Archive for MTA Politics

As politicians have blustered about calling for more financial oversight of the MTA, a bipartisan group of State Senators have taken the plunge forward on this project. Earlier this year, Carl Marcellino, a Republican, and six co-sponsors introduced a bill that would create an MTA Interim Finance Authority. The interim authority would administer and oversee all of the MTA’s fiscal responsibilities and, ideally, lend even more transparency to what has become a fairly transparent budget process. A similar bill has been submitted to the state Assembly, but both have simply been referred to committee so far.

In discussing the bill with the Brooklyn Eagle, State Senator Martin Golden, one of the bill’s co-sponsors, leveled a familiar charge toward the MTA. “The leadership of the MTA has failed time and time again to properly manage the agency finances,” he said, “and yet, it seems that everyone knows and acknowledges that this problem exists, but no one wants to take the MTA on. No matter what actions are taken, the MTA continues to create an even greater deficit.”

Let us supposed that the Senate and Assembly approve this bill. Let us suppose that the MTA Interim Finance Authority comes into being and helps with a forensic audit of the MTA. Who will these Senators blame when the MTA’s finances are found to be acceptably accurate and the deficit keeps growing? They won’t point fingers at themselves, but they are the ones to blame.

Categories : Asides, MTA Politics
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When Albany approved the MTA funding package last year with the payroll mobility tax as its centerpiece, I called it an imperfect compromise. It was a plan that, as state comptroller Thomas DiNapoli reported a month after enactment, would leave the MTA short some money and did not address long-term institutional problems with the way the state and city fund the authority.

Since last summer, the MTA has seen the payroll mobility tax fall short on its promised receipts by nearly $300 million, and throughout the metropolitan commuter transportation district, suburban legislatures have agitated for its repeal. Now, three Republican Assembly representatives, including New York’s first Tea Party-approved official, have launched a new attack on the payroll mobility tax. As Faith Burkins-Gimzek of LegislativeGazette.com reported yesterday, the three Republicans are just two days removed from taking office, and already, they’re trying to push through a repeal of the tax.

The legislation — currently tagged as A10011 — was presented by Dean Murray, Robert Castelli and Michael Montesano, three representatives from counties service by the MTA. It calls for an immediate repeal of the payroll mobility tax but does not allow for another source of revenue for the MTA. Without the payroll mobility tax, the authority would be out at least $1.2 billion.

While the payroll tax has been a controversial aspect of the funding package since its inception, Gov. David Paterson’s executive budget proposal recently redistributed the burden. Instead of taxing businesses throughout the 12 counties evenly, the new plan would put more of the tax burden on New York City-based businesses while relieving those in the surrounding counties. Still, Murray and his co-sponsors do not believe this proposal goes far enough.

Burkins-Gimzek has more:

Murray says businesses are being hit two-fold, because not only do they pay the MTA tax, but because schools are required to pay the tax as well, districts will have to raise property taxes to account for the revenue loss, they argue.

The bill’s memo states that the fiscal implications of the repeal on the MTA would be an annual loss of $1.2 billion in revenue. The authority recorded a $1.8 billion deficit in 2009 and a recent press release from new MTA Chairman and CEO Jay Walder announced that the authority is laying off 1,000 station agents and administrative employees.

Murray said there would be no need to raise taxes if the MTA eliminated redundant positions, collected on unpaid invoices from advertisers and targeted pension spiking, when employees rack up extra overtime in an attempt to increase their retirement benefits. He said the MTA threatened a “doomsday scenario” that without this tax, fares would be raised and services would be cut. He said that even with the tax, fares have been raised and services have been cut — “a slap to the face” to his constituents…

Castelli said “If the fraud, mismanagement and abuse was corrected they would be able to pay off the deficit with a surplus.”

Besides the sheer absurdity of Castelli’s charge that the MTA is wasting $1.2 billion, other ranking Assembly Republicans proclaimed support for Murray’s measure on more principled grounds. “Nearly a year ago, I publicly called for the establishment of a fiscal oversight control board, along with a comprehensive audit of the MTA, to increase transparency and accountability to taxpayers who paid for a nearly $2 billion bailout of this authority, which is supposed to serve in the public’s interest,” said Kolb. “Unfortunately, the MTA’s finances are still on the wrong track: there is no fiscal control board, no forensic audit, and, as a result, no real reform.”

