THE CITY OF NEW YORK

OFFICE OF THE MAYOR

NEW YORK, NY 10007

September 25, 2019

Mr. Patrick J. Foye

Chairperson & CEO
Metropolitan Transportation Authority (MTA)
2 Broadway, 20th Floor
New York, NY 10004

Dear Chairperson Foye:

I am writing in reference to the proposed MTA 2020-2024 Capital Plan which was released for
public review on Thursday, September 19, 2019.

New Yorkers need reliable public transit. It is clear that the MTA will need significant resources
to deliver on that promise for the millions of New Yorkers who depend on our subways and buses every
day. And it’s equally apparent that riders need and deserve effective management and better planning to
deliver the massive amount of work required on-time and on-budget. Those are the criteria on which the
City is evaluating the proposed 2020-2024 MTA Capital Plan.

I strongly support the vision set forth in the Fast Forward Plan proposed by NYC Transit President
Andy Byford. The emphasis on re-signaling, accessibility, and an enhanced bus network outlined the
essential ingredients needed to turn around the system. That is why when Governor Cuomo and I released
a 10-point plan in February 2019 to transform and fund the MTA, it was important that we explicitly
outline the categories of investment we would want prioritized with proceeds from congestion pricing and
new tax revenue including, “new signaling, new subway cars, track and car repair, accessibility, buses and
bus system improvements, and further investments in expanding transit availability to areas in outer
boroughs that have limited mass transit options.” And to the State’s credit, the budget enacted shortly
thereafter placed eighty percent of congestion pricing and new tax revenues in a lockbox for the exact
same categories of investment outlined in the 10-point plan.

Based on our preliminary review of the proposed 2020-2024 Capital Plan, the outlined
investments appear to align with the same investments in the 10-point plan and in the enacted State
budget. Given the general alignment with investments we have long advocated for, it is appropriate that
New York City contribute to the 2020-2024 Capital Plan. As we determine the size and nature of that
contribution, we intend to secure conditions to advance the needs of transit riders and taxpayers.

This is the largest capital plan ever proposed by the MTA, and it assumes the largest contribution
ever by the City of New York. That demands intense scrutiny from the MTA board, the Capital Program
Review Board, the City and the State. This recent plan requires a full review that yields guarantees on the
MTA’s cost estimates, the agency’s ability to execute a plan of this size, and its ability to reform the way
it delivers large projects to prevent delays and cost overruns. It is equally important that we respect the
City’s budget process, the key stakeholders involved in its formulation and adoption, and the need to
evaluate how a contribution of this size would compete against other pressing City capital needs.

In particular, therefore, it is important that the following three conditions are agreed to before City
taxpayers make a specific contribution:

1. The $25 billion in capital funds that will be generated from Central Business District Tolling
(CBDT) and new tax revenues, as well as the MTA’s funding obligations to the 2020-2024
Capital Plan, must be exhausted before a City contribution is used.
o Dedicated funding sources for the express purpose of funding the 2020-2024 Capital Plan
comprise a considerable portion of the funding needed and these monies must be used first;
CBDT implementation should happen on the statutory timeline and the MTA should not,
for example, expect a City contribution to be frontloaded if CBDT implementation is
delayed.

2. The independent forensic audit required by the enacted state budget should be accelerated
so its findings could inform the capital plan review process.
o It was as recent as February 2019 when the 10-point plan called for an independent
forensic audit to ensure accuracy in MTA forecasts, projections and capital plans. The
language in the enacted state budget exactly follows the capital plan elements upon which
a capital plan is based. It is only logical that the audit results inform the capital plan if cost
estimates are to be deemed credible.

3. City priorities for improving rider experience must be addressed.

o The City is interested in service-oriented priority projects and would like these projects
addressed on behalf of riders. We look forward to discussing these projects with you and
your team in the coming weeks.

New York City stands ready to contribute to an MTA capital plan, as it has done in the past.
Under our administration, the City made the largest general capital contribution in history to the MTA’s
2015-2019 Capital Plan at $2.66 billion and played a critical role in recent subway performance
improvements by funding half of the Subway Action Plan. It is my firm belief that we can reach a similar
agreement on this vital 2020-2024 Capital Plan. We look forward to discussing the City’s priorities in the
weeks ahead.

Sincerely,

Bill de Blasio
Mayor