1 1 Before the New York State
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1 1 BEFORE THE NEW YORK STATE SENATE FINANCE AND ASSEMBLY WAYS AND MEANS COMMITTEES 2 ----------------------------------------------------- 3 JOINT LEGISLATIVE HEARING 4 In the Matter of the 2016-2017 EXECUTIVE BUDGET 5 ON TRANSPORTATION 6 ----------------------------------------------------- 7 Hearing Room B 8 Legislative Office Building Albany, New York 9 January 20, 2016 10 9:41 a.m. 11 12 PRESIDING: 13 Senator Catharine M. Young Chair, Senate Finance Committee 14 Assemblyman Herman D. Farrell, Jr. 15 Chair, Assembly Ways & Means Committee 16 PRESENT: 17 Senator Liz Krueger Senate Finance Committee (RM) 18 Assemblyman Robert Oaks 19 Assembly Ways & Means Committee (RM) 20 Assemblyman David Gantt Chair, Assembly Committee on Transportation 21 Assemblyman James F. Brennan 22 Chair, Assembly Committee on Corporations, Authorities & Commissions 23 Assemblyman Michael Cusick 24 2 1 2016-2017 Executive Budget Transportation 2 1-20-16 3 PRESENT: (Continued) 4 Senator Thomas F. O'Mara 5 Assemblyman Phil Steck 6 Senator Diane Savino 7 Assemblyman James Skoufis 8 Senator Timothy Kennedy 9 Assemblyman Steven Otis 10 Senator Michael H. Ranzenhofer 11 Senator Martin Malave Dilan 12 Senator Patricia A. Ritchie 13 Assemblyman David G. McDonough 14 Senator Marc Panepinto 15 Senator Phil M. Boyle 16 Assemblyman Raymond Walter 17 Assemblyman Michael DenDekker 18 Senator Joseph Griffo 19 Assemblywoman Pamela J. Hunter 20 Assemblywoman Alicia Hyndman 21 Assemblyman Edward Ra 22 Assemblywoman Nicole Malliotakis 23 Assemblyman Todd Kaminsky 24 Assemblywoman Shelley Mayer 3 1 2016-2017 Executive Budget Transportation 2 1-20-16 3 PRESENT: (Continued) 4 Assemblyman Fred W. Thiele, Jr. 5 Assemblywoman Patricia Fahy 6 Assemblywoman Jo Anne Simon 7 8 LIST OF SPEAKERS 9 STATEMENT QUESTIONS 10 Matthew J. Driscoll Commissioner 11 New York State Department of Transportation 7 13 12 Theresa Egan 13 Executive Deputy Commissioner New York State Department 14 of Motor Vehicles 160 166 15 Maria Lehman Interim Executive Director 16 & Chief Operating Officer Matt Howard 17 CFO Gordon Cuffy 18 Counsel NYS State Thruway Authority 19 and NYS Canal Corporation 207 212 20 Bill Carpenter CEO, Rochester Genesee Regional 21 Transportation Authority Vice president, New York Public 22 Transit Association 251 258 23 24 4 1 2016-2017 Executive Budget Transportation 2 1-20-16 3 LIST OF SPEAKERS, Continued 4 STATEMENT QUESTIONS 5 Mike Elmendorf President & COE 6 Associated General Contractors of NYS 267 280 7 Brian P. Noonan 8 Associated Builders and Contractors, Inc., 9 Empire State Chapter 280 -- 10 Nadine Lemmon Director, New York and 11 Federal Policy Tri-State Transportation 12 Campaign 285 -- 13 Scott Wigger Executive Director 14 Railroads of New York 293 299 15 Jeffrey Griswold President 16 Michael Boesel First Vice President 17 NYS Association of Town Superintendents of Highways 303 313 18 Jeremy Martelle 19 President New York Aviation Management 20 Association 318 331 21 22 23 24 5 1 CHAIRMAN FARRELL: Good morning. 2 Today we begin the first in the series 3 of hearings conducted by the joint fiscal 4 committees of the Legislature regarding the 5 Governor's proposed budget for fiscal year 6 2016-2017. The hearings are conducted 7 pursuant to Article 7, Section 3 of the 8 Constitution and Article 2, Section 31 and 9 32A of the Legislative Law. 10 Today the Assembly Ways and Means 11 Committee and the Senate Finance Committee 12 will hear testimony concerning the budget 13 proposal for Transportation. 14 I will now introduce members from the 15 Assembly. And Senator Young, chair of the 16 Senate Finance Committee, will introduce 17 members from the Senate. 18 We're joined by Chairman David Gantt, 19 and Michael Cusick is with us. 20 And Assemblyman Oaks? 21 ASSEMBLYMAN OAKS: Yes, we're also 22 joined by the ranker on Transportation, Dave 23 McDonough. 24 CHAIRMAN FARRELL: We've also been 6 1 joined by Assemblyman Phil Steck. 2 Senator? 3 CHAIRWOMAN YOUNG: Thank you. Thank 4 you, and good morning. And I'm delighted to 5 be here today, especially with my esteemed 6 colleague, Chairman Denny Farrell, and look 7 forward to working with everyone. 8 I'm also very happy that Assemblyman 9 Bob Oaks is here and my colleague Senator Liz 10 Krueger, who is ranking member on the Senate 11 Finance Committee. 12 I'd like to introduce members from our 13 conference. And we have Senator Tom O'Mara 14 and Senator Michael Ranzenhofer with us 15 today. I'm sure that other colleagues will 16 be joining us very shortly. 17 And at this point I'd like to turn it 18 over to Senator Liz Krueger. 19 SENATOR KRUEGER: Thank you. 20 And I welcome Senator Young to her 21 first budget hearing as the Finance chair. 22 Some of us have done this more times than we 23 can remember. And I know that Denny and I 24 are looking forward to working with 7 1 Senator Young. 