07/29/2020 | Press release | Distributed by Public on 07/29/2020 14:31
PORT AUTHORITY URGENTLY CALLS FOR CONGRESS TO ACT ON REQUEST FOR $3 BILLION IN FEDERAL RELIEF FOLLOWING PRECIPITOUS DECLINE IN PASSENGER VOLUMES CAUSED BY COVID-19 PANDEMIC
Date: Jul 29, 2020
Press Release Number: 71-2020
$20 Billion in Public and Private Investment for Capital Construction Projects Over Next Five Years in Jeopardy
100,000 Good-Paying Jobs on the Line if Congress Leaves the Port Authority out of next COVID Bill
With Federal Aid, Port Authority Poised to Help Drive Recovery with Major Infrastructure Projects
Today, Port Authority of New York and Jersey Chairman Kevin O'Toole and Executive Director Rick Cotton called on the federal government to provide the Port Authority with $3 billion in direct financial assistance to avoid the devastating impact of sharp revenue losses to the agency's critically important capital construction projects. The agency has projected revenue losses of $3 billion over 24 months as a result of the COVID-19 pandemic. The federal aid will protect the agency's capital plan - and by doing so, to help drive the region's and the nation's economic recovery.
Without direct federal financial assistance, the Port Authority will be forced to urgently reconsider its 10-year capital plan. This would involve crippling the projects and undermining the creation of 100,000 good-paying jobs in a region that represents nearly 15 percent of national GDP. The projects at risk include the redevelopment of JFK Airport, new AirTrain systems for both LaGuardia and Newark Airports, replacement of the aging midtown Bus Terminal, the PATH extension to Newark Airport, and multiple important state-of-good-repair projects.
The PA's projects would leverage more than $10 billion in private investment on top of the Agency's spending - private investment that could easily be lost if these projects were compromised. Combining public and private investment, the Port Authority capital plan would drive $20 billion of capital spending in the next five years, beginning this summer. This construction spending could drive the desperately needed regional jobs recovery. Federal dollars would be leveraged five or ten to one through private investment. Good public policy should support the Port Authority moving forward with its capital projects - and preserving the associated private capital - not slashing them. Strong federal aid will allow the agency to do so.
The economic impact of the capital plan is felt strongly both within the region and nationally. The projects drive hundreds of millions of dollars in contracts to local, minority and women-owned businesses, and overall the agency would expect to source nearly $17 billion worth of materials - steel, concrete, glass, mechanical and electrical equipment, and more - materials that are manufactured all over the country.
'The Port Authority is directly responsible for moving people and goods across the region and country every single day,' said Kevin O'Toole, Port Authority Chairman. 'It is not only a bi-state agency but also a bipartisan one, having always been supported by leaders across the spectrum, who know that strong infrastructure ensures economic competitiveness and creates great jobs, and is provided by the Port Authority without relying on any tax dollars. We thank the New York and New Jersey Congressional delegations for their strong support and ask the leadership in the House and Senate to support job creation and fuel economic activity by including the Port Authority in the next aid package.'
'There's a reason that the Port Authority has long received strong support from both sides of the aisle - the agency has always driven job creation and is poised to play a supportive role in the region's and the nation's economic recovery. Our capital plan creates 100,000 good local jobs and leverages more than $10 billion in private money,' said Rick Cotton, Port Authority Executive Director. 'We are asking Congress to provide the Port Authority with direct financial assistance to offset its massive revenue losses so we can ensure critically important capital construction projects can move forward.'
The Port Authority is undertaking a series of critical, long-overdue infrastructure projects, some of which are deep into heavy construction. These projects employ, and will employ, tens of thousands of construction workers. And the timely commencement and completion of these projects - assuming that doing so is possible given the financial impact on the Port Authority associated with the coronavirus - will reshape the New York and New Jersey region for a generation to come, drawing on labor and supplies from across the region and beyond.
Without federal assistance, the Port Authority will be forced to reconsider its 10-year capital plan which includes the following critical projects:
Throughout the coronavirus crisis, the Port Authority has kept all of its facilities open and operating to get necessary food, fuel, and medical supplies into the region and to get essential workers safely to their jobs and back home. But the drop in activity at those facilities is staggering.
Over the course of the crisis, airport traffic has fallen over 90 percent; PATH commuter rail ridership has dropped over 90 percent; bridge and tunnel traffic has declined significantly. This collapse in traveler volume continues to produce enormous revenue declines for the agency, with current estimates showing the Port Authority will have a reduction in revenue of approximately $3 billion due to the coronavirus crisis. The outlook for the aviation sector has worsened in recent weeks given the explosion of cases across the country and the impact on air travel.
The Port Authority is financially self-supporting. It does not rely on state or local government funds. It has no power to tax. The Port Authority relies on revenue generated by businesses and customers who chose to use its facilities and rent paid by businesses that want to operate out of the agency's airports or seaports or bus terminals.
The Port Authority does not generally seek federal assistance. The agency is a stranger to the annual federal appropriations process. It is financially independent and is built to stand on its own two feet. Throughout its recent history, the Port Authority has only sought emergency federal assistance twice - after the 9/11 terrorist attacks and after Superstorm Sandy.
The Port Authority of New York and New Jersey
Founded in 1921, the Port Authority of New York and New Jersey builds, operates, and maintains many of the most important transportation and trade infrastructure assets in the country. The agency's network of aviation, ground, rail, and seaport facilities is among the busiest in the country, supports more than 550,000 regional jobs, and generates more than $23 billion in annual wages and $80 billion in annual economic activity. The Port Authority also owns and manages the 16-acre World Trade Center site, where the 1,776-foot-tall One World Trade Center is now the tallest skyscraper in the Western Hemisphere. The Port Authority receives no tax revenue from either the State of New York or New Jersey or from the City of New York. The agency raises the necessary funds for the improvement, construction or acquisition of its facilities primarily on its own credit. For more information, please visit https://www.panynj.gov.