Joint Legislative Budget Hearing on Transportation – 01/29/15

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Joint Legislative Budget Hearing on Transportation – 01/29/15

Today we begin the second in a series of hearings conducted by the joint fiscal committees of the legislature regarding the governor’s proposed budget for the fiscal year 2015-2016 The hearings are conducted pursuant to article 7 section 3 of the constitution and article 2 and section 31 and 32-a of the legislative law Today the assembly ways and means committee and the senate finance committee will hear testimony concerning the budget proposal for transportation I will now introduce members from the assembly that are with us assemblyman Cusick, assemblyman Kosovo and assemblyman oaks >> I believe assemblyman Mcdonough is here >> Senator Defrancisco, would you give us our… I have assemblyman oat I Otis with you >> For the senator we have ranger, Liz Krueger, Tim Kennedy and Diane sore vino The if I remember person to testify acting director Robert Megna acting executive director for New York thruway authority and canal corp >> Thank you chairman Chairman defrancy company and member of the senate fiscal committees thank you for having me here today I’m bob Megna, acting executive director of the state thruway authority and the New York state canal corp raying corp raying This a very significant year for the thruway authority we are elk treemly grateful to the governor for this infug of capital From the more than $5 billion in settlements with banks and financial instewings that became available this year Some of thee funds will be ud to eliminate the need for a toll incree this year of course a significant porg porg is design build contractor tapan zee constructor has driven 70% of the pile that make up this Hudson river crossing between Wes Cher ter and rockland counties, the first vertical pier piles in 2014, the caps that will support the iconic open towers of the new– in October governor Cuomo welcomed the super crane to the project site One of the world’s largest floating cranes, I lift New York is one of the keys to helping save more than a billion dollars on the project compared to early cost estimates In part by allowing large sections of the new cable state bridge to be prefab indicate off site and brought in by barge The executive budget also proposed to authorize the thruway and the New York department of transportation to enter into agreements to provide mutual aid through the sharing of employee services and resources where and when appropriate that will help us maximize every opportunity for operational efficiencies and cost savings As you know, our operation include the state canal system whjch spans 524 miles and includes the Erie, Champlain oswego canals The bike and pedestrian trails are increasingly popular recreational destinations for new yorkers and other visitors

generating estimated $ 350 million and residential developmentings increasing The canal system supports over 6.2 million annually across the state by providing water for local drinking water and agricultural, industrial and power generation uses I see how quickly and effectually they moved the equipment around the state Again let me thank you for your time I am happy to respond to any of your questions and I thank the chairman for accommodating my schedule today Have I a board meeting and they moved me first on the list and I want to thank them for that convenience Thank you very much Assemblyman Brennan, chair of corporations Thank you very much >> We appreciate your actually testifying Anyway mention 1.25 billion for thruway capital This amount, how much will be used for the replacement of the tapan zee bridge? You know, we are still working with folks who run the Numbers on what the most effective use of financing for the bridge should be I would say at this point, you know, a big chunk, a vast majority of the money will be used for bridge financing I don’t have an exact number to tell you today but I think the vast majority of that amount would be dedicated to bridge financing >> Okay that’s perfectly understandable How much will be used for or to prevent a toll increase? >> Well, again, and I’m glad you ask that question because there has been a lot of discussion about or at least some conversations I’ve had with folks that we were going to use the remainder of the money maybe for operating expenses to keep tolls down I don’t think that’s our intention at all I think actually that would be a mistake The thruway authority has a significant amount of capital expenditures on an annual basis So I think what we would like to do with what is not used for the bridge is use that money for capital investment repair and maintenance on the rest of the system, and we think a combination of doing those capital investments in a smart way and getting our budget under control, our operating expenses under control separately will allow us to go through 2015 out a toll increase And I think that’s what the governor has talked about going through 2015 without a toll increase >> So at this time, you are saying that this $1.285 billion will be used for capital and will not be used to subsidize the day-to-day operations of the thruway authority in 2015 >> You know folks from my old job, assemblywoman assemblyman if I used one time money for operating expenses I think it would be a bad use of those resources I think we have, as I get more and more into the thruway authority budget and I’m not going to pretend after a week to be an expert, it’s clear we have significant annual capital fxpenses on the non-bridge part of the thruway that we will have plenty of opportunity to invest this money to improve the capital infrastructure of the thruway and so we do not want to subsidize operating expenses

with this money >> All right, and that gets me to another point here According to the information I have, you have a $2.29 billion, 15-19 capital program without the tapan zee bridge and do you anticipate being able to handle that capital program with respect to your current funding situation? >> Well, I think it’s another good question assemblyman One of the things I’m looking at are what our capital outlays are and how we can merge in whatever we don’t use on the bridge to supplement the capital program, and how we maybe can prioritize a little bit to save money where it’s possible on that capital program So I’m kind of right in the middle of that process right now >> All right Do you have a completion date for the tapan zee bridge? >> Right now we believe that we are on time, on budget, on schedule I can’t give you the exact dates I’m sure could I get them to you but nothing has changed from the original schedule fng as you know this is one of the largest public infrastructure projects in the country so it is a challenge to keep it on schedule But we are determined to do that >> There is enforcement mechanisms Do you have a projection on how much additional revenue that might make for the thruway authority? >> Again, with the thruway authority, I think the issue is the tapan zee bridge and constructionhat’s going to take place around the toll plaza And because of that construction it is possible we are going to go to full ezy pass because of that construction It would be good to get article 7 legislation passed >> I’m not suggesting it is a bad idea We have been trying to work with the add administration for several years on a proposal You don’t know how much money? >> No, I can get you an estimate I think… I don’t want to give an estimate for off thruway part of the system because I’m not exactly sure what that is but we’ll get you that number assemblyman >> Thank you >> Thank you, senator >> Just one second I have been joined by assemblyman Roberts and assemblyman Ortiz, and assemblyman Gantt >> And we have been joined by senator dean and the next questioner would be senator sorvino >> Thank you senator Defrancisco Good morning commissioners It’s good to see you again I got confused when I came into the room I forgot about your role at the thruway authority I want to pick up some of the questions assemblyman Brennan made I am not an expert but I listened to your testimony and the governor’s presentation where he talked about using a portion of the settlement for the bank settlement for the thruway authority and the language is so, correct me if I’m misinterning this We are misinterpreting this We are grateful for the governor Some of these funds will be used to eliminate the need for a toll increase Now I heard you say and I was happy to hear you say that that would be wrong to take this one-time money and use it for operational expenses but I don’t know how to interpret it any other way than the way you wrote it in your testimony How are we going do that without taking the one-time money and using it for operational expenses >> Thank you, senator It’s a good question and I think the testimony maybe is a little confusing What I have learned so far in look at the thruway authority budget is that it’s a very, very capital intensive budget, and so I think it’s perfectly clear that we can use whatever money is not invested in the bridge on capital improvements on the rest of the system that will, to a certain extent, lower our need to go out to the market to borrow money to do those kinds of investments

That will save us money both in the short run and in the long run But to keep tolls down, it’s not going to be just that It’s going… Those monies will be used for dament but we are also going to have to look at the operating expenses of the thruway authority and we are Boeing to have to try to make some savings So, again, our intention is that all $1.3 billion will be used for capital purposes Again this is not a 1.3 billion check As I understand it that is going to be written to the thruway authority It is going to be held off to the side by my former workforce and they’re going to make that money available for capital subsidies not for operating I’m sorry for the confusion We are not going to subsidize tolls for capital money We are going to use capital money for capital purposes That will actually save us money which will help us keep tolls down But we are still going to have to make operating savings within the thruway authority to make sure that’s true And again we are talking about 2015 >> Thank you for clarifying that >> Thank you Assemblyman Mcdonough >> No Not right now Assemblyman oaks >> Thank you Mr. Megna A couple of things I know you are on a short time but have I a couple of questions about the bridge and a little bit about the canal as well I know that there was an attempt early on to get some environmental funding and that was rejected At that point they said there would be a status of challenge… Challenging that, checking to see how we are doing with that Is that in place? Have we had a reaction from that? >> Well, again, assemblyman, can thank you I have talked to folks about it I don’t pretend to have all the details We are challenging the position that we can’t use the efc money for that purpose I think the efc chair would be better positioned to talk about the details of that but again we’ve always felt that that was based on what efc recommended to us, a proper use of those funds and my understanding is we continue to challenge the fact that we cannot use those resources >> Thank you There is, in this year’s executive budget, some opportunity for some shared services between dot and the thruway; again, knowing you are just recently on the job, efforts towards that both in the short-term and the long-term, do you see those and, you know, are we… Are those opportunities already being taken advantage of? >> I mean I think I saw them a little bit just two days ago I think there was an effort even within this latest storm, to, you know, dot handles a much larger and vaster large network than the thruway and so when a major storm hits, they have a lot of roads to plow and a lot of things to do I think there’s plenty of opportunity, a lot of opportunity for us to share resources in a better way to make sure that we can efficiently operate in a storm situation But I think even beyond storm situations, there’s plenty of opportunity, engineering, I.T., human resources, there are plenty of areas where I think there are rooms for efficiencies and savings if we could get together a little better >> Next year hopefully when we do this, we can have a greater discussion on that Moving to the canal I know the trail along the canal is something that has been, we made great progress on over the last number of years But we are kind of at a stand still Is there anything in this budget that would work toward the

ultimate completion of that and do you know about where we are percentage wise of the trail How many miles >> Assemblyman I’d have to get back to you on the percentage I don’t think there is anything specifically on the canal I know… I know Brian has and I know he has worked with you and all the members on the canal and he is a tremendous advocate for the canal system, has a lot of ideas of how we might even bring in outside funding to help finish, you know, the portions of the canal thataren’t, you know, the bikeways and things that aren’t quite done yet So I’m working with him to try to educate myself on how we might do that But I’ll get back to you with the exact percentage >> I think that and, you know, working with, certainly I would be and I’m sure others would be the last piece that was done in my district had some local participation in that and helped make that piece of the trail happen I think looking for other opportunities certainly being creative, I think that may, if that is the way, you know, hopefully we can be successful in doing that I look forward to working with you >> I think with the canal you’ve hit it exactly right assemblyman We have to be very creative and look for innovative opportunities to take advantage of a wonderful system that right now, you know, we are not taking advantage as much as we probably should >> Thank you >> Thank you >> Senator >> We have been joined by senator mark tanapinto, a new senator, and senator Montgomery is back >> We have also been joined by assemblyman crouch >> And we have been joined by assemblyman abinanti and the next questioner will be senator Kennedy >> Good morning >> Good morning >> Congratulations on your new position We all know that your budgetary expertise is essential these days at the thruway authority and we are very happy to have you in this position Thrait I know there are a lot of folks, residents and businesses alike that are thrilled to hear that the tolls will not be increased this year What assurance dozen we have moving forward that there won’t be a toll hike in outyears? What sort of formulas are looking at implementing? >> Well, again, senator, that’s what I’m trying to actually work on now which is how do you best use this $1.3 billion How do we invest in capital? Again, I know I’m making the same point over and over but I think it’s an important one Think we can control operating expenses and I think I’m going to spend a lot of time trying to do that Then the next question is what the real question is on the thruway all the time, how do you invest capital? How do you maintain the road? It’s the most used commercial road way in the country And that means that a lot of trucks use it, a lot of trucks wear it out And so we have a very, very large capital expenditure every year So I’m going through that now We are trying to figure out the best way to allocate that money to make sure the system is in good shape but that we are also investing our capital wisely and in the right places And we are going out and borrowing money in the right way I think we’ve had some issues with, you know, how we’ve gone to the market in the past and we are trying to rectify those As we work through that process, I think we’ll see what our needs are in the future But again, I would hesitate to give you a plan for tolls, you know, for future years beyond 2015 because I couldn’t give you an educated answer to that I would say I think we can manage the system given the 1.3 billion pretty effectively and efficiently without significant toll increases over a period of time on the rest of the thruway That doesn’t mean no toll increases but I think it means that we can minimize toll increases over the future

But I would like to get a chance to look at the capital budget and the kind of projects we have in place before I give you a definitive answer to that >> Thank you I’m sure you’re aware of the epic snowstorm we had this past November historic snowfall up to seven feet or more in western New York My district was particularly hit hard, the city of Buffalo, the, the thruway 90 and the 1 0 They were shut down I believe the thruway authority has learned a lot over the years in fighting these epic snowstorms in western New York I know governor Cuomo hit the ground out in our community for almost an entire week straight and every single level We had government responding to the needs of our community I’m curious to know what the thruway authority learned from the experience, what policies and procedures that you are looking at and have looked at to implement future response to natural disasters in our community and anywhere else in New York state? >> It’s a great question We have put a team together and and you know we are trying to come up with a set of recommendations based on what we learned in that storm One of the things we have done already is accelerated getting gps on all of our plows especially the ones in western New York so we can see where they are all the time and have real time kind of positioning so we don’t fall into some of the same traps that the we fell into during that storm so again, I don’t want to kind of prejudge because this group is comcomming back with recommendations based on what we learned on that storm but what we are trying to do is work with local officials, work with, because it wasn’t just, you know, an issue for us It was than issue for locals as well So we are trying to work with the locals to know what they saw that we did as efficiency or effectively We could have helped them and they could have helped us in the process >> This is an ongoing analysis? >> It is but I think we are going to get a set of recommendations on that and when we get those recommendations I’ll make them available to you >> Do you have a timeline on that >> I don’t have an exact date but I’ll get back to you This is relatively short-term >> Thank you >> Assemblyman Otis >> It’s great… I’m over here Great to see you and I have to compliment the governor because if we are trying to solve financial problem in an important agency like like the thruway authority how better to do it than to have the budget director go solve the problem I understand you don’t have all the answers yet on what is going on, but do you have any sense of how long in the making the financial problems of the thruway authority, how long those problems have been or is this something recent and to the extent that you are going to a few weeks or months from now figure all this out, would there be a mechanism to share that information with this committee rather, you know, on a timely basis then, so that we know what the solutions are and what the cause of the problems were? So make that offer that will you share a little bit of where you are so far after a week and a few days >> Not that far assemblyman, but I think what I have asked people to do is, we need to relook at our expense budget, our operating budget for almost all of the members have mentioned that as part of their questioning to me We need to get our operating expenses better under control I think we can do that and I think we can do that without jeopardizing safety or R or without jeopardizing snow plowing I think there are some opportunities we’ve seen already for some savings I think the other piece we need to look at and again I’m sounding like a broken record is how we are investing our capital, where we are investing our capital Are we doing the right projects? Are we doing them at the right time and in the right location as round the state And those are the kinds of things that the thruway authority folks are presenting to me now and this is a great workforce They’re very good The engineers are fantastic I’m very happy with folks that

I’ve met at the thruway authority so I don’t think it’s a question of the workforce I think it’s a question of focusing on the right things and on the right priorities I think we have plenty of opportunities to get the finances of the thruway authity under control >> Thank you very much Good luck >> Senator panapinto >> Thank you, I want to follow up on senator Kennedy’s question regarding the thruway authority and the snow November event in western New York We had hundreds of motorists stuck on the thruway for over 24 hours And I know you’re doing a study and interacting with local officials on this, but it seems to me what was… What was the processes in place at the time which led to this situation and may have led to you being in this job right now? I mean it seems to me that we’ve had these occurrences before on the New York state thruway in the Buffalo area Snow is not new in upstate new York And to have, you know, people stuck on the thruway for 30 hours was… It was life threatening It was embarrassing What procedures were in place at the time of the event that didn’t work? >> Senator, I’m actually going through that now and trying to learn more about what happened in November I’m not going to sit here and make excuses for it I’m trying to figure out what happened and what went wrong there Were issues with the weather forecast and how quickly the snow hit It caught people off guard from what I understand And three hours of being off guard at four inches an hour or eight inches an hour of snowfall really put them behind the curve And we really didn’t know where all of the vehicles were We really didn’t know, you know, how to mobilize to get to areas we really needed to bet to faster Those are all things this group is working on Also I don’t think coordination with the locals was very good or as good as it could have been And those are all things I think we are going to emphasize that we have to improve >> Who is part of this working… This local working group that you’ve got right now >> I’ll get you the names of the folks on it >> Okay >> And my follow-up question is the canal system I mean I realize you are new in the job What are your long-term thoughts on the viability of the canal system maintaining as part of the thruway authority? >> Well, that’s a great question, senator, and I think it’s one that requires some significant amount of exploration You know, it’s still a significant commercial water way within New York state which, quite honestly I didn’t realize how much commercial traffic still goes across the canal system And also it is a significant recreational area I am in the process of going through that with my staff right now You know, there is a significant subsidy that goes to the canal system I’m not sure, based on putting on the hat from my old job, where that subsidy today could be better handled in state government I’m not sure there is a good answer to that question What we have to do is improve the viability of the system so we reduce the subsidy and then I think a lot of options become available for, you know, the long-term viability of the canal system >> It is certainly part of new York state history We were the terminus of the Erie canal and part of our cultural history but we are subsidizing it right now to tune of $85 million a year What do they generate at this time? >> I’ll get you the exact Numbers, but not very much on an annual basis Again, you know, you are talking about a system that is old You are talking about a system that needs capital improvement but still serves a significant, you know, commercial sector But again the revenue we are bringing in from that commercial sector is not very significant I’ll get you the exact Numbers, but is not very significant so it is a significant subsidy But again, I don’t know yet if we’ve taken full advantage of the possible opportunities And again Brian Stratton is a great advocate for the system I think he has some ideas for how the system could be improved

and generate more revenue Is it possible to privatize a little bit more of the system to get people to be more recreational activities or improve recreational activities on the system? These are all things I’m looking at right now >> Thank you >> Thank you I have been joined by assemblyman Steck Next to testify assemblyman abinanti >> Thank you, Mr. Chairman: Thank you for joining us this morning Let me start off by saying I have a great interest in the tapan zee bridge My office is next to the plaza I get to see the construction progress every day I was a county legislator for almost 20 years I was at the first planning meeting when the idea of replacing the tapan zee bridge was originated and I have been to so many meetings In fact I make an offer I have a full cabinet of information If you can’t find something, I’ll be glad to share it with you I first of all applaud your attitude and the way you are coming into this I think that change in attitude is important for the way the thruway authority is run I’m hopeful we will see some improvements and changes There are three points I’d like to discuss with you I kind of facetiously but seriously would like to share information with you We are finding it very difficult to have the thruway authority to share information with us I’m hopeful that that can be changed And I would like to see some kind of a out… There has been a very expensive outreach to the community The authority has hired outside consultants We have dog and pony shows but in fact the community doesn’t feel part of what is going on So I hope that this sharing of information and the sharing of approach and the sharing of planning takes hold And would I hope you would be able to do something about that I would be pleased to meet with you, not just alone I would like to bring the mayors of the communities around the tapan zee bridge along with you so you can gain from their experience as to what has been happening on the ground I guess basically I’m talking about community friendly planning >> I would be happy to do that >> Okay Because we have some very good mayors who have been there a long, long time and have done a very good job with their communities and having is disrupted because of the bridge and it goes from having parking facilities just pop up in their community, traffic being rerouted and also changes on the river that are really not boater friendly I would like to continue that conversation if we could >> Absolutely >> Not to beat a dead horse but would I like to go to the question of tolls on the tapan zee bridge We have managed to glean some information and we have come to the conclusion that over the years, maybe not recently because of all of the work goingaround on the tapan zee bridge but over the years, the tapan zee bridge has subsidized the entire thruway system and so we have proposed three different approaches, which we believe can keep the tapan zee bridge tolls perhaps $2 more One is to separate the bridge into an island account Take all of the tolls from the bridge and let it meet all of the expenses of the bridge Number two is to take your newly designed downstate region and make that an island account and take all of the tolls and revenues from the downstate region and let it pay for all of the expenses downstate The third would be to take the present formula, not mile all of the costs on the users of the tapan zee bridge but take the present formula and spread it out over the entire thruway Any one of those, according to our Numbers, increases the tolls at the tapan zee bridge a minimal amount >> Well certainly would I love to look at the analysis because that’s what we re doing now, especially with the infusion of the fra money proposed in the executive budget by the governor I think one of the things we have been reluctant, I think all the members know, to talk about the tolling policy is because again the financing has been an open issue You know, we had the federal loan that had to come through We had the efc issue that some of the members have already raised And then we have the settlement money which we didn’t expect I think as martin’ as part of that process, we put together a pretty good team of people not

just within the thruway but, you know, kind of multidisciplinary group within government to kind of look at the toll structure and how we might proceed So we would love to look at the stuff that you have and see how we can go forward But again the intent was to, you know, bld a bridge with a significant infrastructure cost but to do that in a way that we minimize tolls So that’s certainly a priority for us >> I appreciate that One of the concerns that I have is by the toll structure, it will shift traffic in various directions and if the toll is too high then we start to impact the next bridge up and the local roads and so again that’s a community friendly planning issue Just lastly, the last minute I have, several of us in the assembly and the senate have put in legislation to impose various types of discounts like resident discounts, et cetera, and I would hope that you would consider that because this is a national roadway and frankly I believe the residents who suffer the inconvenience of the traffic should get the benefit of a lower toll while those who are using this for nationwide transport could bear the higher costs >> I can assure you that we are looking all of the plans that we are looking at or some of them at least would absolutely include that factor in >> Back to the community friendly planning, the other thing is I would hope your planners would take a look at the impact on local roads and exits on what it is that you are doing at various times because we have some very… The next exits coming off the tapan zee bridge are very small roads and the traffic is starting to back up on the exits The impacts the traffic on 287 off the tapan zee bridge which defeats the purpose of trying to move the traffic through faster I look forward to further discussion with you Thank you for coming this morning >> A pleasure to be here and Listen, I look forward to working with you on this >> Very good Thank you >> Thank you senator Senator Krueger >> Good morning, congratulations on your new job I feel like I want to ask you about the 82 other sections of the budget, not the New York state thruway authority Some will say I’m not allowed to do that Obviously you have a whole series of questions around what did the governor mean when he said some of the settlement money going to the thruway authority might be used for avoiding toll increases I’m not sure I’m satisfied with the answer I’m going to take a different apoach with the question N 2014, the projected increase in toll revenue needed for 25 was higher than you are saying in 2015 it will be So you are saying you don’t need as much toll, you don’t have as large a hole in toll revenue as you thought you would be a year ago What changed? You are talking about efficiencies? I’m curious Where are you making more money that your toll revenue shortfall is not as big a deal as a year ago your predecessor thought it would be? >> I think several place I think traffic did a little bit better than we thought because the economy is improving so we did a little better on toll revenue, but I think, you know, rolling into the base is a little bit higher Look, we still have some tough decision making to make We still have a hole on the operating side that we have to close and we are going to have to close that And again I’m assuring the committee members that we are going to do that without using the $1.3 billion because that’s not the intent of the $1.3 billion We have to find some operating efficiencies within the department We also have to operate our capital budget more efficiently and more effectually That continues to grow over time and that’s important because maintenance of the thruway and keeping it in good condition is obviously important It is a vital commercial artery, but I don’t know that we have been investing our capital in the most efficient, most effective way I don’t know that we are borrowing money in the most efficient or most effective way and I think there are opportunities for us to improve our capital structure And within doing that,

significantly reducing our costs, which will help us in 2015 Again, as I mentioned to one of the senators before, I think, you know, on an ongoing basis, we have to then look at what we, you know, think is possible But to do something within a reasonable practical level that people would support when people come back here next year to talk about 2016 and people talk about 2017, that we have a rational plan that makes sense given what we’ve invested I think we can get there Without, you know, a significant increase in tolls beyond 2015 >> And you said already that much of what the thruway authority does and is responsible for are capital needs And I agree So you’ve reached or approximately $8 billion… The thruway’s outstanding debt is projected to reach $8 billion, eight times its annual revenues including tapan zee bridge How much more can you borrow within your own limits or how much are you expecting to borrow and two, what are your concerns about further potential credit rating downgrades? >> Well, have I concerns about both– I have concerns about both I think we have not done a great job of structuring our debt at the thruway authority and senator that is a good question It has, I think, limited our ability to go to the market That’s why I think we have to carefully look at this $1.3w billion and see how we use it in a way that helps us improve the capital structure of the thruway authority so that we can start to go back to the market a little bit more confidently to borrow the money for the capital needs we do have Then quite honestly I think we have to have a more realistic capital structure We can’t, you know, again I haven’t been there long enough to know, you know, what our exact needs are on the capital side What I can tell you is I think we can be much more efficient in our use of capital dollars and still maintain and improve the thruway system To your other question, we are going to have, an again we are going to have issues with the rating because of past borrowing practices And I believe, given the $1.3w, given our ability to control operating expenses which I think we have, given our ability I hope to restructure our capital spending we are going to be able to maintain the rating but it won’t be easy and I think it is, quite honestly, bad prior practice >> The governor in may announced the authority and the state’s department of transportation would co-locate to a new transportation resource center to be built on the site of the current thruway headquarters in Albany Are you going forward with this plan? How does it help you with your goals for efficiencies and saving money >> That’s a great question and it’s one of the first things that I’ve gotten involved in They’re going through an rfp process now to determine, you know, the kind of scope and scale of the building It’s a good project if there are synergies in the future that save us money It’s a bad project if there aren’t I’m not there yet on whether it’s a good or a bad project from that point of view We are continuing to do it because we think that there is the possibility of significant synergies Why should the expwrers for the thruway authority– the engineers and the thruway authority and dot be in separate buildings? Why shouldn’t they be working side by side Why shouldn’t the guys planning snow removal in Buffalo, like the questions we’ve had today, be sitting right next to each other talking about where those resources are and how they could be used more effectively If we can do that, this building makes a lot of sense and will save the state money over time And that’s what we are looking at right now >> I’m out of time Thank you

