$5B Worth Of Projects Delayed In New York, New Jersey

The Port Authority of New York and New Jersey said it is again delaying $5 billion of projects because an increase in fares and tolls approved on Friday was less than it originally had proposed.

The delayed projects include the redevelopment of the Central Terminal Building at La Guardia Airport and Terminal A at Newark Liberty International Airport, and the construction of a bus garage at the Port Authority Bus Terminal, according to a spokesman for the agency. The 10-year capital plan, which includes completing construction of the World Trade Center, now stands at $25.1 billion.

In addition, the Port Authority’s commissioners—appointed by New York Gov. Andrew Cuomoand New Jersey Gov. Chris Christie—vowed to review the agency’s expenses and capital plan, which have come under fire for excessive spending.

“This board will direct and closely oversee the authority’s management to review all aspects of our operations, including a comprehensive review of compensation and benefits and revaluation of the Port Authority’s capital projects,” said Chairman David Samson, moments before the commissioners unanimously approved the first toll and fare hikes since 2008.

“So given the Port Authority’s current financial situation, we are facing very difficult choices,” Mr. Samson said. “Business as usual is not an option.”

Nine of 12 commissioners present voted to increase tolls for drivers paying with E-ZPass by $1.50, to $9.50 during peak hours. Tolls would then rise 75 cents every year until 2015, for a total increase of $4.50.

Meanwhile, fares on the PATH train will increase 25 cents next month, and again each year for the next three years, for a total increase of one dollar.

The Port Authority controls two tunnels and four bridges, as well as the region’s airports, seaports and the PATH train.

Many of the capital projects had been previously planned but were put off during the economic downturn as revenue from tolls were lower than expected.

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