There ain’t no such thing as a free lunch or in this case, construction of a bridge.
At the end of the day, someone has to pay.
The Citizens Budget Commission report projects that tolls on the new Tappan Zee Bridge will likely increase from $5.00 to $10.50 after 2020 should come as no surprise.
It confirms what I previously predicted. Gov. Cuomo made a cold political calculation by promising not to raise the tolls when running for another term in 2018 or President in 2020 (the world’s worst kept secret).
To pay back the $1.6 billion dollar federal loan and $1 billion New York Thruway Authority Bond which helped finance the new $3.9 billion Tappan Zee Bridge, tolls will have to go up by double or more over several years.
The well respected Moody’s Investment Services previously estimated the tolls will go up to $7.60 by 2021 and $15 by 2026 for the Thruway Authority to be able to pay back both the loan and bond.
Gov. Andrew Cuomo recently stated that the state currently faces a $4 billion shortfall in fully funding the upcoming April 1, 2018 – March 30, 2019 fiscal year budget.
The situation could grow worse if there is any shortfall in anticipated tax revenues over the next six months. If Cuomo is already missing $4 billion, how will he find the billions more in promised funding to fulfill some of his major transit commitments?
First, he will need to find $4 billion to maintain the same current level of spending $153 billion in his next state budget. Since this is an election year budget, taxpayers know that both the governor and state Legislature will add billions more in spending.
Everyone has their own pet projects and programs that they will want increase financing. Incumbent elected officials believe that by “bringing home the bacon”, this will grease the wheels of reelection for another term in 2018.
On top of all that, Cuomo will still need to come up with $5.8 billion toward fully funding the $32 billion MTA 2015-2019 Five Year Capital Plan. Add an additional $1 billion he pledged in response to this past summer’s NYC Transit subway and LIRR Penn Station problems.
Construction costs for the new Gateway Tunnel connecting New Jersey to Penn Station is $29 billion. Cuomo committed contributing 25 percent of the total cost, but has yet to identify the source of his $7.25 billion.
When it comes to paying for all his promised transportation projects, Cuomo reminds me of Wimpy who famously said “I’ll gladly pay you Tuesday for a hamburger today.”
It is a safe bet that taxpayers and commuters will be paying higher fares, taxes and tolls in coming years to cover the costs.
Larry Penner
(Larry Penner is a transportation historian and advocate who previously worked 31 years for the U.S. Department of Transportation Federal Transit Administration Region 2 NY Office).
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