>> Thank you, senator Mcdonough >> One point mentioned just now in your testimony about shared services and I think the shared services will absolutely definitely increase efficiency and cost reduction which could help remediate the need for higher tolls on the tapan zee bridge Will that be one of the early priorities to look at the shared services? As proven in the past with other agencies and private industry that the shared services can save a tremendous amount of money >> It will be by definition given senator Krueger’s question, one of the first things on our plate is the building And the question is the building provides a real, real opportunity for shared services, includes opportunities for shared services on engineering, on human resources, on I.T., on all of the things that the private sector and what we’ve tried to do in government would provide significant savings So I think the building is a real opportunity for that, but we have to make sure that we are going to lock those savings in because we don’t want to invest significant money in infrastructure that we could be using in road ways to keep tolls down unless we think we are going to get the efficiencies And beyond that it keeps frus doing things we really want to do like snow plow drivers and enough snow plows and the other pieces of investing in capital so it’s not just savings money, it’s then reinvesting that in the kinds of things that make sense I hope that becomes a priority Thank you very much >> I have a few questions, just to put this capital operating cost issue to bed You’ve said several times you intend to use whatever money comes out of the budget process for capital Would it be appropriate so there is further understanding in the 30-day amendments for the governor to say that specifically because it doesn’t say that now >> I’ll go back and look at the language from my old job I think we were trying to be pretty clear this money was for capital purposes, not for operating purposes >> How for capital purposes does it affect the operating budget? >> Well capital… Again, there’s the thing with something like the thruway because a significant part of the thruway’s budget is ongoing capital I will go back and talk to folks It is not our intent to spend, to use the $1.3 million to subsidize operating within the thruway >> Number two, you mentioned the canal authority, the canal part of the thruway authority is in dire need of I forgot exact words, in need of capital as well I would urnlg urge you to use it for the thruway authority because it generates $380 million or something like that in it will help me come to a point where 3 I can realize that we have… I advocate for

but I want to realize the fact that this $5.4 billion that has been spent six times now, I think, and we are only in the second hearing but that that money is distributed equitably upstate, downstate or regionally That would be a way to help your thruway authority and also aswaij the fears of some of these people like me There is no committee as yet that I know of and it keeps going up Is it the thruway authority’s responsibility to provide a financial plan or is it the governor’s? >> We’ll have to provide a financial plan for the bridge and the rest of the thruway and we do that on an ongoing basis I think what the governor has said and I think what thruway has said in the past and has been true over the past six to eight months is what we have tried to do is say look, we don’t want to get too specific about a tolling plan until we know all the possible financing sources, until we have nailed down the federal piece, the efc piece that I think we all know about and then the settlement funds which kind of, thankfully was mana from heaven which a piece of that could be invested in this very important infrastructure project As all of those pieces fall into place, we will be able to come forward with a financial plan I think will make sense to everybody >> Well, somehow I think you as budget director, if I came in and said, part of the senate budget should be a plan to build a new section to the L.O.B., I got a feeling you would say say how are you going to finance it before you said yes Is that fair to say? >> It might cross my mind >> All right So now let me see if this might cross your mind as well So now we are well into the project It would seem to me that now you’re chairman of the thruway authority, at least acting chairman, it would be a perfect time to try to say as of this point, this is how we are going to finance it Things change obviously in any project >> , No and I think… No, senator, it’s a good question and I think that we have the >> Excuse me one minute You’ve complimented many people on a good question Let’s assume my questions are good so you don’t have to say that >> I’m always happy to answer good questions from all of the senators and assemblypeople >> Of course we need to provide a financial plan on the bridge We, again, are working through what the I implications of the $1.3 billion will be on what our options are, how much should be allocated to the bridge once that’s allocated to the bridge what effect that would have on the total financial package and what effect would that have the rest of the thruway I think as we get to that point, and I have a chance to go thraw that with the folks and the outside folks that are looking at that and the impacts that that will have, I think we can get back to you with what we think the impact will be But I think we are closer to being to that point once we know how this 1.3 gets allocated >> Thank you >> Thank you To close assemblyman Brennan >> Yes, thank you and forgive me for coming back a second( time This is more of an admonition Up until gave the thruway authority the $85 million a couple years ago to avoid a toll hike by picking up the expense of the state police, the thruway authority had been self funded the whole 60 years and that has been great for the taxpayers and the people of the state of new York And you have indicated that the $1.3 billion is not just for the tap an– tapan zee but for other ongoing projects so you don’t have to borrow money and pay interested on the debt and that extra cost is certainly a factor in why toll increases might otherwise be needed and so that’s, you know, that’s what’s

happening and so now that the thruway authority is going to start getting lots of money from the general fund, I think it’s very important for you to provide the legislature with as much detail about these plans as possible And certainly I don’t suggest that the thruway authority is suddenly becoming a ward of the state And I don’t… You know, we write taxpayer checks to the mta for billions so subsidizing operations of of public authorities is something that has been known to happen and I don’t object But I think it is very important for us to start getting into details of how the thruway authority is going to spend this money and what the impact on the tolls is going to be and going forward because we may be providing substantial financial assistance to the financial authority from the general fund for some years And I think it’s important to kind of change what kind of information is being made available >> I’m not going to say good question That, in my old job, and I know for all of you, was a very hard decision to make about providing general fund assistance to a public authority and the thruway So I absolutely understand that and, you know, hope we can work to provide the kind of information you want because that was a significant move by the state to provide, you know, funding to the thruway And I think the thruway needs to show that we are being as efficient, effective budgetary conscious using the $1.3 billion in the most effective, efficient way, so that you feel you are not wasting your money >> Thank you >> One question and then close Did you say you were Boeing to do the ez-pass with the toll on the tapan zee bridge? And does that mean you are going to do what the mta has done which is they’re going to mail you a letter if you run through it and you don’t have ez-pass like I don’t do? >> I don’t want to talk too much about stuff I’m just getting briefed on but my understanding is that there may be construction issues with the toll plaza that might lead to a period of time where they have just kind of an ez-pass process >> And if you don’t have ez-pass you’ll mail the to them? >> I think that’s the case And understand when I heard about this, I said I understand from my former life that this is going to raise some issues with folks that we need to be able to talk to them about, so I’m still trying to work through that >> Yeah, because on the entrance to thruway when you go through it the way you have it sit up is perfect You go around and those of us that don’t use ez-pass, I want them to follow me, not make it easy? You can go through and pick up a ticket >> Thank you very much >> Thank you very much >> Thank you all Have a good day >> You, too Joe McDonald– Joan McDonald commissioner New York state department of transportation I want to thank the commissioner for allowing us to put Robert first because he had an important appointment he had to go to in another 10 minutes >> Y wooive joined by senator Ritchie >> We have bee joined by senator Ritchie

Are we ready? Chairman Defrancisco, chairl Farrell, chairman Gantt, members of the legislative fiscal and transportation committees, thank you for this opportunity to discuss governor Cuomo’s executive budget for 2014— 2015-2016 as it pertains to the department of transportation I’m Joan McDonald, the commissioner of dot One of the primary functions of state government is to ensure the safety of its residents Each and every day dot and our 8200 employees plan integral role in assuring the safety of the traveling public from bridge inspections to traffic signal maintenance to winter snow and ice control Snow and ice control is one of the more challenging aspects due to the unpredictability and volatility of weather patterns Follow following on the heels of several extreme weather events this season started early with the November lake effect snowstorm in western New York That storm resulted in the largest winter deployment of personnel and equipment in the department’s history At its peak nearly 1,000 dot staff and more than 600 pieces of heavy equipment were mobilized from as far away as Long Island to assist impacted towns, counties and cities with the response and recovery efforts Earlier this week, a winter storm and blizzard inundated parts of Long Island with more than two feet of snow In preparation for this major event, the department deployed approximately 300 pieces of heavy equipment and more than a80 staff from regions outside of the impacted areas To enhance dot’s capacity to respond to these extreme weather events, the executive budget provides $50 million for versatile emergency vehicles, including additional snow plows This funding will also support equipping the department’s existing snow and ice control fleet with a state-of-the-art gps system that will track assets in real time and aid with emergency deployment Last week governor Cuomo detailed a six-point infrastructure plan that outlines his vision to strengthen and modernize new York’s infrastructure The plan recognizes that the demands of the 21st century economy require that New York state not only renew its investments in transportation systems, but that we need to build faster, better and stronger to compete The executive budget makes new state investments to improve the transportation system, enhance the system’s resiliency, create jobs and deliver operating aid for transit systems The executive budget includes more than $3.5 billion in new capital program funding during state fiscal year 2015-2016 That amount, more than $2.5 billion in new funding is provided to support the department’s highway and bridge program Building upon the governor’s support for sustained investments in roads and bridges, dot’s budget utilizes the first $150 million of a new $750 million five-year bridge initiative This initiative will rehabilitate the and construction and replacement of 100 bridges statewide serving critical freight, commodores The dot’s budget also provides $438 million in additional funding for local highway and bridge projects under the consolidated highway improvement program, chip $3.8 million for the local matching share of federal projects under the sally program and more than $4.million to support the operation of local transit systems Prior to the enactment of the infrastructure investment act of 2011, dot delivered all of its construction projects through a traditional difficult sign-bid-build process By combining the design and construction phases of a project into one design-build contract, project delivery is faster and more efficient and project benefits are delivered to the public sooner

Since being signed into law in 2011, dot has awarded 10 design build contracts valued in excess of $811 million including the department’s largest ever single contract The $550 million bridge These projects are under way throughout the state and the results are overwhelmingly positive Projects are being delivered sooner on budget and jobs are being created In addition to these 10 contracts, there are currently 13 more under proceed– procurement The acts benefits are clear and design build authority should be made permanent After a series of tragicky accidents in Quebec and Alabama demonstrated the volatile nature of crude oil, New York state dot and D.E.C. And homeland security worked with governor Cuomo to push the federal government for closer regulation of the crude oil transportation industry to Better prepare the state, executive order 125 was issued, which directed a crude oil interagency work group to comprehensively assess emergency response preparedness Implement aggressive enforcement and inspection initiatives and work with partner railroads to coordinate preparedness activities During calendar year 2014, dot inspectors and our federal partners have conducted an aggressive targeted track and rail car inspection program During the course of the year, we have inspected 7,368 rail cars and 2,659 miles of track We have uncovered and required corrective action for 840 defects and issued 12 hazardous materials violations The defects we have found prove that efforts to increase inspections are working to identify the problem and help reduce the risk of transporting crude oil in New York state In closing, the investments being made and the state’s transportation system will move New York forward so that lit meet the demands of the 21st century economy Thank you very much for having me testify and I’m happy to answer any questions Assemblyman Gantt >> Thank you very much I welcome you here this morning Commissioner, you know, you and I have had a lot of fun all summer Talking about whether or not you will give me the authority to recommend to you on the rail station in Rochester where the rod should be stuck in I don’t want to you forget that deal and I don’t want anybody to think we have some secret because we don’t I just want to make sure it faces correctly as when I was a kid But given that, I’m concerned really about deficient roads and bridges as we have had for sometime had our roads and bridges very deficient in this state Can you tell me whether or not we have improved on the condition of the bridges and roads in this state and when can we expect that we will have that done or make improvement thereof >> We first of all have some great projects that we saw in Rochester this year between the Rochester station which is one of our design build contracts moving forward So we are very excited about that But as it regards condition of our access overall, New York state is responsible for the oversight of 16,000 state and plol bridges, approximately– local bridges, we’ve held constant on good and excellent and year over year approximately 66% of them are either good or excellent What we instituted back in 2011 when I became commissioner was a very rigorous capital planning asset management process so that we would make sure that those bridges that are good and excellent don’t slip into fair and poor and then address the fair with lower cost treatment >> You and I have had conversations at least your

staff and I have had conversations about the subject that is important to me and that is summer youth jobs We had a particular one at Edison tech in Rochester where the young people helped build houses and it helped with the capital investments they had We seem to have lost that even though in a conversation at the assembly and the board of regents had at some time and I informed them there are some young people who will never go to college And we can provide them with boces and somehow some way we need to find money to do that Can you tell us where we are with that particular investment in young people? >> I’m not exactly sure where that contract is but I’m happy to get back to you I couldn’t agree with you more that as the workforce ages, investment in our future workforce both on the engineering side and the technical side, in construction and could be instruction inspection is more critical, so I’m happy to continue to partner with you and I will >> I’m sure the regents would gladly haveyou invest some of that money so they can do some of the things that some of us think is necessary in order for young people, particularly in urban areas, to make >> It exactly >> So your position on design build is one even though you agreed to give me the pieces You know you and I don’t necessarily agree on design-build It’s a position I’ve had over the years and hopefully we can continue to talk about that because I don’t think that it is something that is good for taxpayers in this great state of ours The other concern I have is the one about 50-50 in terms of engineers inside and outside and would I like to know where we are with that particular part of the program >> Sure We don’t set an actual target for in-house resources vs Consulting engineers >> You don’t set a target? >> We don’t set a target but it equates >> Did you know that we have over the years set >> I do know that but it equates to approximately a 50-50 split About half in-house and half through consultant services >> Do we fulfill that or do we not? Because my understanding from particularly the union officials from your shop that we do not fulfill that >> We fulfill it and I’m happy to get the exact trend analysis to you >> Would I like to know that If you could get it to the rest of the persons who sit here Now the governor governor has agreed he is giving Buffalo a billion dollars My question is how much of that is coming out of your shop? >> The additional >> The billion dollars that the governor has agreed to that he will give to buff below Does that include roads and bridges? >> The Buffalo billion? That does not include the road and bridge >> How much are you giving the Buffalo area? >> I don’t have that number in front of me but we’ll get that number >> Can you get that for me and the other regions included? So I can have some reference points >> For Rochester as you move forward? >> Rochester, Hudson valley and >> Yes, happy to do that >> Because would I just like to know how much that is because as you know, most of us in this state today are trying O… I guess the chips is going to be the same >> Chips and market belly are the same as they were last year >> Okay When are we going to have another five-year program? Two years ago we did a two-year program I don’t see us doing a program this year When are we going to do a five-year program again or are we planning on doing a five-year program >> We are happy to continue those discussions through our budget division through with the legislative ways and means and senate finance committee as far as the five-year program And of course it has to be done in the confines of the fiscal picture So we are happy to continue that We continue to plan our projects

right now within the funding envelope that we have and invest those funds very wisely >> High speed rail? >> Uh-huh >> Can you tell us where that is? >> Yes We completed the public hearings after the draft environmental impact statement Those took place last spring and we are collecting all the comments, working with the federal railway administration, of course the investments to institute high speed rail in new York state range from $5 billion to $16 billion so the funding envelope for high speed rail is a tough one, but we continue to make strong investments through president Obama’s high speed rail initiative We have close to $200 million worth of projects under way, including Rochester station, include something additional track word between Albany and schenectady and some signaling work But depending on >> Rochester’s commissioner? That’s outside of Rochester? More like ba!tavia >> I don’t want the people in this room to think you’re doing any special favors I don’t think Rochester is involved in this >> According to the information I have But I think that’s somewhere else Is that correct? >> That the high speed >> That the high speed piece that people keep talking about Rochester is not a Rochester project >> It’s part of high speed rail initiative >> Which is closer to batavia than Rochester >> It is >> I just want to make sure we are on the same wave length >> Commissioner first of all thank you for answering these few questions I have I may come back as we sit here But thank you for doing a great job for us >> Thank you >> Hopefully we can get a piece of Rochester for high speed rail because we could use the jobs >> Thank you >> Thank you very much >> Senator Ritchie >> Commissioner, welcome I just have a couple questions First I would like to say that your dot staff and the counties that I represent really do a phenomenal job clearing the roads And as you know, on any given day, we could have a foot to, you know, 10 feet of snow So that is a real issue, especially on 81 So as we go forward, we’ve had conversations between myself and your office back and forth about possible closure Gates on 81 The issue that last year we had over 100 vehicles that were strands in the village of Adams that couldn’t make their way out 200 people who had to stay in a fire department and some homes there in the village And I guess I would just like you to give me maybe your views on why you think the closure Gates, not on every entrance to 81 but in that small area that gets the lake effect snow, wouldn’t be beneficial? >> Sure Thank you first of all for your compliments about the dot staff because yes, that start of the state does get hit pretty hard on a regular basis What we’ve used in the last few storms on the I-81 corridor and parallel route 11 corridor is first and foremost we reduce the speed limit and we have found that that has had very beneficial results to tractor-trailers because what happens sometimes is there is one incident, one jackknife and it can cause delays and pile-ups for extended miles So I think that that is one of the tools that we’ve started to use much more regularly and that seems to be working pretty well As far as the Gates, I don’t I haven’t seen the data on kind of where we would put them but I’m happy to sit down with you and do a field visit and take a look at where that might be beneficial >> That’s great Another issue that we are having in the district is with the storm sewers and catch basins And I understand in response to your letter that these prior to 1971, that the state doesn’t maintain those But I guess would I like to hear your views again on the fact that in two of these municipalities right now that have this problem, it is going to be a huge cost and it’s on the state highway in the village

itself and on route 37, which of course is a main highway through St. Lawrence and Jefferson county So it’s kind of hard for me to go back to my constituents and tell them that the state shouldn’t be responsible when they’re not allowed to dig on a state highway but they are responsible for the cost for the storm sewer >> I think was we’ve discovered through these many major weather events, whether it’s sandy, Irene, Lee, winter stos, is just how, for lack of a better word, discombobulated some of the laws and regulations are as to who does what between the state and the municipalities across the state So I think what we should be doing and what we are doing in a big way under the governor’s renew New York initiative is take a look at those and where it doesn’t make sense for the state to do something and the localities should do it or vice versa, we need to be open to that and through our municipal assistance agreements we can figure out a way to make some of those things work So I’m happy to continue that conversation with you also and our folks in region seven about those catch basins >> And I certainly appreciate your willing to look at that because it is something that is going to be a major cost to some of these small municipalities that they don’t have the resources for And then the last issue of course is the town of Orleans south issue and would I just like to say for the record that we are getting closer We just have a small gap now and appreciate Diane who has been involved and as we move forward, we are pretty close to getting water contamination problem solved and I would hope that you would continue to help us find our way to a solution >> Yes, I have been briefed on that issue, also I know that that has been a long road, but we are almost there >> Right Thank you >> You’re welcome >> Thank you Assemblyman Mcdonough >> Thank you, chairman Good morning commissioner Good to see you >> Good to see you A couple of things You talked in your testimony about the bridge repair and stuff like that You scheduled in the first year to do 100 bridges, right? >> Correct And there’s some local share of investment in that repair work, right? Depending on the bridge >> Gened depending on the bridge it would be, if it’s a state bridge it would be our responsibility If it’s a local bridge, it would be a shared point On all the bridges >> Expais understand it fre previous years that there’s a rating system of bridges and I think it’s 1 through 7, is it? >> Five >> As I understand it three and a half and where it begins

