Conservatives Urge A NO Vote on Proposal Number Two: Transportation Bond Act

Ft. Hamilton Station, NY -- State Conservative Party Chairman Michael R. Long is urging all New York voters to reject the costly transportation bond act on this November’s ballot. Long stated that New York residents are already saddled with too much government debt and outlined the Party’s position below:

Transportation, by any means, is crucial to all New Yorkers, and we certainly agree that transportation safety is a legitimate role of our government.

However, the proposal to bond $2,900,000,000 is disingenuous to the voters who are being asked to approve the bonding.

According to published reports, the Bond Act is part of a 5 year, $36 billion transportation capital plan approved by the legislature and Gov. Pataki earlier this year. All of the capital funds and the bond act proceeds (if approved) are split between mass transit and highway projects. The money from the bond act is earmarked for few complete projects in total ~ most is earmarked to pay a portion of many projects, possibly leading to the need for future bonding.

If approved, the bond act would subsidize part of the $17.9 billion (over five years) for MTA projects which include $450 million for the first leg of the 2nd Avenue Subway (an idea bouncing around since 1929); $450 million for LIRR extension and $100 million toward a rail link between downtown and Kennedy Airport.

The Department of Transportation is allocated $17.9 billion (of the 5 year plan) and is subsidized by the bond act, if approved, for projects which include, $1.13 billion for state highway and bridge projects, $76 million for aviation, $50 million for non MTA lines, $50 million for Canals and $135 million for rail and port improvements.

The agreement calls for “prevailing wages” to be paid on most bond act projects increasing the cost by up to 15%, a “labor protection” sought by Speaker Sheldon Silver who is committed to completing the 2nd Avenue subway.

In 2000, the Conservative Party urged defeat of the transportation bond act that was on the ballot. At that time, New York State carried $36.4 billion in debt, today the debt is $47.5 billion, a 31% increase. Debt as a percentage of personal income is also up 22% since 2000 while the state’s overall budget is up from $77.5 billion to $106.5 billion. [1]

While the proposal asks for approval of $2.9 billion, the Conservative Party believes the true cost of the bond to be $4.6 billion (based on 5% interest rate and a 20 year general obligation bond) which equals $232 million per year debt service ~~ a cost New York residents simply can not afford. If the state chooses to issue a 30 year general obligation bond, the cost is $5.6 billion which equals $188 million per year in debt service ~~ is this the legacy we want to approve for our children and their children?

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^[1] The Business Council of NYS, Inc., August 17, 2005 Transportation Committee Meeting Minutes