Infrastructure priorities in the eye of the beholder - by Ken Fisher

Donald Trump, Andrew Cuomo and Bill de Blasio are all New Yorkers elected to high public office. All speak often about infrastructure, and all have strong personalities. But their priorities are not aligned. 

Re-elected without serious opposition, Bill de Blasio starts his final four years as mayor of New York City with an ambitious capital spending agenda, including continued investment in affordable housing, expansion of alternative transportation systems like the BQX light rail planned to run from Red Hook, Brooklyn to Astoria, Queens, and a full-on commitment to energy and emissions reduction. Both construction spending overall and tax receipts continue at a robust pace, with the city’s population at 8.5 million its highest ever and still growing and an economy propelled by a record 4.5 million jobs.

Likewise, govenor Andrew Cuomo has not only a robust infrastructure plan, but is also expected to highlight his major projects as rationale for his 2018 bid for a third term. While facing some criticism for the pace of subway repairs, Cuomo is credited with construction of the Tappan Zee and Kosciuszko bridge replacements and opening of the long-delayed Second Ave. subway, and the on-going development of new terminals at LaGuardia airport, progress on the LIRR East Side Access project and a new Moynihan Station rail terminal.  

Meanwhile, in Washington, President Donald Trump’s campaign commitment to infrastructure spending has not yet manifested itself in a formal spending proposal, as congress grapples with comprehensive tax reform before tackling the next budget. While Republican leaders are optimistic that lower tax rates and the elimination of deductions will unleash private investment and economic growth so as to not unduly increase the federal deficit, specific provisions are at odds with the president’s campaign proposals. For example, Trump called for additional infrastructure spending nationally to be financed through private investment. However, the house bill eliminates the use of municipal bonds for privately sponsored projects, such as airports, hospitals and housing, as well as economic development and historic tax credits, while they fare better in the senate version. Reconciliation is underway.

Similarly, elimination of the deduction for state and local taxes or mortgage interest, potentially will hit New Yorkers harder than those in other parts of the country, although other provisions may offset the impact on individuals. Nonetheless, adoption of such provisions will constrain state and local tax revenue growth as the city and state strive to maintain their attractiveness. 

Given Trump’s reliance on midwestern and southern states for his Electoral College victory, his spending plan, when unveiled, is likely to favor the middle of the country rather than the coasts, with the likely exception of the cross-Hudson Gateway tunnel project, which has national economic and securities implications. It will fall to New York congressional leaders, especially senate minority leader Chuck Schumer, to fight for the region’s fair share of federal infrastructure spending.

Meanwhile, catastrophic weather events such as the hurricanes which devastated Houston, the U.S. Virgin Islands and Puerto Rico continue to be treated by the Trump administration as unrelated to human-influenced climate change. Five years after superstorm Sandy flooded and blacked out the financial district, as well as waterfront neighborhoods throughout the city, little progress has been made in installing the barriers necessary to prevent a reoccurrence. 

Against this background, it is critical that the engineering, real estate and construction industries speak up in favor of critical infrastructure spending. Acting through organizations such as the American Council of Engineering Companies of New York, those with the knowledge to think clearly about our infrastructure needs have an obligation to do so, not just to their industry but to the region’s millions of businesses and residents.

Fisher represents ACEC New York Metro Region, but the views expressed are his own.

Ken Fisher is an ACEC New York municipal affairs counsel, a member of the national law firm Cozen O’Connor and a former city council member, New York, N.Y.