MTA Will Fight Cuomo Over E-ZPass Perks

2008_05_ezpasstx.jpgIt's on! MTA chairman Dale Hemmerdinger says the agency will go to court in order to have the option of giving free E-Z Passes to retired and current board members--many of whom are wealthy.

The MTA says that the passes are a small thank you to board members who serve without compensation. But Attorney General Andrew Cuomo said, "If the law says no compensation then the law means no compensation and these gimmicks that are a way of providing compensation as perks as a way to get around the law, we believe, are illegal, and we're going to stop all of them."

But Hemmerdinger said, "Given the newly stated view of the attorney general, which is contrary to the M.T.A. position, we are going to seek a declaratory judgment and allow a court to determine whether or not this constitutes compensation. We have never seen it that way.” Man, that's a good idea--spending taxpayer money on legal bills so former chairman Peter Kalikow can keep his eight E-Z Passes (eight so he doesn't have to change one from car to car).

CBS 2 reports the State Thruway Authority, which similarly doled out the free E-ZPasses to board members, "has caved. It agreed to revoke the perks immediately." And it turns out three recipients are dead. The Daily News looked at a list of board members with the perk and found that two had passed away last month and a third died in 2005.

Update: The MTA released this statement:

"In light of Attorney General Cuomo's opinion, the MTA will amend its longstanding practice of issuing free passes on the agency's transit network to its current and former board members.
Subject to approval of its Board, the MTA would rescind its policy of issuing free lifetime passes on its operating systems to former board members. Hereafter, pursuant to the MTA's enabling legislation, active board members may only utilize passes on the transit network to the extent that such use constitutes actual and necessary expenses incurred in the performance of their official MTA duties."

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Comments (6) [rss]

This is so much hubbub over nothing. In the grand scheme of things it makes no difference whether a few old MTA board members have free passes. It's just a stupid emotional issue that the media is making a stink over. I do agree with Cuomo that if the law says board members are supposed to be uncompensated then free passes probably are against the law, but if it's so darned important to him why didn't he do anything about it before the Daily News called to ask him about it?

I just wonder why the MTA is so hell bent on allocating resources to fight this in court.

Thank you MTA for taking this to court! Its pretty lame to think that the working class will pay $3 a subway ride because of your legal fees!

It also goes to show that they only Mr. Hemmerdinger only cares for the rich.

What is the MTA fighting for? To save face?!

I hope the MTA takes this case so far that the Attorney General's office makes a full investigation into their finances and practices.

I'll happily give Cuomo a crusade.

So what if a couple of old guys, who probably are driven around most of the time, use these cards a handful of times a year.

I'm sure there are much more important things for the MTA to fight, that actually waste more money or cause bad service to the public.

"The MTA says that the passes are a small thank you to board members who serve without compensation."

Any one drive over the Verrazano recently? Thats 9 bucks these days...

And JenChungsBra - it IS a big deal... Handing out free ezpasses to your cronies that don't generate a cent in revenue is an injustice to the rest of the city who pays the tolls out of their pockets. It's just a 'small thank you'?? Try kick-back... To my mind it is nothing short of corruption - and corruption just begets more corruption. I can't believe they are willing to try and fight this - it seems like such a blatant abuse of the system.


...Just another reason to be disgusted with the MTA.

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