But Rae says construction must involve an intermodal, national network comprised of core hubs, regional links and emerging areas, as opposed to a singular network only serving one part of the US. “They all have to connect,” she said, explaining that the FRA will bring together stakeholders from eight states and DC, Amtrak, the US Department of Transportation as development discussions continue.

On the local side, Joan McDonald, commissioner of the New York State Department of Transportation, said the state agency currently spends about $2 billion a year on capital projects, but added that the most critical issue facing the region is the expiration of the capital program’s dedicated fund on March 31, 2012. “First and foremost, we don’t need to spend a lot of time whining about the fact that we have no money, because we have no money,” McDonald said. In March 2011, Gov. Andrew Cuomo tackled a $10-billion deficit and passed a $132.5-billion state budget, but it involved a 10% cut to the DOT. “We need to participate in a dialogue in Washington and our home state to make sure that we are making the best case as to why these transit improvements are necessary.”

Current projects on the NYS DOT’s agenda include improvements to the Staten Island Expressway extension from Slosson Ave. to Victory Blvd.; work on the Kew Gardens interchange; and the Tappan Zee Bridge overhaul and deck replacement.

Across the river, the status of capital projects in New Jersey are also in flux. Veronique Hakim, executive director of the New Jersey Turnpike Authority, said several major construction projects are underway in the Garden State, including the widening of Exits 6 through 9 on the turnpike, allowing more lanes for northbound commuters. And while the authority generally spends $2 billion on capital projects, Hakim said she is concerned about its $500 million in debt service, which could rise to $900 million. “But we need to keep the work going out the door,” Hakim said.

Similarly, James Weinstein, executive director of New Jersey Transit, the state’s biggest mass transit agency, said for the first time in the last 15 years, NJ Transit has no multi-billion project underway, but several “state of good repair” maintenance projects underway statewide. “It is absolutely critical,” Weinstein said, explaining that despite the cancellation of Access to the Region’s Core, or ARC project, NJ Transit’s state subsidy went up this year, totaling $1.2 billion for capital projects overall. “We are focused on state of good repair projects because we think that’s a priority,” he said.

NJ Transit’s current projects include $125 million in improvements to Newark’s Light Rail and bus system; the creation of an intermodal transit hub linking the Northeast Corridor Line in Trenton to the Atlantic City Rail Line in South Jersey; and improvements to the Somerville Station on the Raritan Valley Line in Central Jersey.

Future plans include expanding Hudson/Bergen Light Rail service in Weehawken and improving station platforms at Newark Penn Station. Down the road, the state’s biggest transit organization is also pursuing to expand rail access in Western Monmouth, Ocean and Middlesex counties. “You are either growing or dying,” Weinstein said.

And on the city front, Michael Horodniceanu, president of MTA Capital Construction, talked about the MTA’s latest financial strategy to raise its debt to $6.9 billion in order to complete its 2010-2014 capital projects plan, while retiring $6.2 billion of existing debt this year. The move, he said, is “absolutely critical” for ongoing mega-projects such as the expansion of the Long Island Rail Road to Grand Central Station, the 7 subway line extension to Manhattan’s Far West Side and the Fulton Street Transit Hub, which are all under construction. “Without our mass transit, we are going nowhere, and it is extremely important we continue to invest as the population growth continues,” Horodniceanu said.