significantly to 3 percent in the 2000-2004 Capital Program, and further to just 2 percent in the following Program, where it remains in this draft.

The MTA plays a vital role in the day-to-day lives of New Yorkers and is the lifeblood of the region’s economy. Steadily increasing ridership and annual passenger miles and trips show growing reliance on and preference for the MTA’s network, and the Capital Program’s network expansion projects coupled with Mayor de Blasio’s push for transit-oriented development in his Affordable Housing Plan only guarantee greater usage in the near future.

Tri-State, in the week ahead, will be analyzing the Capital Programs for the LIRR, Metro-North and NYCT in more depth, but one thing is certain: the New York region, and the United States’ economy, depend upon a robust transit network in the metropolitan region. A fully-funded, five-year MTA Capital Plan is needed to ensure the state of good repair of the system and to meet the challenges of increased ridership, climate change and maintaining economic competitiveness.

This in turn will require new revenue. While a number of options exist to ensure our region’s transportation systems have the resources they need, the best option available to provide sufficient recurrent revenue for the MTA Capital Plan is the MoveNY plan. The MoveNY plan will also decrease reliance upon debt, fare increases and service cuts; reduce traffic congestion; improve regional air quality; enhance economic growth; and redress inequity in NYC’s tolling network.

It is now up to Governor Cuomo, Mayor de Blasio and the New York State Legislature to find the funding necessary to make this plan whole.