The Port Authority of New York and New Jersey (PANYNJ) has released its proposed US$8.3bn 2023 budget, which consists of US$3.7bn for operating expenses, US$2.9bn for annual capital spending and US$1.7bn for debt service and deferred expenses.
The proposed 2023 budget would invest US$2.9bn in capital spending to modernize existing facilities or build new facilities, including the ongoing transformation of the Port Authority’s three major airports.
In addition to the capital spending needed to rebuild the region’s aging infrastructure, the 2023 budget would also fund a US$1bn security investment, including funds to continue to strengthen the agency’s cyber security posture. Alongside this, the budget would provide nearly US$2bn for operations and maintenance of the agency’s assets as volumes increase after the Covid-19 pandemic. It would also dedicate more than US$17m for new technology, customer experience, and employer-of-choice initiatives. Additionally, it will invest around US$55m to advance the agency’s net-zero emissions future and climate resiliency goals.
The agency’s proposed 2023 core operating expense budget of US$3.6bn reflects an increase of US$112m, or 3.2%, compared to the 2022 core operating expense estimate. It funds increased staffing, security and maintenance costs due to increasing volumes at Port Authority facilities. The proposed 2023 budget is available online for public review and comment. The public may submit written comments on the proposed budget by December 11, 2022.
Kevin O’Toole, chairman of the Port Authority, said, “The proposed 2023 budget outlines the agency’s priorities for the following year and provides prudent guidance for the investments that we must make in order to operate at the highest standards and transform our legacy infrastructure into best-in-class facilities. Despite the substantial financial hit that our agency took from the Covid-19 pandemic, which continues to affect our facilities in various ways, we are laser-focused on building a future that benefits all users of our facilities and supports the entire region’s economy.”
Rick Cotton, executive director of the Port Authority, added, “This budget continues our efforts to recover from the financial damage done by the pandemic when the volumes handled by Port Authority facilities were decimated. Our proposed 2023 budget will provide funding for the highest spending on our security and cybersecurity agenda in the agency’s history and will also support capital spending to advance our US$2bn restoration at the George Washington Bridge, our Bus Terminal replacement project, our airport redevelopment projects, our PATH [Port Authority Trans-Hudson transit system] improvement and new fare payment system initiatives, and our seaport dredging and other initiatives.”