I often forget how exciting capital investment can be. Most of us in muniland think more about bond structures, credit ratings and yields than about the actual projects being built. A short report about the MTA from Morningstar Municipal caught my attention:
The MTA has released its long-term capital needs assessment for fiscal years 2015-2034. This 20-year plan serves as a planning guide for the authority’s development of its five-year capital plan.
As Washington lurches from debt crisis to fiscal squeeze, it’s easy to see how dysfunctional government can be. Seeing MTA, the public entity responsible for the subway system, bridges and tunnels, 4,600 buses, the Long Island Railroad and Metro North, plan ahead 20 years restores my faith. After reading how much the MTA intends to spend, $106 billion, you may get excited about how New York City’s transit infrastructure will be renewed and expanded:
Over the next 20 years, the system plans on engaging in projects aimed to restore the system as well as expanding and enhancing service provision. Roughly $106 billion in projects to address continuing needs have been planned. This number is partially driven by the significant backlog of assets that need rehabilitation as well as current assets that are expected to reach the ends of their useful lives over the plan’s time period. Between $25 billion and $28.6 billion in projects is planned for each five-year increment of the assessment.
Most of the spending will go to maintenance for MTA’s system, the largest in the nation: