Institutional Federal Compliance Report 2021

28 • STATE OF NEW YORK ______________________________________________________________________________________________

CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets

As of 2019, the State has $107.9 billion invested in a broad range of capital assets, including equipment, buildings, construction in progress, land preparation, and infrastructure, which primarily includes roads and bridges (Table 4). This amount represents a net increase (including additions and deductions) of $1.6 billion over last year. Table 4 Capital Assets as of March 31, 2019 and 2018 (Net of depreciation, Amounts in millions) Governmental Business-Type Total Activities Activities Primary Government 2019 2018 2019 2018 2019 2018 Land and land improvements . . . . . . . . . . . . . . . $ 4,443 $ 4,362 $ 1,067 $ 1,015 $ 5,510 $ 5,377 Land preparation . . . . . . . . . . . . . . . . . . . . . . . . . 4,080 4,049 —00000 —00000 4,080 4,049 Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,919 4,289 12,501 11,591 17,420 15,880 Equipment and library books . . . . . . . . . . . . . . . 345 356 650 631 995 987 Construction in progress . . . . . . . . . . . . . . . . . . . 2,509 3,115 2,813 3,288 5,322 6,403 Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,860 71,874 784 738 73,644 72,612 Artwork and historical treasures . . . . . . . . . . . . . —00000 —00000 44 43 44 43 Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . 642 680 199 214 841 894 Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 89,798 $ 88,725 $ 18,058 $ 17,520 $ 107,856 $ 106,245 State-owned roads and bridges that are maintained by the Department of Transportation (DOT) are being reported using the modified approach. As allowed by the reporting provisions in GASBS No. 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments , infrastructure assets that meet prescribed criteria do not have to be depreciated but must be maintained at levels defined by State policy. The State currently has 42,739 lane miles of roads. The State has 7,903 bridges in the inventory, of which 7,690 are highway bridges. The remainder include railroad and pedestrian structures. Highway condition is rated using a scale of 1 (very poor) to 10 (excellent) based on the prevalence of surface- related pavement distress. For bridges, in 2016, the State transitioned to the American Association of State Highway and Transportation Officials (AASHTO) element-based rating system that utilizes a 1 (good) through 4 (severe) scale as mandated by the Federal Highway Administration (FHWA). The new bridge goal will be based on the percentage of Structurally Deficient (SD) bridges as defined by FHWA. The SD calculations are based on the National Bridge Inventory (NBI) inspection data that has been collected by the DOT for more than 15 years and reported to FHWA on an annual basis. Prior to 2016, the State used a numerical inspection condition rating (CR) scale ranging from 1 (minimum) to 7 (maximum). Under this prior rating system, a rating of 6 to 7 was excellent, indicating no repairs were necessary; a rating of 3 to 5 was fair to good, indicating minor repairs were required; and a rating of 1 to 2 was deficient, indicating major repairs or replacements were necessary. Refer to the Required Supplementary Information (RSI) for additional information regarding infrastructure assets using the modified approach. Pavement condition rating parameters for the current year are between 6.7 and 7.2. Using the new criteria to identify Structurally Deficient bridges, it is the State’s intention to maintain the percentage of SD bridges at or below 15 percent of the State highway bridge population. Previously, it was the State’s intention to maintain the bridges at an average condition rating level of between 5.3 and 5.6. Capital spending for highway and bridge maintenance and preservation projects was approximately $1.4 billion in 2019. The State’s 2019-20 fiscal year capital budget calls for it to spend $14.3 billion for capital projects, of which $5.4 billion is for transportation projects. To pay for these capital projects, the State plans to use $441 million in general obligation bond proceeds, $7.5 billion in other financing arrangements with public authorities, $2.2 billion in federal funds, and $4.2 billion in funds on hand or received during the year. More detailed information about the State’s capitalization policy for capital assets is presented in Note 1 of the Notes to the Basic Financial Statements. For further information on capital assets balances, refer to Note 5.