The astronomical Hudson River toll and PATH fare hikes trotted out by the Port Authority late Friday blindsided the very men who control the agency — Gov. Cuomo and New Jersey Gov. Chris Christie, sources told The Post.
Both governors knew that hikes were in the offing for the cash-strapped authority, but neither expected PA officials to shoot for the moon with increases of $4 and above, said top Cuomo-administration officials.
Cuomo was “shocked and less than pleased” when told E-ZPass holders would pay $12, up from $8, and cash payers $15, up from $8, for roundtrip Hudson River crossings, including the George Washington Bridge and the Holland and Lincoln tunnels, a source said.
PATH commuters would pay $1 more, or $2.75 a trip, for train rides to and from Manhattan.
Neither governor was prepared for the PA to make threats, either. Either greenlight a quick cash infusion, PA officials demanded, or the authority could default on billions of dollars in bonded debt, according to sources.
The PA is crying poverty because it is facing the most ambitious capital plan in 90 years, including World Trade Center development, new airport terminals and major renovations at the Goethals Bridge and Outerbridge Crossing.
“No one who has looked at our finances thinks we’re exaggerating,” a PA official told The Post.
But the PA’s bond threat could backfire as even a whisper of default could trigger a massive financial fallout, municipal-bond experts said.
A default scare would likely cause investors to get nervous and sell off their bonds. In turn, credit-rating agencies would likely downgrade the PA’s bonds, which would make everything more expensive for the agency — and create a situation in which more fare hikes are needed.
“That’s a vicious cycle,” said Michael Pietronico, chief executive officer of bond-investment firm Miller Tabak.
The PA has floated astronomical hikes before, only to scale them back in an orchestrated dance with politicians that lets them save face with outraged commuters.
Despite Friday’s brouhaha, sources familiar with the PA speculated that final hikes will hover around $2.
“We’re not idiots. We know how this works,” said one Bloomberg-administration official.