Department of Transportation
The enacted budget passed by the Legislature made the following changes to the Executive Budget (analysis as of March 30, 2006):
- Makes no changes to the Executive Budget’s State Operations appropriations for the department.
- Reduces the Dedicated Highway and Bridge Trust Fund (DHBTF) support for the Department of Motor Vehicles operating budget by $20million. In theory, this would leave an additional $20 million in the (DHBTF) that could be used to support in-house engineering services.
- Extends the State Single Audit Act to December 31, 2007 rather than permanently as proposed by the Executive.
- Rejects the Executive’s proposals for pilot projects for Public Private Partnerships and authorizing Design Build projects. It is likely that the Legislature will reconsider these proposals later in the legislative session.
The Senate and Assembly made the following changes to the Executive Budget (analysis as of March 15, 2006):
-
Senate:
· Rejected both the Design Build and the Transportation Facility Development Partnership proposals. However, while there is no language in the Senate’s Article VII bill, the Report of the Senate Finance Committee states that the Senate joins with the Executive in endorsing and recognizing the need for expanding and improving the State’s infrastructure and believes that innovative approaches must be developed so that additional funding and savings may occur. Moreover, the Senate indicates that it is supportive of the concepts advanced by the Executive provided that:
- The Commissioner of Transportation is authorized to designate and publicly identify one pilot design build project and one pilot for a public private initiative.
- Require integration and consensus with the affected parties (Building Trades, employee organizations) in the decision making process.
- Incorporate certain provisions of the Labor Law and labor concepts, such as application of third party contacts, prevailing wage rate, enforcement matters, project labor agreements and apprenticeship programs.
- Proposed the establishment of the New York State Rail Authority to review the recommendations of the NY Senate High Speed Rail Task Force Report.
- Reduced the amount of Dedicated Highway and Bridge Trust Fund (DHBTF) support for the Department of Motor Vehicles operating budget by $20million. In theory, this would leave an additional $20 million in the (DHBTF) that could be used to support in-house engineering services. The Senate removed $140 million in DMV operating costs to be supported by the DHBTF and instead supports these expenses with an annual $20 million General Fund appropriation until 2009 (see S6459B, Part EE).
Assembly:
- Rejected both the Design Build and the Transportation Facility Development Partnership proposals.
The Executive Budget recommends (analysis as of January 18, 2006):
- An increase of 179 FTEs from the adjusted SFY 2005-06 year-end target of 9,769. One hundred and seventy-seven of these FTEs are located in the Design and Construction program (Capital Projects-Other) and two are found in the Operations program.
- The proposed budget also indicates that DOT will end the SFY with 294 more FTEs than was projected by the SFY 2005-06 year-end target of 9,475. Specifically, this represents an increase of 216 FTEs for the Design and Construction program and an increase of 79 FTEs in the Preventative Maintenance program.
- Recommends an All Funds increase of $7.9 million, or 20%. This increase is evenly divided between Special Revenue Federal and Special Revenue Other.
- Recommends a Capital Projects Engineering Services increase of $131.7 million or a 21.7% increase. The budget does not specify how much of these funds support consultant engineers and how much support State employee engineers. Historically, the fund is split approximately 50%-50% between consultant and state engineers.
- Funding for the New York Metropolitan Transportation Council Engineering Services Account increases by $5.7 million (55.8%) to $15.9 million.
- Large increases in the non-personal service (NPS) and maintenance undistributed (MU) appropriations for several programs within the Passenger and Freight Transportation program which indicate a possible increase in contracting out in these programs. These increases should be explained in Statewide Labor –Management meetings. Substantial increases are in the :
§ FTA Program Management Account (+ $3 million MU appropriation, an 100% increase);
§ Motor Carrier Safety Account (+$265,000 NPS appropriation, a 60% increase) and (+$595,000 MU appropriation, a 33.5% increase);
§ Clean Air Fund (+$762,000 NPS appropriation, a 443% increase);
§ Rail Safety Inspection Account (+$100,000, a 555.6% increase)
§ Highway Construction and Maintenance Safety Account (a new program with a $200,000 MU appropriation);
§ Transportation Aviation Account (+$1 million NPS appropriation, a 32.8% increase).
