Second Ave. Sagas

The top challenges that await Jay Walder

Written by

Benjamin Kabak

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At some point over the next few months, the State Senate will vote to confirm Jay Walder as the tenth chairman of the MTA Board. The one-time agency CFO and long-term transit veteran knows he faces an uphill climb, but he couldn’t really turn down the job.

In The Times yesterday, Michael Grynbaum explored Walder’s rational for taking on this Herculean transit task. “It’s a big risk,” Robert E. Paaswell, a transit expert at the City College of New York, said. “Jay has every tool imaginable to run the system, but brilliance may not cut it.”

In the end, though, it really boils down to one characteristic: The MTA is still the top dog among the world’s untamable transit beasts. “To run the M.T.A. is the sine qua non of transit jobs,” Paaswell said to Grynbaum. “If it’s available, no matter where you are, you take it.”

It’s all well and good to talk about the reasons behind taking the job, but the truth is that Walder has a tall task ahead him. He needs to prioritize certain aspects of the job, and right now, I’d like to offer up my take on the top challenges facing the MTA over the next few years. This is a roadmap to the job Jay Walder should aim to do as the head of the MTA.

1. Get Albany on our side — There is really no good reason for any New York City-based state representative to be anti-transit. Yet, time and again, we see groups such as the Fair Hike Four espouse an anti-transit point of view. It’s an indisputable fact that millions of New Yorkers a day rely on the MTA to get them to and from work, school, doctor’s appointments, errands, baseball games, museums and, well, just about anything. Albany needs to recognize the importance of sensible transit funding options to the city, and Walder has to guide them there.

2. Winning the PR battle — As I mentioned more than once over the last few weeks, the MTA has a public relations problem. No matter what they do right — no matter how many innovations come out of Transit and no matter how often the trains run smoothly — the bad news always dominates the headlines. Walder has to turn the MTA from a whipping boy into a body that, if not respected, is at least given its dues by New Yorkers. If he can turn the media just a bit, the public will be far more willing to embrace the MTA.

3. Offer more service for fare hikes — It is simply an economic fact of life that the MTA will have to raise fares. It is first the only means of balancing the budget not dependent upon politicians, but it is also rational to do so based on inflation. The public can understand this latter reasoning but wants something in return. And so, when the MTA raises the fares, they should attempt to explain what new service they are brining on board. Even if it something as mundane as extending the 5 into Brooklyn during off-peak, mid-day hours or terminating the G at Church Ave. instead of Smith/9th Sts. People will not grumble as much if they get something in return.

4. Fund the capital campaign — Right now, the MTA’s next capital campaign is expected to cost nearly $30 billion, and it will include extending the Second Ave. Subway, funding the East Side Access project and various other minor station repairs and rolling stock purchases. Walder has to find a way to secure the funds for this program without incurring more debt and with an eye toward ensuring future investments as well. He knows the enormity of this task, and for better or worse, it will dominate his first few months as Chair.

5. Bring the MTA into the 21st Century — Every article and blog post about Walder makes mention of the fact that he brought the RFID-based, contactless Oyster Card fare payment system to the London Underground, and we all know he wants to do the same thing here. Bring it on, I say. The MTA is a system relying on late 20th century technology for its fare collection and early 20th century technology for some of its signaling. It’s time for the MTA to enter the 21st century. We want real-time train arrival boards, better fare payment methods and a website that doesn’t look as though it is stuck in 1997.

For the most part, none of these five bullets are that innovative, and right now, the city doesn’t need a particularly innovative chair of the MTA. What we need is someone with the drive and will see these goals realized. Can Jay Walder do that? We’ll find out soon enough.

Comments

19 responses to “The top challenges that await Jay Walder”

  1. Streetsblog New York City » Today’s Headlines

    […] 2nd Ave Sagas on the Tall Tasks That Await Walder […]

    Reply
  2. Larry Littlefield

    “Wwhen the MTA raises the fares, they should attempt to explain what new service they are brining on board.”

    To claim the fare hikes are for services is both fraudulent and unlikely to work, because service cuts are more likely. All the additional money is going to debts, pensions, and retiree health care. And because most people believe what they want to believe and don’t read the newspaper very carefully, that’s a PR war the MTA can’t win.

    So here is my suggestion, which I made in person to Hermidinger (he just shrugged).

    Instead of raising the MTA’s the fares and tolls, cut them. Cut them so that it only reflects the cost of today’s transportation, not costs shifted from the past.