For-profit passenger carriers Let’s define a for-profit passenger carrier In Nassau county as you are aware in 2012 they initiated a public-private partnership which is now called the nice bus system And they are a private company and they’re a for-profit company but they’re under contract tie governmental authority Would this $100 fee apply to them >> No, it would not I didn’t think so I just wanted to confirm It would not >> That’s good news because that’ll save some money >> Yes >> And also the whole downstate transportation budget is plat There’s no increase, not even 2% increase >> In the public transit >> Right Public transit, right >> It is flat And as you know, the public transit system in the downstate region putting the mta aside for a minute, putting westchester, rockland and on the island, they’re covered by both general fund state dollars and also by various taxes and fees So they are flat, but it is state contribution is flat >> Well, it looks it remains that way through budget negotiations It looks like it’s a definite thing for pay fare increase And that fare increase could be very significant because that bus service, service middle and lower-income people mostly, it would have a tremendous impact on them, and they service over 100,000 passengers per day So a 25% — 25 cents doesn’t sound like much but you add it up and it is So I’m hopeful that we can get that aid increase today eliminate that I know there’s going to be a rate increase on mta There’s the sharing of that that’s still under discussion with the Long Island bus service would get it >> Will be under budget discussion, sure >> Okay Thank you, commissioner >> Thank you >> Thank you very much >> Senator Dilan >> The regents yes Thank you very much Hi, commissioner >> Good morning, senator >> I have questions with respect to can you talk a little bit about the capital plan As you know, we have to come up with a new five-year plan both for >> As a mentioned earlier, you know, we work within the confines of the annual appropriation, and we do approximately there $.3 billion every year, and that includes the construction of $1.8 billion plus associated costs for engineering, inspection, any right-of-way, environmental issues that we need to be addressed and that that has traditionally been what dot’s program has been We are — we are adhering to the the parameters of the mou that was signed between the legislature and the governor as part of the 2013-2014 budget, and we continue to look forward to assessing what those needs and are moving the program forward >> And what do you anticipate the costs or the dollar amount? >> Our capital program is about, like I said, it’s about $2.3 billion a year, and that’s what we’ve been — that’s the assumption that we’ve been working under because we know how important it is to stay within the governor’s 2% cap We take advantage of additional funding that becomes available We receive an additional $1.3 billion as part of the governor’s New York works initiative and the 2012 budget All of that $1.2 billion has been committed We also are taking advantage of

the FEMA money that’s available We’ve got $518 million there that we’re investing in bridges So my perspective is we continue to look for those resources that don’t put an additional burden on the taxpayers of the state of New York and make wise investments with those dollars that we have >> Well, as you know, the mta came out with its capital plan, and I believe it was about $32 million >> Correct >> For five years, and you vetoed it as a member of the mta review board Why? >> Yes I am the chair of the mta capital program review board They have a statutory requirement to submit a five-year plan to the board, and we are reviewing that right now >> But why didn’t you vote against it or why did you veto it? >> We tveidt it without prejudice — we veed oat vetoed it because the statute says highways take an action within a very limited time period, and we made the decision, the members of the review board, to deny it without prejudice so that we could continue to look at the needs and look at the various ways of funding it >> Another subject In terms of the gps are those replacements of existing plows or will new staff be hired for that? >> That would be beyond our Normal replacement It would be — as I was explaining in my testimony, depending on where a storm hits, if it hits Buffalo, for example, it takes — if we need to redeploy resources, both equipment and people from long Island, it takes approximately 12 hours to drive a heavy plow across the state of New York So the plan would be to purchase some additional equipment and have them strategically located across the state so that the equipment could quickly get to the event, and then we could more easily transport people to man that equipment So that is the plan >> But is it replacement? >> No, it’s not replacement >> So therefore you need new staff for it? >> No What we would do is, like I said, when they would be strategically located across the state so that rather than deploying equipment from long Island to Buffalo, we would just transport some of the operators for that particular event because the equipment would be there >> Thank you Thank you, commissioner >> Thank you Just one minute, commissioner New York state department of motor vehicles executive deputy commissioner David Sampson, are you in the room? Assemblyman >> I have what might come off as a selfish question but I’m sick of hearing my colleagues ask me what’s going on with the stienltd expressway so I just want to compostat island expressway so I want to know if you can give me an update so that I can tell my colleagues who travel down through Albany and go through Staten island to get home, what the timeline is on that project >> Sure The HOV bus line, bus lane will be three plus 24/7 from victory boulevard to the verrazano

bridge upon completion of the si construction which is on schedule for December 2015, and it’s currently 2 plus during peak hours and we have been coordinating all of our efforts with the mta and their project on the verrazano approaches >> Okay >> December 2015 we’ll both be there for the ribbon cutting How is that >> >> December 15 >> And we’ll let senator Savino come, too >> I’m sure Shelley be there >> Yes >> Commissioner, I want to also ask in your testimony you had mentioned some of the funding that’s in the budget for transportation, and there was $4.9 billion to support the operation of local transit I was wondering how does that break down and how is that — how are those projects or those local transit projects chosen by dot? >> The majority of funding in the budget is for the mta, but approximately — there’s approximately $180.7 million for upstate transit systems, $290.4 million for the downstate suburban transit system, and $4.482 billion for the mta And following up on some of the prior questions, the local revenue sources are different depending on where you are Downstate imposes revenues and fees, including a supplemental sales tax, corporate franchise tax and insurance and bank tax surcharge All of the upstate transit systems, it’s the petroleum business tax which primarily funds them >> Now, with the money that goes to the mta, does the mta have to provide to state dot what they’re going to allocate that money for before they get the money from state dot? >> Through the stoa fund, the state transportation operating assistance fund Yes, they do >> One more question Our last budget hearing last year I had mentioned the west shore rail line, and I see you smiling, which I’m going to take as a good thing, but I had asked last year for the conversation air $5 million study, and I know that this will be a combination between state dot and probably the mta but it will be on the west shore, whether it’s going to be a rail line right now or for now a bus rapid transit until we get to the point that we’re ready for rail Could you tell me, is there any progress or possibly — that’s why I was asking about the local money — if we could get a study done this year >> I don’t know the answer to that but I’m happy to look into that >> And I’ll be calling on you >> I know there are a lot of right-of-way issues, so — >> We’re in talks with your folks now on that >> Yes >> Thank you, commissioner >> Thank you, assemblyman >> Senator Kennedy >> Good morning, commissioner >> Good morning, senator >> First of all, let me start by thanking you for your efforts on behalf of the dot and the state in November I know were you on the ground out in western New York >> Yes, I was there for nine days Nine days, yep You’re welcome >> So I want to switch gears from the mta out to western new York and the nftpa we’ve been talking about this a number of years They receive less state transit operating assistance per passenger than other state agencies despite the fact that we have the light rail, which I want to get into some of those issues as well, and thanks last year we had an increase of about $1.3 million We were very pleased with that But ceerngd to the nfta’s own Numbers they remain underfunded by about $8 million when looking at the formula and taking into account the light rail system with $6.5 million riders that is not weighed in on the formula — 6.5 million riders So it really pud this financial strain to the nfta that we would like to rectify so in future years won’t to have continue to come back having this same discussion about being underfunded So what can we do different this up with coming year in this budget for the nfta for those individuals, the families that

utilize this service to get to and from work, to go through the community, how can we calibrate the outdated and what some would consider, including myself, unfair formulas for determining that funding, and should we consider a separate funding source for the upstate agencies that are providing public transportation? >> Well, I think any analysis or any discussion should start with the analysis of, like you’re saying, what are the ridership projections, what are the fare structures, what are the existing revenues, as I mentioned, the upstate systems are funded primarily through the petroleum business tax, and are there other the ways to fund it, other additional ways to ensure efficiencies, and I think the whole, like you said, the whole formula should be looked at and we’re happy to participate in that discussion with you >> So can key count dot, then, helping to drive this forward, driving the formula change forward? Because I think it’s critical to the future of the nfta >> Well, I think the answer to that is we’re willing to work, again, within the confines of the governor’s budget, discuss with the budget division and the appropriate legislative fiscal staff on different opportunities, and we’re happy — we’re happy to take the lead and work with dob on that >> Thank you I want to stick with the nfta I want to talk about the capital improvements that are necessary The nfta, the light rail system built in 1984, so over 30 years this system is in dire need of improvement, and substantial investment I know you’re aware of Just to hit a level of functioning that taxpayers can be proud of, upgrade through light rail infrastructure are necessary, overhead power, over ground and above ground track improvements, escalator rebuild projects, completing the light car, I could keep going on The bottom line is we’re looking at about $50 million or more from estimates, I’m told from the nfca, of capital funding specifically just to upgrade the system to a level, again, that it can function appropriately Is there a multi-year state funding appropriation for capital that we can look at similar to the mta, a capital program, a five-year long-term outlook where we can count on funding coming in for capital, again we codon’t extend this where we’re playing roulette with the entire system? >> That is the premise behind any capital budget, is you have some type of two-year, three-year, five-year certainty so that you can plan accordingly and make those investments accordingly So I don’t know how, specifically how the nfta does their capital planning and budgeting, but again, I’m happy to make that faster discussion when we look at the overall financial situation >> Great And again, on the nfta, of the New York works program, put funding forward, will some of that money be released for nfta projects funding? >> I’ve been voice vis that had there’s $5 million in this year’s budget specifically for that So we’ll take a look at that >> Excellent On another note back to design/build, I have a question regarding the article 7 language With the executive budget proposal making the design/build permanent expanding its all state agencies and authorities clung suny and CUNY, what measures are being taken to ensure that the upstate contractors’ local residents are getting the work? >> You know, as I mentioned in my testimony, we have awarded ten contracts We have 13 underway We have been seeing much more participation by the the upstate contractors in the work that we’re doing in the upstate region I know when the legislation was first enacted, there was some concern that all of the work would go to outside of the state contractors and that has not been the case

the second, hopefully we can

follow up And number three to have better oversight about these contractors who think they can do whatever they want They don’t to have listen to nobody And they continue to leave everything behind We are being — picking up all the garbage that they leave the end of the day >> I’ll start with your last one first because the — it’s the contractors are leaving the work site in a way that is not acceptable, there are penalties that we can impose, and that is not acceptable, so we are happy to follow up on that one specifically Number two, happy to participate in meeting with the various community boards on both the bq and if giwanis The Its last contract is going to be award shortly and then all the work on the giwanis will be complete So if you look at the Staten island expressway across the verrazano, the giwanis right to the bbt, that work will be complete from the state standpoint It’s primarily replacements work on the giwanis, replacing the deck, but that will be the last project that will be started this year, and then that work will be completed and the three plus bus lane will be in effect during the commuting hours But I’m happy to come and give an update on the bqe and more specifics on the giwanis >> Thank you >> Senator Savino, please >> Thank you, Mr. Chairman Thank you, commissioner McDonald in following up on the work I’m not going ask you to reiterate the answers you gave to assemblyman Cusick and assemblyman Ortiz on the two main road areas of the began First I want to say thank you on the stienltd expressway — the Staten island, Charlie has been amazing in cieption to dates, and I want to say thank you for that Eye couple years ago assemblyman Cusick and I raised the issue with you about the idea of creating a transportation czar, someone who would oversee and coordinate projects It was rejected by the administration, but what has happened, and I will to be first to say, this has been coordination between your agency with city dot so we don’t have a situation where we have you working above, city dot shutting down the roads underneath and just crippling the region, so for that I want to say again thank you Thank you On the kiwanis expressway it’s a project that was started before I was born and it will probably not be completed until I am long gone and dead It is a perpetual project, and the only concern I have about this project is we tend to be

just patching it and that’s what we’ve been doing for a very long time, but unlike the statten island expressway project we’re not adding capacity to the acquaintance and so no matter what happens and I’m sure senator Ortiz and anyone from Brooklyn, senator Dilan, senator Montgomery we’re still going to have the same bottlenecks And I would hope if we are going to continue to invest tremendous amounts of money in the bqe that we look at the possibility of expansion in some way, shape or form, otherwise an 11 miles from my house at the foot of the verrazano bridge to the battery tunnel is all of 11 miles Actually through the battery tunnel is 11 miles Depending on the time of day it can take me eight minutes or it can take me two hours So if we don’t address capacity, and & just continue to patch the roadway, we’re not going to improve the transit flow through area and we’re going to continue to cripple local streets and roads >> And I Noe know that roadway network very well I don’t disagree with you and we’re happy to continue that capacity discussion We do believe that when all the work is completed in scientist island and on the gi didn’t Staten island and the giwanis that the three plus HOV lane will improve, but congestion is good and bad Congestion means that the economy is moving and things are moving, and that’s a heavy truck route, but we — I’m happy to continue that discussion and share the Numbers from the HOV lane once the HOV three-plus We believe that will improve traffic flow >> But with that, though, comes enforcement >> Absolutely >> Right now there is no enforcement of the HOV lane People us it, you can see it any day, there are single riders going down the HOV lane They get down to the battery tunnel and nobody even stops them there That’s got to be part and parcel of it, otherwise we’re just creating an express lane for people who are willing to violate the law >> Exactly And you mentioned the coordination between state D over thet and city dot and for that piece of it we have to bring NYPD traffic enforcement into the MIX >> There’s another project that’s been proposed for different section of Brooklyn, the ocean parkway, redesign of ocean parkway Do you have an update? They made are proposal recently to the community board talking about changing the flow of traffic on ocean parkway and where people can current It’s going to disrupt in some ways where people are not even able to tauren their own streets They’re going to have to go three blocks out of their way so I was wondering if you have an update If you don’t you can get it to me and I will appreciate that >> I don’t and I’ll get it to you right away >> Finally on the design/build week back to the issue of design/build, last year when we were trying to extend design/build, we broke down over the threshold of the projects There was a dispute as to whether 5 million downstate and 15 million upstate or whatever the thresholds were would trigger a plpa I noticed in the governor’s language, though, they have completed walked away from that idea It’s design/build week making it permanent, and I — making I permanent, and I believe there’s a discussion that if a project is $50 million or more it would require a pla study What exactly is your understanding of what that means? >> Yes For any project that is $15 million or greater it would require a due diligence study, and then identify what the potential savings are from a project labor agreement, and if the savings are there, include a project labor agreement as part of the design/build contract >> So what if the project was $49 million? You wouldn’t even examine it? >> It sets the threshold in the statute It doesn’t mean that we can’t do it anyway if it’s around that price range There’s nothing that prohibits dot or any other agency from doing that It just sets the throsh threshold in statute that it must be done >> Would the work be postponed until after the analysis was done as to whether or not a pla would provide savings? >> No We did a due diligence study, for example, for the giwanis and we did that as we were moving the project through the procurement process We didn’t slow anything down for that >> Is it — maybe I’m misunderstanding this but is it possible we could do all of that these projects without a project labor agreement? >> Without a project labor agreement? We could >> That would be distressing, I would think >> But I think the due diligence study, you know, labor comes to the table, the contractors association comes to the table and says what are the ways that we could generate savings,

generate time, and if it saves money, a bob was saying, you save money on one project and reinvest it into another project >> Project labor agreements provide disruption protection >> Yes >> I’m a bigger fan of that than I am of the idea of the open shop where you may have an union contractor, part union, part not union That’s much more disrup you have the to a job, and I would think we would be looking to utilize P L.A.S whenever we possibly can It’s good for the employers It’s good for if state It’s good for the contractors It’s good for the taxpayer Thank you >> Thank you Assemblyman executives skoufis >> Thank you I want to first thank your staff, region 8 lower Hudson valley They’ve always been very responsive and they do a great job I want to ask one sort of general question before before I get to my more specific local question I have eensoever the past couple of years I’ve been in office certainly you’ve got the budget and everything is appropriate for dot in the state budget, but then there are sort of these ad hoc announcements throughout the year of different appropriations for various projects throughout the state Last year I just pulled up on my phone, for instance, $100 million to a large stretch of Long Island to repave there And so there are these announcements all over the place And I guess my question is can you walk me through the evolution of how these announcements are made, which projects are decide on, do they bubble up completely from staff Do you get a call from the governor’s office and get direction from his staff? Who makes the ultimate decision? Do you sign off on them? Can you walk me to that through that sort of decision? >> Sure Our — when you look at our capital program, by necessity it has to be fluid, and you mentioned the additional money for Long Island when we did some additional paving projects We also did additional paving projects throughout the state Last winter was particularly harsh and we saw what the winter did to the pavement, and so when we — we have regular capital program meetings, and we’re always looking at the timetab of contract letting and we reallocated some of the funds within our existing program, projects that weren’t going to get awarded, and made the decision to do the additional paving projects both on long Island and across the state >> And who specifically is “We”? >> Are you involved in this? >> Of course We the department primarily, we take input from state-elected officials and put input from the localities, input from various advocates, whether it’s aaa, tri-state, others where the needs are, and that’s how we assess our investment decisions Like I said, it has to be fluid so that we can address any of these issues that come up, and just a capital program by its nature, projects sometimes flip, ab unforeseen utility issue, for example, comes up in a project 23 thought was going to happen tbhnt 15 slips to 2016 >> Thank you I guess that sort of directs me to my more specific question, and if you remember our conversation last year, you probably are anticipating what I’m going to ask The exit 131 interchange in front of Woodbury common, it was, phase one was supposed to start in 2013 It was delayed, as you well know, until at least as of now, 2017 the earliest I believe it’s the most important project in thf Hudson valley west of the Hudson Perhaps you can share your insight and whether you agree 2 that first But my — whether you agree with that first But my concern continues from last year My first question has there been any funding secured for that project? >> It is still scheduled for 2017 and it is one of the projects that I’m going to discuss with bob Megna because it’s right at the juxtaposition of route 17 and the thruway right there Woodbury common is doing major expansion of their development and we have had discussions with the developer and the local government regarding various ways to fund it in addition to state dollars So we will continue that decision U. Discussion but right now it is still on target for

2017 >> And are there any discussions about accelerating the project in light of the casino that’s been sited in Sullivan county up the road? Again, one of the — the concerns a accumulating at this point We’re going to be seeing thousands of additional cars moving through that interchange because of the casino daily, millions probably newschannely as a newschannely — annually because of the casino and it’s already a bottleneck even without the casino there largely because of Woodbury common So is there any discussion right now about accelerating and beginning phase 1 prior to 2017? >> There is not, but we will be happy to sit down with the with selected developers and see what additional traffic — as part of the input into the selection process, dot will look at the individual traffic models I’m not quite sure how far east that Sullivan county traffic analysis went, but we’ll take a look at it and see if it bears changing the schedule >> Would you agree with the assessment that it is one of — I’m sure you know, you’re not going to sort of off the cuff rank projects, but would this be at the top of your list as far as Hudson valley capital projects can? >> I’m not going — projects go? >> I’m not going to — at the risk of offending some of your colleagues in other parts of the state I’m not going to address that It is an important project but I don’t think it makes a lot of sense to say the top one, the top two, the top three >> I just hope — my first more general question, it jives with what I’m asking now and I’m hoping that during these fluid conversations that dot has, as you described, this does become part of the conversation accelerating that state Phase 1, $30 million of, and in the grand scheme of I think you said $2.3 billion capital budget, it works out to about 1% of your capital budget phase 1 I happen to think this is an important enough project where it’s worth considering accelerating So I appreciate any further conversations we can have to that effect >> We can do that >> Thank you >> Thank you Senator pannapinto >> Good morning First of all I wanted to thank you for the dot’s help in upstate New York I had spoken to the supervisors of the towns that are affected in my district and inner very compliment rivet work that the dot did in removing that seven feet of snow from the southern part of the district so we really do appreciate that My question is on this region 5 funding issues, nd there’s-gate western great western in concern New York amongst the contractors and the building that I have discuss that had there was an error in the formula based calculation in state capital aid of about $167 million a few years ago Do you know how that’s been handled or if it’s been resolved, that funding issue for region 5? >> What we have been adhering to is the mou, which was signed by the legislative leaders and the executive branch in 2013-14, and that mou is what has been guiding our capital program investments for the last two years It’s an mou which outlines those projects across the state, and that’s what we adhere to >> So there’s no — there’s been no real investigation on that miscalculation >> No >> Let me ask you, just change gears a little bit, does the capital program that’s laid out in the governor’s budget, does it contain any dedicated funding for bicycle or pedestrian capital projects? >> It doesn’t contain dedicated, but I just — I don’t want to quote the wrong Numbers but I want to get the correct number here Under the governor’s direction state dot since January 2013 has invested more than $160 million in funding to support bicycle and pedestrian-related projects October 2014, $70 million January 2014 with $67 million And January 2013, $26.5 million We have been very aggressively making investments in bicycle and pedestrian projects across the state >> And I’m not questioning your historical commitment to it My question is in this budget allocation is any of that money earmarked for bicycle or pedestrian glaughns not going forward, and this wasn’t

earmarked, either This is part of, as I was saying, the fluid budget discussions and capitazing on federal dollars that we received=, and putting them together and putting it out on the street >> So I guess what you’re saying is we’re going to rely on your historical commitment moving forward >> Yes >> Okay A question regarding the dot specifically from a manpower or people power standpoint public employees federation observed that the state has lost 850 engineering jobs since 2000 in the dot How is this loss of engineering work been covered in the last 14 years? >> Well, in any state department or in any agency, in any organization there’s a churn, and as people retour, we reliar Before 2010 through the great recession there were hiring freezes We have been filling positions You weren’t here last year, but for the first time in five years civil service conducted a junior engineering exam which has property new talent to our agency, and we continue to attract engineering positions, architects, and wheat the demands of the department and the needs that we have to >> Do you know what the allocation for outside consulting services and engineering services has been the last ten years to replace these static engineering costs that used to be performed by state employees? >> We don’t do an assessment of replacement What we have is approximately, and this has been — this has been pretty longstanding, is approximately 50% of our engineering work is done by in-house forces and approximately 50% is done by contract >> What’s the benefit to the state to that? Aren’t we paying more for outside engineering costs than we would be for having jeers in house? >> We have not — engineers in-house? >> We have not seen an increase in our capital program and capital delivery as a result of that >> And what’s the plan going forward? Are we going to continue to let engineers fall by the wayside through attrition or are you going to expand the existing engineer force that the dot has? >> Well, we absolutely are not going to let them fall by the wayside As I said, it’s very important that we continue to hire and to have a robust workforce to meet the demands of our program >> Do you know what your planned, you know, people power is for this year as compared to ten years ago? >> Dot has approximately 8200 employees And I think that is the right number >> How many have you lost in the last ten years? >> I can’t give that you number I can check and get back to you >> Thank you >> Yep >> >> Thank you Assemblyman abinanti >> Thank you, Mr. Chairman Thank you, joining us, commissioner First remember let me start with a general comment I know several years ago you and I met I guess when we were both coming into office My experience from a local government formed the basis for my comment to you that dot was a department that everybody loved to hate I will compliment you that I think you have done a lot of work to change that image >> Thank you >> I find your office very responsive and cooperative It doesn’t mean we get the stuff done, but at least we’re working together, and I think that’s a good first step There are three items I’d like to cover quickly First, capital budget projects I wasn’t here when you started because I was out checking my facts But I’m understanding that our staff has not yet gotten the project list, and would it be possible to get that project list as soon as possible so that we can take a look what’s on there? >> Yep We’ll make sure you have it >> One of the things we’ve been cooperating on, as you know, is the 9a bypass on em street and I wanted to see if it was on that list but we don’t have the list to see if it’s there >> And that — we have been making great strides to that project and it’s a real cooperation, so we’ll get you that list >> Okay Thank you You can’t tell me if it’s on there or not, can you? >> I don’t know off the top of my head >> I thought that would be your answer We can ask your staff to get the list, that would be helpful The second thing is again something we’ve been working on but we don’t seem to have come to a final solution, and that is sometimes environmental impacts in the neighboring area

