Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

New York's Cuomo, de Blasio reach transit funding deal

Published 10/10/2015, 06:19 PM
Updated 10/10/2015, 06:29 PM
© Reuters. New York Mayor de Blasio and New York Governor Cuomo attend a news conference in Bellevue Hospital in New York

By Laila Kearney

NEW YORK (Reuters) - The governor of New York and mayor of New York City unveiled an agreement on Saturday to close a gap in funding a $26.1 billion capital plan for the region's deteriorating mass transit system, settling their differences over how to split the cost.

For months, Governor Andrew Cuomo and Mayor Bill de Blasio have sparred publicly over how much the city should pony up to fund the five-year plan for the Metropolitan Transportation Authority, which runs the city's subway, bus and suburban rail lines.

The agreement calls for the state to commit $8.3 billion and the city to commit $2.5 million, more than it initially offered, toward closing the plan's funding gap.

"The MTA is the lifeblood of New York," Cuomo said in a joint statement with de Blasio. "This MTA Capital Plan is what we need to make the system smarter and more resilient."

Sounding a note of reconciliation with the governor, de Blasio said he looked forward to working with Cuomo and the MTA "to ensure a transit system that reliably, effectively, and safely serves all of its riders."

Cuomo had demanded that the city bump up its contribution, saying its residents make up the majority of the aging system's ridership.

When the plan was introduced in 2014, the gap stood at around $15 billion. The agreement announced on Saturday would bring the shortfall to $700 million. The MTA is expected to make up the rest through dedicated revenue streams and possible program reductions, according to the statement.

The plan, which still requires approval by the MTA board, will pay for the maintenance and expansion of infrastructure and to buy new subway carriages, commuter rail cars and buses to alleviate transportation congestion and delays. The money will also go to repairs for track systems, signals, support structures, bridges and tunnels.

Some of the damage dates back to Superstorm Sandy, which crippled the system in October 2012.

© Reuters. New York Mayor de Blasio and New York Governor Cuomo attend a news conference in Bellevue Hospital in New York

A representative of the Straphangers Campaign, an advocacy group for mass transit riders that earlier criticized officials for failing to close the funding gap, was not immediately available for comment.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.