Port Authority Posts Proposed 2015 Operating and Capital Budgets for Public Review

On Dec 3, 2014

The Port Authority posts for public review a proposed $2.9 billion Operating Budget and $3.6 billion Capital Budget that funds critical infrastructure benefitting the tens of millions of customers the agency serves annually.  Combined, together with debt service, the proposed agency budget for 2015 totals $7.8 billion in proposed spending.

The $2.9 billion Operating Budget continues to hold expense growth for ongoing agency operations at 1.8 percent – below the rate of inflation – and reflects continued austerity while allowing for increased investments in several critical areas, including facility maintenance and initiatives to enhance the competitiveness of the agency’s facilities.  The proposed Operating Budget represents the 9th consecutive year of nearly flat spending – at or below the rate of inflation – reflecting fiscal discipline and ongoing efforts to manage expenses.

The Operating Budget also provides funds for security, operation and maintenance for the World Trade Center site following the November 3rd opening of One World Trade Center, the October 27th opening of 4 World Trade Center and the projected opening of other public spaces in 2015.  The incremental $108 million of operating expenses budgeted for the World Trade Center is offset by $120 million in incremental rental revenue as One World Trade Center tenants continue to occupy the building.

The $3.6 billion Capital Budget will help build and maintain critical infrastructure at the Port Authority’s airports, tunnels, bridges, terminals, ports, PATH system and move toward completion of the World Trade Center site.  Of the total Capital Budget, $1 billion is dedicated specifically for investment in the region’s interstate transportation system including tunnels, bridges and terminals and PATH. In addition, $779 million is dedicated to airport terminal development, runway and taxiway improvements and security enhancements, and $155 million is earmarked for Port Commerce state-of-good-repair projects and the redevelopment of the Greenville Yard site in Jersey City.  An additional $1.6 billion is budgeted to complete construction of projects at the World Trade Center site, including the Transportation Hub and retail establishments.

“By holding growth in spending under the rate of inflation, this budget maintains the fiscal discipline necessary so that our resources can be invested in projects that create jobs, improve our infrastructure, and enhance regional mobility,” said Port Authority Executive Director Pat Foye.  “Our team undertook a thorough, disciplined process to target and prioritize our investments in areas that benefit service and ensure safety at our airports, bridges, tunnels, PATH system and ports.”

“Our goal is to do more with less and to safeguard our resources to invest in our world-class transportation system,” said Port Authority Deputy Executive Director Deb Gramiccioni.  “Our efforts will allow us to invest in projects that matter to the millions of customers who use our airports, tunnels, bridges and PATH system every year.”

Highlights of the proposed 2015 Operating Budget:

•  $17 million for cyclical maintenance dredging to improve service reliability in the Port of New York and New Jersey
•  $13.8 million for a PATH new car inspection apprentice program and additional maintenance as well as for the completion of the PATH Train Control Center
•  $9.6 million for long-term airport system planning including consideration of neighborhood impacts

Highlights of the proposed 2015 Capital Budget:

•   $273 million for continued construction of the Bayonne Bridge “Raise the Roadway” project.
•   $40 million of Port Authority funded work as part of the ongoing $1.5 billion public-private partnership for construction of a new Goethals Bridge.
•   $36 million for continued redevelopment of the George Washington Bridge Bus Station.
•   $329 million for state of good repair work on airport runways and taxiway reconstruction.
•   $223 million to modernize PATH stations, including the Harrison PATH Station.
•   $32 million to build a new ExpressRail system at Greenville Yard in Jersey City that allows cargo to be moved by rail.

 

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