NEW YORK CITY-Separating administration of the Port Authority of New York and New Jersey between the two states would not address fundamental problems with the agency's
"business model," a New York University report indicates.
The Rudin Center for Transportation Policy and Management at New York University says the PANYNJ spent $800 million between 2002 and 2012 on state projects that don't generate returns, The New York Times reported Tuesday, the day the report was issued. (See story here.)
Both NJ Gov. Chris Christie and NY Gov. Andrew Cuomo indicated last week that they would be open to a division of the PANYNJ. (See GlobeSt.com story here.) However, the NYU report points to the political influence of governors of both states in choosing unprofitable "regional" projects for the Port Authority to fund in their respective states.
The agency was founded with the intent of financing crucial public operations that serve both states and lose money - such as port terminals - with funds generated by profit-making transit operations serving both states, such as the George Washington Bridge. The NYU report said the bridge and its bus station generated $350 million in 2012.
The report recommends that the PANYNJ cease funding "nonessential" state projects. Also, it suggests that one way to address political influence and patronage by governors would be to give the agency's executive director authority over high-level appointments.
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