Transportation Budget Hearing Summary
Ralph Yozzo
See https://youtube.com/shorts/TBb2AVahh7c?feature=share
You simply can't make this stuff up
The JBH 020326 Transportation hearing is a comprehensive session of the New York State Senate and Assembly regarding the 2026-2027 Executive Budget for Transportation. Below is a detailed summary of the proceedings with timestamps.
I. Agency Testimony & Presentations
Opening Remarks: The hearing commences with Chairs of the Finance and Ways & Means Committees introducing the day's agenda.
NYS Department of Transportation (DOT): Commissioner Marie Therese Dominguez outlines the $32.8 billion five-year capital plan, focusing on resilient infrastructure and the "Complete Streets" initiative.
Department of Motor Vehicles (DMV): Commissioner Mark Schroeder discusses the "DMV of the Future" modernization project and the rollout of mobile driver's licenses.
Metropolitan Transportation Authority (MTA): Chair Janno Lieber presents the MTA's budget needs, focusing on the 2025-2029 Capital Plan and the essential state of repair for the subway system.
Thruway Authority: Leadership discusses the implementation of toll adjustments and upcoming bridge maintenance projects across the I-87 corridor.
II. Key Legislative Inquiries
Congestion Pricing Implementation: Extensive questioning regarding the revenue impact of the Central Business District Tolling Program and its specific allocation for transit improvements.
CHIPS Funding for Local Roads: Legislators from both parties advocate for an increase in the Consolidated Local Street and Highway Improvement Program (CHIPS) to combat rising material costs.
Upstate Transit Parity: Discussions on ensuring that transit authorities like the NFTA (Buffalo) and CDTA (Albany) receive proportional operating aid compared to the MTA.
Zero-Emission Bus Transition: Inquiries into the timeline and electrical grid capacity needed to meet the mandate for all-electric school and transit buses.
III. Public & Stakeholder Testimony
Labor Unions: Representatives from the building trades emphasize the need for Project Labor Agreements (PLAs) on state-funded infrastructure projects.
Environmental Advocacy: Groups testify on the necessity of prioritizing the "Better Bus" program and expanding bike lane connectivity.
Local Government Officials: Mayors and Town Supervisors testify on the direct impact of infrastructure state-aid on local property taxes.
Watch the full hearing here: http://www.youtube.com/watch?v=6cxwZDTpt8g
The video presents a joint legislative budget hearing concerning the governor's proposed budget for fiscal year 2026-27, with a specific focus on transportation (0:29-0:32). The hearing is convened by the Assembly Ways and Means Committee and the Senate Finance Committee (0:23-0:27).
Key points from the hearing:
MTA's 2025 Achievements (5:21-6:14): The MTA highlights 2025 as a successful year due to the implementation of congestion pricing, the approval of the largest-ever capital plan, surging ridership and customer satisfaction, improved subway crime statistics, record-setting construction of accessibility projects, and the major start of the IBX and Second Avenue Subway Phase 2 projects.
Financial Health (6:29-7:22): The MTA reports a balanced budget for the third consecutive year and reduced out-year deficits to less than half a percent, leading to credit rating upgrades. They attribute this to legislative support and aggressive cost-cutting, claiming to spend 3% less in real terms than pre-COVID levels while providing more service.
Capital Program and Project Efficiency (7:24-8:47): Congestion pricing is thriving, enabling significant investments in the 2025-29 capital plan. In 2025, the MTA committed $15.8 billion in capital money, with over $5 billion enabled by congestion pricing. They report saving $3 billion on capital work since 2020, with projects like the Park Avenue Viaduct, Grand Central Train Shed, and ADA elevators being completed faster and more cost-effectively.
Ridership and Safety (8:50-10:27): New York City transit carried 1.9 billion riders in 2025, a 7% increase from the previous year. Commuter railroads saw 150 million more customers with a 97% on-time performance. Subway crime is down 14% from pre-COVID levels, attributed to collaboration with the NYPD, increased police presence, the SCOUT mental health outreach program, tens of thousands of security cameras, platform barriers, and improved lighting.
Challenges and Requests for Legislative Support (10:29-13:50):
Wasteful Spending (10:42-11:52): The MTA has cut $500 million in annual recurring costs and aims to cut another $250 million by 2029. They seek legislative support for the governor's auto insurance proposals to address the "tort system," which they claim drains funds due to the MTA being a "deep pocket" in lawsuits.
Stormwater Management (11:56-12:20): The MTA needs the city's partnership to address severe flooding in the subway system caused by torrential rainfall overwhelming city sewers.
Amtrak Issues (12:21-13:08): Problems with Amtrak are hindering projects like Penn Station Access, which aims to bring rail service to the East Bronx. Amtrak has also "backpedaled" on Metro-North service to Albany.
Labor Relations (13:09-14:18): The MTA is preparing for a potential Long Island Railroad strike. They are willing to pay more to unions if they agree to eliminate wasteful work rules, seeking a pattern bargaining approach to efficiently manage agreements with their 80 separate unions.
Plate Fraud (15:32-20:59): Assemblyman Magnarelli raises concerns about the fraudulent use of turned-in license plates, leading to incorrect tolling and legal issues for citizens. The MTA acknowledges the problem, attributing it to both other government agencies issuing duplicate numbers and the use of fake/ghost plates for criminal activity. They seek legislative support to make plate fraud a more serious offense, allowing for impoundment of vehicles rather than just tickets.
Federal Funding Threats (21:28-26:22): The MTA is budgeting for and factoring in threats to transit funding from the White House, particularly for projects like the Second Avenue Subway. While only about 20% of their capital program is federally funded, with most being stable formula money, major projects have been held back. They also highlight a $600 million outstanding FEMA payment from the first Trump administration for early COVID intervention, urging bipartisan legislative pressure for its release.
Procurement and Local Businesses (26:24-29:10): Chairman Cooney asks about the MTA's commitment to New York-based vendors. The MTA has formed a new group to focus on rolling stock procurements, planning to buy 2,000 rail cars and 2,200 buses. They aim to procure from New York-based companies and attract new ones to the state, noting that about one in four jobs created by the MTA capital program are outside New York City.
Fare Evasion (31:36-37:08): The MTA has reduced subway fare evasion by 30% by aggressively addressing exit gate misuse and changing physical turnstiles. They plan to install modern fare gates. Bus fare evasion is a bigger challenge, but with the full implementation of the Omni digital tap-and-ride system, they plan to introduce "European-style" fare inspectors. They estimate annual losses from fare evasion to be in the range of $500-$700 million.
Casino Revenue (37:17-39:58): The MTA has received $1.5 billion from three casino license fees, which are incorporated into their five-year financial plan to reduce deficits. While Resorts World is projected to open soon, bringing tax revenue, the other two casinos aren't expected until 2030, with tax revenue flowing in 2030-2031. They are being conservative in their projections, expecting about $100 million per casino annually.
Tax Increment Financing (TIF) (40:01-41:39): The MTA is seeking a 10-year extender for tax increment financing to help fund infrastructure projects like the Inner Borough Express (IBX). They are in initial conversations with city planning but have not yet gained traction with the current city government, emphasizing the need for a longer-term legislative approval of TIF to be taken seriously.
Capital Dashboard and Transparency (42:47-44:11): Senator Comry praises the MTA for its accountability and accessibility efforts, specifically mentioning the capital dashboard. The MTA notes that it has made billions of lines of data available online, earning recognition as a "gold standard" for transparency. The capital dashboard will allow users to track project funding, budget, schedule, and related projects online.