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Despite Lower Revenues
and Higher Costs, $5 Billion Budget Continues Critical
Transportation Programs; No Rise in Bridge, Tunnel
Tolls and PATH Fares
The Port Authority
Board of Commissioners today approved a $5 billion
budget for 2003 that strengthens security at regional
transportation facilities, restores PATH commuter
train service between New Jersey and Lower Manhattan,
and continues key transportation improvement programs,
such as AirTrain JFK and the purchase of a fleet of
new PATH rail cars – without raising bridge and
tunnel tolls or PATH fares.
The 2003 budget also
continues to provide significant funding to the states
of New York and New Jersey to assist with their
transportation and economic development projects, said
Port Authority Chairman Jack G. Sinagra today, at the
monthly meeting of the bistate agency’s Board of
Commissioners. "The Port Authority’s 2003
Budget demonstrates this agency’s continued
resilience and determination to fulfill its
commitments to the public – to provide safe, secure
and efficient transportation facilities, and to
improve customer services, for the people of New York
and New Jersey," Mr. Sinagra said. "Because
of the continuing economic fallout of September 11,
which both reduced the agency’s revenues and
increased its security and insurance costs, we have
had to re-evaluate our priorities and make some
adjustments to the record five-year capital plan
announced at the beginning of 2001. "Even
so," Mr. Sinagra added, "the Port Authority
remains financially strong and able to carry on with
record levels of capital investment, ensuring the
transportation services that the public expects and
deserves." In 2003, the Port Authority
anticipates investing about $1.84 billion in
facilities in both states. Over the five-year period
from 2003 to 2007, the agency expects to invest
approximately $8.7 billion in transportation and
security improvements for the region, including
approximately $1 billion in direct assistance to the
two states for transportation and economic development
projects. New York Governor George E. Pataki said,
"The Port Authority took a devastating blow on
September 11, both in human and financial terms, and
it now faces some of the most challenging fiscal times
we have ever seen. This new budget demonstrates the
Port Authority's commitment to security for all who
live in and visit our region, and highlights the
agency’s continuing strong commitment to rebuilding
and restoring Lower Manhattan."
New Jersey Governor
James E. McGreevey said, "For more than 80 years,
the Port Authority has been a critical part of this
region’s economic growth and quality of life. In
spite of the terrible toll of September 11, the Port
Authority remains committed to providing a
transportation system that keeps our economy strong
and allows us to compete globally. This budget
reflects that commitment. It makes a critical
contribution to our region’s prosperity through its
investments in new PATH cars and a new PATH fare
collection system; by helping rebuild commuter
connections to Lower Manhattan; by deepening our
harbor; and by continuing to improve our
airports."
Port Authority Vice
Chairman Charles A. Gargano said, "The Port
Authority, with this budget, continues to contribute
mightily to the economic recovery of this region. Not
only will we rebuild the PATH connection to Lower
Manhattan for approximately 40,000 daily commuters,
but we also will help create a beautiful new downtown
transit hub that will make commuting to Lower
Manhattan easier and more pleasant. In addition, Port
Authority funds will continue to help the states
accomplish important economic development and
transportation projects, further aiding our regional
recovery."
Port Authority
Executive Director Joseph J. Seymour said,
"During the last year, the Port Authority has
faced the most significant challenges of its 80-year
history. But our commitments remain the same –
improving customer service, building and maintaining
critical transportation infrastructure, and renewing
our focus on safety and security. Even in the face of
the devastating events of September 11, 2001, the Port
Authority was able to invest more than $1.5 billion in
capital projects in 2002, a new single-year record.
"There’s no question that the last year has had
an impact on our resources and our ability to
accomplish everything we would like to," Mr.
Seymour said. "We have had to refocus our
priorities in the post-September 11 world, to rebuild
and tighten security at all of our public facilities.
We have had to put first things first.
Despite the challenges,
we have been able to keep moving forward on the
critical projects that will ensure the prosperity and
quality of life of the New York-New Jersey region.
"The result of this refocusing is a budget and
long-term capital plan that avoid any service
cuts," Mr. Seymour said. "In fact, they
include funds for new services, such as a new
elevated, automated rail link to John F. Kennedy
International Airport, and a feasibility study for a
possible PATH extension to Newark Liberty
International Airport. In our five-year plan, other
innovative service improvements are planned, including
a high-speed "E-Z Flow" lane system for the
Port Authority’s Staten Island vehicular crossings.
