NEW YORK CITY-The officials in charge of the Port Authority of New York and New Jersey, and the governors of the two states, declared Tuesday that there will be reform methods implemented after an audit showed the cost of the World Trade Center site reconstruction has ballooned to $14.8 billion. The last audit in 2008 showed costs would be $11 billion.

The officials said the Phase I Interim Report, presented Tuesday to the authority’s Board of Commissioners, shows that at least some of the spending comes from mismanagement and overpaid salaries at a “dysfunctional” agency. New York Gov. Andrew Cuomo and New Jersey Gov. Chris Christie jointly released a statement that said improper oversight, coupled with average worker pay and benefits that reports say exceed $143,000, means that reform is overdue at an agency that has "drifted from its core responsibility."

“This record of historic failure must be reversed,” according to the governors’ statement. “We will demand nothing short of the agency’s implementation of comprehensive recommendations and reform to achieve this critical mission.”

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The authority’s leadership also released a statement that promised changes, including new financial and management controls at the WTC site, leveraging private sector expertise, bringing pay and benefits in line with similar state and city workers and aligning planning with priorities. Chairman David Samson said these recommendations will be forthcoming, though he didn’t say when.

Authority vice chairman Scott Rechler said in the statement that the time has come for change. “We can do the public’s business better, more efficiently and at less cost by leveraging private sector partnerships and meeting commercial standards,” he said. “This report gives us clear direction on how we can begin to move forward.”

The authority, which does not receive tax dollars from either state, operates many of the transportation links in the region, including the JFK International Airport, LaGuardia, bridges, tunnels and marine terminals. The agency also owns the 16-acre WTC site. Navigant Consulting prepared the Phase I report.

Instant Insights /

WTC $3.8B Over Budget, Authority Leaders Promise Change

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