In Albany, someone needs to take remedial accounting: Apparently the state miscalculated how much the MTA would get from a payroll tax associated with the bailout and it turns out the transit agency is getting at least $200 million less than expected. MTA Chief Financial Officer Gary Dellaverson told board members in an e-mail, "This is a shocking development both because of the magnitude of the under-run and the late date of its discovery." It's also shocking because it'll probably mean service cuts! more ›

This Sunday, a 50-cent surcharge will be added to taxi fares, as part of the state's MTA bailout which was approved earlier this year. This surcharge is in addition to the existing surcharges, such as the rush-hour surcharge (Monday-Friday) of $1 between 4 p.m. and 8 p.m. and the night surcharge between 8 p.m. and 6 a.m. more ›

While Jay Walder was confirmed as the MTA's new CEO and chairman last week, his big-time pay—$350,000/year, not to mention up to $850,000 in severance and housing and retirement— is an issue with Mayor Bloomberg. His pay package needs to approved by the MTA board and the NY Times reports, "At the urging of City Hall, Mayor Michael R. Bloomberg’s representatives at the Metropolitan Transportation Authority are set to abstain from supporting a generous compensation package for" Walder." Even though Bloomberg likes Walder, apparently the mayor "considered the package to be outsize for a state employee, particularly given the current financial climate, two people familiar with his view said. They said the mayor also believed that if Gov. David A. Paterson was not re-elected, the severance award would limit the ability of a new governor to install a director." Paterson's office has positioned the generous pay as "in line with that of his predecessor and those who lead large transit systems across the country and around the world." Walder, who worked with the MTA in the 1980s, recently ran London's transit system before leaving for Kinsey. more ›

More woes for the everyday commuter: the MTA will soon cut nearly 282 "customer assistants" from 86 stations in the city. The action, which the MTA hopes will shave $52 million from its budget, is set to take place in less than two weeks—and over the next several years the MTA will be getting rid of as many as 772 additional agents. “The plan to eliminate some secondary full-time agent booths is just one part of larger cost-saving efforts,” wrote Howard Roberts, Jr., president of New York City Transit. Both the subway fare hikes and the reduction of subway agents are a result of the MTA's messy deficit, and have left many New Yorkers beyond disgruntled. "They're going to make the subways scarier and less convenient and it's no way to treat their customers," said Gene Russianoff of the Straphangers Campaign. In Manhattan, 63 booths, including tourist hubs along 42nd Street, will be affected. Myrtle-Wyckoff Avenues in Brooklyn, Queens Plaza and Yankee Stadium will be among the others who will feel the pinch. But with daily headlines about subway pervs whose private parts just "fell out" and serial muggers, the issue may feel less like a pinch and more like another punch to the gut. more ›

New rates for things like driver's licenses and registration fees from the NY State Department of Motor Vehicles went into effect yesterday. All over NY State, the standard driver's license fee is now $64.50—up from $50, but in NYC and surrounding counties drivers will have to pay $80.50, because those areas are helping bail out the MTA. Registration fee-wise, a typical passenger vehicle will cost $55 (up from $44), but in the NYC-area, it'll be $105. Republican legislators are using the high fees to show how much Governor Paterson has raised taxes, but Paterson said he'd consider reducing them if the GOP can find revenue elsewhere, "I'd be happy to entertain it but they are not just going to be able to get up at a news conference and act shrill. They are going to have to tell us where they can close the gap." more ›

It's fare hike time! On Sunday, June 28, the fare hikes for NYC Transit subway and bus —plus MTA Bus, Long Island Bus, and Staten Island Railway—commuters go up to the not-doomsday new fares. Above are the new prices; the MTA will automatically deduct the higher fare from pay-per-ride MetroCards starting at 12:01 a.m. on Sunday. As for the unlimited MetroCards, it's a little more complicated—here's what the MTA says: more ›