intersects with roadway rights-of-way We have the situation with the river parkway that goes from one end of westchester to the other end of westchester running along the saw mill river, obviously, and the saw mill river just constantly floods It’s not the fault of dot It’s not the fault of Dec that it floods, but I do think we need some effort to resolve it Your department has valiantly every few years come out, repaved the road, tried to raise the road to keep it above flood level but we all admit that’s a temporary solution I have to believe that this is a problem my colleagues have in other parts of the state Is there anyway to set up some kind of a program to work with Dec and the other departments to evaluate where work, environmental work combined with dot work could resolve these problems once and for all? >> You know, I don’t have any other specifics but dot has been working very closely with Dec on these issues, and it really came to the forefront after Irene and Lee and then even further after sandy when we have seen, you know, when a roadway floods or a bridge is warned out due to water, it’s — washed out due the to water, it’s generally not the bridge’s fault It’s — >> The waterway >> — The water And we have programs tive announced where Dec is shoring up those waterways and it’s all done very, very closely with us We’re doing a lot of work in the mow talk valley I don’t know if we’ve — mohawk valley I don’t know if we’ve had a specific conversation with them with the saw mill But I will put that on >> I’d like for see on a statewide base bips I don’t know if you have a joint task force because we’re spending a lot of money repairing roadways and we could be using that money in just fixing the environment in the first place And the saw mill river situation, I’m understanding from the army corps of engineers that they have lard done a study, they’re willing to do another study, they’re willing to put money in to fix it if we could only get the state and local match, and the locals say they will put some money into it but they don’t have enough to really do the match so they need the state input From what I’m understanding from Dec, there’s no money in they’re budget for this and I’m not hearing anything from you that says there’s money Your budget for this So how do we get everybody together rather than have you gone come out every five years and spend money on raising the road and not solving the problem? Because all that does is funnel the water further downstream and people downstream now are underwater >> And like I said, we have in those areas that were affected by Irene, Lee, and sandy, we have had some great success >> But that’s an emergency response >> Right No, it’s also — it’s recovery but it’s also making investments in long-term resiliency, and we did it on Long Island with ocean parkway We’ve I didn’t in the mohawk valley areas I need to look at the saw mill specifically to see — >> It has a major impact Parts elseford is underwater every time there’s a major rain I would appreciate it If we could set up some kind of a formal structure so that we’re not just doing an ad hoc process The last thing is I’d like to pick up on what the senator asked you about, was balance of engineering in and out I would just is ask that perhaps your department take a serious look, a study on which is the more efficient way to do it Wouldn’t through this when I was on the westchester board of explorgts there was a move to go to outside absolute — legislators and there was a move to go to outconsultants and there was a time we did Eventually we reverse that had because we realized it was congress us more even with the benefits and all of the other things that you have for public employees, we were actually better off having the expertise in-house and keeping it in-house rather than going for the outside So I would ask that your department to a serious study of that to see if in the long run it’s not better to keep the expertise in-house Thank you >> Senator >> Yes Senator Montgomery >> Thank you Good afternoon >> Good afternoon Almost >> Comurgs, thank you for your patience I just want to comment — commissioner I just want to comment and ask a question on the other part of the bqb that senator Savino and

assemblyman Ortiz mentioned, and that is I see in your report to us that you have one of your largest bridge projects is the the — that being the case, tofel castkiakko bridge is exemely critical to traffic moving between wherever, south of it, I’m always confused about direction over there, but into Manhattan, into queens >> Long Island and Brooklyn >> Long Island, exactly And it poses an an extreme bottleneck problem always There’s always a traffic jam there I’m just wondering where are we with that bridge and also just sort of related to an update on where it is, how that is planned to relieve some of that bottleneck and also what is your mwbe target and how close are you to reaching it >> The project, the contract was awarded in August It is a joint venture It’s a design/build contract It is a joint venture of new York firm echo 3, and it is well underway Construction has begun You will start to see much more aggressive construction as we get into the spring The goal of the project is to do two things primarily Number one, if you know the bridge, the current bridge well, the steep grade creates fender-benders, which oftentimes leads to congestion because there are no shoulders for disabled vehicle to come off the road So the new bridge will have wider lanes, it will have shoulders, so it relieve that congestion between Brooklyn and queens The grade will be less steep but it will still accommodate hopefully a lot of vessel traffic on new town creek And one of the other issues is the weave to get onto the lie once you get in queens and that will be straightened out as well So we are very proud of that project We are excited about it It straddles Brooklyn and queens, and I don’t know the community boards, but they have been paskt lir involved in the — they have been actively involved in the planning of that project and are part of the stakeholders committee during the construction of that project And there will be additional park facilities that will be built There will be a bicycle/pedestrian lane on the bridge And it is a signature project for the department >> And the mwb SNE >> I don’t know what that number is off the top of my head and we’ll get it to you, but contractor is — the contracting team is very committed to meeting or exceeding the goal, so we have monthly partnering meetings and they are very aggressively pursuing the mwbe portion >> Thank you >> You’re welcome >> Assemblyman Brennan >> Whirgs commissioner McDonald, mehm wait to talk about upstate, downstate non-mta mass transit systems So they’re not happy with the igs budget proposal >> I think they’re scheduled to testify a little later today >> Yes, they will probably express that point of view in a moment But sko the upstate transit systems get no operating increase and no new capital funding, although there was some from last year which is rolled over, and the downstate non-mta systems get no new operating aid, and then they get this peculiar $17 million additional funds for capital, what they have to spend on capital So last year the upstate systems

were expressing the concern that because their source of funding is the proleum business tax, which has been flat or declining for a number of years for various reasons, that they were asking the legislature and the governor and the department to come up with a change in form nah to assist them, and then we didn’t do that other than to add this general fundament, and then set that cost of living from this account that the general fund starting at $3 million so the extra cost of living adjustment this year is $70,000 So these systems, a lot of poor people ride these buses in the you urban and suburban areas, college students Their cost of service continues to rise Their ridership in many cases is actually rising There are more people using these bus systems So why can’t you propose some kind of policy to assist these transit systems? Why isn’t there any proposal to help these systems out? Week, yes, you’re going to give them some more capital, but they need capital, they need operating aid increases The problems were discussed extensively last year And there’s nothing >> You raise a very good point with the increase in ridership What demographic trends are showing is that as urban centers, whether they’re the city of New York — >> Buffalo, right >> Or smaller cities such as ithaca and others, people want to have the choice of transit, and I don’t disagree with you that we haven’t taken a fresh look at how we look at our transit system, particularly in these areas where ridership is growing and what the right MIX is But it’s a complicated issue because there’s the fare policy, there’s operating costs, there’s investment decisions in the capital, and it’s not an easy — it’s not an easy solution I don’t have the answer I think it does need to be part of a broader discussion because as population combroz, which we hope — grows, which we hope it does, and people choose to take transit, which we hope it does, we can’t use the formula literally and figuratively from the 1970s It’s time to take a fresh look at all of that And we have not done it, but happy to put it on the agenda >> Thank you >> Thank you Senator Krueger >> Thank you, commissioner A lot of the questions you’ve gotten for quite a while now seem to be specific to individual projects, and I don’t have those kinds of questions I’m not going ask the question eve asked you in the past, tell me what the projects you plan on funding In this year’s budget because you always tell me we don’t know yet, so just shake your head we don’t know yet so you can’t tell me the projects for your capital master list kind of going forward >> We have our list going forward because we’re starting to put projects out on the street >> Okay So can you get us a list of your projects? >> We can >> Going forward? >> We can >> Thank you >> We we are ending the be 2010-14 capital program can you get my list of all the projects funded through that capital plan and what status they’re at >> Yes >> Whether they are completed, whether they are continuing Will you need money from the going forward capital plan to complete projects that are underway from your 2010-14 plan? >> All of the projects that were in that plan except for some that, as I mentioned, sometimes projects get deferred, if we substituted, all of those projects have been funded and have been advancing through the process, either into

construction or about to be let by March 31st of this year Just as every year, you know, we have a one-year capital appropriation, but we can’t wait until April 1st because that’s really the start of the construction season, so we get the project Teed up and ready to go But bll of the projects that were included, assuming there was no reason that was outside of our control for it to be delayed, are in process >> So that’s 10 through 14 Are there still projects from the 2005-9 plan in process uncompleted? >> I don’t know the answer to that, but we will look and find that out >> Great And the reason I’m asking is you because obviously capital projects don’t get done on a 12-month period >> Right >> So trying to hold things up in a budget year versus a continuing story of what is or is not on a list, what is or is not in process or even what might have actually got done and we didn’t know it, that’s why all three of those will be vaul object for look at together >> Yes >> And in that context because it’s always very hard to figure out where there are funding gaps and where there aren’t when it comes to capital because it doesn’t match up with one-year periods, are we transferring money from general fund to fill shortfalls in the dedicated highway bridge trust fund or are we doing the reverse? What’s happening there? >> I believe each year in the last two or three years there has been a general fund transfer because vehicles have become more efficient The dedicated fund has not been as robust, but money from the dedicated fund has not gone to the gend general fund and we will get you the specifics those, also >> And assed dedicated highway and bridge trust fund money, you just said it doesn’t go to geral fund Does it to go pay for things besides highways and bridges, such as DMV? >> They have a portion of the dedicated fund but again I don’t want to give you the specific breakdown and give it to you incorrectly but we’ll get you that >> Those are my questions Thank you very much for your help >> Thank you very much Assemblyman Always on this side >> Thank you very much, commissioner >> Thank you >> I these are personal questions I thought I would let everybody else get their stuff in before I did One, as you know on — what is it Monday night tweed a nor’easter >> We did >> Based upon that, my CEO of my local bus company rgrga, could not stay He had to get back home to make sure that people could get to work the following more than, to school, so he did exactly that and he told me to ask certain questions for him >> Okay >> So I’m asking those questions, and I assume those questions are also for me And that is that they need, Jim Brennan discussed earlier, quite often we get answers — he was going to be here to ask himself, but we get those questions from them, and so I’ve been asked to ask a direct question, and that’s whether or not you guys can afford to come up with $6 million of operating expenses that he needs You don’t have to give me the answer now The guy right back there, I know that guy is going to — you’re going to give me the answer So I expect that answer soon And I will tell my CEO that you have it coming So I expect that I will have it by Monday and I can tell him on my way back down here to Albany The other thing I have, and you and I have agreed that we have a right to disagree over this design/build stuff, I’d like to know exactly how many contractors we have under contract that do this stuff and how many we have across the state Because this just boggles me that we would even be over that way, so if I could get that from you — are you going to do that again? You’re writing already So you’re going to send it to me Sam Roberts — oh, he’s here now, but I have a list of stuff because I have to go through the same thing, commission, the issue is whether or not — where

we are with I-81 Because every time my friends come over to my house in Syracuse, they ask the same darn question When are you going to get I-81 solved? So to make sure they are probably going look at this over the news, are you going toll us when we’re going to get I-81 solved? >> All right >> So, Sam, I need to get beat up If I get beat up, Sam has to protect me >> The I-81 project is an exciting project We are in the final stages of what’s called the public scoping process We are — because we will use some portion of federal funds, whichever alternative is selected, we are adhering to neepa, the national environment protection act We work very closely with our partners a federal highway The public scoping process requires us to have an aggressive public input That public input process closed on September 2nd of 2014 We received over 1,000 comments Those response those comments are being finalized right now, and we expect very soon to release the final public scoping document There were 17 alternatives that were proposed, plus some additional ones that came in through that public comment period We are Nair owning those down And then we will get into the full scale environmental review process to look at things such as construction, impact on the environmentk environmental justice One of the things can be the connectivity is a big issue for this project because it is an interstate so that’s something that we have to very carefully consider And we are also working closely with the city and the county and the surrounding counties so that it fits into their land use plan, et cetera >> Commissioner, I hate to say to you to your face, I don’t believe you And I say that — nobody get excited about that The only reason I say that is every time I see those darn people from Syracuse, they ask me the same question, what’s being done about I-81? Now, I don’t understand how you got this big beautiful thing out in front of me now and you’re explaining to me what you have done and how you’re going to do it, and I keep getting the same thing from the public officials I’m not saying, but from those public officials from Syracuse So, please, get whatever information it is, please get it to them for me so I can stop having to answer questions that I can’t answer If you would just do me that little favor, I’ll thank you forever >> Okay I will do that >> And the last question or come I have is in terms of the surplus, is it $5 billion that the governor has in this project? >> I — >> You can’t answer that >> I thought you couldn’t That’s why I sent him and my speaker Sheldon silver a letter saying, Quon, since we missed out on the money from before, why we are aren’t putting money into transportation Could you by any chance get that answer for me, why we’re not putting that additional >> I will convey it to the new budget director, Mary bethly bate >> And you will have him send it to me? >> I’ll have Ron make sure that happens >> Ron, what’s your last name? >> Epstein >> Epstein? I expect — this is to have it on Monday He smiled so that means he’s going to send it to me on Monday Thank you again >> Thank you >> At least on my behalf Thanks very much for coming in and making your comments, and thank you for doing the good job that you do on behalf of all of us in this state >> Senator >> Commissioner, you know I’m one of those darn legislators, and, you know, we’ve been going around and around on this project for a long time, and it’s important to Syracuse, so assemblyman Gantt knows what we’re talking about It’s an interstate 81 going through the center of the city, and the question is how we’re going — that’s going to be redone because it’s either got to come down or be fixed, and it’s a huge, huge issue So when is the — your next report coming out that I thought was supposed to be January of 2015 that would outline the final list of possibilities and

which you will scweght further >> It will be done this quarter, first quarter of 2015 There were some issues we’ve had to work through with federal white connectivity side >> This quarter Didn’t you at one time say January? Or am I dreaming? >> I don’t know if I said yarn January at one point Maybe I did >> In any event, whenever it comes out, the process from there is that the final recommendations that you have and if final conclusions you have, they will be much more ING stud’s to the fees before the each and what’s recommended >> Correct >> You mentioned you had some issues with the federal people How much have the — since you’ve got to get money from the feds because we probably won’t have a big bank settlement for some time now >> We need that big bank settlement in 2017 That is our construction >> If we don’t get it, you need substantial federal money >> We do >> Okay Have you been dealing with the federal legislators that represent the area that this goes over? >> I’ve had conversations with the new congressman, congressman katko I’ve — we’ve had discussions and meetings with senator Schumer on the project You know, senator — excuse me — congressman Hannon is on the TNI committee We have not talked specifically about this project of late, but he has been a strong advocate and a good partner on transportation funding So I think between congressman Hannon and congressman katko, we have two strong advocatestor who are both to the TNI committee >> And so obviously, probably — anybody you talk with has a different idea as to how this should be done That’s faster problem But wouldn’t it be important that in order to get federal funding that those individuals weigh in on what they think would be best, which would be the best — it may not to be ideal solution for anybody, but it would be the combheans of getting substantial funding which is absolutely necessary Is that a fair statement? >> Yes >> And you intended to do that >> On an ongoing basis, yep >> All right Now, with respect to — without — I won’t get into the specifics because it’s too boring for anybody to listen to, but I wa to get into some more general issues with respect to the budget >> Okay >> How much new capital money, from whatever part of the budget, doesn’t matter, total new capital money from the governor’s budget, approximately? >> Our capital budget all in is approximately $3.5 billion, and on top of that there is the proposed $750 million of which $150 million will be this year, which is we are proposing to do 100 bridges in those key corridors There’s an additional $60 million for port And that’s basically what the capital budget is for state dot >> And obviously your backlog is probably the in billions Is that fair to say? As far as things that have to be done? >> We have a large backlog and we keep chipping away at it >> Okay Now, with respect — do you know if any of that money that’s bean directed, additional money being directed to dot comes from this bank settlement? >> The $750 million is from additional bond cap within the capital program The $60 million for the ports is from the settlement And those are the two pieces that come directly to dot >> From the settlement >> Right >> 750 plus 60 >> Right No, the 750 is not the settlement It’s additional bond cap >> All right But as far as directly from the fund and settlement, you expected 60 million in the budget passes as proposed >> Correct >> I happen to be someone who believes strongly that this should be used for infrastructure, infrastructure, infrastructure You say you’re doing 100 bridges right now And how much are you dedicating money for it? How much will that cost, the 100 bridges? >> Well, that 1 — the 100 bridges will be paid for out of the $750 million cap >> I see >> And that’s in addition to our

core program That’s in addition to the 115 bridges that we’re doing from FEMA and some of the additional, you know, work that we’re doing >> Don’t you think it would be a great idea to take — since the thruway authority is getting over $1 billion for one project, one project, don’t you think it would be a good idea for regional balance to take another $1 billion from that fund and chip away at — do it per capita, the number of people in the area, you kind of divide it up by population, and chip away quicker at your list Wouldn’t that be a great idea? >> I leave that up to all of you as part of the budget negotiations >> But you’re guiding us as the commissioner of proposition I just think it would be a terrific idea Would you mind if I propose that as we go through? >> I think that you have to propose what you want to propose >> But you would not — you would accept the money if it happened >> Well, that’s a tough one >> All right If you don’t say yes to that — all right Seriously, that I think is a good use of the money In any event, do you have a five-year capital spending plan right now in exist ens? >> — Existence? >> We look at various different alternatives, and right now we have a program that fits into the governor’s proposed budget >> Do you have a five-year capital spending plan in existence right now? >> Our five-year capital spending plan assumes the $2.3 billion in each year >> So you have a written plan in existence right now >> We do >> And is that available to the public? >> I think we can make it available We’re putting the fine — we’re fine-tuning it but I’m sure we can get that to you >> How long would that take? And I guess you might probably know why I’m asking this >> I do know why you’re asking I will go back to the office and check and we will get back to you quickly >> Thank you Now, I guess my time is up and Marty Dilan has another question Oh, wait a minute >> If I can follow up on his question, what is the amount of your five-year capital plan >> What we plan for is what’s in the five-year executive budget >> I want a dollar amount A dollar amount, please >> Which is approximately — >> A dollar amount >> $2.3 billion a year >> For five years? >> For each year >> For each year Okay I just have two points I wanted to follow up again on the capital review board because I don’t know that your answer is sufficient previously I know when the mta keep it with its capital plan, you actually have 90 days to review it, and I think we reyou rejected it immediately, and I still want to know how can you reject it without reviewing it >> Because we didn’t think 90 days was sufficient, and that’s why we rejected, and that’s why we disapproved it >> But you did not review it >> We — at the time we decided in consultation with the other members of the capital board that — >> As assembly members you rejected it on your own >> No, I did not Ir rejected — >> I’m on the capital review board, also, but just one member jected it >> One member can reject it >> You rejected it probably before it even came out, I believe >> No, did I not reject it before it came out Ir rejected it shortly after it keep it because we did not believe that 90 days was sufficient to — >> But you had 90 days to review and it you did not exercise that You rejected it immediately, and I don’t know what basis you had to do that I mean, there is a gap in that plan, I agree with you on that >> There’s a huge gap, and we did not believe that 90 days — I did not believe that 90 days was sufficient to make that assessment, and that’s why I rejected it >> I just feel that someone who makes a decision like when should be held accountable for it, and I think that you owe the public — >> I don’t disagree with that, and I’ve given you my reasoning Did I not think the 90 days — >> — if it is not acceptable, that’s your opinion Secondly, we’ll move on in this year’s opportunity agenda, it’s proposed the resources between your accident New York state thruway authority, can you elaborate on that for us and let us know what that’s about

And secondly, I would like to know what employee protections are within that since two different agencies are involved One is a state agency and one is an authority >> Sure We have just begun this discussion As you know, there’s hey new — second new acting executive director of the through way authority And we just I think it makes sense that between our pool of engineers, his pool of engineers, that we can share design services We have not looked at the employee protection issues yet, bull we will make sure that as we look at shared services, that is a factor that we look at But it just makes a lot of sense that we’ve got a lot of engineering expertise between our two agencies, we’ve got a lot of architecture expertise between our two agencies, that folks have the opportunity to work on different projects and make that happen >> Do we anticipate any savings as a result of this? >> We have not quantified those yet >> So what are the benefits? >> The benefits are I think a lot of the benefits are directly to the employees They get the opportunity to work on different projects that if they were just working on, say, a thruway project, they might not And we believe there will be savings, andath lines, I think it was a smart decision I might, you know, I would check off, you can get my support, senator defran sis company and certainly budget negotiations may lead us to whether additional dollars We see local governments pressureed for the tax cap and other communities, especially the smaller communities, the highway dollars make a large portion of especially small community budgets And certainly anything we can do along those lines are helpful >> Yes, and that’s why we don’t just use vehicle counts when we factor in That’s why these corridors, whether they’re agriculture, freight commerce They may not necessarily have the highest traffic volumes but they’re an important economic consideration for that community >> Thank you >> Thank you senator >> I’m going to close with a few more questions on a different topic Assemblyman Brennan talked about upstate transit And do you know the Numbers, as far as comparing it to downstate transit dollars by the state of New York? >> I have the… I don’t have it broken down in front of me by upstate transit systems The total number for the upstate transit systems which is Syracuse, Albany and Syracuse is $187 million I’ll get you the breakdown by locality >> I don’t node the break down but do you have an idea how much new money for operating expenses the upstate transit got in its budget? >> That is I believe flat >> Flat So nothing was provided >> Nothing additional >> Now how about in capital assistance? >> Downstate got Upstate did not

>> Operating downstate got nada, upstate got nada >> Downstate operating the downstate suburb an transit systems got $2 4 million and $17 million capital >> So did you present a project to the governor before he submitted his budget >> We submitted our budget through the budget division >> My question is, when you submitted a budget, I’m not going to ask you what you asked for or whatever, did you consider this disparity as something that might be something that should abdressed? >> Well, we live within the overall 2% cap, so we all have to make some hard decisions As I’ve said, on a couple of occasion bhz we have talked about nfta and transit overall, happy to continue the conversation about what the formula should be but my budget lives within the 2% cap Zero capital zero upstate I think assemblyman Brennan hit it right on the head what is need and we tried to do it last year, is a new formula because the formula isn’t driving what it used to drive to upstate and they’re getting deeper and deeper in the hole The only one I know clearly about is central and Syracuse they’re going to start cutting routes That’s a preview to the upstate transit making their presentation in a little while So I just want to bring it out on the table and if you enter Or ask your opinion or get involved, the key is another formula, so that each year we don’t go deeper and deeper in the hole I don’t deny downstate what their needs, but 0 is not good when there are increases upstate >> And in my response to assemblyman Brennan and I’ll reiterate, a 1970s formula does not work in 2015 and and we do have to aggression >> It if you could come up with one, that would be terrific >> I’ll do my best >> Great Then would you also, as you started to talk about that, talk with the rgbta who seems to have a system better than anyone else in the state The level is a dollar a trip so I think that makes a whole lot of sense rather than having a system that we simply ask that you give us more money Deficiency should also count >> Thank you very much >> No, no, I have to respond Syracuse charges or central troa charges a dollar per ride but in Rochester is such great shape maybe you can send money over here >> You don’t want to start that with me You better not start that >> Thank you very much >> Commissioner I think you are doing a great job >> Thank you, senator >> I want to thank senator Montgomery >> We’ll now do the 11:00 for New York state department of motor vehicles J. David Sampson, executive deputy commissioner we will now do the New York state department of motor vehicles J. David Sampson, executive deputy commissioner

