[Aaaand the Republican faction caved. Update below.] President Obama and George Bush's mastermind Karl Rove are in agreement that the House Republicans are out of their freaking minds for blocking an extension to the payroll tax cuts enacted last year. Although 89 Senators voted in favor of the two-month extension, which affects about 160 million Americans, House Speaker John Boehner is going along with the hard-right fiscal Conservative monsters spawned by the Tea Party and refusing to call it to a vote. And thus, strange bedfellows have come together to try and shame the Republicans into passing the extension. more ›

Unless lawmakers can come up with new ways to fund the MTA, the transit agency might be forced to raise its base fare to $2.60 and increase the cost of unlimited monthly MetroCards to more than $100, according to a new study. The report reveals that even if the MTA implements far-reaching service cuts this year and ups fares by the planned 7.5 percent next year, it would still fall short of balancing its budget without additional funding. more ›

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. more ›

Thanks to plummeting tax revenues, the Metropolitan Transportation Authority is expected to face a $400 million budget shortfall—even if it implements drastic service cuts that would terminate bus lines and subway routes and nix free Metrocards for students. So what, if anything, could be worse than the already-proposed "Doomsday" cuts? more ›

Even if the Metropolitan Transportation Authority implements far-reaching service cuts that would eliminate entire subway and bus lines and force students to pay to get to school, the agency will still face a $400 million budget gap. Revenue from a payroll tax has apparently come up short, again, the Daily News reports. The new revenue shortfall will make it harder for transit activists to convince the agency to not to implement the service cuts, and according to the tabloid, it raises the possibility that next year's planned fare hikes might be more than the planned increase of 7.5 percent. more ›

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 ›

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 ›