The NY State Legislature is meeting this afternoon to pass the MTA bailout the News calls "a slow-motion train wreck (that's) better than nothing." With no long term plans for capital funding and future hikes expected, Richard Ravitch (pictured), the man who got the bailout ball rolling, said, "I am disappointed that they didn't fund the five year plan. I'm disappointed they didn't do the tolls. But I'm thrilled they did something." The lack of East River tolls can be attributed to the maneuvering of the Gang of Three, one of whom (Sen. Carl Kruger) joked at a press conference, "Ravitch is supporting the plan that he opposed two months ago." Politicker NY says that no one laughed. The final push from Governor Paterson and Malcolm Smith was to promise $60 million to Long Island schools in order to get the last two Democratic holdouts on board with subjecting their constituents to the payroll tax that will largely fund the plan. Still, one local official on the Island told Newsday, "I'm very discouraged. I don't believe that Long Island's interests were well represented." more ›

Governor Paterson said that he and the State Legislature have come to an agreement about the MTA bailout and the State Senate will vote on the plan tomorrow. Here's an overview: The fare increase will not be a doomsday-sized 23-25% but a 10 percent hike now, followed by "7.5 percent in 2011 and 7.5 percent in 2013," according to the AP. At the end of the month, the base fare will rise to $2.25 from $2 (a monthly unlimited Metrocard will go up to $89 from $81) and there will not be major service cuts. Previously, the Senate Democrats' plan included an 8% hike for 2009, but now the additional 2% will go towards capital projects. The plan is expected to raise $2.26 billion for the MTA, with $1.5 billion coming from a payroll tax. Paterson said, "Today's agreement will allow commuters to avoid the painful service reductions approved by the MTA Board earlier this year, and dramatically reduces the proposed fare and toll increases. This legislation will also allow the MTA's critical infrastructure rebuilding program to continue unimpeded at least through the end of 2011." more ›

The Senate Democrats' agreement on a plan to bailout the MTA is a small bit of relief because it proves that Albany can sometimes get things done after weeks of kicking and screaming. Sure, the Dems' plan isn't great (no bridge tolls on East or Harlem River bridges), and it's unclear whether capital projects will be funded, but at least the fare hike would only be 8%—and not 23-25%—and there would be few or no service cuts. A single ride would cost $2.25 (up from $2) while a monthly card would cost $88 (not $81). more ›

According to reports, the State Senate Democrats have reached a tentative agreement on a plan to bailout the MTA. Originally, the plan floated by Senate Majority Malcolm Smith included a taxi dropoff surcharge, an additional motor vehicle registration fee and a payroll tax (the payroll tax would fund the bulk of the plan), all while raising fares by a more moderate 8%; it appears that the tentative plan has a 50-cent (not a $1) taxi surcharge and the already-reported payroll tax reimbursement to school districts. Next up, getting the plan approved by the rest of the State Senate, and if it passes, then the Assembly and Governor. Governor Paterson doesn't think it's a great plan, but signaled he was open to any plan over no plan-and-a doomsday fare hike. more ›

Word from Albany is that Senate Majority Leader Malcolm Smith expects a vote on the MTA bailout proposal to happen tomorrow. Today he is meeting with the two Democratic senators from Nassau and Suffolk Counties respectively who appear to be the last holdouts in getting a plan passed. Doesn't it give you a fuzzy feeling knowing that the possibility of paying $100 for a monthly Metrocard to ride a bus line that no longer exists now rests in the hands of Long Island legislators? Smith didn't really provide a boost of confidence today when he said, "The governor offered a suggestion that we think was a very interesting idea, one that has merit. And we're hopeful that today, once we complete all our negotiations, we'll be putting a final bill on the floor. Or we may have to ask for a message of necessity, which the governor would have to do." Paterson's latest "secret plan" to reimburse local school districts for the payroll tax needed for a bailout won over two Westchester senators—no word on what might be used to entice their Long Island colleagues. more ›