2 And I'm joined today by Senator Martin 3 Dilan, the ranker on Transportation, and 4 Senator Tim Kennedy from Buffalo. 5 CHAIRWOMAN YOUNG: And we'll have to 6 go out for spaghetti once the hearings are 7 over, to celebrate. 8 SENATOR KRUEGER: Touché. 9 CHAIRMAN FARRELL: Before introducing 10 the first witness, I would like to remind all 11 of the witnesses testifying today to keep 12 your statement within your allotted time 13 limit so that everyone can be afforded the 14 opportunity to speak. 15 I will now call the first witness, 16 New York State Department of Transportation 17 Commissioner Matthew Driscoll. 18 Good morning, Matt. 19 COMMISSIONER DRISCOLL: Good morning. 20 And good morning, everyone. Chairperson 21 Young, Chairperson Farrell, Chairperson Gantt 22 and members of the legislative fiscal and 23 Transportation Committees, thank you for this 24 opportunity to discuss Governor Cuomo's 8 1 Executive Budget as it pertains to the 2 Department of Transportation for the 3 2016-2017 state fiscal year. 4 I'd like to acknowledge Chairpersons 5 Robach and Marcellino, who are not here, but 6 I suspect will be as well, for their 7 leadership. 8 The most important function of the 9 department is to ensure the safety of the 10 traveling public. This is accomplished 11 through conducting bridge safety assurance 12 inspections; targeted and comprehensive bus, 13 truck and freight rail inspections; providing 14 traffic signal maintenance; and performing 15 winter snow and ice control. And as you 16 might expect, snow and ice control is one of 17 the more challenging responsibilities for the 18 department, given the unpredictability of 19 weather patterns. 20 Last year, on the heels of several 21 years of extreme winter weather, Governor 22 Cuomo directed state agencies to assess and 23 strategically augment their capacity to more 24 effectively respond to these types of 9 1 emergencies. 2 To enhance DOT's capabilities, the 3 Governor provided the department with 4 $50 million for new winter storm equipment 5 through the NY Responds initiative. This new 6 equipment, including new graders, loaders, 7 and plow equipment is being deployed in every 8 region of the state, with an emphasis on 9 areas that are typically hit the hardest by 10 harsh winter conditions. 11 Earlier this month, the Governor 12 unveiled a bold and comprehensive 13 $22.1 billion Transportation Plan to 14 modernize and enhance New York's 15 transportation infrastructure, including 16 historic investments in roads and bridges, 17 freight goods movement, and upstate airports. 18 Specific to the Department of Transportation, 19 the Governor’s proposal provides the 20 framework for a new, unprecedented 21 $20.1 billion five-year transportation 22 capital plan. This new commitment builds 23 upon $18.3 billion in core DOT funding by 24 adding $1.8 billion in new resources. 10 1 The Executive Budget provides 2 significant new state investments during 3 state fiscal year 2016-17 to improve 4 New York's transportation system, enhance the 5 system's resiliency, create jobs, and deliver 6 record levels of operating aid for transit 7 systems. The proposal includes more than 8 $4.3 billion in new DOT capital program 9 funding, an increase of 17 percent. Of that 10 amount, more than $3 billion in new funding 11 is provided to support the department's 12 highway and bridge program. 13 DOT's budget also provides 14 $438 million in additional funding for local 15 highway and bridge projects under the 16 Consolidated Local Streets and Highway 17 Improvement Program, better known as CHIPS; 18 $39.7 million for the local matching share of 19 federally aided projects under the 20 Marchiselli program; and an unparalleled 21 $5.2 billion to support the operation of 22 local transit systems, including increases 23 for upstate transit. 24 The Governor has also highlighted 11 1 several high-priority initiatives that will 2 form the core of the state's Transportation 3 Plan, many of which will provide local 4 governments with unprecedented access to 5 transportation funds. These proposed 6 strategic investments include: 7 PAVE-NY, a new $1 billion initiative 8 that will provide $500 million to help 9 municipal governments replace, rehabilitate 10 and maintain vital local bridges and invest 11 $500 million in state-owned bridges; 12 BRIDGE-NY, a new $1 billion initiative 13 that will invest $500 million to pave local 14 roads and $500 million to pave state roads; 15 A new $500 million Extreme Weather 16 Infrastructure Hardening Program to make 17 safety and resiliency enhancements to 18 roadways across the state that have proven to 19 be susceptible to flooding and other 20 extreme-weather-related events; and 21 $200 million to an Upstate Airport 22 Economic Development and Revitalization 23 Competition to accelerate investments in 24 commercial passenger and cargo service 12 1 airports.