    And you know how the MTA says the subway fare is $2.25, but people actually pay less because of a discount they don’t appreciate. Do the opposite. Impose a surcharge to reflect the cost of the past, right there where people can see it. The sins of the past surcharge, it could be called. Or the Generation Greed surcharge.

    Or perhaps multiple surcharges, reflecting retiree health care (not funded in the past when the retirees were working), catch up funding for the pensions (because not enough was put into pensions that were enhances retroactively), the debt that may be atrributed to raising fares by less than inflation in the past (with the discounts considered), the the debt that may be attributed to the cut in city and state funds.

    Imagine this. The fare is $1.50. You pay $20.00. You get a Metrocard worth $15.00, with your receipt showing the surcharges to pay for the past.

    That would be an education in every transaction, for people who aren’t going to listen to what Walder says, or even ever know who he is.

    Reply
  3. Boris

    Larry,

    That’s brilliant. Actually, even without lowering fares, they can simply be broken down by what amount goes towards what service, be it actual operating costs, pensions, debt service, etc. Or an even simpler way- put up posters with a pie chart showing what your fare dollar goes to. That way people who pay cash or don’t want to read the fine print can still see the information.

    Taking it one more step further, I don’t see why TA can’t negotiate a deal with the free subway newspapers and insert a leaflet with such a chart.

    Reply
  4. Larry Littlefield

    It may be brilliant, but with Generation Greed controlling the state legislature and looking to suck this city and state dry before dying off or moving on, if Waldner ever implied he’d put the facts in front of people’s faces, he’s never be confirmed.

    Reply
  5. Marc Shepherd

    I think the first two dominate the other three. If Walder can win the PR battle and get Albany on the MTA’s side, I am sure he will solve the other three.

    Larry Littlefield’s idea is simply a tactic for achieving these goals, that is, to get Albany and the public to understand how little of the fare actually goes towards the operating cost of a subway or bus ride. I am not sure whether his proposal is the right way of going about it, but his objective is the right one.

    I question Ben’s third challenge, although for different reasons. Although I think service needs to be improved, ultimately we fail if riders expect service growth and fare hikds to be correlated. Yeah, it’s nice that the 5 Train is now spending more time in Brooklyn, but only a teensy percentage of the latest fare hike is going towards that.

    Reply
    1. Alon Levy

      Right now about 180% of NYCT’s farebox revenues go to operations. For capital construction, add another 90% of revenues.

      MTA-wide, a little under 30% of operating expenses go to benefits. But that includes health insurance, not just pensions and other postemployment benefits.

      Reply
  6. The labor relations side to the Walder appointment :: Second Ave. Sagas | A New York City Subway Blog

    […] « The top challenges that await Jay Walder Jul […]

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  7. Generation Greed

    I guess Larry Littlefield has hijacked the attention of this blog as well as all the other sites in and around NY. Great energy, he has me there with his relentless attack on all things temporal; debt, bonds, pensions and insurance. Pay as you go, that will straighten out the old MTA and public education.

    And, I guess you all are willing to go it alone without the help of us old geezers. Certainly no need to build any sort of civic trust to generate the generalized reciprocity needed to operate mass transit between disparate jurisdictions and serving a diversified political economy.

    I hope Larry runs for office again, in fact I would be glad to send him a check just so the pay as you go approach could be tested in the electoral politics. Now is a great time too, with the economy shattered. Go for it LL.

    Reply
    1. rhywun

      It’s a pretty simple argument. You’re taking out more than you’re paying in, and sticking your kids with the bill. Your flapdoodle about “civic trust” can’t conceal that fact for very much longer, as jurisdictions around the country go bankrupt one by one.

      Reply
      1. Alon Levy

        No, he’s taking out what he paid in 30 years ago. It’s not the same thing. The US chose to have terrible social security, leading to a system in which local governments and companies were stuck paying for retirees. If you don’t like this arrangement, write to Schumer and Gillibrand asking them to double FICA so that Social Security covers more than bare necessities. I’ll support you.

        Reply
        1. rhywun

          Sorry. It doesn’t work that way. There is no such thing as a “lockbox” where the money you put in 30 years ago is waiting for you when you retire. The money Mr. Greed gets is coming directly from today’s taxpayers. With people living longer and longer lives, this sort of system was doomed from the start.

