The Cost Containment Conundrum

Transportation and Land Use Fellow Nolan Hicks has written “The Cost Containment Conundrum” for Vital City:

The most pernicious toll from Albany’s decades of mismanagement of the MTA is the opportunity cost. One of the biggest findings of the New York University examination of how the MTA builds projects and a corresponding series I authored in the Post was that the MTA—unlike its sister agencies in London and Paris—does not employ a large staff of planners, engineers and architects. Those professionals let the Europeans exercise much greater control and oversight of projects, which, in turn, keeps costs down and projects on track. The MTA cannot afford to make those hires because so much of its budget is tied up in contracts, pensions and debts ordered or protected by Albany—so it has to contract out for its planning and engineering work, which means it’s more likely to get oversized designs back and has less ability to push back on bloat. All of which leads to another generation of complaints about MTA spending and management. It’s a circle line in a subway system that doesn’t have one.

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