>> Good afternoon >> We were looking for you earlier this morning >> I’m sorry if I held you up >> No, you didn’t We were just getting nervous >> Would you like me to begin, sir? >> Yes, begin >> Thank you, good afternoon Thank you chairperson Defrancisco, Farrell and other members of the legislature for inviting me here today I am David Sampson, the executive deputy commissioner of the department of motor vehicles I am pleased to have the opportunity to address you and answer any questions you may have regarding the fiscal year 2015-16 executive budget as it applies to our agency Governor Cuomo’s executive budget plan allows D.M.V. To continue to build upon the innovations and efficiencies achieved over the past four years It provides $325 million for D.M.V. Which will enable us to continue to improve overall customer service, promote traffic safety and protect consumers For fiscal year 2015-16, revenue collections from all transactions are projected to total more than $1.7 billion We will perform more than 28 million transactions including over 5.2 million internet transactions The executive budget includes legislation to amend the vehicle and traffic law to facilitate New York state’s compliance with federal requirements relating to the issuance of commercial learners permits and disqualification of commercial drivers licenses and commercial learners permits In addition, the budget includes legislation to amend the vehicle and traffic law to allow an overweight vehicle permit issued by dot to serve as sufficient documentation without having to also receive an updated registration from D.M.V. As currently required Through the governor’s traffic safety committee, D.M.V. Will continue its outstanding traffic safety initiatives which have made New York roadways among the safest in the nation D.m.v. Distributed approximately $30 million in federal funding annually to support traffic safety initiatives, including enforcement efforts by state and local law enforcement agencies to combat drunk driving and distracted driving as well as other dangerous driving behaviors Over the past two years, D.M.V Has been involved in an agency wide customer service initiative which consist Ted of 10 separate projects which added new technologies, upgraded equipment and instituted best practice in customer service in our cull service and 27 state operated D.M.V. Offices One of the goals was to decrease average wait times from 60 minutes in 2013 to 30 minutes I’m pleased to report that we were successful in doing so and that in 2014, the average office wait time in state operated D.M.V. Offices was reduced to 20 minutes Several of the projects in the customer service initiative were designed to meet the request of our customers that we offer more online transactions and become more efficient in our offices Here are some examples of the projects that we have now successfully implemented A new modern dynamic and easy to use website that is also optimized for use on mobile devices including smart phones and tablets D.m.v.’s website now receives more than 28 million site visits per year and 5.5 million transactions, a 10% increase over its prior usage 25 self service kiosks and 19 of our state operated D.M.V Offices enable customers to perform many transactions that previously could only be conducted by a D.M.V. Employee Customers are now performing more than 2,000 transactions a day at kiosks located at state D.M.V. Offices A new office queuing system that includes an option to Macon line reservations for a day and time that is convenient for them, our reservation system has proven very popular with more than 350,000 reservations made since

April 2014 this new solution rowlt routes calls more efficiently enabling is us to answer 4.5 million calls annually A call back option allows customers to leave a name and number and receive a call back to avoid waiting on hold Improved internal processing of other operations, including applications for new auto dealers, inspection station or repair shop licenses and applying for a title or driver permit, on average as a result of these projects, we were able to reduce our processing time by 53% In total, these projects have also helped us move closer to achieving another long-term goal with 50% of our customers using self service alternatives, including the web, mail and kiosks to perform their transactions This budget will allow D.M.V. To continue to build upon the innovations and efficiencies achieved over the past four years Once again, thank you for this opportunity to speak with you today I welcome any questions you might have about D.M.V. And our plans for serving the people of New York >> Thank you very much Assemblyman Gantt >> I’m not familiar Could you tell me more >> You’re not familiar with it Well they are They sent a ton of information on my office concerning hearing impaired people receiving commercial drivers license You have no information about that? >> I’m not familiar with that correspondence but I will be glad to look at it and get back to you >> Somebody from my office will get you that information and you can get us an answer for it because I’d like to have an answer or at least your thoughts on that >> Certainly >> Thank you very much >> I’ve always tried to figure out the difference between bridge and the highway trust fund Every year it comes out the trust fund is subsidizing the D.M.V I believe in this year’s budget we are talking about $the 00 million However would I like to know from your agency as a revenue producing agency to the tune of maybe $1.7 billion a year that goes towards the federal fund So can you explain the relationship between your agency and that trust fund? >> Yes, I will be glad to, senator As I understand it Of the $1.7 billion in revenue the D.M.V. Will generate, $800 million of that will go toed dedicated bridge highway traffic fund The general fund will receive approximately $211 million and the remainder of that $1.7 billion goes to other various sources >> I just bring this up because, you know, every year we have a debate in the senate floor where the bridge fund is funding your agency and I just get a little confused considering your agency is a revenue producing agency And I just wanted to clarify that for the record Thank you >> You’re welcome >> How are you and welcome today Thank you for being here A little different question D.m.v. Still providessed moart voter registration service >> That’s correct >> And what does an applicant what does an applicant have to show at that point? In order to vote three the D.M.V., what does that person have to show >> It is part of the application or license and part of the application when you renew your license that you can check off if you are interested in registering to vote >> That’s right I’ve seen that It says are you a citizen of the United States and you say yes, but there is no proof that that person is a citizen There no, sir passport as I believe it or birth certificate or anything like that Once somebody goes to get a driver’s license and they say I am a citizen of the united

States on that form, then they say okay, they will register you to vote; am I correct? >> Yes, when they are coming to get an original license? I’m confused by your question >> When they come to get a license They come to get a license and they show a social security card or something like that >> And other points of identification >> I don’t think anybody ever shows actual proof of united States citizenship >> It will show proof through the birth certificate which is also required at the time that they apply for a license They have to prove that as well >> I wasn’t aware The birth certificate is required? >> Yes >> Okay So that would be checking also to see where they were born, if they are a citizen, too >> Correct >> Then I might be misinformed Thank you very much >> You’re welcome >> Senator >> Thank you and good afternoon >> Good afternoon, senator >> Now you talked about your improvements in your technology and your modernization But we occasionally hear complaints about the customer service hot line having particularly long wait times for customers Do you evaluate that? Do you have any data you can share with us? >> We do And senator that was one reason we were very anxious to put in our new call center technology to replace the old switching operations that we had because we had no way to know how many people were getting frozen out of calling in or being left on hold And now as we sim plement this new system it gives us the ability to not only handle more calls as I mentioned, but it gives us the ability to monitor the wait times more accurately and it also provides people with the option if they don’t want to remain on hold, you can simply leave us your name and telephone number and it’s programmed that it will call you back immediately as soon as one of our operators is available and then you can complete your call that way >> And that whole system is now up and running? >> Yes, it is >> So have you been able to track whether you’ve seen improvements from the beginning of the exercise through today? >> We are seeing improvements The total system went into effect in December Our initial results show our wait times are dropping closer to our goals So far much better downstate than upstate but we are hoping to improve both as the months proceed >> That’s for the phone system Are you little improving access villa the internet for people to be able to do certain transitions villa internet rather than having could towm to the offices or through the mail >> Yes, we are continuing to expand our use through internet for transactions as we are able to and that is one other reason why we’ve also installed the kiosks in our offices because many of the internet transactions can be performed on a kiosk and for those individuals who don’t have ready access to a computer, they can come into the D.M.V. Office and instead of waiting in line for a representative, they can go to a kiosk, completely transcans and leave Those positions are no longer needed because why? Primarily through or as a result of the new technologies that we’ve been able to implement over the last four years and of course the other projects that we have performed internally to become more efficient, innovative in how we handle things, so as leave the agency, we can continue to offer the same level of service because the technology allows us to >> So these are attrition You are not replacing people as opposed to laying off? >> We are not laying off anyone It’s solely through attrition >> So these 46, the loss of 46 jobs are in the more the direct service areen after D.M.V Rather than the management of D.M.V.? >> Through attrition we can’t necessarily dictate where that will occur but by and large most of the technology improvements have taken place in our offices operations and so in that area we are able to handle more attritions and then we can allocate the employees that we have for the offices that need them more effectively as we

monitor things such as office wait times >> It could be a year, it could be three years My brain doesn’t keep track The D.M.V. Has started a pilot of some longer hours on week days to allow working people to be able to get to the D.M.V After work How has that program gone and how many places do you have that now? >> We have continued the expanded office program in three offices since the pilot ended and those offices are open from 8:00 in the morning until 6:00 at night and what we have done is to continue that because customers found that very convenient especially between the hours of 4:00 and 6:00 with we otherwise would have been closed >> If it is successful why do you do not in more than three offices >> In managing our budget and what we are able to do and what we rye to select for offices located in each of the localities in Yonkers and masapequa was and so we are hitting areas outside the city of New York as well so that people have a location they can go to if they want to go to an office after hours and the volumes of customers at a comfortable level that we don’t see an indication that there is a huge pent up demand >> So where is the third >> In our mid town office >> Thank you commissioner and good afternoon My first question has to do with the Lawrence law, the organ donor law and my question is very simple It’s about how that law has been implemented and how also has been promoted to make sure that people know that they have the option to register >> Like the voter registration that I mentioned earlier if they wish to be an organ disowner and that was expanded to specifically ask them if they would wish to do so and it is my understanding through statistics provided to us by the department of health that 90% of people who sign up to be organ donors, 90% do so through D.M.V., we feel we have a very large role in helping to promote that and we do the best we can within our offices and we partner with our county clerks >> Do you also have a partnership with the legislature where we can get information from your office to make sure that it may be on the website or we can have information and also my question >> My understanding is that we have it in English and Spanish and are glad to provide with you the documents that we use to help promote this as you know, it has been a trend throughout the country and different states to allow driver licensing through the department of motor vehicles it is Boeing to be prepared in order to issue this kind of license for non-citizens license for undocumented immigrants is not part of the proposal We are aware there are proposals and we are willing to sit down and discuss those at the appropriate time

>> You have will have a tough act to follow Barbara did such a wonderful job there We have virt virtually no calls to the office about complaints about the D.M.V. Which was the opposite I’m sure will you do Ju as well How successful do you find the organ donor program going with the driver’s license registration? You know you can check there each time you renew Do you know offhand it has proven to be successful and they assist us in the ways to help promote it and market it So far it is working very well >> Okay, thank you >> Any further? >> Thank you very much Thomas prender gift chairman and C.E.O. Metropolitan transportation authority >> Senator Defrancisco, assemblyman Farrell and the members of the senate and assembly good afternoon Thank you for holding this hearing and inviting me to discuss the mta’s finances Last week as you know governor Cuomo released the executive budget and we are pleased to see once again we’ll see increased state aid Total funding to the mta increased by $141 million over the state’s 2014-2015 budget This increase includes almost $37 million boost to our operating budget and more than $104 million transferred to the mta capital program and provides more than a billion dollars in funding for the 2015-1 capital program N. Addition the mta budget plan approved by our board last month provides a fully transparent view of our four-year outlook strongly reaffirms our organizational wide commitment to cost cutting and shows that we have cut more than a billion dollars out of our annual operating budget but we are not finished and I want to tell you some of the ways the mta can become more efficient and better managed than ever before by incorporating modern strategies for office space, we were able to move our entire headquarters to two Broadway and lower Manhattan We’ll Mon ties our headquarters generating hundreds of millions of dollars for our capital program We issued $47 million of refunding bonds and completed associated restructuring of existing escrows for total savings of $110 million and we successfully concluded settlements from the workforce to our cost cutting efforts we were able to fund the settlements without toll or fair increases or service reductions New savings initiatives are identified in prompt payment discounts, worker’s compensation, energy management, consolidations purchasing inventory and employee benefits Theet es these initiatives incruise our total savings target to $1.6 billion a year by 2018 The saves have improved our operations in three critically important ways The most aggressive cut cutting activities in mta history Without these savings we would not be have been able to reduce projected fair and toll increases from the 7.a% every

other year to 2.4% every other year or roughly 2% per year These have allowed us to add $750 million back in service and service quality enhancements since 2012 and put $290 million in a year into a pay as you go account that could generate up to $5.4 billion for the capital program That’s a lot of money but we are still well short of our capital needs Before I discuss that, I want to tell you about a few important cost savings initiatives One I’m particularly proud of working with is the undertaking with our partners in the construction industry to not only reduce costs but to make it easier to do business with the mta because we know lower costs will be passed on to us and the public at large Asset management is another area we are tackling head on through a system we call enterprise asset management we’ll understand the bettered life our assets and get much of that useful life out of them and for a system with a combined value of a trillion dollars in assets, better asset management has the potential to quietly revolutionize the way we do business saving us hundreds of millions of dollars and making sure we can pass these off in better technologies and training These saving can be put back in our system through strategic initiatives and the mta’s indispensable capital program which is a series of five year investment It began in 182 and today more than 30 years and $100 billion the capital program has given our nearly nine million daily customers a system they can depend on while delivering value to millions more This program revitalized our transit system in our region enabling improvement that brought customers back Ridership is at all time highs Before October 2013 we never recorded 6 million daily riders on the system Last year we exceeded that number five times in September, seven times in October, nine times in December and in October 2014, total monthly subway ridership has been the highest in the history of the entire system Metro north ridership of 83 million has doubled since its founding in 1983 and the long Island railroads ridership of another 83 million as well make them the two most heavily traveled commuter railroads in the nation We are looking closely at where our ridership growth is coming from Until recently it was mostly from reverse commutes, travel between suburban destinations and off peak hours evenings and weekends Today we are seeing ridership growth in all of those areas as well as during peak hours We are seeing more and more times customers have to wait for two, three and four trains before they can get on a train to get to their destination This means our network is almost stretched to capacity Trains are more crowded than ever and commutes are more difficult A minor delay on one train in rush hour can have a massive ripple effect leading to overcrowding on the platform, doors held open every station and ever increasing delays for trains that follow F. That happens on a regular basis, the impact would be severe for millions of riders, employees and economy These show no signs of abating in the foreseeable future Governor Cuomo asked me to convene a panel for our next capital program especially with respect to two important areas One with respect to global climate change and the other with changing demographics The transportation reinvention commission stated in simple terms truths in their reports More than two million additional people are expected to live in the mta region by 2014 A million insideand outside of the region They need to adapt to fundamental demographic shifts that lead to new evolving service needs and accessibility requirements for those who use the system that are somewhat disabled The current system is not full equipped to meet these needs The urban land institute and advisory committee to the mta are working on another report that examines the intrinsic twex connection Early drafts of the efforts included since 128 the mta capital program has transformed the region’s public transportation system into a crucial economic asset helping New York achieve global economic preeminence that few could have imagined during the economic crisis of the 70s Investments in the Mt aa have generated economic benefits for communities across all the of New York state with vendors filling transportation needs locally and across north America Capital program investment create hundreds of thousands of jobs throughout New York state according to the New York building congress, the mta alone accounts for 25% of New York City’s construction industry in some years but the program impact reaches far beyond downstate It has a profound effect of economic development in the empire state Capital program investments are powerful job creators but they

can’t create jobs or power the economy, or keep New York globally competitive or our transit system safe and reliable if we don’t make them The fast Paul the mta submitted a capital program to address our extensive needs The plan was vetoed without prejudice by the review board One concern shared by all parties is funding We have identified half of the money needed to fund the plan and discussions on this topic are critical and we need to bring all parties to the table Those are our federal, state and local partners as well as stakeholders who benefit from the system All have a stake in ensuring new York’s economic engine continues to full steam We move nearly nine million people a day enabling a $1.4 trillion economy second only in the world only to Tokyo Our network expansiveness gives people options huge pool of employees available to New York businesses allows our region to comfortably accommodate millions more people It makes it possible for people to live wherever they want within our region regardless where they work It allows employees to bring home paychecks that support local schools and other services creating jobs where they live enables and supports job development across our entire region giving employers a system their theirees can count O Every major world city London, Paris, Chong and others are make honing konk New York needs to do the same because the past is not… We must continue to invest We appreciate the support you’ve given the mta in the past and your continuing support and we look forward to working with you regarding funding for our capital program It’s that important to us and that important to you as representatives of the great state of New York Thank you for taking your time to hear from me today and I’m happy to answer any questions you may have >> Thank you very much To begin with, assemblyman Ortiz >> Thank you Okay, good afternoon thank you for being here Would I like to thank your team for the work you guys have done on reconstructing a ninth avenue street as well as the partial restoration of B 37 I represent the areas of red hook, sunset park so as a result of the partial res trace, I’m going to be asking you that we hope that we can get a full restoration for b-37 and as well as, you know, you mentioned something very interesting in your speech about job creation, business development in areas So we have an area that is booming very quick It’s called red hook in Brooklyn There are only two buses that go through red hook b-57 and B 51, and we need to make sure that while governor is talking about enhancement and more development more extension about the trains and more mobility, that we will not forget the people of red hook Especially that community is moving very fast we need people can move If we can have at least some kind of transportation that is expressed for the people where they can stop in one area and go directly and keep the other two buses running, that will be very helpful for the people of red hook because right now we have a lot of people that are on ninth street and Smith and standing right here and I can see how many people not only go but have to walk all the way to the back to work but also I see how many people are coming out of red look toe work in the city So there is some consideration to that would be appreciated The other thing I would like to add is union avenue union street We do… We did catch the b-75 That b-75 used to go from new York City tech to red hook That was a very good road to take becavse the people would go to fairway So now they don’t have access to fairway and we have a lot of seniors, I will tell you that and I saw a lot of seniors that

were requesting more middle aged people that will bus get restored It is something that can be taken into consideration also I will appreciate and the b-77 that was fifth avee all the way to red hook, that cross section which is so helpful for the peoplthat have to go to the hospital That kind of accessibility is very critical not only for the folks on red hook as well as hopefully the station to atlantic avenue for b-37 for the people So any of these can be taken into consideration, we will really appreciate as we continue to to expand and enhance from J.F.K. Laguardia down to the city, you know, this is, we are talking about economics We are talking about impact We are talking about job creation and we are talk about mobility of children going to the school This is a community that I hope can be taken into consideration to be looked at very close that they can have the means of transportation that they need in order to commute >> Thank you >> We will do that I can tell you that after we came out of the dire situation in 2009-2010 where we start cut service and started to come back, we looked at the half point of the year how are we looking from a budget standpoint and where can we add back service we cut or add new service, with the changing demographics in New York City it’s essential we do that If we are going to see a million more peep in the city we need to work closely with the city in terms of where the commercial and residential development occurs so that we can have a transportation service that can service that community hopefully do it in a coordinated way not to build a lot of new facilities but red hook and a lot of the areas along the water in Brooklyn and queens are areas that are focus areas for us >> I look forward to working with you You have a great team and I hope we can continue to work together >> Thank you >> Thank you, Mr. Chairman >> Senator >> I said I was not going to ask Yu shut down the subways That’s the subject of another hearing But I wanted to talk to you about the capital plan, which was rejected by the capital review board, and the 15 plus million dollar gap there But I also want to know as to the sweeps, the first $20 million, $30 million last year, and I believe another $20 million this year and what impact that would have on your bonding sport authority in the future >> In terms of the sweeps and detail level I can’t answer We have seen an increased level of funding each year based on what we expected to get from the state And by and large, we have not have any issues with respect to our ability to use the funding that we have to be able to get done what we need to get done The capital program is a separa story but in terms of the annual appropriations and money we get from the state and from the executive budget we have been able to work with those >> I believe in the capital or in the proposed budget there is money for pen access, I believe $750 million and that, I believe, goes along with the east side access and east side access is not believed to be completed until 2023 So why is there a need to put the $750 million in the five-year capital plan this time around if it’s not within range? >> The proposal for Penn access metro north would create four stations in the southeast bronx that don’t are not there now The process of environmental review, design and construction, are such that 2023 is eight years away, that’s about a

general timeframe to be able to get there So from the standpoint >> My point is why do we need to put $750 million in a five-year plan now when we don’t have to >> Because if it’s eight years, if we rolled it over into the next plan, we wouldn’t be able to have it ready at the time east side access would enable >> So we’ll have the money sitting there for five years for no reason >> No, we would be doing Going past environmental review, doing design, and doing construction So those monies would be expended probably in the latter part of the five-year program but to be ready to have them done so that when east side access gets done and those slots that pen station get open, we can provide that service Assemblyman Brennan >> Thank you, Mr. Farrell Welcome Mr. Prendergast the mta is one of the most extraordinary transit operations in the world, I’m sure, and the economic vitality of the downstate metropolitan area, which appears to be increasing, you know, is directly linked to the ability of the transit system to move millions and millions of people around So that agency is pretty important And let’s get into the capital plan and I know that many issues associated with on the operating budget intertwin is ultimately how much moneyings available to the capital plan and vice versa So when you submitted the $ 32 billion proposal in October, you had identified 17 billion where you had identified funds of that amount available to cover that part of the $32 billion with leaving a $15 billion shortfall Is that correct? >> That’s correct >> And so the plan was vetoed The governor called it bloated But I would assume that when you made a decision, that $ 32 billion was the amount or the cost of the assets that the agency needed to continue delivering adequate service and complete the expansion projects, you were not deliberately inflating those costs, correct? >> No We were not >> So you didn’t view it that way So the governors provided a billion dollars in this budget to get you $1 billion toward the $15 billion shortfall that the mta had identified in October have you identified additional efficiencies in acquiring these assets such that you could, you think you could acquire these assets for 31 or $30 billion or anything to that effect? >> In my testimony, I referred to enterprise asset management system, large organizations, I would compare ourselves, especially on the rail side of the organization, the clats one railroads where they don’t go to some other party to get money for their capital program They generate their own money So from their standpoint, they’re incentivized to make sure they’re getting as much useful life out of the assets they have If you have cars go 35, 40 years If you retire that car and replace it as much as people would like it has higher reliability, it has three or four years of useful life, one could say you are wasting an asset and having to spend money So the idea with enterprise asset management is after 30 years of having a capital program where we are trying to determine how much useful life is left, start to apply the science of that technology and that application to our system So in answer to your question, yes, and we are much better than we were five capital programs ago But when you start coming to the legislature and to the executive and talk about $30 billion, I was born and raised in Illinois and my senator was Dickerson, you remember the phrase, a billion here a billion there We have an obligation to make

sure we are squeezing as much useful life out of the asset without crossing the line of affecting safety and reliability >> So you are taking a look at the life cycle of >> Yes >> The system, the subway and rail and so on and seeing if there is any potential savings there >> Correct >> Okay There has been a lot of discussion about real estate value capture as a potential source of funding, meaning that, so, for instance, the Hudson yards infrastructure corporation issued bonds based on prospective real estate development in the far west side of Manhattan and, or… And I’m not… Or there is this east mid town zoning proposal where possibly many new large res engs or commercial buildings or even just general growth in real estate value, do you have a proposal or or is the mta working on a proposal perhaps in consultation to enable us to review something that could provide additional funding for the mta? >> We certainly have a proven way of doing that that was 7 west and that’s how it was funded The transportation reinvention commission which were 24 international experts both from the United States and around the world look to see what other funding sources were available for these types of transportation systems and under the heading of value capture where an investment is being made in a transit system that will increase the real estate value around that asset, sharing in that uptake Surely the transit system reinvention system, there was a folk frus a standpoint of that’s one of the areas we would have a dialogue started if we needed to look for new funding sources >> One thing would I ask the agency to do to help us help you in these next couple of months, so I know that in this $17 billion you are proposing to borrow additional money backed by your revenues and that may lead you to reach the existing bonding cap; is that correct >> Yes, >> And I know that the legislature would have to increase the bonding cap if were you to borrow more, at least down the road, but could you provide an analysis to us of what it would mean for the fair and for the system if you were to borrow certain sums of money beyond what you are currently proposing? Reason I’m asking for it is because when it becomes clear that that you borrowing even more money, the impact on the fair becomes ever greater, so that instead of 4% every two years increase in the fair which is the currentmodel, which is certainly better than 7.5% over two years, if we see… Well, if have you to borrow more money than you are currently planning to do, we are going to have to go back to.a% or 10% every two year or some other problem like that, that’s going to make mass transit hard to afford for the ordinary person It gives us more information about the necessity of finding additional sources of funds for you >> We can do that I do think one of the things that needs to be part of the dialogue is the size of the ask The mta board has approved a plan at that size I think if we are coming to you and you have questions, do you really need that much money, we have to start the dialogue, do we need that much money? We believe we do that’s why the board approved it but we have to find ways to fill the gap So we can do that We can give you that information But I think in a vacuum without the other dialogue going on in terms of what is the size of the ask, you have competing priorities across your entire spectrum There’s got to be dialogue at that level because we firmly believe that from terms of renew enhance and expand, that’s the

