Independent Analysis Highlights Economic Impacts of NYMTA’s Proposed Capital Plan
The report (download below), commissioned by the Partnership for New York City and released on Jan. 23 at the annual meeting of the New York Building Congress (NYBC) attended by more than 500 construction industry and union leaders, describes the impact of the MTA’s proposed capital investment if the plan is approved and fully funded during budget negotiations between Gov. Kathy Hochul and the State legislature.
The MTA plan proposes investing $68.4 billion in capital improvements and state of good repair of the regional mass transit system. If fully funded, the 2025-2029 Capital Plan will generate new economic activity for all 10 regions of the state, according to the report. More than one in four jobs will be created outside of New York City, and the average direct labor income would be roughly $119,000 per worker.
While most of the direct spending will be in New York City, Long Island stands to gain more than $7.5 billion in GDP and more than 10,400 jobs, according to the report. The other regions will also realize substantial benefits, including: $6.1 billion in GDP and an estimated 9,160 jobs in the Hudson Valley; $50 million and 90 jobs in the North Country; $120 million and 200 jobs in Western New York; $80 million and 140 jobs in the Finger Lakes; $60 million and 100 jobs in Central New York; and another $60 million and 100 jobs in the state’s Southern Tier.
The proposed Capital Plan is expected to include major purchases of key equipment from manufacturers in New York, including new rail and subway cars, buses, new signaling equipment, and additional tracks. “Implementation of the plan relies on the expertise and services of New York-based construction, engineering, and professional services firms and thousands of New York workers. Collectively, this activity supports both direct and indirect jobs and business revenues throughout the state,” the MTA said. Every $1 billion of MTA spending would support nearly 5,900 New York jobs, half direct and the remainder through indirect or induced economic effects. Furthermore, for every $1 billion spent on new rail cars, 900 New York jobs are created, according to the agency.
“This analysis indicates that fully funding the MTA’s proposed capital program will be a ‘win-win’ that will catalyze critical improvements in transit service and provide a major boost to the state’s economy,” said Partnership for New York City President and CEO Kathryn Wylde.
“The MTA carries over 5.5 million passengers every weekday across its network of subways, buses, and commuter rails, but its impact is far greater. We are pleased to have assisted the Partnership for New York City in analyzing the economic impact of the proposed MTA Capital Plan, and how the MTA serves as an economic engine beyond the borders of its service area and throughout the State of New York,” said Tom Rousakis, EY U.S. Transactions Infrastructure Leader.
“It’s no secret the MTA is the economic engine of the region, and this report confirms once again that investing in transit is a smart play for all New Yorkers,” said MTA Chair and CEO Janno Lieber. “The 2025-2029 Capital Plan will not only bring the system into the 21st century but supports more than 70,000 jobs and generates billions of dollars in economic activity in every corner of the State. Now it just needs to be fully funded.”
