Finance: Hueneme, New York/New Jersey

New York/New Jersey: Port Authority Board Adopts 2015 Operating and Capital Budgets

The board of commissioners of the Port Authority of New York & Jersey on December 10 adopted a $2.9 billion operating budget and a $3.6 billion capital budget that funds critical infrastructure at the agency’s airports, tunnels, bridges, port facilities, PATH commuter rail system and World Trade Center site. Combined with debt service, the budget for 2015 totals $7.8 billion.

The $2.9 billion operating budget holds expense growth for ongoing operations at 1.8 percent – below the rate of inflation – while allowing for increased investments in facility maintenance and initiatives to enhance the competitiveness of the agency’s facilities.

Of the total capital budget, $1 billion is dedicated specifically for investment in the region’s interstate transportation system including tunnels, bridges, terminals and PATH. In addition, $778 million is dedicated to airport terminal development, runway and taxiway improvements and security enhancements, and $153 million is earmarked for seaport related 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.

Highlights of the 2015 capital budget:

$329 million for state of good repair work on airport runways and taxiway reconstruction.
$271 million for continued construction of the Bayonne Bridge "Raise the Roadway" project.
$260 million of port authority funded work for the LaGuardia Airport Central Terminal Building project.
$212 million for John F. Kennedy International Airport runway and taxiway rehabilitation.
$35 million to modernize PATH stations, including the Harrison PATH Station.
$35 million of Port Authority funded work as part of the ongoing $1.5 billion public-private partnership for construction of a new Goethals Bridge.
$28 million to build a new ExpressRail system at Greenville Yard in Jersey City that allows cargo to be moved by rail.
$16 million for the Port Authority Quality of Commute improvement program.
$36 million for continued redevelopment of the George Washington Bridge Bus Station.
$13 million for Terminal A redevelopment at Newark Liberty International Airport.
$6.4 million for planning work for the PATH extension to Newark Liberty International Airport.

According to the port authority, the capital budget will support 7,320 direct job-years and direct payroll wages of $674.7 million. Total economic activity impact, including indirect and induced effects, amounts to 16,730 total job-years, $1.1 billion in wages and $4.7 billion in economic activity.

"The port authority’s 2015 operating and capital budgets reflect the priority we are placing on spending that will provide maximum benefit to the region, including better maintained bridges, tunnels and terminals for commuters, enhanced airport facilities for air travelers and modernized PATH facilities for mass transit riders," said Port Authority Chairman John Degnan. "Our goal was to hold the line on administrative spending, so we can invest in projects that directly benefit the traveling public, stimulate economic activity and create jobs."