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Governance: New York/New Jersey

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New York/New Jersey: Board of Commissioners Endorses Panel Recommendations on the Future of the Port Authority

At its first meeting of the year, the board of commissioners of the Port Authority of New York & New Jersey formally received and voted unanimously in support of the core structural and strategic recommendations of the bi-state Special Panel on the Future of the Port Authority appointed by New Jersey Governor Chris Christie and New York Governor Andrew Cuomo in May 2014.

The Special Panel’s December 26, 2014 report, Keeping the Region Moving, recommended both a comprehensive overhaul of the governance of the agency and a re-commitment to the agency’s core transportation mission as its role in the redevelopment of the World Trade Center nears completion.

The specific recommendations of the Special Panel endorsed board at its February 19 meeting include:
  • Replacing the Executive Director and Deputy Executive Director with a single Chief Executive Officer selected by and accountable to the Board of Commissioners.
  • Replacing the Chair and Vice Chair with rotating chairs from each state.
  • Creating a Chief Ethics and Compliance Officer.
  • Issuing a new Port Authority Code of Conduct for employees, Commissioners and vendors.
  • Adopting a new Mission Statement to refocus the authority on its core mission of developing and overseeing regional transportation infrastructure.
  • Reinstating the Port Authority's regional leadership role by initiating a comprehensive planning effort in 2015 with a strategic vision focused on expanding and developing new regional transportation capacity by: (1) bringing 21st century airports to the region; (2) addressing the growing Trans-Hudson transportation crises; and (3) ensuring the bi-state seaport "remains the premier destination for our nation’s freight."
  • Redeploying $600 million in unallocated regional development funds to meet the transportation needs of the region.
The board also established a Special Panel Implementation Office within the agency to coordinate implementation of the Special Panel’s recommendations. The Special Panel Implementation Office, which will be overseen by the chairman and vice chairman, will submit a work plan and schedule for each element of the reform agenda to the Board for approval at its March meeting. The board will then receive a progress report on the individual implementation initiatives at each monthly board meeting.

"The governors made it clear that nothing less than transformative change would be acceptable, and we believe the recommendations offered by the Special Panel and endorsed by the Board today represent a historic step forward for the Port Authority," said Port Authority Chairman John Degnan. "These reforms will enable the agency to tackle the many challenges facing our regional transportation system in the years ahead with an efficient leadership structure and a clear strategic focus."

The port authority has been notified by the governors that it is their preference for a rotating chair between the states, rotating every two years, starting with a New York appointee. This structure will begin once a new CEO is appointed by the Board.

In related action, the board adopted a resolution to authorize the chairman and vice chairman to engage an executive search firm, following an appropriate procurement process, to assist the agency in identifying candidates for the new position of chief executive officer of the port authority.
 

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