When I lived in New York, one of my pet peeves (trust me, I had a whole menagerie) was the Port Authority of New York and New Jersey.  This criminal organization (that statement will be justified as you read this blog) has been ripping off the citizens of Metropolitan New York for nearly 8 decades.  (It also rips off those who must traverse the bridges and tunnels between New York and New Jersey that it “owns”).

So,  a little history is in order.

Let’s go back about a century.  When New York and New Jersey continually fought over rail freight traffic (and revenues). (I do remember the barges that traversed the Hudson between New York and New Jersey moving rail cars.  You know this as “Hudson Yards“.) As well as water-borne freight.

The Interstate Commerce Commission “settled” the dispute by having the States of New York and New Jersey create a compact, The Port of New York, that would manage and improve infrastructure without the normal political elections and provide long-term stability to the situation.  (By 1972, the authority was renamed the Port of New York and New Jersey.)

This authority- with ZERO accountability- governs an area of roughly 1500 square miles; the region within 40 km of the Statue of Liberty.  (Yes, the one whose base is adorned with the famed Emma Lazarus poem that Ken Cuccinelli [and the even more xenophobic Steven Miller] has decided to modify.)  The Port has the authority to issue bonds (borrow money) and collect revenue (read as tolls) over every bridge between the two states and every tunnel connecting the states.

Let’s not forget it also controls the port sites of Port Jersey (Bayonne), Brooklyn (Red Hook container and the Brooklyn Piers), Howland Hook in Staten Island, and Port Newark-Elizabeth. And, then there’s the airports of LaGuardia, Newark, and Kennedy (plus the private aircraft Teterboro [NJ], regional Stewart [NY], and Atlantic City [NJ]  airports).  It also acquired the defunct Hudson and Manhattan Railroad, renaming it the PATH (Port Authority Trans Hudson). Finally, the Port Authority Bus Terminal and George Washington Bus Terminals (in NY) and the Journal Square Transportation Center (NJ) are also part of its holdings.

Each governor appoints six folks to run the authority.   The Chairman of the Board is chosen by the Governor of New Jersey; the Executive Director by the Governor of New York.  The board commissioners serve without pay; the Chair, Vice-Chair, Executive Director, and Deputy Executive Director are paid.

By the 1960s, the Port Authority was rolling in the dough.  The toll revenues were so large, it couldn’t figure out what to do with its cash.  So…

It decided to rewrite the rules.  To enable the Authority to hold real estate.  And, then it could build the world’s ugliest building- the World Trade Center.   Oh, yeah- that lawsuit demanding the cessation of toll collections since there was so much surplus- poof!  It no longer had any standing with the new deficit

Becoming a real estate and land holder would add an additional dimension to its obfuscatory financials – and create a cash demand that would enable the continuation of tolls.  (Yes. Most New Yorkers hated the design- and the concept- of the World Trade Center until it became the target of Islamic terrorists in the 1990s.  (By the way,  the official report on that 1993 attack provided a blueprint for the next generation of terrorists to take down the towers right after my 50^th birthday.)

The PANYNJ collects some $ 1.8 billion in bridge and tunnel tolls (with very little in costs), $ 2.4 billion in aviation fees (which it is finally spending to fix up the airports), $ 400 million for the privilege of parking at those airports, $ 204 million in PATH fees,  and almost $ 2 billion in rents for its real estate holdings.  Since it’s not a company, it doesn’t report “profits”, just more than $ 500 million in “surplus”.

This pile of cash burns holes in the pockets of the commissioners.  They are desperate to find projects to suck up this money- or they will be forced to stop charging tolls.  No, they have no desire to produce any transportation projects- despite the fact that there has been no expansion of highway capacity between New York and New Jersey since 1962.  (You got it- the year of the World Trade Center.)  That’s despite the fact that there’s massive traffic congestion at those tunnels and bridges that the Port Authority (doesn’t really) maintains.

Now, a few more interesting facts.  All across America, commercial airports are required to dedicate their revenues for airport needs, to improve their infrastructure.  Why is that?  Simple.  The US government withholds all federal airport grants, unless the airport(s) follows this rule.  (This is akin to how the feds made all the states change their speed limit to 55- by withholding all transportation funds to those who refused.) I am sure you won’t be surprised when I tell you there is ONE exception to this rule.  Of course- the PANYNJ is exempt- supposedly because it was diverting such revenues to the World Trade Center before the airport grants law was issued in 1970.

(By the way, PATH is a big loss-leader.  That ‘subway’ system connecting New York and New Jersey may collect $ 180 million in revenue- but the operating costs are closer to $ 600 million.)

But, that’s still a drop in the bucket.  Because if the Port Authority didn’t rebuild the World Trade Center (which created more debt to suck up the tolls that it should no longer be charging travelers), the surplus would be even more tremendous.

And, that $ 500+ million surplus obviously is not enough for PANYNJ.  Because it is about to make everything it touches cost more.  A lot more.   Add a $ 4 fee to pick up and/or drop offs at the airports.  Cash tolls on the bridges and tunnels are going up by $ 1; the EZPass discount is being eliminated for non-NY and NJ devices- and the tolls will increase by $ 1.25 per trip.

So, the next time you feel good about the World Trade Center- remember how much money it costs you- when you fly or when you drive anywhere near the Statue of Liberty.