As New York plans to boost its capital spending on infrastructure over the next five years, the state is being forced to re-evaluate its planning process, which is falling short, according to State Comptroller Thomas DiNapoli.
According to a new report by the office of the state comptroller, Strengthening New York’s Infrastructure: Spending Trends and Planning Challenges, New York spent an average of $9.8 billion annually on capital needs from fiscal year 2009-2010 through 2018-2019. Over the next five years, that figure is forecasted to increase to an average of $13.4 billion annually.
Transportation has historically been the state’s largest spending category at $47.5 billion, and it is expected to stay that way. However, its share of capital spending is expected to drop from 47.5 percent over the previous decade to 38.4 percent in the five-year planning period. At the same time, economic spending is expected to increase to 13.5 percent of total capital investments, up from 8.8 percent in the previous decade.
Other sectors slated for spending include health, housing and education.
“Clearly, New York needs robust capital investment for transportation, environmental protection and other essential needs,” according to DiNapoli. “Yet, the current capital planning process falls short with respect to setting priorities among competing demands and in assessing the cost-effectiveness of public investments.”
Bonds issued by public authorities are expected to finance 54.2 percent of spending in the current plan, according to the report. Borrowing and general obligation debt will fund 57.4 percent of the capital spending. However, according to the report, billions of dollars of debt has been issued to finance capital spending that will not benefit the state.
The comptroller has proposed the creation of a capital asset and infrastructure council, which will be responsible for developing and implementing a comprehensive process to identify existing state assets, assess their condition, and address future needs. The council would create a 20-year long-term strategic plan to be updated every two years. In addition, the comptroller would eliminate the use of off-budget capital spending, which DiNapoli said inhibits transparency and accountability, and impedes the analysis of costs and benefits.
“Given the increasing scale and the importance of New York’s investments in infrastructure, effective capital planning focused on the state’s most pressing needs is essential to help assure that public resources are put to good use and that critical assets are well-maintained,” according to the report. “By contrast, poor capital planning may lead to the waste of taxpayer dollars and the deterioration of essential infrastructure.”
To read the full report, click here.