          Reply
        2. The Secret Conductor

          Have to agree with rhywun. The idea that youu are just getting the money back that you paid in it totally false. Same thing for pentions… how does someone get 30,000 a year for the rest of his life if he didn’t even put in more then 100,000 over 25 years? Even if you calculate the future value of money that you put in now will not pay your 30K for the rest of your life.

          Both social security and pentions are creations of past generations who did not life long after retirement, NOR did they rack up hostpial/medical costs like they currently do today.

          I am NOT waiting nor depending on social security and my pentions. I will take what they give me, but I am almost sure both syetms will be quite bankrupt by the time its my turn. This is why I am TOTALLY focused on creating my own retirement plan by starting my own business.

          A safety net is fine and very helpful, but it is just that. A safety net, not a floor on which you can walk on.

          Reply
          1. Alon Levy

            It’s false only in the sense that all money is fungible. Social security was a social contract in which working age people would pay taxes to support retirees, in exchange for a promise that they’d get money when they retired. Pensions are a similar contract between a corporation and its employees.

            What is false is to complain that past generations didn’t “rack up hostpial/medical costs.” It’s not a generational thing – health care costs have been exploding for everyone. If you want to blame a union for it, blame the AMA, with its threats that any changes to the system will destroy freedom in America.

            Reply
  8. Andrew

    Sorry, I have to disagree with #5.

    A contactless fare payment system (which, incidentally, has been in the works here for years) would be nice – because it would be more reliable and easier to use than MetroCard, not because it uses newer technology.

    Train arrival time boards would be nice – because they’d show information that riders would find useful. As a rider, I don’t care if the technology is cutting-edge or old-school, as long as it works reliably. (Many systems elsewhere in the world have had such boards for decades. They’re probably not cutting-edge, but they provide useful information, so who cares?)

    I don’t care how old the website looks. I care that it provides the information I need in a way that I can find it easily.

    Technology is a means to an end. It’s not a goal in and of itself.

    Reply
    1. Kai

      Contactless payment would be nice because

      Reply
      1. Kai

        Sorry, clicked reply prematurely…

        Contactless payment would be nice, but it’s not one of the higher “21st Century” improvements in my opinion. The MetroCard is modern enough, especially seeing you only need to swipe it once per ride. In London, due to variable fares, you need to “wave” your Oystercard on exit as well. Also, they use the honor system in some places (such as on the Docklands Railway, where cards are scanned and verified by random fare controlpeople on board.)

        Arrival displays would bring a much greater benefit. Also, although this falls into the capital program, “21st Century” to me means elevators in every station (this might not happen in my lifetime) and stations that look more like South Ferry and less like Chambers Street (J,M,Z).

        Reply
        1. Anthony

          I don’t really agree about the contactless cards… even though they’re “contactless”, you still have to take it out of your wallet and tap it against the reader for it to work. I don’t see how that’s much easier to use than swiping the card because I still have to dig into my wallet to fish it out. I’d really be impressed if I could just walk through the turnstile without having to take the card out, but otherwise it doesn’t seem much different than the current system.

          Reply
          1. Alon Levy

            Contactless cards can be tapped through a wallet. You don’t have to take them out. In Singapore people would tap through their wallets all the time.

            Reply
        2. Andrew

          That’s POP (Proof of Payment), not an honor system. Payment is absolutely required, and violators are fined, if caught. It’s no more an honor system than, say, parking meters.

          We have POP in New York as well, on Select Bus System in the Bronx. SBS as it exists today is a bit clunky – everybody, regardless of MetroCard type, has to get a paper receipt from a machine before boarding the bus. That’s time-consuming (think about a large crowd running off the subway as the bus is pulling up – even if they all get to the bus stop in time, some of them are going to miss the bus while they frantically line up to swipe their cards at the two machines) and not as green as it could be. In cities I’ve been to with contactless cards, the payment/validation process is a lot faster (sometimes the card validators are even on the bus itself), there’s no paper, and people with unlimited cards don’t have to do anything at all. The inspectors have portable card readers that can determine whether a card is properly validated for a given ride.

          Of course, as long as SBS is restricted to one bus line in the entire city, that alone isn’t much of a motivation. But I wouldn’t mind seeing SBS-style fare payment extended to the rest of the city.

          Personally, I think Chambers Street is absolutely beautiful. It’s filthy and in generally poor shape, but if it were fixed up and given a thorough cleaning job, I’d be thrilled. South Ferry is too, um, white for my taste. But that’s just me.

          Reply

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