Still, the MTA defended itself and noted that the state comptroller has been auditing the MTA. While the authority is not a lean organization by any means, it isn’t nearly as corrupt as these representatives would have their constituents believe. “The comptroller audits us on a monthly basis,” authority spokesman Kevin Ortiz said. “The rescue legislation that passed last spring already authorizes a forensic audit, and we welcome it.”

Because Sheldon Silver holds the keys to the Assembly, this legislation is dead in the water, but it shows just how deep the electeds’ distrust of the MTA runs and how little they are willing to support public transit. Repealing the payroll tax would result in losses far greater to the region than the $1.2 billion, and even if the authority shores up its accounting and waste, a repeal would leave the MTA an additional $1.2 billion in the red and effectively bankrupt. At some point, our politicians will let the MTA fail, and it will be ugly indeed. Only then will they begin to see what decades of institutional neglect does to one of the state’s most vital economic movers.

Categories : MTA Politics
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Mar
09

How the state robs from the MTA

Posted by: Benjamin Kabak | Comments (0)

Albany lawmakers used money that should have gone to the MTA to fund other state obligations. (Source: Streetsblog)

When Albany approved a series of emergency budget reappropriations in late November, they did so under the public guise of a deficit. The money wasn’t there, they said, and so they had to take away over $100 million from the MTA.

At the time, an MTA press release sort of highlighted how the state hadn’t been broke but had basically stolen the money for the MTA and reappropriated it. “This is the first time that an existing appropriation to the MTA from dedicated MTA taxes has been reduced after collection by the state,” the release said.

Today, Ben Fried and John Kaehny at Streetsblog explain how this accounting sleight of hand amounts to state-sponsored robbery. Albany took money that should have gone to the MTA and simply moved it to another account. Talk about your two sets of books.

I’ll quote at length what the two had to say, but do visit Streetsblog if you don’t already:

The overwhelming majority of the $143 million reduction in transit funding did not originate from the state budget. Instead, Albany took dedicated transit tax revenues from the MTA and redirected them to the state’s general fund. In effect, Albany stole $118 million from transit to subsidize the rest of the state budget. That’s enough money to restore all the subway and bus cuts currently on the table in the MTA’s austerity plan.

How did they pull off the heist? To explain, we need to give a short intro to the MTA operating budget.

In addition to fares and tolls, MTA service is mainly funded by an array of dedicated taxes, which total about $4.5 billion every year. A smaller portion comes from “state and local subsidies,” of which Albany is supposed to contribute about $190 million. Already, we’re only talking about a small fraction of the MTA’s nearly $12 billion operating budget.

But here’s the thing — Albany’s “contribution” consists almost entirely of tax revenue that’s already dedicated to transit. This year, Albany put just $7 million from the general fund into MTA operations, according to the state Division of the Budget. The rest of its obligation to the MTA — $183 million — came from dedicated transit taxes.

So when the state made off with $143 million from the MTA budget in the December deficit reduction package, lawmakers were not reducing the state’s contribution to transit so much as raiding the MTA piggy bank and robbing transit riders of funds collected specifically to serve them. When all was said and done, Albany had taken $118 million from dedicated MTA taxes…

The dedicated revenue source in question — the Metropolitan Mass Transportation Operating Assistance Fund (MMTOA) — was established in 1981 and consists entirely of taxes collected in the 12-county MTA region… So $118 million in downstate taxes, meant to fund transit exclusively, disappeared into the Albany money pit. Nothing in New York state law prevents the same thing from happening again.

Unfortunately, we can’t do very much right now, but Fried and Kaehny urge riders and advocates to be protective of our future funding initiatives. We could ask elected officials to prevent against agency theft. We could ask them to own up to their cuts. After all, the same representatives who approved this giant cut are the ones slamming the MTA for being broke. Politicians just shouldn’t be allowed to have their cake and eat it too.

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As angry New Yorkers have rained scorn upon the heads of the MTA Board, new CEO and Chairman Jay Walder has been acutely affected by the people. “It’s tearing my heart out right now,” he said last week. “Last night at 1 o’clock in the morning I’m turning over in bed trying to figure out how to make the choices” about service cuts. Since Walder himself cannot order more taxes or higher state subsidies, he is left with but two choices: cut services or raise fares.

