In a joint statement with Governor Christie late this Friday afternoon, Governor Cuomo said blocking the Port Authority’s ability to raise money through borrowing and risking a downgrading of their bonds would be “a potentially disastrous result” and “unacceptable.”
The bi-state, quasi-independent agency announced plans for massive toll hikes to pay for operating costs and improvement, thanks to a lack of investment from the state.
This puts the fiscally conservative governor’s from both states in a precarious position: permit a major toll hike, or block it and risk undermining the stability of a major institution under their watch.
As Michael Grynbaum noted, Cuomo and Governor Christie can’t just sit back and lament the Port Authority’s behavior from the sidelines.
If approved, Cuomo and Christie “would have a 10-day period during which they would be allowed to veto the toll increase.”
In the joint statement, the governors said, “A downgrade of the Port Authority’s bond rating does indeed pose a potentially disastrous result on a transportation network that millions of residents of the states of New Jersey and New York rely on and would be unacceptable.”
“We will,” Cuomo and Christie said, “review the proposal with that in mind but have obvious and significant concerns.”
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