size of the ask, but we need to get concurrence before we get into detailed discussion on what the gap is? >> All right So going back to the operating budget for just a sec, or operating aid increases by a minimal amount in the budget with $9 million enacted budget to enacted budget and you said $37 million which is related to your forecasts and so on And then the other 100 and some million dollars is now to go to capital meaning a very tiny operating aid increase How does the mta view those sources? Does this put a crism crimp or is it manageable? >> It’s manageable >> Let me ask you this Do you think when you look at all of the options out there in relation to currently available state funding and your revenues, that a new revenue source, whether we call it a tax or not, is essential to enable the mta to move forward? >> In my testimony I refer to three areas that we have to go to talk to, three plus one It’s our federal partners, our state partners, our city partners For a whole host of reasons and proceed prorated reasons we won’t get the money we think we should get from the federal government The dialogue and pressure needs to be on all the fronts as well as real estate development because they all share in a healthy mta network and they all ne to be able to take part in mta with the funding >> Okay, thank you >> Senator Krueger Thank you very much, good afternoon commissioner You’re not leaving, right? You’re not leaving your job? >> Unless you know something I don’t know >> You promised you weren’t leaving when we confirmed you but there is a rapid turnover and I just wanted to make sure >> I enjoy my job you >> Told us you were going to stay and we are glad you are because we went through the top of mta too quickly and too frequently Second avenue subway scheduled to complete on time December 2016 true? >> Yes >> Phase two second avenue subway in your five-year capital plan >> In the five-year, in the proposed five-year LAN >> Going north or south >> North >> What is the estimate of that cost? >> I should know off top of my head >> 1.abillion >> How many years? >> Five years for the first phase of phase two >> Okay Thank you >> Lexington avenue timing upgrades so you can move more trains on the track Where is that >> I believe that is under way right now Those are signaling improvements and then there is also proposals with the mid town east rezoning to make improvements at grand central that would benefit dwell time at the station because that would improve because the maximum low point is 42nd street It may become 14th street because the city is changing and you know that but those are high level initiatives, the most heavily traveled line in the country We actually schedule more trains than would you normally schedule because of the volume of customers so additional dwell time at stations 10 and 15 second increments make all the difference in the world That’s one of the highest priority areas for to us do things to improve the flow of trains 500,000 people a day use that line >> You and I know that’s all my district so I’m very aware of these issues >> Yes >> Bus camera lanes, I have been having many, I think very helpful meetings with New York City transit on bus issues Still desperate for more buss on our lines But the bus camera pilot was a hope that, with the ability to give out tickets to those who were parking in double parking in your bus stops and the bus

lanes, has there been any evaluation and do you want to expand that? >> It was a focus on it a few years ago I honestly don’t know the latest stat ows that >> Okay Get back to me with that, thank you It’s not in the governor’s budget It but it is announced that mta and the port authority will do a train to the plane model, monorain from Willis point to Laguardia with an estimated $450 million cost Are you expected to pick up some or all of that cost and if so how much had >> At a speech the governor gave to the association of better new York last Tuesday, he talked about infrastructure improvements that needed to be made and the intrinsic relationship between transportation and infrastructure permits and the need to support New York City and the economy There were a number of things that lined up with our capital program Replacing the bus fleet but the one you are talking about is a rail connection tw one part or two parts of our network to Laguardia We do have a rail connection from Jamaica and Howard beach to J.F.K The idea is to replicate functionally that connection This is something that has been studied probably 30 years There have been a number of different proposals It’s exceptionally environmentally sensitive Some of the proposals, the one that we are looking at right now is from the area where the world’s fair is in between the railroad station there and the number 7 line and then go slightly west and up the median of the grand central parkway and access Laguardia airport not with a monorail It would be more likely the technology that was used at air train in Jamaica >> That would connect with the 7 line connecting into >> Two different… The number 7 line would connect there as well as the port Washington line on the Long Island railroad >> So for 7 line, it’s one of our older and narrower subway lines It’s not particularly condeucive to dragging your luggage on and off, at least in the Manhattan section Do you have an estimate of how many people are going to actually use this new line >> You build the connection for the people who work there and business passengers and then other passengers For the ones that are the most successful they try to deal with the issues of the employees as well as the business travelers but certainly we would have to do studies with respect to what market we are trying to get and what market we think we could attract I will tell you the air train expectations for Jamaica have been exceeded but that’s a different model Different issue Condeuceive but we would have to build to a budget that made sense >> How many miles would this line be? >> A little over a mile and a half It’s not that great a distance Relatively short If you didn’t have any highway impediments I think you could almost walk from it that distance but you’ve got highway impediments and all kinds of things >> Right, right >> I’ve actually never seen an mta proposal for new rail line that would only cost a manufacture billion dollars I know to all of us a half billion dollars is a lot of money but in subway building, train building, it’s actually not Do you actually think that’s a reasonable cost estimate >> That’s the low end of the range The low end of the range is probably half a billion to a billion I worked at a system sky train in Vancouver where the unit costs are lower for a variety of different reasons But certainly one of the things we need to do is make sure we do the analysis you are talking about in terms what have market we are expecting to attract and then two things, a project that is ideally suit for design-build and economy of scale there and a project where you do design-to-budget and you try to put a constraint on not to affect safety and reliability but put a constraint on so you don’t overdesign and you get what you want functionally without paying more for it >> You’ve moved out of the building on Madison avenue Is that for sale? >> Yes, it’s part of an rfp 341, 345 Madison, the half block between Vanderbilt and 44th and 45th facing Madison Looking for proposals in terms of what we can get in terms of maximum real estate value and whatever we get outof that will go to the capital program >> My name time is up

Maybe I’ll come back T you Thank you >> Thank you Assemblyman Cusick >> I have a couple of questions Toll and fair increases, you mentioned in your testimony it was 4% rather than 7% you said? Did I hear that correctly >> Prior to this fair and toll increase, they were in the range of 7.5% Sometime last year due to a variety of other factors, concerned legislators like yourself, the governor’s commitment to no more than a 2% increase from state budget and other factors, we made a decision that we were going to limit fair and toll increases to the range of 2% a year And that was a major departure from the 7 print 5 >> Is there a plan to have any increases in the near future? We committed to have a four-year finance plan first looked at in November of a given year, approved in December by the board and then in July of the following year we take a look at it We look at projected every four years and the last… We always have, every two years on the table, a fair and toll increase depending on what the finances require >> So there would be a possible increase in 2017 then >> Yes >> But we don’t know any specifics on that on how much? >> I think we are still committing to living within the 4% but if we are doing better, it could be less than that >> And with fair and toll increases, I think I brought this up before Are there any economic impact study done when the decision is made to make a toll or fair increase? >> We are required by statute to do a number of different things.we have to do what they call a disparate analysis on the economic strata, environmental reviews on what toll increases have They’re different for tolls than fair increases but driving toward the same thing in terms of what are the impact on the economy and of people and those analysis are required for insurance >> Are those made public like >> We can make them public There is nothing we don’t have So if you want them, we can give you those >> I would like to see the latest >> Sure >> Also on the question I get a lot on Staten island is where does my toll money go? Is there something you could tell me today or maybe your staff as to when someone pays the toll, where that money then goes? There are so many versions of where it goes that money goes to pay for other mta projects or But I’d like to be able to tell my constituents, you know, specifically where their money goes >> We can do that In a general sense we have a number of different revenue streams business tax, fair revenue, toll revenue They all come in and then they’re distributed out by met mta So what we might see is a dollar coming in from one source from one locales here and then going out and dispursed So in the case of bridge tolls their excess there is a formula that is established in terms of how the money is distributed, a formula that has been around for decades First $24 million I believe goes to New York City transit and the rest is dispursed 50% between the commuter rails and New York City transit But we can show you all that >> Okay I’d like to follow up on that To change topics for a second also, the north shore brt Can you give me an update on what is happening or not happening there >> The north shore brt, we’ve gone through the processes of the initial environmental reviews, alternative selected was bus way That is the formal process that fda requires us to go through And it did not make list in terms what have was in the capital program But a number of people including one of our board members has expressed concerns about that and in former discussions on capital program there is a discussion whether it should be in or not be in, magnitude costs is less than a billion dollars

Staten island has unique challenges we must address It’s the fastest growing part of New York City When I lived there I think it was a little over 300,000 or 350,000 and it is approach ago 00,000 Whether it’s the busway or even taking a look at how the bus system is laid out from a local and express bus network, we need to really take a good look at that because it’s going to be critical to Staten island’s further development >> I know my colleagues are pushing already for the need for the brt and I wanted to be on record for that I also brought up with the state dot commissioner earlier, the west shore rail, which I know is not fully mta, but I think in the long run, will need a partnership, mta, dot, possibly port authority and we realize that rail may not happen immediately But in the meantime what we’d like do is to study that corridor on the west shore expressway That west shore area F. It says that we cannot at this time go forward with light rail, some short of brt may be fitting in that spot So we are requesting this budget process to have a study done, and we estimate the study would be about $million and I would ask that the mta work in partnership with the legislators and state dot and see if we can get something done in this budget >> I think it has been communicated to us already They may be the lead agency but we’ll work with them in in either case >> We have buses that go into New Jersey >> For sure >> Thank you, Mr. Chairman Thank you >> Senator sorvino Sore vino let me echo my support for his position on that I want to ask you about something that happened just this week and trying to get your opinion You know, I’ve lived in this city my entire life, a little more than half a century now, just slightly over a half century In my entire life, I have never seen the New York City subway system shut down for weather except for hurricane sandy And so the question that I have for you is not just what went into the decision to shut down the iron horse, but what can our constituents expect in the future? As you pointed out in your testimony, there are parts of the city that are growing now in areas that we never anticipated and some of those areas are already not served particularly well by the mta because of historical investment You know, the communities I rep not just Staten island but west Brooklyn and coney island, it takes 90 minutes to get home from Manhattan on the train You shut down the subway to coney island, how do people get home or queens how do we get home In the 111 years the system was running we never shut it down before and I remember massive blizzards in New York, I area 6 and many others and never did we shut down the system Shutting down service to certain areas makes sense, I get that You don’t want to send trainses to the rockaway in the middle of a blizzard but the entire system? Was it necessary? And can our constituents expect from the next storm Not go to work, stay at work? What do we say for them >> We have shut it down twice formally Irene and sandy and Irene it actually hit further upstate new York The decision to close the new York City subway system is not one that we take lightly We have been fed with a number of serious weather events in ever increasing amount We have had cases where we have stranded trains We had a stranded train after lip on December 26, 2010 where three or 400 people were on a train for 12 hours They boarded the train at Howard beach Went a couple hundred feet and it stopped The outside portions of our system are extremely exposed to

bad weather events We had a stranded train on the metro north network and one on the Long Island railroad network and we had people either with medical conditions or some whom were nursing and we were really anxious about the position we put them in Once we put somebody on a train, we are responsible for them and we are accountable for making sure they’re safe and secure With respect to going back into long time history, it’s hard to know whether or not… The system was never formally shut down with the exception of a couple blackouts it was totally stopped >> I remember that, too >> But we need to move forward from a standpoint of where we stand today The events of December 26, 2011 were very informative for us I remember that night clearly I was present at the transit authority And inside of a minute, inside of a period of 45 minutes to an hour the system was running well and it all went south fast 37 trains stranded, 400 buses stuck in New York City streets and we went through a paradigm shift because not only did we expose people to dangerous conditions When the snow stopped, you couldn’t clear tracks You couldn’t plow vetoes until you got the vehicles removed This particular storm was one in which we were faced with daunting challenges based upon the weather presixes First they said 18-24 ins and then they up graded to 24-36 They said rate of snowfall after 11:00 to 12:00 would be two to four inches an hour of wind guftsz over 50 miles per hour That identifies a blizzard in snow terminology That’s where potential for trains becoming stranded and trapped occur very fast We knew we would go into plan four where we lay in equipment overnight and it fills up the express tracks Starts to limit our ability to move trains throughout the system Then if something were to happen outdoors, we need to move equipment from one borough to another, we need tracks to be clear to do that And we were looking at something that was going to come into the system around 11:00 a lot of people were saying come in or leave early and we decided to get people off the system by 11:00 Not a decision we took lightly The storm tracked further east but they got the full 36 inches and they’re just now finishing up digging out So we were presented with something that put us in a position where we not want to take risks, especially at that hour and a lot of people were left Now there is always somebody who is going to be stranded because if you get off work at 11:30 or 12:00 on Monday night and the system is shut down, that person can’t get home But to take them part way home and strand them, that may be worse than if they stay where they’re at or they can, we know for sure we can take them through to their final destination We are going to review it and take a look at from it the stand pointed what have could we have done better but that was the decision making process >> I don’t dispute the information that you were operating under, you know, we watch the news up here, too We were given, you know, apok lip tick declarations apocalyptic dire straights It never had a closure before Is this something we should expect something like this regularly going forward that when you have, you know, reports of dangerous weather patterns that this is going to be a new paradigm for the mta, that will you shut system down >> That’s a very good question because we are asking ourselves that question You take a look across the United States in terms of highways I mean for those of you that remember some of the bad snowstorms in ’78 and I lived in the midwest People died on interstates because people didn’t close interstates If people are inconvenienced and we take that into consideration, that is far better than somebody dying in a vehicle or stranded somewhere and having a problem But I can tell you that we are going to evaluate because we take the issue of shutting the system down very seriously And we, at a minimum, we need to try to improve the weather forecasting techniques see what we can do to keep elements of the system operating and give people as much advanced notice as possible >> I think that would be the most important thing because you are talking about resocializing the way people think about transportation in New York City We always knew we could count on that the subway would run no matter what So if this is going to become the new Normal in the mta, I

think it is going to be very difficult to translate to the ridership who believes that the train runs no matter what And they’ll wind up being stranded somewhere >> And you are absolutely right And even the decision to close the streets, there were a number of states, New Jersey transit shut down earlier than we D Boston did They had to State of Connecticut had total closures And so I honestly think those are the right decisions We should message them better, not take them lightly and constantly evaluate if there is a way we can do it better >> Thank you I’m out of time >> Thank you Mr. Mcdonough >> Thank you, welcome and good to see you again I was going to ask the question about shutting down I was going to add to what you said It was an error it was an error on the side of caution The weather forecast was very, very bad and, you know, I know in Nassau county we didn’t get what they had predicted, suffolk as you said is still digging out But when you mention the fact that people being stranded on a train for hours and hours nd hours, it’s a tough call But anyway, I had vuft two other things– I had just two other questions East side access What is that? >> Scheduled to be completed in 2023 The construction contracts, we are awarding the last construction contracts The major tunneling is done It was a mining project >> I went down there a couple years ago >> We are in the process of completing shelves, building out the stations and the terminal underneath grand central >> It’s a city down there Okay just, you said 2020 >> 2023 >> And have you heard anything about the metro north and long Island railroad in Penn station About the amount of space they may lose when you bring more metro north >> Right now Long Island railroad doesn’t have a terminal They have terminals at atlantic avenue, island city but mostly Penn station and they have 37 slots into Penn station When east side access gets built at grand central, I think they originally start with 18 or 20 trains but will ramp up to 24 trains per hour >> Railroad, Long Island railroad >> To the terminal at grand central They won’t need all 37 slots So the initial proposal for Penn station access for metro north is eight slots but it can’t possibly happen until east side access is operational >> Which will come first? Metro north or east side access >> East side access has to be completed first We can’t, right now we’ve got 10 pounds of grain in a five-pound bag We can’t add more trains to that because we are sharing those 21 tracks at Penn station with new Jersey transit and amtrak So the first thing that has to be done is Long Island railroad starting to operate into grand central before we can bring metro north >> Is there going to be more revitalization of the Penn station >> There are a number of proposals out there by the real estate develop hoars have interests in that area and yes there are Especially in concert with Hudson yard development >> Thank you very much >> Senator Krueger with another line >> We have been discussing new lines coming to Long Island to New York City we have been discussing new lines coming to Long Island and to New York City I know it is not mta directly but it is all mta interrelated There are two new tunnels going to be dug between New Jersey and New York under the Hudson How does that I impact your system if they ever get done and with the governor of New Jersey I don’t know what that means >> The largest transportation complex in our country is Penn station Between amtrak New Jersey transit and Long Island railroad, the number of customers by far and New York trans the original plans from the Pennsylvania railroad built at Penn station were four tunnels what they dawld the north Hudson river and four under the east river They never built the other two tunnels That’s the choke point for the system If they can build not only do they need it for additional capacity reasons but they’re going to have to take some of the tunnels out of service to do rehabilitation and repair Under a project that has been referred to as gateway, there are a whole host of infrastructure improvements along the northeast corridor but primary the central piece are

two new tunnels under the Hudson river >> How are those different than the arc tunnel that he rejected? >> They’re different in sense that they have different alignments and different issues but functionally the same >> And so the mta will have no responsibility for any of the costs of the tunnel, but then those trains will come into Penn station where everybody will interconnect with your system Is that fair >> If you take the gateway project that I talked about in its entirety Some things we’ll have no interest in and no responsibility for, there are others we’ll have some interest in and some responsibility for Especially when it comes to if we are Boeing to now have two tenants, Long Island railroad and metro vorth, so we may have some investments but not for anything that we are not getting utility from However the west Hudson service north that comes down and wants to access and they’ll have to build a loop for the northwest corridor, if we want to provide a one-seat ride for the Hudson customers and there is pressure to do that, we would have to pay part of the cost >> Then recently there was an amount that was made and then pulled back that past trains between New York and New Jersey were going to stop certain tiles of the night I think they changed their mind and are not stop them but what kind of impact would that have had because every time I’ve ever taken the pass train to new Jersey I’ve gotten on the subway on the New York City side >> On the New York City side it would have meant that people would have impacted transit or amtrak but I believe they with drew that proposal >> You don’t think that’s coming back? >> I’m not sure >> Several years ago because of sandy, not that long ago, feels longer You got a large lump sum of money from the federal government to both fix things that went wrong and strengthen your system going forward Where are you in the status of the various assignments? >> Money was identified over $10 billion to deal with resiliency dlargs >> You said million but you meant billion >> Billion 10 to dlean 13 billion We have 1.7 quintillion and 4.3 billion spent and another 2.7 billion to be committed by the end of this year Any of these processes have you to go through I’m not complaining about it You have to go through a process that is audited, a heavy level of audit in place but work is well under way The replacement out of face replacement of the tunnel bench walls was done with that moirn Because the more get the

schedule right Some of this is on the unwilling Ness once the time frame to recommended that situation because we’re just on an extended trend that has to be addressed These are the questions people are asking me and the level of frustration is high, and I just say in my lifetime the New Haven

line performance is pretty much as bad as it’s ever been, and what you said is true, it used to be the best line probably one of the best lines in the country So what’s the timeline to recommended some of these things in >> The timeline is to get back as soon as possible That’s the timeline There are timelines associated that the track work that needs to get done, and while sail there are some impacts that could affect the schedule with regard to projects that Connecticut needs to get done we’ve have enough issues that we need to control before we start laying the blame on them seriously >> Lastly, there was another incident at grand central today, a derailment and we have had specifically in the metro north system a lot of these, sometimes tragic loss of life situations Could you talk a little about how we’re going to end the pattern of having sees incidents? Because pretty clean record up until the last couple of years, and it’s sort of hard to explain, but what is being done to remedy that and deal with the safety issue beyond slowing the trains down a little, which is one of the things you’re doing, but there are equipment and infrastructure issues I assume some of this is in the capital plan >> That’s correct It’s the basic bread and buttery of repair You have to reinvest in the track maintenance, the in physical asset It’s cars, it’s track, it’s signals, and that’s where it needs to go It’s not roict science It’s focusing on those issues >> My time is up but I would like to get a car ridership capacity comparison between the three metro north lines and look forward to meeting with your folks on this stuff Thank you >> I think I’m last for the senate I only have — did you sign up here? I didn’t know that I’m sorry Go ahead >> Thank you >> Senator Montgomery >> Thank you Mr. Chairman How are you? >> Hello >> Chairman Prendergast There are a couple of things that I just wanted to raise with you I’m looking at your, and I’ve been watching you even though I wasn’t here, I saw your statement, and I wanted to refer to a couple of the things that you have said One of them is looking at growth in the ridership You said that you anticipate And new trends that you think you are going to have to begin to deal with And certainly you know in parts of my district — by the way, I just want to thank you for paying attention to some of the real critical areas where I represent, my part of Brooklyn — but in addition there’s been a huge influx of new people with new needs and expectations in terms of transportation So my question is how do we get ourselves to the table to participate with you as you look at serving the needs going forward of people And you talk in your statement with the train service and how overcrowded, but we also — we really, I think, would like to see an increase in the bus transportation access Specifically, the bus rapid transit program and so forth So those are the areas that we are looking forward to And as I have said in the past, and I still continue to complain to you, those double buses, it just seems to be so crazy to have them running through some parts of my district that are relatively small, narrow, residential streets, brown stone neighborhoods and so on But more consistent service, it seems to me, is better than having these long wait times between services I know they come with a double bus that is really not as functional So I’m hopeful that we can talk to you more specifically about our needs, and I don’t know how that happens, how that works and what you suggest, ways in which I could be helpful >> Lois the Endler from our government affairs group can reach out to you and we can have a dialogue We are seeing changing demographics More and more people are entering the workforce and graduating school are waiting longer to buya car, becoming more dependent on transit We can show you pictures of our system in the early afternoon, 2:00 in the morning They’re equal disbursed in some

