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Paterson Accepts Final Report From Commission on MTA Financing; Felder & DeBlasio Not Happy


mtabridge.jpgGovernor David A. Paterson today accepted the final report of the Ravitch Commission on Metropolitan Transportation Authority (MTA) Financing. The report provides recommendations on how to fund the MTA’s long-term capital plan and how to close its operating budget deficits without resorting to double-digit fare increases or drastic service cuts. The Commission report was presented to Governor Paterson by Commission Chairman Richard Ravitch.

The report identifies two new revenue sources for the MTA: a one-third of 1 percent Mobility Tax to be levied on employer payrolls in the MTA Commuter District, and cashless tolling of the currently free bridge crossings into Manhattan. The Mobility Tax would raise $1.5 billion annually to cover debt service on a new MTA capital program, and the bridge tolls would raise approximately $600 million annually for mass transit. The Commission also recommends the creation of a Regional Bus Authority as a subsidiary of the MTA. The Regional Bus Authority would expand and rationalize bus service throughout the regional, as well as launch Bus Rapid Transit routes through areas currently underserved by mass transit. The Commission also suggests that the MTA take steps to ensure that the development of its next capital plan is more transparent and that the Authority institute better management of capital construction projects.

“The MTA’s subways, buses and commuter trains are the lifeline of this region — bringing people to their jobs, schools, doctors and community organizations,” said Governor Paterson. “Yet the system is facing a crisis of epic proportions. In the period since I asked Richard Ravitch to head this Commission, revenues from the real estate transaction taxes that partially fund the MTA collapsed along with the economy, ballooning the MTA budget deficit to over $1.2 billion for next year alone. The Commission has provided proposals that will relieve much of that deficit and also provide funding for the capital investments that must be made to keep the system running safely and reliably. I applaud the Commission for finding solutions that rely on the entire region sharing the burden. The economic well-being and standard of living of the region will rise or fall with the health of the transit system.”

New York City Mayor Michael R. Bloomberg said: “I’d like to thank the Governor for his leadership and all the Commission members for their hard work, especially Richard Ravitch,” said Mayor Bloomberg. “He led the MTA through a crisis in the 1970s, and we appreciate his lending his knowledge and expertise to find solutions to the crisis the Authority finds itself in today.”

Meanwhile, NYC Councilman Bill de Blasio and Simcha Felder released the following statements regarding the fact that the East River Tolls are still on the table: 

Councilmember Bill de Blasio: “I commend the Ravitch Commission for preserving services and trying to minimize fare increases.  The Commission has clearly recognized that riders in this City already fund a disproportionate amount of the transit system, and that the MTA’s proposed service cuts would prove dire for millions of working New Yorkers,” said Councilmember Bill de Blasio.

De Blasio continued, “However, I am deeply concerned that East River Tolls are still on the table.  It is just bad public policy to ask people who live and work in the outer boroughs to fill our budget gaps, regardless of their financial ability to do so.  I strongly urge the Commission, Governor Paterson, and Mayor Bloomberg to consider other interesting proposals, such as a progressive commuter tax or Comptroller Thompson’s car registration proposal, which would raise adequate revenue without unduly burdening New York’s outer boroughs.”

Statement by Councilmember Simcha Felder:

Many low and middle income residents in the outer boroughs live in areas that are underserved by public transit. To have them disproportionately carry the burden of rescuing the MTA is unfair. How can you tax people to enter Manhattan when you don’t provide them reasonable alternatives? We need to find a way to distribute the responsibility of bridging the MTA budget gaps fairly and evenly.

(Moshe Altusky – YWN NYC)



2 Responses

  1. Tax the employers because they are located near trains? Wow, what a stretch of gaaveh. Employers should pick up and move out of NY (as they have been doing in droves for years; only the fact that NJ is a bad place has kept more from leaving).

    As for taxing people crossing free bridges, we all know that it will happen one day.

    The real solution here is to abolish the union control of the MTA. Even better would be to let the private sector take back the subway system. After all, the city only took the subways away from the private sector when they said they would lose money if the city didn’t approve a fare increase (that would have been justified by inflation). Well, how many times have they raised the fare since then? Over 4000%. And they still manage to lose over $2 per rider.

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