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MTA Capital Program 2010-2014

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MTA Capital Program 2010-2014 Amendment as proposed to the MTA Board May 2017 Background: 2010-2014 Capital Program Adoption and Prior Program Amendments On April 28, 2010, the MTA Board approved a proposed $23.812 billion 2010-2014 Capital Program. The Capital Program Review Board (CPRB) approved the program on June 1, 2010. (The MTA Bridges and Tunnels portion of the original 2010-2014 Capital Program, which does not require CPRB approval, was $2.453 billion. Together, these capital programs totaled $26.265 billion.) On December 21, 2011, the MTA Board approved an amendment that reduced the program to $22.195 billion. This amendment, approved by the CPRB on March 27, 2012, provided full funding for the program through future efficiency initiatives and revised financing. The amendment did not identify specific savings at the project level, but noted that the savings would be identified in a future amendment and were expected to be achieved without impacts to customer benefits. (The MTA Bridges and Tunnels 2010-2014 Capital Program was revised to $2.078 billion. Together, these capital programs totaled $24.274 billion for 2010-2014.) On December 19, 2012, the MTA Board approved an amendment to the CPRB 2010-2014 Capital Program to add projects totaling $3.977 billion for the repair and restoration of MTA agency assets damaged as a result of Superstorm Sandy, which struck the region on October 29, 2012. This amendment was approved by the CPRB on January 22, 2013. ($777.5 million in MTA Bridges and Tunnels repair and restoration projects were added as well. Together, the capital program totaled $29.029 billion.) On July 24, 2013, the MTA Board approved an amendment to the program adding mitigation projects totaling $5.674 billion to help protect the system against future storms and disruptions. That amendment also provided updated project-level detail on the $22.195 billion core program budget; it resulted in a $31.849 billion overall program that was deemed approved by the CPRB on August 26, 2013. An allocation of $96 million was added to MTA Bridges and Tunnels for mitigation. The total capital program level, including Bridges and Tunnels, was $34.801 billion. 2010-2014 Proposed Capital Plan Amendment 1 On July 28, 2014, the MTA Board approved an amendment to the CPRB 2010-2014 Capital Program. This amendment reallocated the budgets of select program elements primarily to reflect revised project estimates for work in the Disaster Recovery Repair and Mitigation, i.e., “Sandy,” programs. In addition, several elements in NYCT’s program were adjusted to reflect new projects or revised project estimates. The overall CPRB portion total of $31.849 billion remained unchanged. That program was deemed approved on September 3, 2014. That amendment did not include Bridges and Tunnels, so the total program remained $34.801 billion, which is its current level. Proposed Program Amendment The proposed amendment reduces the overall MTA capital program from $34.801 billion to $32.021 billion. The proposed amendment contains (1) overall reductions to the MTA Security and Disaster Recovery projects primarily due to adjusting the Sandy program to match funding assumptions; (2) a transfer of surplus funds from Bridges and Tunnels’ 2010-2014 Capital Program to its 2015-2019 Capital Program to support Open Road Tolling; (3) administrative scope transfers of $464 million from the 2015-2019 Capital Program to consolidate work and budgets for East Side Access (ESA) and Regional Investments in the 2010-2014 Capital Program; (4) modifications to ensure the timing of projects and budgets reflect updated assumptions; and (5) identification of elements with 10% issues which require CPRB approval. Table I summarizes the proposed changes to the 2010-2014 Capital Program. All agencies, with the exception of Bridges and Tunnels, last had their programs amended in July 2014. The Bridges and Tunnels portions of the program, including Core and Sandy, were last amended by the MTA Board in July 2013. 2010-2014 Proposed Capital Plan Amendment 2 Table I MTA 2010-2014 Capital Program Amendment All Agency Summary ($ in millions) July 2014 Approved Proposed Program Program Program Change Core Capital Program New York City Transit $11,642 $11,375 ($267) Long Island Rail Road 2,314 2,343 30 Metro-North Railroad 1,544 1,533 (10) MTA Bus 297 297 0 MTA Wide Security/Disaster Recovery Program (CPRB Agencies) MTA Police Department/MTA-Wide Security 335 338 3 Disaster Recovery – Restoration 3,977 3,951 (26) Disaster Recovery – Mitigation 5,674 2,848 (2,826) MTA Interagency 202 223 21 Core Subtotal $25,984 $22,908 ($3,076) Network Expansion Projects 5,865 6,329 464 Total 2010-2014 CPRB Program $31,849 $29,237 ($2,612) Bridges and Tunnels (last amended July 2013) 2,078 2,018 (61) MTA Disaster Recovery Program - Bridges and Tunnels (last amended July 2013) Disaster Recovery – Restoration 