cases, in some neighborhoods between bus and subway, and we need to do as much as we can to be able to respond to that need, especially if we’re going to see another 200,000 housing units in the city, we need to make sure we coordinate well with the city in terms of where they go so that we don’t have to build a brand new transportation system we can build upon the one that we have right now >> Exactly, yes Let me also thank you for restoring b37, very critical, but it only goes to the arena So I’m just wondering what do we need to do to get that bus back to transportation that links downtown with all the neighborhoods that it goes through Because routine it doesn’t really quite do the job >> I know they’re still looking at it, and I’ll defer to Carmen bee Aun combo and New York City — Carmen bianc It’s clear while you and others are appreciative of the restoration to where it got, there’s still’s need on the parts of people saying it needs to go downtown >> So we will appreciate your continuing to look at that Thank you >> Assemblyman abinanti >> Thank you, Mr. Chairman And thank you, Mr. Chairman, for joining us today I think there was a second derailment today I was just trying find it In the bronx one of the work trains also went off the tracks Am I correct about that >> What is in white plains What is one it was onewheel >> That’s not good We got through the storm and then we’re having — >> No >> I’d like to talk a little bit about metro north I’ve been using the term community friendly planning, and I’m a little concerned that the communities along metro north are not as in much contact with your office as we could have I know you were kind enough to meet with the assembly members and the senators from region I would really strike to see us meet with some of the mayors as well One plan, reading the governor’s budget, there was a proposal to put a parking garage Allegedly the to Petr metro north and sleepy hollow Are you familiar with that proposal? >> I’m not familiar with that one There are a number of different places where we’re doing parking garages for our communities but we’re also doing for it for transit development >> I’d like to talk about that because it’s nowhere near metro north It’s halfway between two stations, and I’m trying to figure out how this is going to be helpful Maybe as part of an economic development plan because there’s other development going into that area, but neither mayor, terrytown nor sleep oh hollow, knows anything about it, so if we could have Tom conversations about that, that might be helpful I’m not quite sure whether to support it or oppose it because my mayors can’t give me any advice because they don’t know anything about it Now, there is another issue, and it ties in with the Tappan zee bridge There’s a big push for bus rapid transit And there’s been some discussion as to where it should end >> Yes >> And are many who believe, and I’m one of them, that it should to go white plains Is that feasible and are you making any plans to facilitate that? Can you handle it on the central line? >> First of all, it’s feasible Tow my knowledge over a period of years bus rapid transit across the new Tappan zee has been looked at One proposal brings it across into terrytown, which may not to be most popular The other comes across to white plains The other one comes across down deacon in the vicinity of rich hill but I could be wrong No, I think it’s gateway further south And all of them are being studied Probably the one that — they need to be studied and they need to be looked at in terms of what do they provide in terms of benefit and total buy time for the people and the impact on communities that would be affected >> When do you expect you will make some conclusions on this? Because we’re trying to push this bus rapid transit, we would like see something in place by the time is bridge is completed, and I think you’re an integral part of this >> Yes And I’m not even sure who would havehe lead on it Maybe us But I don’t know at this time I can’t answer the question for you But I will get back to you on that And I know it’s been looked at I know those have been looked at, but I’d to have refresh myself in terms of where it stands today >> My understanding is that one of the motivations for your previous support of the terrytown destination was you had some success capacity on the Hudson river line, and I was wondering if there was any progress on the discussions to fill that excess capacity by going further north Right now I think you end in Po Kippes and there’s been some

discussion of going a little bit further up the line Is there any progress on those discussions? >> That’s been looked at a number of times over ten years Once again, I don’t know where that is at And there are a number of different factor with respect to the brt in terms of where you bring it, and it’s not just tush of whether there’s capacity but where you have a decent travel time for the people that are coming over the bridge There area number of different factor >> But I’d also like to continue the conversations about going further north because I think there are people who can be served, it’s not my district, but I still think it’s not health of the line in bringing more riders in We could go a little bit further north because I hear complaints from up nother north that people don’t want to have to jump on amtrak to get to had an Manhattan, and there’s a lot of economic development going on up there So if there’s some way we could be supportive of your extending the line, please let us know >> Okay >> Thank you >> Thank you >> Thank you Assemblyman skoufis >> Thank you, Mr. Chairman Th Good to see you, and I first want to thank you again, commend you and your staff You’ve been both very thoughtful, engage can whenever I have reached out and discussed the Orange and rockland county issues that we have in the mta I want to ask you, and I don’t expect you to know exact Numbers off the top of your head, but do you ballpark have an idea of what the proposed capital expenditures are for the different divisions in mta in the 2015-2019 capital plan? When I say divisions I mean west of Hudson, east of Hudson, lirr, New York City Do you know what the expected expenditures were in each of those divisions in the capital program? >> I believe I know them at the anxious level I’m not sure I know them — the agency level >> Not system wide >> No I don’t have that for you I’ll have to get those for you >> Okay I don’t have the New York City piece of it, but I have some estimates here, some rough calculations Lirr about $3.12 billion And maybe you can say this sounds about right $3.12 billion for Long Island in capital improvement in the proposed plan East of the Hudson $1.04 billion in capital improvements And in Oracle and rockland county is $70 million And again those aren’t system wide improvements Those are improvements specific to each of those areas in the mta I guess first do those sound about right? And if so, are those Numbers concerning? Obviously we have less ridership in Orange and rockland counties, and by any measure we should have less capital improvements compared to Long Island where you have many, many, many times more riders to add New York City commuters, especially But given the area’s potential for growth, I think most people agree that Orange and rockland has the largest potential for growth if we make the proper improvements But even that aside, probably on a per capita basis or per rider basis, those Numbers seem pretty astounding for Orange and rockland counties Do you agree with that? >> First of all, the number don’t quite sound right but we’ll get you the right Numbers, and I’ll have the conversation from what I think the right Numbers are >> Sure >> When the mta tries to decide what the next capital program is going to be, there’s a number of factors that come into consideration, the first of which is state of good repair for the access to the system It’s the primary priority that we’ve got The we’ve got to protect that which we own and have it available for future generation That’s the first thing Size of asset, $1 trillion And then while they’re carrying around the same number of customers between Long Island and metro north, I’m not so sure the actual size of the asset is the same in terms of unit, track mile, stations, things of that nature And then we try to — it is not an exact science but we parcel it out based on that There’s also factors associated with, once you get outside state of good repair, enhance the level and quality of service there are other things that come into play, the rider growth potential may exist And at the end of that process is how we decide how we’re going to, with what the size of the program is goubt, what the proposal is, and how we apportion it out And it’s always a combination of puts and takes from a stand point of where we’re putting our investments and where we’re making our money >> If you wouldn’t mind or your staff at some point — no immediate rush — but when you can see if you can break down those proposed expenditures per division >> Sure

>> That would be helpful You know, I’ve spoken with you directly about this Improvements in the capital program midway yard along the port Jervis line, double tracks in Orange and rockland counties and various areas I’m hopeful that we can continue those discussions I know negotiations are ongoing through the budget And I’m hopeful that we can get some of those items in there and take advantage of that potential growth that I spoke about The other issue I want to mention and bring up, which I have also spoken with you about but I want to see if there’s been any movement or progress, and that is a loop caucus junction to create a one-seat ride for west Hudson riders I guess sort of informally part of amtrak’s gateway, gait project The concern that I have and that I know other other area legislators have is that the loop portion of the gateway project is the very last thing in the project The tunnels are built Everything else is done And then we look at doing this loop And, you know, there’s some production of that if it actually happens at all, that this will happen in 2015, 2016, 2017, and that’s when we might finally get a one-seat ride into New York City I know there are logistical issues with tunnel capacity Have there be any conversations between the mta, New Jersey transit, all the stakeholders to see if we can do something a little sooner the end of gateway? >> The only conversations that have occurred so far is the issue of how we can get gateway launched and how we can get all the support we need at a federal, state and local levels for funding gateway It’s on order of magnitude of $18 billion so it’s a challenge and the real stumbling block is the two additional tunnels and the infrastructure improvements a two bridges, portal and dock on the other side, and that’s their liability, not ours But it’s part of Dialogue But the critical mass is getting that first thing done >> So you don’t think it’s possible to do one — >> We could have a dialogue but we have to get critical mass on that issue first and get funding for that first >> Okay.thank you >> Thank you Assemblyman Brennan to close >> Just a couple of uptaits, status reports on some items that haven’t been mentioned The federal riff loan for the $3 billion for the prior capital plan What’s the status of that? >> For the PTC? Loan for PTC, positive rent control? >> No, the riff loan for the prior capital plan There was a $3 billion >> Primarily for east side access We’ve table that to pursue the PTC for metro north Rhode Island railroad >> So you do not anticipate that the rif loan — >> It’s been tabled and we’re really focused on getting the $1 billion rif, approximately $1 billion rif loan for rent control for the metro north line >> All right So the number 7 line expansion? What is the status of that? >> Oh, it’s — we expect it to be done this year in the first half of this year and operational >> Nearly complete? >> Yes >> Thank you >> Thank you >> Thank you >> Senator >> I just have a comment Thank you for taking this job [ Laughter ] Gliive here for I don’t know how many years with so many different chairman You are clear You are precise You’re knowledgeable You don’t run around questions And I know you do a wonderful, wonderful job from what I have heard I just have one request That mile and a half train to the plane Laguardia is $500 million to $1 billion or somewhere long that, $500 million being on the low end From the experts that I have talked to, it’s not necessary How about giving it to upstate transportation? That is going they are going to speak next so they have something to look forward to >> Thank you very much >> Thank you >> Next weeks the 12:00 person

New York transit association Whenever you’re ready Thank you, chairman de difran, members of the senate and assembly for allowing me to testify today I’m frank, the you have 62 director of the central new York — >> Can you put your mic up? >> How is this? Mi better? I’m the executive director of the central New York regional transportation authority and I’m here today to represent the citizens of four central new York counties and six cities who take 12 million rides on our buses each year I’ve also been asked in the interests of the committee’s time to be for want of a better phrase, a poster child for the New York public transit association member systems from Long Island to niagara I’ll get right to the point There are three principle sources of revenue which together institute over 60% of our cny rta annual income and over which we have no control whatsoever These are the New York state operating assistance, you have heard, a 1% mortgage rornd tax levied in each member county transit authority, and as designated by the state certain funds required to come from each this. Cny rta match for portions of Stella Over the past six years those revenue streams in the argue Gavitt grown on average one-half of 1% per year collectively Despite substantial growth in costs of many large ticket expenditure categories, such as health care, bus parts, and a high demand for use of mandated para transit services, the authority has managed to keep its annual budget increase to an average of 2.2% over that six-year period So in order to sustain our operations with stagnant funding, we have, among other things, cut services and staff, raised fares and the fees for sponsors services, reduced employee health care and retirement benefits, converted an unacceptably high level of our federal capital funds into operating funds, and have spent down authority cash reverse along with a host of other significant actions We expect to make it through the end of the current fiscal year this March 31st by the skin of our teeth Largely through the aforementioned actions and a couple of one-shot infusions As of April 1 we will hit the wall If there is no change to our revenue stream, we will have no choice but to initiate drastic cuts in service, especially but not exclusively in Syracuse and onondaga county This means, among other things, the elimination of all scheduled service and paratransit services for persons with disabilities at the following time frames: Sundays and holidays all day, week days after 9:00 P.M., Saturdays after 7:00 P.M Further, in the city of Utica the elimination of a significant number of bus trips along with elimination of certain services in our oswego and cayuga county operations This means a serious impact on the economic and personal life of central new yorkers and the disenfranchisement of many conditions Over the years with guidance and suggestion from various sources, we as a statewide industry have suggested ways in which the structural shortcomings the transit funding may be addressed Bluntly speaking, nothing has taken hold and we are now out of options other than seriously reducing services to our communities Such reductions when contrary to our sole purpose and mission and cause serious harm to our mutual constituentses into our local economic conditions Unfortunately, the 2015-2016 executive budget proposals proposes no growth in operating assistance for upstate and downstate transit systems alike to help us deal with fifties The New York public transit

association recommends an increase in state operating assistance to update transit systems $25 million in the new budget to make up for flat funding since 2009 and an increase to downstate turn suburban systems $17.4 million The current structure of state funding created 30 years ago cannot sustain the transit services necessary to grow the upstate economy A real long-term fix to upstate transit operating assistance is sorely needed There is also a lack of transit capital investment in the executive budget Despite a state budget windfall of $5.4 billion, the executive budget does not propose any new capital funding for upstate transit As a side bar, we in the non-mta service areas are grateful to the senate and the assembly for their planned distribution of certain capital funds from unspent bond act moneys Certainly that will help We also call for development a statewide plan to fund the five-year infrastructure needs of the mta and all other transit systems Transit is, after all, infrastructure I’m leaving with you today in addition to copies of my remarks a six-year chart which includes the details of the cny rta’s funding Numbers to which I have just referred for illustrative purposes so that you can see what we’re talking about in terms of stagnant funding situation I want to thank you all for this opportunity to discuss this critical condition of public transit and I’d be happy to take any questions >> Thank you very much Any questions? Thank you >> I’m not going to ask you questions Very quickly because it’s late, and I’ve got a bet on when we’re going to be done tonight The — you’ve heard all the dialogue that was going on and at least for one person from upstate I really believe we’ve got to change the formula like we tried today to do last year Giving the components we talked about last year that’s not have necessity in the budget,a formula for operating aid, and be more reasonably balanced in how we approach this on the capital end as well >> Yes, sir, senator >> There are a lot of people that feel that way and I hope we can get something done >> I certainly hope so and we do appreciate your attention to our situation >> Thank you very much >> Thank you Yes >> On the same subject last year you submitted a proposal to us And it didn’t get accepted, but would you resubmit it I don’t know if it will be — just to make sure we’re studying it and it’s in the MIX >> Certainly And over the years we have had other proposals, whether it’s mortgage recording tax or long line — >> Throw them all on the table Okay? >> I’d be happy to >> Thank you both >> Thank you very much Scott winger, executive director, railroads of New York Good afternoon >> Good afternoon My name is Scott Wigger I’m the security director for railroads of New York I represent the freight rail association here in New York state, and in the interests of time I’ll just try and summer rise my rin written remarks for you guys Thanks for the opportunity to testify here today We represent four class road railroads in the to it Canadian pitching and Norfolk certain and 33 region lines in state People employed approximately 3700 individuals between our member railroads combined.<% we also represent a number of rail related businesses such as surveyors, engineers, material suppliers and industrial development agencies With respect to the governor's budget proposal, we wish to ex tress presidency or support for the $10 million that is included for freight rail infrastructure projects, and the separate $10 million that's included for a MIX of freight rail, passenger rail and port infrastructure projects If this funding is included it will represent the third straight year that this essential freight rail program has been funded after having gone the previous three years without receiving any funding The past two years this has resulted in 26 important rail, freight rally projects being selected for funding, so on behalf of the membership I wish to express our thanks to the governor and the legislature for funding this essential program Going forward, we would like to express our request to fund this program at a level of $50 million for the year This will help enhance the rail

network into a state of good repair It will help statewide economic development efforts by helping connect our customers with major U.S. And Canadian members all across the continent, but it also helps attract new businesses to New York state who are looking for rail access as a condition of locating their facility Put into perspective, according to the 2009 New York dot rail plan, they identified a need of $1.9 billion over a five-year period in need in the really system which breaks down to about $375 million per year, and over half of those identified needs relate solely to bringing the existing rail system into a state of good repair As you will see attached to my written testimony there, we also day survey of our members Internally looking for shovel really freight rail projects that are ready to go but need state funding in order to commence With the test are the cha there are 61 projects listed totaling over $160 million worth of projects So just to illustrate the need that is there In addition, we can request that New York state dot be primarily responsible for scoring these projects and not the regional economic development councils In that infrastructure projects are unique from most economic development projects Especially with freight rail projects, the benefits any one project are usually realized across the entire system and not necessarily in one particular region It’s not like building a factory where it will result in X number of direct jobs being created Instead, any sort of job creation and retention figures are often realized by our customers throughout the system In addition to that, we also wish to express our support for the two other infrastructure-related economic development proposals contained in the governor’s budget The $1.5 billion upstate revitalization account, and the $115 million general infrastructure fund We agree with T position that settlement funds are most — best spent on infrastructure capital projects and we would like to request, of course, that freight rail projects be eligible for this funding and also that New York state dot be the main entity responsible for scoring the infrastructure projects as mentioned before Our members have a very strong commitment to safety Freight rail transportation is safer than truck transportation by all accounts As a result, federal law requires that railroads transport certain hazardous materials and not trucks to keep them off the roads Key steps have shown incredible safety improvement across the board recently, for example, since 2000 the rate of train accidents has dropped 42% overall In addition to all these economic and safety benefits freight rail also provides environmental benefits when compared to transporting freight by truck As compared to trucks, freight rail results in less pollution, less fuel consumption and less roadway congestion and also helps the wear and tear on the roads caused by trucks Overall to have a perspective against the dot’s 2009 rail plan a 1% shift in goods from truck to rail would save approximately 111 million gallons of fuel annually and reduce greenhouse gas emissions by 1.2 million Thank you again for the opportunity to testify today I’ll be happy to answer any questions you have >> Any questions? Thank you very much >> Thank you Made Een Lemmon, policy coordinator, tri-state transportation campaign Nadine Limon And the next person is William bonds, empire safety council Are you here? Just want to make sure you’re close Thank you >> Thank you, chairman difran and members of the that the 9 and ways and means committee for giving tri U. Tri-state the opportunity to present testimony My name is Nadine Lemmon and I am the New York policy coordinator for a non-profit policy and advocacy organization working for a more sustainable transportation system I’d like had to addss statewide transit needs, the thruway authority’s budget and nysot’s capital plan Concerning statewide operating and capital needs, we urge you to assure that the needs of our transit system upstate and down are met The executive budget falls far short of that goal Most importantly, the governor’s budget fails to fully fund five-year capital plans for if

mta nor for the suburban and upstate transit systems Ahead of the release of the executive budget, these systems identified $33 billion in capital needs over the next five years Roughly half of those $33 billion have identified revenue sources Across the state transit terms dependent on the state to fill the gap For the mta, the executive budget proposes using $400 million of the bank settlement funds for transit infrastructure There is an additional $750 million general fund transfer to the mta for capital In in an unprecedented and troubling move, the budget takes $121.5 million of dedicated operating revenue from the account and repurposes those funds for capital expenditures at a time that the suburban and county bus system could use that money to avoid service cuts The final sleight of hand in this shell game is yet another diversion dedicated funds to pay off state debt, this time $20 million from operating and a promise to repeat those diversions through 2019 All totaled, this leaves a gap of roughly $14 billion in unfunded capital needs over five-years About $3 billion annually for the mta and $141 million taken from the operating fund that should be going to downstate operating needs For upstate systems the picture is equally bleak $5 million from New York works fund will go to matching federal dollars for upstate capital needs, leavinga $95 million annual gap in their capital plan The state operating assistance, stoa, is flat as has been us the, despite increasing costs and despite rising ridership Since 2009 they have increased their use of capital funds to fill operating gap by 45%, a fiscally shaky move that essentially destabilizes their future We support the structural form that has been discuss earlier today P in place of addressing the nuts and bolts of our transportation infrastructure, the executive budgettal caughts $450 million on an air tram to la guard yaughb a proposal that is not included in the $33 billion capital plan for the mta This is a shortsighted proposal that sign ofs money away from critical — siphons money without having made a case that this investment is warranted A new bus service launched in the spring of 2014 has increased the transit trips to la Laguardia by 20% The price of this service will likely be much less than airtran service At a minimum we expect that that airtran money be used for transit capital programs uptaught and down We what legislature stop the diversion of mta operating funds, both the new prpt $121 million used for capital and the $20 million used for state debt, and find a way to fully fund capital and operating needs across the state Additionally, while expanded capacity for metro north is big news and progress to jump start development opportunities around the four bronx stations is undermined by the fact that the governor’s definition of transit development in the suburbs appears to be limited to vertical parking only, while the governor does acknowledge that vertical parking structures free up land for mixed use development, he fails to note the fact that parking encourages driving, thus negating the value of development near transit We encourage the legislature to make sure these funds are used for true equitable and affordable tod, and a good example is in our Connecticut neighbor and the tod funding programs that they have done over in Connecticut Concerning the thruway authority and the new New York rich, as you have noted today in your questions, we still did not have to a financial plan for this bridge The lack of disclosure about how this bridge will be paid for and how high the tolls will need to be to cover the costs is a severe imped at this point in time any kind of public policy discussion about the bridge The budget takes $1.3 billion of the bank settlement funds for New York state thruway authority and uses to it help subsidize drivers’ toll costs for one year What happens after that year? Also notably absent are capital funds for the seven new bus routes proposed in the mass transit task force recommendations for the new new York bridge, despite the promise that this bridge will launch in 2018 which falls within the five-year capital plan window The budget document states that

federal funds are being sought, but no magic state dollars are provided in — matching state dollars provided in the budget We ask that legislature ensure that Kap capital funds are included in capital plan for this crucial bus service and for the suburban counties on both sides of the bridge Additionally we feel it is imperative that the legislature secure the public disclosure of the financial plan before the budget deal is reached this year Concerning nysot and local roads, the mta has a statutory date on which they must release their five-year capital plan Nis Ott does not With the last two-year capital plan not even key transportation staff winds the legislature saw the 50-page memorandum of understanding before it was signed We call on the legislature to establish a more open budgeting process for nysot’s operating and capital budget including an established state for — date for releasing the project and budget We have concerns about the proposed $150 million for bridges It it is not clear who will be select tg projects and ensuring it will be used on highest need areas in the state Additionally local town and county superintendents need to use the reflect to use this additional funding for roads, culverts, pedestrian and bicycling infrastructure In addition to the $150 million proposed to be bridges, we ask that the legislature assure that there is dedicated funding for pedestrian and bicycling lane infrastructure $20 million annually would be a vibrant quemt in the vibrancy of our local roads and our downtowns Finally, I’d like to read a photograph paragraph of testimony that has been submitted to you to you by the southern bronx watershed alliance concerning the construction of direct highway access to the hunts point peninsula This project can be a game changer for hundreds of thousands of residents and hundreds of businesses the area and region as well as serve as a turning point on the bath to path to better, healthier and more execly vital future for residents and businesses of the south bronx This is a crucial moment for all parties involved, and the solutions are clear Specifically, $5 million are needed to perform the environmental analysis that is necessary to take the next step in making these recommendations a reality This will be good news for the settlement funds to support economic development in the bronx The businesses of the hunts point food distribution center and throughout the hunts point peninsula have been waiting forric decades to get direct highway access The south bronx community has been suffering under unhealthy and dangerous conditions just as long Consensus has been achieved on the solution and the time is now for New York state to address this issue Thank you >> Thank you Questions? Thank you >> Good job >> Next is William bonds, and then after that will be Russ Paige and Tracy Eldridge Are they here? Come on down >> Good afternoon Thank you, chairman Farrell and members Empire safety council is a new York based defensive driving sponsor We’ve been in business for over 20 years We have 800 act of instructors, classroom instructors in new York state, and we trained approximately 120,000 students in the defensive driving program last year alone Empire conducts online and defensesive driving sources although a very small percentage of online I am here today to speak to you about the administration of the online or the internet point insurance reduction programs Empire is all about highway safety and improving the skills of New York drivers That’s why we’re so concerned about the administration of the internet point insurance reduction program in this state The effectiveness of these programs are supposed to be evaluated by a statistical analysis of driver improvement, New York’s analysis of the internet point insurance reduction program is flawed and it is evaluation scientifically worthless The effect of this study of the internet point insurance reduction pilot conducted in December of 2013, that’s a

