More Than 30 Percent Increase in Capital Expenditures, Including More Than $600 Million for World Trade Center Rebuilding and Record Security Investments
The Port Authority today released a preliminary $5.7 billion 2007 budget for public review. The agency\'s 2007 preliminary budget increases capital expenditures by $625 million and holds operating expenses flat while continuing to increase security spending and decrease administrative costs.
As a part of new governance reforms, the budget document is being released in advance of the Board of Commissioners final vote on budget approval. The Port Authority Board of Commissioners is scheduled to vote on adoption of the budget on December 14th.
The preliminary budget is available on the Port Authority\'s Web site - www.panynj.gov. Members of the public are encouraged to comment via a feedback feature on the Web site.
Despite the record size of the budget, the operating portion of the budget remained relatively flat compared to the 2006 budget. The majority of the budget increases are due to ongoing work to rebuild the World Trade Center site and to enhance security at Port Authority facilities.
The preliminary budget calls for capital funds to continue the redevelopment of the World Trade Center site, to build a new fleet of PATH cars, to advance the Trans Hudson Tunnel project, to upgrade Terminal B at Newark Liberty International Airport, and to construct a new passenger terminal at John F. Kennedy International Airport.
Port Authority Chairman Anthony R. Coscia said, \"This budget funds our commitments to build new infrastructure, upgrade existing facilities, and invest heavily in security improvements, while holding the line on operating expenses and reducing administrative costs. The Port Authority is now responsible for some of the most critical projects of our generation, including the rebuilding of the World Trade Center, construction of the memorial and the construction of a second commuter rail tunnel into Manhattan. This budget funds those responsibilities.\"
Port Authority Vice Chairman Charles A. Gargano said, \"This budget furthers our commitment to rebuild the World Trade Center site, which will restore the vibrant street life in the area and allow Lower Manhattan\'s economic recovery to continue. It also provides an extraordinary level of investment to ensure that our bridges, tunnels, airports, seaports and rail system remain safe and secure for the millions of people who use them each year.\"
Port Authority Executive Director Kenneth J. Ringler Jr. said, \"Each year, our Board must make tough decisions on how to deliver an aggressive Capital Plan with the limited resources we have to invest. This budget represents our recommendations to the Board on how we can deliver a secure, efficient transportation network in the region.\"
The Port Authority\'s $5.7 billion budget includes $2.3 billion for operating expenses, $2.5 billion for capital improvements, $806 million for debt service and $69 million for other expenditures.
Major elements of the 2007 Port Authority budget include:
- Operating expenses are relatively flat, up 1.1 percent over the 2006 budget despite an increase in security spending.
- Capital expenses increased by $625 million, or 33.2 percent, due primarily to work at the World Trade Center site in connection with the Freedom Tower, Memorial and common infrastructure. Of this amount, approximately $406 million will be recovered from insurance and third parties.
- A record $679 million in capital and operating spending for security at Port Authority facilities.
- Preliminary planning and site acquisition for THE Tunnel Project, a new trans-Hudson passenger rail tunnel.
- Construction of the new Terminal 5 at John F. Kennedy International Airport.
- Redevelopment of Terminal B at Newark Liberty International Airport.
- Advancing purchase program for 340 new PATH rail cars.
to download the preliminary 2007 budget (2.3 MB).
The Port Authority of New York and New Jersey operates many of the busiest and most important transportation links in the region. They include John F. Kennedy International, Newark Liberty International, LaGuardia and Teterboro airports; AirTrain JFK and AirTrain Newark; the George Washington Bridge and Bus Station; the Lincoln and Holland tunnels; the three bridges between Staten Island and New Jersey; the PATH (Port Authority Trans-Hudson) rapid-transit system; the Port Authority-Downtown Manhattan Heliport; Port Newark; the Elizabeth-Port Authority Marine Terminal; the Howland Hook Marine Terminal on Staten Island; the Brooklyn Piers/Red Hook Container Terminal; and the Port Authority Bus Terminal in midtown Manhattan. The agency also owns the 16-acre World Trade Center site in Lower Manhattan.
The Port Authority is financially self-supporting and receives no tax revenue from either state.end
Contact: Steve Sigmund
John J. McCarthy