You know how Governor Paterson said he had an idea to break the State Senate stalemate and get an MTA bailout approved? Well the NY Post has the details: "[The] secret plan to sway state Senate Democrats holding out on an MTA bailout vote is to reimburse school districts that would have to pay the proposed payroll tax." Some State Senators have been unhappy about the payroll tax part of the Senate Dems' plan, which also has a $1 taxi dropoff surcharge and an 8% increase on fares (vs. the 25% doomsday fare hike). According to the Post, Paterson's idea would involve taking money from the state's general fund to "reimburs[e] every school district in the 12-county MTA service region, including NYC," at a cost of $60 million. The source said, "If you use the general fund to relieve school districts of the costs of the tax, the MTA still gets its money and schools get money back from the state." Still, it's unclear if this gesture is enough to sway support, though Albany is almost desperate enough to pass any ol' MTA bailout. more ›

With news of another $621 million shortfall beyond an expected $1.2 billion deficit, the MTA is considering ways to deal with its troubled financial situation since the State Legislature (really, the State Senate) has been slow to agree on any sort of rescue plan. There may very well be another fare hike after the doomsday fare hike and service cuts that go into effect on May 31. It's so bad that MTA CEO and Executive Director Elliot Sander said he might even consider shutting down overnight subway service to save money: "I would not take anything off the table. [However] There have been reasons historically why that was not done and it may be that those reasons still exist." more ›

The State Senate Democrats may have a new MTA bailout proposal that involves a payroll tax and a taxi dropoff surcharge, but it might not have the votes it need for passage! The NY Times' story is headlined Latest Plan for M.T.A. Is Foundering in Albany while the Daily News is, naturally, more blunt: Senate Majority Leader Malcolm Smith's MTA plan might be dead on arrival. more ›

NY State Senate Democrats have finally offered their thoughts on how to help out the MTA—and mass transit commuters who otherwise will face significant service cuts and fare hikes. PolitickerNY sums up the plan's features: "A $1 surcharge on taxi rides in the 12 counties served by the M.T.A., raising $190 million; a sliding payroll tax on all businesses within that region, raising $1.49 billion; a $25 fee on motor vehicle registration, raising $130 million; a 25 percent increase on the fee to obtain a drivers license, raising $10.5 million; an eight percent increase on fares; and an increase in tax on rental cars, raising $35 million." (An 8% subway and bus fare increase would be preferable to a 25-30% fare hike.) more ›

The State Legislature could save the MTA from having to enact severe fare hikes and service cuts if the Senate can agree on a bailout plan. (Riders would still face relatively moderate fare hikes and service cuts.) While the governor and Assembly support helping the MTA, the Senate has been split—though the Democrats have a majority, some Democratic Senators have been adamantly against ideas like tolling East River and Harlem River bridges. Which means the spotlight is on Republican Senators. more ›

With a May 1st deadline for Albany to get done in order to save commuters from the entire wrath of proposed MTA fare hikes and service cuts, Governor Paterson is continuing his aggressive push for legislators to take action. Yesterday he spoke in support of former MTA Commissioner Richard Ravitch and his rescue plan. Paterson said, “He brought back a plan that won the approval of every reasonable point of view from different sides. Except in Albany. It’s a different planet. As we like to point out, there is no gravity.” more ›

The three most powerful men in Albany—Governor Paterson, Assembly Speaker Silver, and Senate Majority Leader Smith—were able to come up with a $132 billion budget in secret. But any attempt to save the MTA is being stalled by the Senate. more ›

After a week in which any bailout plans out of Albany flopped and the MTA finally made official its proposal for a fare hike and service cuts, legislators are finally sounding like they are close to a deal that will alleviate the strain put on straphangers. The long-discussed raising of driver registration fees and MTA payroll tax are likely to be central to any plan to avoid the proposed $103 monthly Metrocard. Senate Leader Malcolm Smith says that "all options are on the table." more ›

