The Port Authority has approved the 2022 capital and operating budgets.
After a month-long public comment period, the New York Ports Authority and the New Jersey Board of Commissioners approved the agency’s $ 7.9 billion 2022 budget. Budget 2022 includes $ 3.4 billion for operating spending, $ 2.7 billion for annual capital spending, and $ 1.8 billion for debt service and deferred spending.
The 2022 budget reflects the continuing impacts of the COVID-19 pandemic on the financial situation of the Port Authority. It ensures that the Port Authority maintains its commitment to high standards of safety, security, cleanliness and operational excellence for its customers, while maintaining fiscal discipline.
The 2022 budget investments are supported by a substantial increase in projected revenues in 2022, reflecting the agency’s continued resumption of activities after the COVID-19 pandemic, even though all budget levels remain significantly below pre-pandemic projections.
“The Board’s 2022 budget is a pragmatic approach to effectively balance the growth we forecast for the coming year with the realities of Covid-19, which has left us in a period of declining revenues, operational adjustments and rethinking the way we do business to move this region forward in the most efficient way, ”said Port Authority President Kevin O’Toole. “With the adoption of today’s budget, we continue to support our key capital investments within a framework that allows current projects to move forward, while developing a strategy for future growth and improvement of services. “
“This budget is disciplined and responsible,” said Port Authority Executive Director Rick Cotton. “The budget recognizes the very difficult financial environment while providing the necessary resources to enable the agency to meet its responsibilities and accommodate the growing volume of travelers.”
Toll tariffs for cars and trucks, as well as PATH tariffs, remain unchanged in 2022. In accordance with the action of the Council of September 2019 by the Council of Commissioners of the Port Authority which adopted an increase schedule tolls and tariffs, the 2022 budget reflects the following:
- A toll increase of $ 3 per bus, effective January 3, 2022;
- Based on an automatic increase in inflation, an AirTrain fare increase of $ 0.25, effective March 2022.
The 2022 operating expenditure budget, totaling $ 3.4 billion, reflects a base increase of $ 211 million, or 6.6%, over the 2021 austerity operating expenditure budget The 2021 austerity operating expense budget reduced the agency’s workforce by 626 positions (7%) and postponed approximately $ 190 million in cost reductions implemented in 2020 (in addition to proceeding other cost reductions needed to offset contractual and structural increases inevitable elsewhere), among other reductions.
This 2022 operating expense budget keeps the workforce at the reduced levels of 2021 and provides for inflation-based growth for labor and contracts, non-discretionary contractual increases, and targeted additional spending for :
- Cautiously restore the resources reduced due to the drop in activity volumes at the height of the pandemic compared to the resumption of activity in progress;
- Make additional security investments, including funding for two new classes of police (needed to maintain the size of the police force after considering retirements) and additional cybersecurity protections; and
- Invest in new projects and initiatives, including innovative demonstration projects, sustainability initiatives to advance the agency’s new net zero commitments, and revenue generation and customer experience projects.
The 2022 capital spending budget of $ 2.7 billion, which advances the agency’s commitment to rebuilding the region’s aging infrastructure, reflects an increase of $ 316 million, or 13% over budget 2021 austerity capital spending budget. This 2022 capital spending budget provides for additional spending in a fiscally prudent manner compared to the reduced spending levels in 2020 and 2021 that were necessary due to the negative impacts of COVID-19 on the agency’s cash flow and financial condition. However, for the third year in a row, annual capital spending is still significantly reduced from planned spending before COVID-19.
The 2022 debt service and deferred spending budget of $ 1.8 billion reflects an increase of $ 74 million, or 4.5%, over the 2021 debt service and deferred spending budget This increase is due to the timing of borrowing required to help fund the capital plan, in addition to an increase in deferred spending to fund sustainability initiatives, vehicle purchases and replacements (including electric vehicles). and buses) and planned technological investments.
Read the agency’s Budget 2022 online here.
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