These are public benefit corporations created by the State. They are not subject to the constitutional restrictions on the incurring of debt that apply to the State, and may issue bonds and notes within the amounts and restrictions set forth in the legislative authorization. A crucial question facing voters is the worthiness of the project. Hence, we must put on hold any judgement on project worthiness. The tardiness of the MOU's should not however, keep us from another task crucial to credit evaluation.
Lets look at some facts.
Consequently the debt service burden, as a percent of total revenues would grow from 12.6 percent in 1998 to 19.4 percent in 2004. By 2010, nearly 25 percent of every dollar would be allocated to pay debt service. Moreover, these estimates do not include costs for capital needs for 2005-2010. And the Comptroller, furthermore states, that he has repeatedly criticized the MTA for failing to release enough information, so that elected officials and the public can evaluate the capital programs and its impact on transit riders, service levels, and subsequent capital programs. And last but not least, the presumed purpose for advancing the funds to the MTA is to assist the MTA in building the Second Avenue Subway.