- Legislation to authorize the DOT and the Thruway Authority to undertake a pilot design-build program and participate in a maximum number of "design-build contracts" (12 for DOT and five for the Thruway Authority). Last year Commissioner Boardman admitted that this legislation would increase the State’s reliance on consultant engineers.
- Legislation that would permit a controversial public/private partnership plan. If passed, this bill would permit public and/or private entities to acquire, design, finance, construct, improve, operate and maintain transportation facilities, provide transportation services, and impose user fees for the use of the facilities or services. The Legislature rejected this proposal last year. PEF vigorously opposes this proposal as we believe it will expand the State’s reliance on excessively expensive private contractors.
- Proposes legislation to extend the State Single Audit Act for the DOT. The bill makes permanent Section 21 of the Transportation Law, which, according to the Division of Budget, unifies and simplifies the audit process for State transportation assistance to municipalities and public authorities by aligning the process with the Federal singe audit. According to DOB, enactment of this bill is necessary to avoid duplicate reporting requirements on municipalities and to implement the SFY2006-07 Executive Budget because failure to extend these provisions would result in up to $300,000 in additional annual auditing costs for the Department. It is unclear in what DOT program these auditing expenses appeared in previous DOT budgets and whether these audits can be done by State employees in DOT. This issue should be explored at Statewide Labor –Management meetings. PEF’s Legislative Office is also investigating this issue.
Program Details-State Operations
Enacted
Proposed
Enacted
Change in
Percent
Program
2005-06 Budget
2006-07 Budget
2006-07 Budget
Appropriation
Change
All Funds
38,901,000
46,817,000
46,817,000
$7,916,000
20.3%
Special Revenue-Federal
10,567,000
14,577,000
14,577,000
$4,010,000
37.9%
Special Revenue-Other
28,334,000
32,240,000
32,240,000
$3,906,000
13.8%
Passgr&Frght Trans Pgm
27,508,000
34,193,000
34,193,000
$6,685,000
24.3%
Special Revenue Federal (SRF)
10,167,000
14,177,000
14,177,000
$4,010,000
39.4%
Special Revenue Other (SRO)
17,341,000
20,016,000
20,016,000
$2,675,000
15.4%
Federal Aviation Admin Planning Acct - (SRF)
1,060,000
1,060,000
1,060,000
$0
0.0%
Maintenance Undistributed
1,060,000
1,060,000
1,060,000
$0
0.0%
FTA Program Mgmt Acct - (SRF)
2,680,000
5,714,000
5,714,000
$3,034,000
113.2%
personal service
1,630,000
1,664,000
1,664,000
$34,000
2.1%
nonpersonal service
245,000
245,000
245,000
$0
0.0%
fringe benefits
805,000
805,000
805,000
$0
0.0%
Maintenance Undistributed
0
3,000,000
3,000,000
-100.0%
Motor Carrier Safety Acct - (SRF)
6,027,000
7,003,000
7,003,000
$976,000
16.2%
personal service
2,551,000
2,647,000
2,647,000
$96,000
3.8%
nonpersonal service
442,000
707,000
707,000
$265,000
60.0%
fringe benefits
1,260,000
1,280,000
1,280,000
$20,000
1.6%
maintenance undistributed
1,774,000
2,369,000
2,369,000
$595,000
33.5%
Metropolitan Mass Transp Operating Assist Acct - (SRO)
3,714,000
3,755,000
3,755,000
$41,000
1.1%
personal service
2,266,000
2,274,000
2,274,000
$8,000
0.4%
contractual services
325,000
332,000
332,000
$7,000
2.2%
fringe benefits
1,123,000
1,149,000
1,149,000
$26,000
2.3%
Public Transport Systems Operating Assist Acct - (SRO)
2,373,000
2,463,000
2,463,000
$90,000
3.8%
personal service
1,261,000
1,305,000
1,305,000
$44,000
3.5%
contractual services
487,000
498,000
498,000
$11,000
2.3%
fringe benefits
625,000
660,000
660,000
$35,000
5.6%
Clean Air Fund (Mobile Source Acct) - (SRO)
648,000
1,511,000
1,511,000
$863,000
133.2%
personal service
320,000
387,000
387,000
$67,000
20.9%
nonpersonal service
172,000
934,000
934,000
$762,000
443.0%
fringe benefits
156,000
190,000
190,000
$34,000
21.8%
Rail Safety Inspection Acct - (SRO)
559,000
681,000
681,000
$122,000
21.8%