After the MTA's Finance Committee voted yesterday to approve a package of severe fare increases (hello, $103 monthly unlimited Metrocard) and drastic service cuts (good-bye, W and Z lines; farewell, bus routes—see the PDF of NYC Transit changes here), MTA board member Allen Cappelli said, "There are 45 hours left before this disaster goes into effect." The MTA board is scheduled to vote on the fare hikes tomorrow. more ›

With t-minus three days until the MTA budget crisis deadline and the intractable (not to mention frequently counterintuitive) stances of the major players in Albany covered, the Daily News turns its eye to someone who has been notably silent throughout the ongoing discussions: Mayor Bloomberg. They talk to a source close to the governor who tells them, "The mayor is doing everything we've asked him to do." Which means nothing? The paper points out that whether it was during the unveiling of the Ravitch Commission's plan in December or Malcolm Smith's proposal earlier this week, Bloomberg has had little to say—possibly a remnant from the wounds he suffered in the congestion pricing battle. The most Bloomberg has offered came earlier this week when asked about the bailout and he said, "It's going to have to be the Democratic senators to come together with the Democratic Assembly people and a Democratic governor and solve this problem." more ›

It seems unclear who Governor Paterson's allies are these days with him now coming out to criticize Republicans in legislature for their hard-pressed stance in voting against any potential MTA bailout plan suggested thus far. Referring to GOP members voting against a plan that would bring their upstate constituents economic benefits due to creating jobs in bus and subway assembly plants, Paterson said, "I don't see any reason why they wouldn't be voting for it because it has a direct economic, imperative affect on their districts...And I think that if 30 members of a party all vote the same way—what we used to call that when I was in the Senate was a party vote." A spokesman for GOP leader Dean Skelos called Paterson "delusional." With the Democrats' plan containing incorrect math, the deadline for the MTA set for Wednesday and each side in Albany seeming to go in its own direction, frustration and anxiety seem to be abound. more ›

After Malcolm Smith came forward yesterday with his highly anticipated version of a rescue plan, the Senate Leader turned around today and found just about no one standing behind him—not Governor Paterson, not Assembly Leader Silver and certainly not anyone from the New York newspapers. more ›

With layoffs coming and the possible draconian fare increase looming, the war of words between MTA officials and state legislature is heating up. At their emergency board meeting yesterday, MTA Chairman Dale Hemmerdinger said, "This is big stuff. And I think [state lawmakers] don't really understand what's at stake...Trains that will not be there...People who won't be able to get to the doctors, won't be able to get to school, won't be able to get to work." Whether or not Albany is able to help alleviate the fare hike and transit cuts, the "doomsday budget" will include cutting about 200 token booth positions and all 600 station customer assistants with pink slips going out in May. An MTA bailout based around the Ravitch plan has been stalled due to the possibility of East River tolls and other issues. Senate Majority Leader Malcolm Smith said, "I just don't think it's appropriate for the MTA to sort of hold the public hostage and say, 'Well if we don't get to the deadline we're going to charge you more. I mean the public didn't cause their failures in terms of how they manage their budget." more ›

Forget that talk of an imminent MTA bailout—the Post conducted a survey of State Senators and found, "Unless five Democratic state senators can be convinced to change their minds, the plan to bail out the MTA by imposing tolls on East and Harlem river bridges is dead in the water." more ›

With news that the State Legislature is working on a MTA bailout plan that involves combining the duties of the chairman and CEO, the Daily News reports that Mayor Bloomberg appears to support it. The mayor said, "If Dick Ravitch thinks that the management should be streamlined, it's probably a good idea," referring to Ravitch's suggestions for MTA revenue creation. Currently the MTA has an unpaid, part-time chairman—currently Dale Hemmerdinger— and a full-time CEO/executive director—now Elliot Sander; if the jobs were combined, it's unclear which would be the last man standing—or if someone totally new would be appointed. Bloomberg didn't voice his support one way or the other, but did say, "Lee Sander has done a great job. He's worked very hard, but first let's see what the law is. If it's changed I would certainly be happy to give my opinion to the governor... In terms of who should run it, if he were to pick Lee or not, I just don't know." more ›