Congress is set to approve an add-on to the February stimulus law that will allow public-transit agencies, including New York’s state-run Metropolitan Transportation Authority, to spend 10 percent of their stimulus money on operating costs, rather than for capital projects, the Daily News reports.

Like the rest of the stimulus, this proposal will exacerbate existing imbalances. New York and other states already spend far too much on labor costs at the expense of infrastructure investment.

The MTA’s operating deficits stem from its unreformed pension, healthcare, and work-rules costs. Meanwhile, the authority’s next six-year, $30 billion capital budget, even with the $1.1 billion in stimulus money, is likely to be woefully underfunded.

If Congress allows the MTA to take $110 million from the stimulus package and put it toward operating costs, it follows that the MTA’s capital plan — and the city’s infrastructure — will bear an even greater shortfall.

It follows further that the state will be able to delay inevitable reforms to the MTA’s workforce by however much time $110 million buys these days.

You may also like

New York’s Proposed ‘MCO Tax’ Would Generate a Fraction of What Lawmakers Expected

The Hochul administration's proposed "MCO tax" would generate far less than the $4 billion in extra federal aid anticipated by state lawmakers when they approved the concept this spring, according to documents obtained by t Read More

How 1199 Earns its Reputation as Albany’s No. 1 Labor Power Broker

For the fourth time in six years, the president of New York's largest health-care union, George Gresham of 1199SEIU, has won the top spot on the "Labor Power 100" list from City &am Read More

New York Runs Away from the Pack on Medicaid Spending

New York's per capita Medicaid spending jumped 14 percent in 2023, moving it further ahead of the rest of the country, recently released nationwide data show. In the federal fiscal year that ended last September, New York spent $94.6 billion Read More

Hochul’s ‘Straight Talk’ on Medicaid Isn’t Straight Enough

Arguably the biggest Medicaid news in Governor Hochul's budget presentation was about the current fiscal year, not the next one: The state-run health plan is running substantially over budget. Read More

New York’s Medicaid Spending Is Running Billions Over Budget

New York's Medicaid program ran billions of dollars over budget during the first half of the fiscal year, adding to signs of a brewing fiscal crisis in Albany. According to the fro Read More

Hospital Lobby’s TV Campaign Spreads Misinformation About Medicaid

As New York's health-care industry agitates for more money from the state budget, two of its most influential lobbying groups are airing TV ads that make alarmist and inaccurate claims about Medicaid. Read More

Hochul’s ‘Pay and Resolve’ Push for Hospitals Triggers Déjà Vu

Two years ago last week, I wrote in the Daily News about how then-Governor Andrew Cuomo was pushing a costly change to insurance law on behalf of a hospital group that had supported his campaign through a fund-rai Read More

MTA’s Casino Funding Takes Voters For A Ride

As the Legislature prepares to authorize new downstate casinos, some voters who supported the amendment are discovering they came up snake-eyes. Read More