Results tagged “mtarescueplan”

This morning, the MTA board met and passed Albany's proposed fare hikes and toll increases. Commuter rail fares will begin to increase on June 17; fares on subways and buses will change on June 28; bridge and tunnel tolls will increase on July 12. Fares are rising an average of 10%.

Yesterday morning, after the State Legislature agreed to bailout the MTA, Governor Paterson took to the underground, taking a subway to the 42nd Street-Bryant Park stop. He told commuters, "We're going to have a widespread cleanup and clean out of the MTA. And start getting this place working in an effective way. Because the one thing I've learned through this process is no one trusts anything the MTA says." Cut to a few hours later, when MTA CEO Lee Sander announced his resignation.

The State Senate and Assembly passed the $2.26 billion plan to bail out the MTA by way of a big payroll tax, a series of fare hikes spread over a few years (think of it as doomsday spread between 2009 and 2013) and numerous other surcharges, including a 50-cent taxi dropoff fee and increased costs for a driver's license. There will be no major service cuts; capital projects are only partially funded in the plan. Governor Paterson is expected to sign the plan; Paterson said, "[Commuters] have suffered, feeling that there would be dramatic increases in fares and service cuts that would actually, in the catchment area in which some lived, would almost prohibit them from getting to work."

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."

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).

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.

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.

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."

Since it's unclear whether the State Legislature will make a deal to help out the MTA (they claim to want to, but there's no agreement on a plan), the MTA has no choice but to tell commuters what to expect with their unlimited Metrocards as "doomsday," May 31—the day fares go up about 25%— approaches.

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.)