TESTIMONY
by Kathryn Wylde President and CEO
PARTNERSHIP FOR NEW YORK CITY

New York, New York
October 17, 2005

PDF 90K

Testimony before the New York City Council Transportation Committee

No public investment is more important to New York’s future economic growth than maintenance of a safe and reliable transportation system. That is why the Partnership for New York City, which represents the city’s largest employers and investment leaders, urges New Yorkers to vote “yes” on the 2005 Transportation Bond Act.

The bond act is an investment in job creation and in our future as a global center of commerce, innovation and culture. Employees must be able to get to work and arrive at work on time if we want our knowledge-based economy to outperform its global competitors. Every employer and employee understands the critical role our transportation network plays in supporting our economy 365 days a year.

In our Transportation Choices study, the Partnership documented the catalytic role that investment in new and improved mass transit plays in spurring job creation. The availability and reliability of mass transit continue to be major factors in business location decisions, driving demand for commercial real estate and dictating patterns in job growth.

Passage of the bond act will ensure that New York has the resources to maintain and upgrade our transit system and invest in new projects that will spur economic growth throughout the region. For New York City, where subways, buses and commuter rail carry a third of America’s mass transit commuters, approval of the bond act will yield immediate results – new buses and rail cars, security cameras in the subways, plus modernization of outdated stations and equipment.

Five years ago, there was a similar bond act on the ballot. Then, as now, opponents painted it as an Albany ploy to put taxpayers deeper in debt. It was voted down. The result was deterioration in equipment and services, stalled expansion projects, and an inability to quickly upgrade security systems after 9/11. In the New York City metropolitan region, commuters who account for 8 million rides a day paid the price of inaction, as fares had to be raised to keep the system functioning.

The 2005 Bond Act will generate $2.9 billion toward a total state transportation financing plan of more than $35 billion over the next 5 years. This plan has been designed to equitably allocate expenses among all those who benefit from a well-maintained transportation network.

Riders and drivers who use the system are already doing their fair share by paying rising fares and increased tolls, gas and sales taxes and vehicle fees. The federal government will pick up part of the cost for system improvement, but only if funds from the bond issue are put up as a local match. Finally, business and individual taxpayers will contribute their fair share, too, through the state assumption of debt service on the transportation bonds.

This bond act is not the place to take a stand on state’s longstanding fiscal problems. There are better ways to get a start on putting the state’s fiscal house in order.

Voting “yes” on this bond act is an opportunity for all New Yorkers to endorse spending priorities that directly contribute to job creation, business and worker productivity, and economic growth throughout the state.

To protect the economic base we enjoy today and to guarantee its growth in the decades ahead, the business community urges a “yes” vote on the 2005 Transportation Bond Act.

The Partnership for New York City (www.pfnyc.org) is a network of business leaders dedicated to enhancing the economy of the five boroughs of New York City and maintaining the city’s position as the global center of commerce, culture and innovation.