five-year pilot program, which sunsetted last year, it’s pane continued for an extra year, and now I see it’s in the budget for one more year It should be dropped for the budget There’s no legislative approval for it In fact, it is outrageous that the department of motor vehicles is renewing the net internet point insurance reduction program based on fraudulent and flawed studies coupled with failed user identity validation measures that allow anyone to take the internet course for someone else just by using a telephone They have dropped the requirements for biometrics They also dropped the requirements for testing You take an internet course, you don’t even have to pass a test Talk about low student involvement These effectiveness studies are titled and representatives being conducted by the institute for traffic state have safety management and research tow university of Albany By contract I have a copy of the study right here I have never in my life seen a research document, scientific research document without an author’s name This study is written boy a ghost writer in the department of motor vehicles For some perverse incentives Because this study, this program, internet program brings in approximately $2 million to the state budget As I said, it was a pilot program It’s supposed to be passed by the legislature The only thing — the only legs that this program has is that it slipped into this budget process That’s the only thing holding it up It should be discontinued immediately until this program can be studied by verifiable research Further, in a letter to esc in response to an appeal, the vice chancellor for policy and chief of staff for appeals a suny wrote, “This evaluation was conducted by the New York state department of motor vehicles, not the university of Albany ” The research document, which I will leave for the chairman, says that it’s conducted by the institute for traffic safety research at the university of Albany, and it was not And it was done under a contract number c00078 for for which the university received $51,000 in state funds and never did a single thing They denied doing this study but they took the money anyway We’ve asked the state comptroller to investigate that and we have a meeting coming up with the state comptroller hopefully soon Again, tragically these studies by deceptive Audrey zibelmans are knowingly using invalid methods to perpetuate and promote a state-spopped program being held out to the public as improving their driving skills and justifying insurance and point reduction benefits when in fact there is no credible evidence that that is the case You know, if you take a defensive driving course, you get a 10% discount If you took it online, somebody else might have taken that course for you But you still get the discount even though the online courses are not effective So who pays for that? Everybody else that has insurance pays for that, and I think that’s unfair to everybody else who has to buy insurance It’s also unfair to insurance companies, to say the least In light of the irregularities involved at the New York state department of motor vehicles and the institute for traffic safety management contracted research, I’m urging that the language be included in the budget to suspend the internet point insurance reduction program as was proposed by the legislature and introduced last session by senator Reuben Diaz and assemblyman Marcus Crespo, a legislative review should be conducted so that it can be verified as to whether or not the work that New York state DMV had contracted was actually conducted, and I can tell you gentlemen, senator Savino, also, that it was not They did no work, and they received $51,000 in state funds And I think you should be outraged about that So I’m asking that this be

dropped from the budget immediately and let the legislative process, the way the program was designed during the five years, the pilot program was supposed to be studied by verifiable research Then the legislature decides whether it’s continued Well, it’s been continued past the five years Six years and now going into the seventh year It must be stopped Thank you for your attention to this critical public safety matter, and I think that this program, the classroom program is good public policy, obviously The overall effectiveness of the classroom program is 18.7% of people who take and complete the course have fewer accidents and almost 60% reduction in recidivism repeat traffic offenses, so that program works I’m not here about that I’m here in the most timely way regarding the internet point insurance reduction program It does not teach And driver safety, that is the point >> Thank you very much, Mr. Bonds Any questions? Senator Savino >> Thank you Thank you, Mr. Bonds, for your testimony As you were sitting here I reached into my pocketbook because I just recently took one of the courses online I had a 10% discount in my Geico policy that expired at the end of the year They sent me a notice in the mail and said your 10% insurance discount is set to expire and you can — they gave me a list of internet online testing companies that I could get a test and they recommended them So I took the test It’s quite tedious online because there’s time that has to elapse between the questions to get through And there’s this constant, you have to set up a whole identification process and then every so many questions it stops and they ask you to dial a number and then you have to call in and verify that you are who the person is But as a consumer, if I received that from my insurance company with a list of potential defensive driving courses that I could take both in person or on the internet, should we question whether or not those are good programs or should we assume that they are? Is there a place where a consumer can find — because not everyone has five hours to go to a class They want to sit in their home and take it because you can take it over several days if you do it online With all due respect to our dot

colleagues it was which can be used to we are extremely optimistic when nearly all of our state’s leaders spoke in support of allocating the majority of the $5 billion to the state received in foreign bank settlements we are dpis couraged to see the budget allocates the bulk to one region, the mta and the thruway authority and to read the governor’s quote that infrastructure today is less than roads and bridges in my opinion it is very appointed to see that funding for programs that provide vital state aid to local highway departments to maintain the roads and bridges are held essentially flat working with you truly meets the needs of our state’s residents as our top priority the dedicated highway bridge and trust fund was created by governor Mario Cuomo and the legislature in 1991, then in 193 the mass transit trust fund was created to help fund the latter, they agreed that 34% of the

petroleum business tax paid by drivers statewide would go to the mta To garner the support of upstate legislators it was agreed there would be ongoing pairtd between the dot and Mt capital programs Over the next two decades until 2010, the transit and highway capital programs funding levels were virtually identical In 2009, the dot commissioner Stan G requested a $28.8 billion capital program and the mta submitted a $28.9 billion capital program Ultimately the mta adopted a 23.8 billion program and the dot an 18.6 billion-dollar program The dot 2010-2014 program received over $5 billion less than the mta Last fall the mta submitted it’s promise for the up coming five-year program for 2015-2020 that they should be spending $3.23 billion annually on their highway and bridges Currently municipalities spend about a billion dollars annually on these facilities leaving an annual shortfall of 1.23 billion The New York state comptroller studies indicate a large number of road mileage is deteriorating and many brinls in the state are rated structural deficient or obsolete According to a 2014 comptroller report, 40% of road pavements are rated fair or poor and are getting worse The comptroller’s estimates that there will be $89 billion in unmet local infrastructure needs over the next 20 years With much of the shortfall on the already deteriorating local transportation system Our association recently formed a task force to assess these studies and to formulate our funding requests We are realistic that closing at 1.32 billion-dollar annual funding gap at all once would be impossible Therefore we are urging your support to fund minimum chips at 16.7 million and 3.7 million per year for the next five years That translates to a $00 million over the five year period, will help us begin to address some of the critical needs of the local systems This request recognizes that even with the higher chips levels that we propose, there remains an overwhelming number of local roads, bridges and culverts that require substantial rehabilitation, reconstruction or full replacement that local government simply cannot finance themselves That is why we also urge the establishment of a multiyear $500 million state aid to local bridge road bridge and culvert program again utilizing chips distribution formula to ensure that all New York municipalities can fund vital road, bridge and culvert projects based on local need The 2015-16 executive budget includes $750 million five year state local program, $150 million per year supposed to repair 100 bridges over the time period thr.d has been no list in which the bridges are targeted nor members of our associations included in a determination Instead of what is proposed we request about 67% of this funding, there 500 million be reallocated by the legislature to fully fund our proposed state aid to local road bridge and culvert program the state can use the remainder including substantial federal funding for state owned bridge needs the executive and legislature need to once again make chips a cash based pay as you go program drivers on local roads contribute to half the gas tax collected in this state Unfortunately chips only receives a small fraction of these revenues in addition, general fund transfer of $126 million to the dedicated highway highway bridge trust fund will be needed to keep the fund balanced for the upcoming fiscal year We suggest examining how existing motor vehicle taxes and fees are currently being distributed 4% of the vehicle miles traveled

in New York are on local roads Yet less than 12% of the taxes and fees paid to the state by these drivers go back to maintain is local roads With the poor condition of both local and state roads and bridges, we believe it is time to consider establishing a more equity equitable status In addition, there is currently a state sales tax on motor fuel that generates $480 million annually None of which is dedicated to transportation We support legislation to deposit a portion of these revenues in the dedicated highway and bridge trust fund to be used to maintain local roads and bridges In previous years, even in tough economic times, the legislature has responded to the dire conditions of the state’s transportation system and other local tranortation funding We are now urging similar support in the next five year transportation capital plan with a significant increase in the level for chips program to help extend the life of our assets and maintain our vast system Our associations and mutual skitcy and communities we serve appreciate the support of our state elected officials who partner with us to ensure we all get the job done when it comes to providing the public with a safe and functional statewide transportation system, one that supports jobs and economic growth for our communities We look forward to work with you and your legislative colleagues to seek ways to make more state funding and resource as veilable that more closely reflect the critical needs of our local roads and bridges Thank you very much >> Thank you very much >> Thank you very much I don’t know how much you listened earlier but questions went to the commissioner about the $1,350,000,000 towards bridges, how many of them are local and how many are going to be state, there is a lot of things up in the air as senator Defrancisco’s sense that we ought to take more money and spread it up across upstate for transportation, I think those things in getting your particular and specific information about where some of the resources come from, I think is helpful as we get ready to, you know, have this budget negotiated So thank you for the perspective and for the work that you represent across the state for the county and town highways >> Thank you for the help you guys have given us >> Yes >> I just want to thank both of you for sitting there listening for some long period of time and let you know I’m a Brooklyn guy but do I think the bonding of the chips program is getting more and more untenable as a policy, you know, because it’s going to result in the dedicated highway and bri the study advocated funding

critical aviation-related projects The commissioner stated at the time, continued strategic investment in New York state’s aviation industry will help rebuild the economy by attracting and retaining businesses that depend on aviation for shipping and receiving goods while also providing business and recreational travelers with safe, fast and reliable service Ironically this study was released just as the five-year New York state transportation bond act came to an end and with it the end of state funded capital programs for airports and for the following three years It was only in the most cent two-year capital plan with your support, the legislature was able to restore funds, about $17 million total for investment through a two-year airport capital program However, you need to be aware that this small elf level of funding is shared among 90 public use airports across the state While this funding level in the current two-year plan has provided valuable financial assistance for vital infrastructure at airports across New York, funding aircraft hangars, safety enhancements and other important projects, it represents about half of what the bond act had traditionally funded per year and did nothing to address the three years of zero funding for airports from 2010-2013 This spending level represents merely.2% of the total two-year transportation capital plan just ended On October 20, governor Cuomo unveiled a comprehensive plan to modernize and revitalize Laguardia, John F. Kennedy, republic and Stewart national airports bringing them up to 21st century standards for service and amenities It is a massive investment in the downstate airports At the event the governor was quoted saying the number one job of government is to promote economic growth and prosperity and one of the best ways to drive commerce is by investing in infrastructure that connects New York with local, national and international markets Nyama could not agree more We believe other airports in the state should be considered for targeted investment As has been proposed by the sponsored downstate airport In fact according to a proclamation last year, it was declared the state of New York has a significant interest in the continued vitality of general aif yaights and community airports and that aviation is a critical tool for companies and New York to improve efficiency, safe money and open up opportunities for rural areas not served by commercial aviation, thereby bringing new business, investment and jobs to all areas of the state As you are aware, many upstate airports are confidently seeking to preserve access to commercial service and connections to major cities Over the last 10 years, these smaller airports have seen their passenger boardings decreasing at a low but relatively constant rate General aviation airports that do not have scheduled airline service play a key role in

regional business and rely even more upon state funding for revenue producing projects like hangars and fuel farms Many of these aviation facilities face a daily struggle just to continue the financial needs are well documented Based on analysis of F.A.A Document such as airport capital improvement plans, airport master plans, and airport layout plans, the New York state department of transportation has estimated that the state will need $4.3 billion to support it’s aviation goals for the 20-year period between 2010 and 2030; an average of $215 million per year This investment is necessary to properly maintain the system and allow airports to attract passenger, cargo and general aviation services, thus supporting the governor’s economic development goals Although federal airport improvement program grants help, they average a total of less than $100 million per year and are limited to certain types of projects with a large allocation traditionally going to the two port authority new york-new Jersey airports Ultimately this leaves us with an enormous funding shortfall for airport development needs statewide For example, last year there was a total of 33.$3 million in funding applications filed for airport projects but only $8 million awarded under the airport capital improvement program This helps to demonstrate the huge gap between what is needed for airport development projects and what is ultimately available through the state budget Lawmakers and the public can scrutinize these state grant supported projects as the awards are routinely publicized through the governor’s office, or, in many instances, reported the local media I know you’ll agree that nyama airportses do a good job max miedzing the benefits of these investments to the traveling public and the communities they serve Consequently to meet the needs of the development and infrastructure and address the growing needs going forward, nyama is seeking airport capital improvement funding of $200 million over the next five years as well as a fully funded state aip program at $8 million a year to match the available federal funding under the F.A.A Airport improvement program we believe the magnitude of the projected state budget surplus headed into the fiscal year will help make this level of funding possible Nyama as wear of the difficulties transportation members face with financial assistance programs at a time when all transportation systems are under stress from age, heavy use and deferred maintenance Sm similarly much is becoming ill-suited to spur economic activity The cost after dressing the growing need of transportation systems is great but will only increase if we delay action New York state must invest now for effective infrastructure programs or face much higher perhaps prohibitive prices later when decay has made the challenges far worse In conclusion, nyama and its members across New York state support your efforts to ensure the state pursues policies that are pro growth and pro job creation in these tough fiscal times Strong state investment in our airports is one of these strategies We look forward to continuing to working with you and other state elected officials to ensure that the next five-year capital plan establishes appropriate levels of funding for a robust and permanent airport capital program and a fully funded A.I.P. Program Together we can enhance our airports and aviation assets in ways that will create new jobs, increase economic development and improve airport services so that all regions of New York can compete effectively with other states for business aviation and scheduled commercial services for the benefit of all new York’s citizens Thank you >> Thank you very much Next Denise Richardson, executive director general contractors association of new York Good afternoon >> Good afternoon Thank you for the opportunity to comment today

You have in front of you a report that the gca put out earlier this year about the state of infrastructure both within New York City as well as maintain state and I think the title is self explanatory The other speakers have all amp pli outlined the state’s needs so I’m going to in the interest of time and your patience shorten by testimony significantly Thank you for the opportunity to testify about the mta and capital plans The gca represents the state’s unionized heavy civil and public works infrastructure contractors Our 275 members employ over 20,000 unionized craft and professional workers that are the core of our state’s middle-class These workers hail from all over the state and virtually every county in New York They earn an average wage of $87,000 plus benefits and generate $553 million in state income taxes alone The state’s economy is critical to the construction industry, the construction industry, which is supported in large measure by the mta and dot capital plans is also an integral part of the state’s economy and the construction industry and something that is not often given due process in terms of it’s vital role in the state’s overall economic development And would I like to touch on one thing that has not been mentioned today that historically New York’s transportation network has benefited from federal funding in both the mta and capital programs that are up for decision assume the same continued level of federal funding However, the mta has relied on its federal funding to pay for mere nearly a third of the capital program and half of nysat S been federally funded in previous years but the existing federal transportation bill expired in 2013 and the current extension expires in may It is well known that the federal gas tax no, sir longer sufficient to fund the transportation needs and there is no consensus in congress on a future bill It is now February almost and the bill expires in may This means that New York must take a new look at our transportation needs and take the steps to fund our own program We cannot feed our economic futures to the whims of congress and it is likely we will have a new transportation bill this year New York must enact a fully funded five-year capital program for the mta and nydot They work in tan demand and the state’s economic future and competitive advantage depend on a robust mass transit as well as road and brinl funded program the programs need to be sufficient to address the critical infrastructure needs The proposed $750 million in additional state investment for the mta and the dot capital plans over five years are basically $150 million a year is insufficient The taxes and needs for state debt payment obligations on service contract bonds used to support prior capital programs be stopped It is no longer appropriate for the state to take dedicated funding and divert to it other commitments it previously made to fund the payback of those bonds Finally we urge the increase of revenue dedicated to transportation infrastructure investments In 2014, 15 states passed measures that increased revenues and an additional 13 states are considering their own transportation funding legislation New York needs to be one of them Thank you >> Thank you very much James Meerdink project coordinator parks and trails new York Thank you for the opportunity to speak on behalf of New York’s bicyclists and walkers and in support of the infrastructure that supports their active transportation choice You have my full testimony but I’ll summarize in the interest of time I’m project coordinator at park and trails New York For 30 years parks and trails New York has been the leading advocate for parks and trails throughout the state

In 2013 we joined New York bicycling coalition, tri-state transportation campaign and other bicycle pedestrian advocates to form new yorkers for active transportation A coalition dedicated to securing equitable funding for non-motor raised transportation options Today I’m speaking on behalf of this coalition whose partners have reviewed these remarks For more than two decades, federal transportation bills have provided paths, sidewalks, bike line lane as other infrastructure that encourages people of all abilities to engage in bicycling and walking The future of the federal funding is uncertain as congress considers reauthorization of the current federal transportation bill map 21 this spring Map 21 represented a 31% reduction in funding compared to the previous federal transportation bill Moreover we may not see any dedicated funding in the next federal transportation bill All of this comes at a time when we hear from local officials across the state that they’re eager to build infrastructure that supports bicycling and walking in their communities Presentedly bicycle pedestrian and trail projects represent less than 2% of New York’s transportation funding With demand higher than ever, New York should be increasing the level of funding for these projects We ask that pedestrian bicycle infrastructure projects receive a continuous dedicated funding of $20 million annually in fiscal year 2015-2016 and beyond This amount will return funding levels to those enjoyed in new York before the federal government’s 30% decrease Why should the state fund active infrastructure? We must ensure that all communities have complete streets Bike lanes, sidewalks, traffic calling measures, cross walks and nearby multiuse trails Everyone regardless of age or ability should have the opportunity to safely walk and bike every day However currently 2% of all fatalities on New York’s roads involve bicyclists and pedestrians This is the highest rate in the nation We need to change this We also ask that the legislature close the remaining gaps in the 360-mile Erie canal trail I want to thank assembly member oaks and Defrancisco for their questions and comments about the canal sis demand canal way trail The Erie canal way trail is the backbone of the state’s trail system and economic driver for upstate New York We estimated that it results in $253 million in related sales and supports over 3,000 jobs With 280 miles now open to the public, the trails are 78% complete and on its way to becoming a premier tourist destination for cyclists and other enthusiasts as well as the longest trail of its kind in the nation It is our desire to have the remaining 80 miles under design by the buy centennial of the construction of the Erie canal in 2018 Lied toik shah share a few statistics with you Walkable bikable communities are key assets in helping the state and the localities attract tax paying businesses and a high quality workforce In the new New York, trails and bikable communities are what companies and young professionals seek when they decide to relocate Those millenials we all want to attract and retain, 26% do not have a triefer’s license, and 45% report making a conscious effort to replace driving with alternative forms of transportation Sidewalks and to walk such as trails also rank as one of the top priorities with homebuyers 2013 community preference survey conducted on behalf of the national association of realtors found that 80% of those polled considered having sidewalks in places to take a walk one of their top priorities when deciding where they would like to live Walkability ranked higher even than high quality public schools in this survey While the future of federal funding is in doubt, in addition to dedicated funding, New York state can do, can act through the department of transportation’s five-year capital plan which is currently being developed As others have earlier today, we call on the legislature to open a budgeting process for capital budgets The metropolitan transportation authority has a statutory date in which they must release their five-year capital plan Nysdot should have a similar requirement for full consideration of their plan Finally to support New York’s expanding role as leader in bicycle related tourism, we urge

the legislature to support roll on bicycle service on all amtrak passenger trains Many cyclists wish to cycle one way and take the train back to their starting location Unfortunately despite the fact that bicycles are allowed on trains in other parts of the country, amtrak prohibits bike from Bein rolled to all but one of its passenr lines N Closing, active transportation is an element of commitment that prioritizes safety of users, economic development and accessibility for all new yorkers This commitment must be matched by funding that enables local communities to build and maintain road, sidewalk and trail networks that support quality of life for residents, regardless of the ebb and flow of federal transportation dollars Demand for this infrastructure has never been greater On behalf of new new yorkers for active transportation coalition which includes the New York bicycling coalition and tri-state transportation campaign, we look forward to working with the legislature and the state’s transportation agencies to improve the effectiveness and safety of our shared transportation system Thank you >> Thank you >> Adam prizio,manager of governmental affairs, center for disabilities rights Thank you In the interest of final I will be brief Have you my full comments My name… Thank you to joint committee for this opportunity to speak My name is Adam Prizio, manager of government affairs for the center of disabilities rights The center for disabilities rights is a disability led not for profit organization in Rochester New York We advocate for the full integration, Independence and civil rights of people with sibilities and we provide services to assist people in exercising those rights in the context of an independent living framework my organization and the disability community generally tend to favor the improvements that were in the state of the state and to the extent that they include modernization and accessibility features as required under the A.D.A. Title 2 So the four new stations in the bronx, the air train to Laguardia, the expansion of Penn station to the extent that these things will enable people with disabilities to more fully participate in the community, we think they’re good ideas because transportation is a key component of people living in the community More and more people with disabilities are coming out of nursing facilities and integrated into home and community living Transportation is an important part of this because if we can’t get to the store If we can’t get to our healthcare providers office then we can’t live We are back to the institution If we can’t get to work, if we can’t get to parks or the sports arena or to a family or friends house we are not participating in the community We are being denied by inaccessible transportation the opportunity to participate in community I want to bring to the attention of the committee two policies that are taking shape elsewhere in the state, the Olmsted plan which is a product of the governor’s Olmsted commission to improve community living opportunities for people with disabilities The plan calls for the department of health to transition 10% of the population of long-term nursing facilities into the community over five years which is approximately 1800 people per year that will be coming into the community and that will need more accessible transportation This is a statewide effort so it’s not just in the city It’s across the state If people can’t live in the community they’ll go back to the instition in violation of both their civil rights and more expense to the state the second policy is community first choice which the state is expected to implement first year Community first choice provides for additional funding for home and community based services and supports my organization conducted a fiscal analysis and we believe that between 299 and

434 million per year can be brought into the state medicaid budget through community first choice depending on how many people are able to successfully transition out of institutions and live in home and community settings It is not only a civil rights issue but the issue for the fiscal health of the state and if transportation, accessible transportation is an obstacle to people being able to live in the community, it’s going to be a problem for the state’s fiscal health as well as the civil rights issue In this context, accessibility is not mentioned anywhere in the transportation budget and neither is disability And I would urge the committee to take steps to make accessibility a priority in its sort of, in this budget procedure It’s nearly 25 years since the passage of the Americans with disabilities act There has been… And there are still gaps in transportation There are still gaps people with disabilities are still stuck in their homes or if they’re able toe get out, they use paratransit which in most parts of certainly upstate, is not responsive It’s not uncommon in Rochester, New York, for a person to be on hold for 45 minutes to schedule a paratransit ride And paratransit operators have incentive to minimize the number of rides that they offer because the fiscal incentives are against them It costs between 35 and $45 per trip And they receive a fair of $2 So when paratransit is available , people will often only be able to get a ride that is say two or three hours before their doctor’s appointment so you are talking about a three or four-hour window of idleness simply to go to the doctor Not in the transportation budget but worthy of the joint committee’s attention, there are two initiatives in the health budget The Olmsted mobility pilot project which is a department of health project to improve community living outcomes by involving >> Are you scheduled to appear before the health committee? >> Yes >> We don’t have to hear it twice Why don’t you wait until that time comes >> Thank you, sir >> People with disabilities are coming into the community in greater and greater Numbers and as we get here, it’s important not to let a lack of accessible transportation hold us back Finally I heard earlier today that funding for upstate transportation systems will may cause the systems systems to leave people with disabilities without paratransit access during Sundays and holidays And this means that people with disabilities will not be able to visit their families for Sunday dinner, will not be able to be with their families on holidays And in a budget this size, frankly that strikes me as indecent and I encourage the committee to do something about that Thank you for your time I’m happy to answer any questions >> Thank you How long is your organization been in existence >> My organization has been around for 25 years this year >> And has it always had the same name, centers for disabilities rights >> That’s my belief >> The only reason I’m asking, I don’t think disabilities have rights People with disabilities have rights That distinction make any sense? >> That’s enough We’ve all had a long day >> We’ll close and you can go talk to him A couple of quick questions Is there anything in this budget that makes life better for people with special needs, from a money point of view? >> In the transportation budget? >> Yep >> I mean only to the extent that the capital improvement project improves accessibility >> Nothing directed towards the people with special needs in this budget >> Nothing that can I see >> That’s it Thank you, Mr. Chairman >> Thank you very much We are closed now until Monday morning at 9:30 Where we will be seeing you again at some point on the health budget