Written by: William C. Vantuono, Editor-in-Chief Outgoing New Jersey Gov. Chris Christie and New York State Gov. Andrew Cuomo on Dec. 14 said that have agreed that their states and the Port Authority of New York and New Jersey have agreed to contribute $5.55 billion toward the Gateway Program—50% of the massive project’s cost, and placing responsibility with President Donald Trump and the U.S. Department of Transportation to contribute the remaining half. New Jersey’s share is $1.9 billion, New York’s is $1.75 billion, and the PANYNJ’s is $1.9 billion, which the bi-state agency already authorized as part of its long-term capital plan. Cuomo’s Budget Director, Robert Mujica Jr,. said New York State “commits to propose in the State’s executive budget an appropriation each year over a 35-year period to pay debt service on a $1.75 billion fixed-interest loan to the GDC (Gateway Program Development Corp.) with a 35-year term under the USDOT Railroad Rehabilitation & Improvement Financing (RRIF) loan program, which is to be used toward construction of a new tunnel, and use good faith efforts to obtain New York State legislative approval of these appropriations. The State expects to recoup its debt service costs from new infrastructure revenues and offsets.” However, New York State is currently dealing with a budget crisis, facing a projected $4.4 billion deficit that must be eliminated before Cuomo releases a new budget in January. NJ Transit customers will be expected foot the cost of New Jersey’s share of the project cost through user charges on trains using the new the tunnels in and out of Manhattan. “Funding to support this commitment will be generated by a new charge on Trans-Hudson rail use,” said NJ Transit Executive Director Steve Santoro. “Specifically, NJ Transit intends to generate the revenue to support $1.9 billion in project design and capital construction costs through a per-passenger trip charge for all NJT rail passenger trips each way across the Hudson River. The estimated per-trip cost to NJT rail customers using the Trans-Hudson tunnels will be $.90 beginning in 2020 and increase to $1.70 in 2028 and $2.20 in 2038. Unclear is whether N.J. Gov.-elect Phil Murphy, who takes office Jan. 16, will honor his predecessor’s commitment. Trump and the UDSDOT are expected to release a $1 trillion federal infrastructure plan early in 2018. They have been mostly obtuse about funding the 50% federal share of Gateway, to which former President Barack Obama had committed. U.S. Sen. Chuck Schumer (D-N.Y.), the Senate Minority Leader, along with Sens. Cory Booker (D-N.J.) Kirsten Gillibrand ((D-N.Y.) and Robert Menendez (D-N.J.), have responded to Trump’s refusal to provide a clear answer on Gateway by purposely holding up Senate confirmation of career railroader Ron Batory as Federal Railroad Administrator. Until Schumer relinquishes his political chess pieces, Batory will serve as a special advisor on railroad matters to USDOT Secretary Elaine Chao. Continue reading...