"At the same time,
our long-term capital plan reflects the critical
priority of improving security for everyone who
travels in and through this region. Toward that end,
we have earmarked more than $500 million to reinforce
security systems and improve public safety at our
critical transportation facilities." The 2003
budget also includes additional costs for the
extension of the municipal lease with the City of
Newark for the operation of Newark Liberty
International Airport and Port Newark. And the Port
Authority is continuing to work toward an agreement
with the City of New York for an extension of the
lease for the New York City airports. "While such
new lease agreements will put pressure on our bottom
line in the short term," Mr. Seymour added,
"they are essential to the Port Authority’s
financial strength in the long term, and they will
allow for the farsighted capital investment in the
airports necessary to their continued success. We have
been able to mitigate some of the additional demands
on our financial resources that these leases entail by
successfully holding down the Port Authority’s
routine operating and maintenance expenses."
The Port
Authority’s $5 billion budget for 2003 includes
$1.99 billion in operating expenses, $1.84 billion in
gross capital expenditures, $1.11 billion in debt
service charged to operations and reserves, and $66
million for other expenditures.
Major
capital investments and customer service improvements
in the agency’s five-year capital plan, and funded
in the 2003 budget, include:
- • The reopening of
the temporary PATH World Trade Center station, and
the Exchange Place (Jersey City) PATH station.
- Development of
a grand, permanent intermodal transit terminal at
the World Trade site, integrated with a downtown
concourse connecting the World Financial Center to
the west with a new subway Transit Center to the
east.
- Security
projects at multiple facilities, including greater
use of closed circuit T.V.; improvements to
computerized access control systems; and
additional fencing and barriers.
- The completion
of AirTrain JFK, with service beginning by
year-end 2003, and feasibility studies for a
possible PATH connection to Newark Liberty
International Airport.
• A new airline terminal at John F. Kennedy
International Airport, and a major expansion of
Terminal A at Newark Liberty International
Airport. • Completion or substantial progress of
major construction projects at Newark Liberty
International Airport, including structural
parking lots and new roadways, as well as runway
and taxiway improvements at LaGuardia, Kennedy and
Newark Liberty airports. • $191 million for
assistance to New York State and New Jersey
transportation and economic projects in 2003 (with
an additional $800 million in such assistance
expected in 2004-2007). Projects slated to receive
such funding include the purchase of bi-level cars
for New Jersey Transit, and the Farley-Penn
Station Redevelopment Project.
- Design and
implementation of a new PATH regional fare
collection system, utilizing SmartCard technology,
which will improve the quality of commuter transit
for tens of thousands of riders each day.
• Design and
implementation of high-speed "E-Z Flow" lane
systems for the Port Authority’s Staten Island
vehicular crossings. • Advancement of environmental
assessments for a Goethals Bridge replacement. •
Continued deepening of shipping channels to 45 and 50
feet, to allow New York Harbor to accommodate the next
generation of deep-draft containerships. •
Development of a new system of river barges and new
inland distribution centers for containerized cargo,
to help make cargo distribution more efficient and,
ultimately, to attract more cargo to New York/New
Jersey.
2002 ACTIVITY LEVELS AT
PORT AUTHORITY FACILITIES With the nation’s airline
industry continuing its recovery from 2001, activity
levels at the Port Authority’s airports were
somewhat higher than forecast in the 2002 budget, but
still below 2001 levels. Based on unaudited results,
airport passenger traffic for 2002 is estimated at
approximately 81 million, down approximately 2.5
percent from 2001. The two New York City airports
welcomed 52 million passengers, unchanged from 2001.
JFK posted a total of 30 million passengers, while
LaGuardia welcomed 22 million passengers. Newark
Liberty International Airport saw a total of 29
million passengers, a decrease of 2 million compared
to 2001. The Port Authority’s two trans-Hudson
vehicular tunnels and four bridges reported a combined
estimated eastbound traffic volume of 125.4 million
for 2002, an increase of about 3.5 million vehicles
from 2001.
In 2002, with the PATH’s
downtown line still under repair, about 52 million
passengers used the PATH rail transit system, a
decrease of approximately 18 million from 2001.
ESTIMATED 2002
FINANCIAL RESULTS Despite the continuing impact on
agency revenues of reduced regional economic activity
and higher security and insurance costs since
September 11, 2001, the Port Authority’s remains
financially strong, Executive Director Seymour said.
Based on preliminary, unaudited results, the Authority’s
net operating revenues in 2002, after deducting
recoveries from insurance and FEMA for assets
destroyed on September 11, were approximately $749
million. Gross operating revenues were approximately
$2.67 billion in 2002. The 2002 amount was in line
with the 2002 gross revenue forecast of $2.64 billion.
Operating expenses in 2002 totaled approximately $1.94
billion, compared to $1.80 billion in 2001. Reserve
levels at year-end 2002 were $1.717 billion. By the
end of 2003, it is anticipated that reserves will be
reduced to $1.458 billion. |