778 621 (157) Disaster Recovery – Mitigation 96 145 49 Total 2010-2014 Capital Program $34,801 $32,021 ($2,780) Numbers may not total due to rounding MTA-Wide Security/Disaster Recovery Program adjustments. Superstorm Sandy (Sandy) Restoration and Mitigation Program Reductions are reduced as part of this amendment. The MTA is balancing program needs with available funding while maintaining its commitment to advance 2010-2014 Proposed Capital Plan Amendment 3 priority (essential) projects. The core restoration program is reduced by $26 million and the core mitigation program is reduced by $2.826 billion. These changes include the establishment of several reserves at New York City Transit, the Long Island Rail Road and Metro-North Railroad totaling $240 million to address risks that might emerge for restoration projects which are in design or construction. The Bridges and Tunnels Sandy program is reduced by a total of $107 million from the $874 million approved by the Board in July 2013. In additional to these Sandy program changes, there is an increase to the MTA-Wide Security program due to an overrun in a NYCT security project requiring the transfer of $2.6 million from the NYCT core program. Bridges and Tunnels Program Transfers. Bridges and Tunnels is transferring a total of $90 million from the 2010-2014 Capital Program to the 2015-2019 Capital Program to support enhanced priority investments in Open Road Tolling. Net of a prior $30 million increase to the Bridges and Tunnels 2010-2014 Capital Program, the proposed reduction of the Bridges and Tunnels 2010- 2014 Capital Program is $61 million. Scope transfers from the 2015-2019 Capital Program for ESA and Regional Investments. Transfers are being made to assemble certain similar budgets in the 2010-2014 Capital Program. MTA Capital Construction is transferring a total of $464 million in scope previously budgeted in the 2015-2019 Capital Program. The transfers do not change the overall multi-capital program budgets for ESA ($10.178 billion) or Regional Investments ($758 million). The scope transfers are funded using $464 million of surplus sources resulting from agency efficiency reviews of projects within this 2010-2014 and other MTA capital programs. $399 million is coming directly from agency transfers with an additional $65 million coming from other funding surpluses. Revisions to Reflect Project Cost, Schedule and Other Project Changes. The amendment identifies project changes reflecting timing, phasing opportunities and revised estimates at completion of planned commitments. Changes are highlighted in the agency sections of this document. Agencies have also transferred budgets to the MTA Interagency Small Business Mentoring Program project to contribute to the administration of this critical MTA program. 2010-2014 Proposed Capital Plan Amendment 4 Agency Element 10% Issues. Pursuant to the Public Authorities Law, increases to agencies’ elements greater than 10% require approval of the CPRB in order to be progressed. The individual agency sections show those elements that grow by greater than 10% versus the last CPRB- approved amendment. (The July 2014 Program Amendment was deemed approved by the CPRB in September, 2014.) Bridges and Tunnels is not subject to this provision. 2010-2014 Proposed Capital Plan Amendment 5 Availability of Funding Since the MTA Board approved amendment in July 2014, the overall program size has decreased by $2.780 billion (see Table II), reflecting changes in the fund sources highlighted on the table and described in the following narrative. Table II MTA 2010-2014 Capital Program Amendment Funding Plan ($ in millions) July 2014 Approved Proposed Program Funding Program Program Change Federal Formula, Flexible/CMAQ and Misc. $5,827 $5,544 $(283) Federal High Speed Rail 295 295 0 Federal New Starts 0 1,257 1,257 Federal Security 221 193 (28) MTA Bus Formula /City Match 148 132 (16) City Capital Funds 762 729 (33) State Assistance 770 770 0 MTA Bonds 12,703 11,772 (931) Other 1,472 1,746 274 Federal / Insurance Reimbursement For Hurricane Damage 8,732 5,960 (2,772) MTA Bonds for Hurricane Damage 758 758 0 Storm Recovery/Mitigation PAYGO 160 81 (79) Total CPRB Program $31,849 $29,237 $(2,613) Bridges and Tunnels Dedicated Funds (program last amended July 2013) 2,079 2,018 (61) Bridges and Tunnels Hurricane Damage Bonds and PAYGO 175 384 209 Bridges and Tunnels Federal / Insurance Reimbursement For Hurricane Damage 699 382 (316) Total 2010-2014 Program $34,801 $32,021 $(2,780) Numbers may not total due to rounding 2010-2014 Proposed Capital Plan Amendment 6 Federal Formula, Flexible and Miscellaneous ($283 million) Available MTA federal formula/flexible funding allocations previously planned for the 2010-2014 Capital Program are transferred to fund projects in the 2015-2019 Capital Program ($231 million), offset by an equal amount of MTA local funding transferred from the 2015-2019 Capital Program to support projects in this program.
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