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MTA’s $12 billion shortfall expected to jeopardize out-of-state contracts nationwide

AMNY logo AMNY 9/17/2020 Mark Hallum
a group of people waiting at a train station © Provided by AMNY

The Metropolitan Transportation Authority is still trying to convince federal lawmakers in the Senate to deliver $12 billion in stimulus funding with the most recent argument being the negative impact on the agency’s nationwide contractors.

If the MTA is forced to cancel contracts with 11 vendors across the country, Chairman Pat Foye claims in a letter to each contractor that their ability to create 100,000 jobs and $50 billion in infrastructure investment – which has been done since 2011 – could be at jeopardy if the Republican-led U.S. Senate continues it obstinacy toward a fresh round of COVID-19-related stimulus funding.

“The COVID-19 pandemic has exacted a horrific toll in human, social and economic terms across the nation,” Foye said. “I am writing to alert you that because of this financial devastation, many current and all future contracts are in jeopardy without an injection of $12 billion in emergency federal aid. Let me be clear: federal funding for mass transit isn’t a red or blue issue – it’s a jobs issue. Our future – and the fate of approximately 100,000 MTA-created out-of-state jobs – rests squarely in the hands of the Senate and White House.”

Losing contracts with Alstom Transportation, New Flyer and Siemens would impact the economy of Kentucky, according to the MTA, while Cubic Transportation, Bombardier and Prevost Car are all located in Texas.

The MTA listed the contractors and the economic contributions made by their deals with the agencies below:

ALSTOM TRANSPORTATION, INC

Since 2011, prior MTA capital plans have resulted in more than $2.2 billion in direct spending and created nearly 28,000 jobs in the states where Alstom has U.S. locations – California, Illinois, Florida, Missouri, Kentucky, and Delaware.

BOMBARDIER TRANSPORTATION

Since 2011, prior MTA capital plans have resulted in more than $2.6 billion in direct spending and created over 33,000 jobs in California and Pennsylvania, where Bombardier manufactures vehicles and produce rail products.

CUBIC TRANSPORTATION SYSTEMS INC

Since 2011, prior MTA capital plans have resulted in more than $2.9 billion in direct spending and created over 37,000 jobs in the states where Cubic has U.S. locations – Alabama, California, Florida, Illinois, North Carolina, Tennessee, Texas, and Virginia.

HITACHI RAIL STS USA INC

Since 2011, prior MTA capital plans have resulted in more than $230 million in direct spending and created over 2,900 jobs in South Carolina, where Hitachi’smanufacturing facilities are located.

KAWASAKI RAIL CAR, INC

Since 2011, prior MTA capital plans have resulted in more than $15 billion in direct spending and created over 189,000 jobs in New York and Nebraska, where Kawasaki manufactures and tests rail cars.

NEW FLYER OF AMERICA INC

Since 2011, prior MTA capital plans have resulted in more than $5.1 billion in direct spending and created over 64,500 jobs in the states where New Flyer and NFI Parts have U.S. locations – Kentucky, Ohio, California, New Jersey, Minnesota, Alabama and Washington.

PREVOST CAR (US) INC

Since 2011, prior MTA capital plans have resulted in more than $4.75 billion in direct spending and created over 60,000 jobs in the states where Prevost has U.S. locations – Texas, Florida, Tennessee, California, Illinois, New Jersey and Washington D.C.

SIEMENS CORPORATION

Since 2011, prior MTA capital plans have resulted in more than $3.5 billion in direct spending and created over 45,500 jobs in the states where Siemens has U.S. locations – Kentucky, Pennsylvania, Oregon, California and Illinois.

THALES TRANSPORT & SECURITY, INC

Since 2011, prior MTA capital plans have resulted in more than $1.6 billion in direct spending and created over 21,000 jobs in Pennsylvania, where Thales’manufacturing facilities are located.

TRANSCORE 

Since 2011, prior MTA capital plans have resulted in more than $625 million in direct spending and created nearly 8,000 jobs in the states where Transcore has U.S. operations – Texas, Virginia, and Massachusetts. 

WABTEC PASSENGER TRANSIT

Since 2011, prior MTA capital plans have resulted in nearly $575 million in direct spending and created over 7,200 jobs in North and South Carolina, where Wabtec’smanufacturing facilities are located.

Meanwhile in Washington, Democratic lawmakers continue their vexation over what they view as Republicans using their majority in the Senate to block coronavirus relief out of a reluctance to offer a hand to blue states. Senator Charles Schumer echoed the frustration of House Speaker Nancy Pelosi when he claimed Senate Majority Leader “Mitch ‘Keeper of the Grave’ McConnell” and President Donald Trump were failing to represent all Americans.

Once again, the Democrats renewed their call for the passage of the HEROES Act, a $2 trillion bill that has been repeatedly slapped down by McConnell.

While federal officials fail to come to an agreement on a second stimulus five months after the CARES Act, the MTA says its borrowing power is in rapid decline with a credit rating that has been downgraded five times since March.

The authority is contemplating 40% service cuts to subways and 50% on commuter railroads as well as a far increase of about a $1 for MetroCards.

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