Gov's Plan To Fix MTA: Tax Cut In Suburbs, Tax Hike In City

from Zach K's flickr

Under Gov. Paterson's plan to rescue the MTA from a $400 million budget shortfall, New York City businesses would see a payroll tax increase by 59 percent, surging from .34 percent for every $100 of payroll to .54 percent. Meanwhile, the payroll tax in suburban areas would be cut in half.

After politicians and residents from Suffolk, Nassau, Putnam, Westchester, Orange, Dutchess and Rockland counties complained about the tax, which was implemented last year in an MTA bailout, Paterson proposed cutting the tax in suburbs to .17 percent. Paterson says the new tax is fairer, but Mayor Bloomberg told the Post it's "wrongheaded," and added in a statement: "The idea that the state can spare the suburbs while sacking the City is terrible economics, grossly unfair and contrary to every principle of good regional development."

The Daily News notes that the change would plug between $230 and $240 million of the MTA's $400 million budget gap, though it would do nothing to prevent widespread service cuts that were already approved. An MTA spokesman said it would "lessen the need for additional cuts," but "[i]t would not eliminate the need for the service cuts and administrative reductions included in the MTA budget passed in December."

Contact the author of this article or email tips@gothamist.com with further questions, comments or tips.

By Ben Muessig in News on February 9, 2010 1:15 PM

Comments [rss]

ElleCat

I'm so sick of people trying to push biking on me as a reliable means of transit. It's freaking cold out there, you jackass. As if you can even afford a used bike after the city and state are done ravaging your paycheck.

adpwnage

YOU ARE AWESOME

BikeBuddy

Looks like more people will be thinking seriously about biking to work, which is great. Check out this awesome idea of how to make that happen:

http://www.refresheverything.com/BikeBuddy

Vote daily to make this a reality!

drewo

This is the kind of important, and complex, news story that affects almost all New Yorkers, in the City and the suburbs.

However, when you turn on your local TV news tonight, the vast bulk (if not all) of the program will be devoted to a close analysis of a topic more attuned to the mindset of a 6-year old - snow.

Our mass media fails us almost as much as our elected representatives.

jles

You clearly don't watch enough NY1.

Steven

More like about the snowstorm tomorrow. Seeing Mike and Amber go buy a shovel because well it "never" snows here.

PTG in nyc

Besides the fact that I don't like the plan, it fails to address the following:

1) How exactly the MTA spends its money, and exactly how lazy, overpaid, and overstaffed the TWU workers are.

2) What the plan will be come 6 months from now when there is inevitably another $400 million shortfall.

Ishtar

*sigh*

There really isn't a big problem with how the MTA spends its money, BUT there is a huge problem in how our elected officials have continuously short changed the MTA and provided it with unsteady revenue streams.

whitecastlerock

There is a problem with how they spend their money. Every project they start hemorrhages money. Every single blessed project is either delayed or millions over budget-how is that NOT a problem?

Ishtar

Take that up with our good legal system. Just because they're a government agency doesn't mean they can skirt regulation and just what they want. This isn't China.

drewo

Every few months, the columns along the platform on my local #6 Spring St. subway stop are (re)painted. Judging from the peeling paint overhead, and the grimy walls all around, it seems to me that the columns really don't need a new shade of "MTA blue" so often. This practice strikes me as some kind of arcane union make-work requirement. Not to mention the application of the paint is so crude and slapdash, you wonder if the workers were drunk when they got out the brushes.

I don't think this is the best use of MTA funds and manpower.

hta

There isn't a big problem with how the MTA spends money? Are you serious?

Ishtar

I'm serious and I'm not gonna type much more about it. Very few people on this board even bother to look at revenue streams for different government agencies before they jump on the "mismanagement" wagon. It doesn't help that elected officials jump on that same wagon AFTER continually underfunding everything other than their own bank accounts. How solvent can you expect something to be if it's constantly being shorted?

hta

Maybe the MTA wouldn't have to worry about being shorted if it didn't keep wasting money. Like the renaming of the Triborough Bridge. What was the point? What did that cost? Like 5 million? The X25 bus from Grand Central to Wall St. What's wrong with the 4,5, 6 lines? 7 agency presidents who I'm sure have all their staffers and perks. That's different from their management where there's also a president and CEO. Why not just have 1 who overseas everything like every other company? The list goes on...

Ishtar

DECADES OF UNDERFUNDING!!!! What is so difficult to understand about that. This system was in shambles when it was purchased from the private sector and fares nor government funding ever increased enough to make up for the shortfall.

Damn. Do you people really think shit happens in a vacuum?

Blue387

How much could the MTA raise if it increased the subway fares by 25 cents?

How Ya Doin

I nominate Bloomberg to run Earth.

MT

Why doesn't NYC just withhold all of our money from NYS until all of our bills are paid first? As it is, NYC gives NYS more than we get back. Why don't we just put ourselves first like Albany seems to do for itself?

TKaisen

I don't see the issue with this. Why should the people who live upstate and never use the trains be forced to fund them? The businesses in the city that get the most use out of the rails are the ones that should pay for them.... not businesses in the suburbs that see zero benefit. The entire state isn't beholden to what's good for Manhattan, even though Manhattan thinks it should be.

adpwnage

If you have read other articles on this site, NYC provides a great deal of the money used to run the State of NY. So why exactly should we get taxed more when we already provide so much money for the state? And payroll tax? What does that have to do with the MTA whatsoever? It's not like Tolls/fare increase etc, which affects the user of the MTA directly, but it affects everyone in the city...by payroll, they mean every working stiff gets screwed...how do you like that? I don't.