- Over 30% increase in capital expenditures
- Over $600 million for World Trade Centre rebuilding and record security investments
 

The Port Authority of New York and New Jersey has released an initial $5.7 billion 2007 budget for public review. The agency's 2007 preliminary budget increases capital expenditures by $625 million and holds operating expenses flat while continuing to increase security spending and decrease administrative costs.
 
As a part of new governance reforms, the budget document is being released in advance of the Board of Commissioners final vote on budget approval. The Port Authority Board of Commissioners is scheduled to vote on adoption of the budget on December 14th.
 
The budget is available on the Port Authority's Web site - www.panynj.gov. Members of the public are encouraged to comment via a feedback feature on the Web site.
 
Despite the record size of the budget, the operating portion of the budget remained relatively flat compared to the 2006 budget. The majority of the budget increases are due to ongoing work to rebuild the World Trade Centre site and to enhance security at Port Authority facilities.
 
The preliminary budget calls for capital funds to continue the redevelopment of the World Trade Centre site, to build a new fleet of Port Authority Trans-Hudson Railway (PATH) cars, to advance the Trans Hudson Tunnel project, to upgrade Terminal B at Newark Liberty International Airport, and to construct a new passenger terminal at JFK International Airport.
 
Port Authority Chairman Anthony R. Coscia said: "This budget funds our commitments to build new infrastructure, upgrade existing facilities, and invest heavily in security improvements, while holding the line on operating expenses and reducing administrative costs. The Port Authority is now responsible for some of the most critical projects of our generation, including the rebuilding of the World Trade Centre, construction of the memorial and the construction of a second commuter rail tunnel into Manhattan. This budget funds those responsibilities."
 
Port Authority Vice Chairman Charles A. Gargano said, "This budget provides an extraordinary level of investment to ensure that our bridges, tunnels, airports, seaports and rail system remain safe and secure for the millions of people who use them each year."
 
The Port Authority's $5.7 billion budget includes $2.3 billion for operating expenses, $2.5 billion for capital improvements, $806 million for debt service and $69 million for other expenditures.
 
Major elements of the 2007 Port Authority budget include:
 
• A record $679 million in capital and operating spending for security at Port Authority facilities.
 
• Construction of the new Terminal 5 at JFK International Airport.
 
• Redevelopment of Terminal B at Newark Liberty International Airport.
 
• Advancing purchase program for 340 new PATH rail cars.
 
• Preliminary planning and site acquisition for the Tunnel Project, a new trans-Hudson passenger rail tunnel.
 
• Operating expenses are relatively flat, up 1.1% over the 2006 budget despite an increase in security spending.
 
• Capital expenses increased by $625 million, or 33.2%, due primarily to work at the World Trade Centre site in connection with the Freedom Tower, Memorial and common infrastructure. Of this amount, approximately $406 million will be recovered from insurance and third parties.