Mayor Michael R. Bloomberg’s groundbreaking PlaNYC report forecasts that by 2030 New York City’s population will top nine million people, and its workforce will grow
by more than 750,000 jobs. Such growth would put considerable additional demands on a regional transit network that is straining to accommodate current levels of ridership.

It is absolutely essential, therefore, to work now to expand the system if NewYork is to have any hope of realizing and accommodating these forecasts.

The Building Congress, as an umbrella organization for the design, construction and real estate industry, has long advocated the importance of dedicated and long-term transportation investment, and true to its mission, has been monitoring and helping shape the debate on transit-related issues. To follow is a summary of the main issues the Building Congress has been tracking and that will continue to play out in 2008.

MTA Capital Plan

The Metropolitan Transportation Authority (MTA) recently indicated that it will propose a five-year capital plan, to run from 2009 to 2013, of up to $28 billion. Of that number, $18 billion is required for core system needs, while between $5 billion and $10 billion will be minimally necessary to keep critical expansion projects moving forward.

At a special November Construction Industry Forum, MTA Executive Director and CEO
Elliot G. Sander outlined the MTA’s need for additional funding, through fare and toll hikes,
as well as other sources, to undertake necessary capital improvements and system expansion.

“We are in the middle of an epic conversation as important as any conversation that has occurred regarding the MTA since the early 1980’s. But what has been missing from this conversation has been the capital program. To me and all of you, the MTA capital program is as important as equity in fares and tolls,” Mr. Sander said. In addition to normal replacement and state of good repair, he added, “We need to find the funds to modernize and expand our system,” citing funding for the Second Avenue Subway and Long Island Rail Road access toGrand Central as key priorities.

At a press conference following the event, leaders from the design, construction and
real estate industry stood in support of Mr. Sander and the MTA. In addition to the New York Building Congress, represented by President Richard T. Anderson, the leaders
present were: American Council of Engineering Companies of New York Executive Director Jay Simson ; AIA New York Chapter Executive Director Rick Bell; Building
& Construction Trades Council of Greater New York President Edward J. Malloy; Buildings Trades Employers’ Association President Louis J. Coletti; General Contractors Association of New York Managing Director Christopher O. Ward; New York City Central Labor Council President Gary LaBarbera; and Real Estate Board of New York President Steven Spinola.

Said Mr. Anderson, “The MTA is in need of additional revenues that will prevent the Authority’s financial situation from deteriorating like it did to disastrous effect in the 1970s and 80s. Without additional revenues, the MTA will struggle to even maintain the system
in a state of good repair. New construction starts will be imperiled, and New York City will run the risk that the system will fall into decline and New York’s economy with it. While some combination of fare and toll increases is inevitable, it should be viewed as one element of a long-term multi-layered response that also includes increased support from Albany and City Hall, as well as dedicated sources of new capital funding. We urge the State and City government to work with the MTA in devising a proposal that is prudent and equitable.” In addition to arranging and co-sponsoring the Forum, the Building Congress supported the MTA’s fare hike proposal in an October eUpdate to its members.

Congestion Pricing

For years, Building Congress leadership and its members have advocated the need to identify dedicated and protected sources of new revenue for capital expenditures – in addition to City and State leaders providing more direct subsidy to the region’s transit network.

Mayor Bloomberg’s congestion pricing proposal, which would raise hundreds of millions of dollars annually, is one such mechanism. According to the Building Congress, it is important that the New York City Traffic Mitigation Commission, which was created to review and set the parameters for the proposal’s implementation, honor the Mayor’s initial vision.

In a recent letter to the Commission’s Chairman, Marc Shaw, Building Congress Chairman Dominick M. Servedio and Mr. Anderson wrote, “If the Commission’s proposed plan is
to fulfill its promise of less traffic, cleaner air and better transit, we believe there is one provision that must remain intact. It is critical that all congestion pricing proceeds be
allocated toward capital improvements in New York City’s transit system rather than
to offset operating deficits at the Metropolitan Transportation Authority.”

The Building Congress leadership is concerned that the MTA’s budget gap has the potential to motivate a troubling compromise in which congestion pricing would be authorized, but
a sizable portion of the revenues would be used to hold down fares by plugging operating deficits. As noted in the letter, this idea seems to be gaining traction in the media and in some policy circles.

According to the letter, “Such political expedience would be a terrible mistake. In essence, government would offset future operating expenses with congestion pricing revenues,
while offering less funds to eliminate a projected $30 billion shortfall for vital capital improvements such as the Second Avenue Subway, Long Island Rail Road access to Grand Central and a #7 line extension.”

Port Authority Capital Plan

Just as critical to the regional transportation network is the Port Authority’s capital plan.
It is estimated that 127 million eastbound vehicles using the Port Authority’s bridges,
tunnels and terminals already lose an average of 400 million hours each year sitting in
traffic, and 20 million more vehicles are expected on these systems by 2020.

Over the next 12 years, PATH ridership is expected to grow from 71 million to more than 96 million; the Port of New York and New Jersey is expected to handle double its current cargo volume; and demand on the overburdened airport system is expected to balloon by 40 percent.

At its November 30 meeting, the Building Congress Board of Directors offered its unqualified support of the Port Authority’s updated $29.5 billion 2007-2016 Capital Plan, as well as the proposed trans-Hudson fare and toll increases to help fund it.

In a recent letter to Port Authority Chairman Anthony R. Coscia, Mr. Anderson wrote,
“Capital investments like the planned $650 million for redeveloping Stewart Airport and increasing capacity in other major airports, $3.3 billion in enhancements to the PATH
system and $3 billion for the Trans-Hudson Express passenger rail tunnel, a project
the Building Congress has long-championed, are critical to the safety and economic
advancement of the region.We encourage the region’s public and private leadership to
urge prompt approval and implementation by the Port Authority.”