Despite this dilemma, Walder is willing to listen. The Daily News reported today that Walder has agreed to a hearing with students who are concerned about the impending elimination of the free Student MetroCard program. The MTA head will meet with students next Wednesday as they make the case for the student transit program, and he makes the case for an MTA very short on funds.

So what then can Walder do without money for the program and little political support from City Hall or Albany? When he meets with students, he must explain to them how the city and state should be funding the program and how those two governing bodies have abdicated their responsibilities to the MTA and, more importantly, to New York’s students. He should show him the chart above from Streetsblog and the one below while urging them to turn their rage toward our elected officials. After all, if the politicians won’t listen to students, who will they listen to?

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Throughout this week, MTA Board members and division heads will sit through a series of public hearings on the Authority’s latest proposed service cuts. Generally, a vocal minority of bus riders, paratransit users and student groups will browbeat the board members over cuts that will decimate bus riders, pare down Access-a-Ride and eliminate free student travel on New York City Transit’s buses and subways. Most people will heap tons of blame upon the shoulders of MTA Board members who have few avenues other than service cuts and fare hikes, and some of the city’s elected representatives — those same representatives who won’t fund the MTA — will dare to speak out against the authority.

In a certain sense, these public hearings are a legally mandated charade. No matter how many people step up to the microphone to yell at the MTA Board and to urge the authority to save Student MetroCards — a program for which the MTA shouldn’t be carrying the bulk of the funding burden anyway — the MTA Board probably won’t listen. Maybe a few bus routes will get spared; maybe some of the cuts will be shuffled; but in the end, the Authority has to solve a $751 million budget deficit without raising the fares. That the Authority scheduled two hearings per night for four days this week tells me all I need to know about how the Board plans to respond.

None of this, however, is really the fault of the MTA Board members. It is the fault of New York’s elected representatives who continue to absolve themselves of any responsibility to a public transit that moves over seven million New Yorkers a day. It is the fault of residents and voters who are unwilling to educate themselves on public transit issues and listen to politicians who, through the MTA, isolate themselves for making proper and tough decisions on public transit. And it may even be the fault of those who formed the MTA in the first place and tried to isolate it from the political process.

Over this past weekend, I spent much of it working on a big paper I have to write for law school. The paper is going to focus on some theories of local government law and the way MTA funding highlights the tensions between urban and suburban transit interests. The first section of the paper explores the events that led up to the creation of the MTA, and it is a tale that has its origins in the founding of the subway. Without going too much in depth, the New York City Transit Authority was established in the mid-1950s after the subways had become so highly politicized that no one wanted to take responsibility for ensuring adequate funding levels through fare revenue.

The origins of this problem rest in the early 1900s when the city forced those who contracted to build and operate the subways to agree to a fare cap of sorts. Only through mutual agreement could the IRT and later the BRT raise the fare from a nickel, and even though these companies saw their profits turn to deficits, city officials and a whole slew of mayors knew that allowing a fare hike was the equivalent to political suicide. Even after Fiorello H. LaGuardia oversaw unification and improved the efficiencies of the subway system, the fares remained a nickel until 1948 when the city simply could not afford to shoulder the operating deficits.

By 1953, city leaders knew they had to remove responsibility for subway funding from the direct control of politicians and sought to establish a public authority that would, ideally, operate as efficiently as Robert Moses’ Triborough Bridge Authority. The NYCTA, though, was a conceptual disaster. It couldn’t raise revenue through means other than a fare hike, and it was, as Clifton Hood described in his book 722 Miles, largely unanswerable to the public. It become a bureaucratic scapegoat as municipal leaders failed to acknowledge the subways as a public good and, as Hood writes, failed to “overcome the deep-seated opposition to public investment in rapid transit.” Removed from the sphere of politics, no one took responsibility for the NYCTA.

If that sounds familiar, it’s because history is repeating itself. The MTA has become a far more transparent organization than ever before. It has laid its books open for all to see and has tried to reason with politicians. But a deep aversion to higher taxes and more user fees as well as the easy ability to scapegoat the MTA leads politicians to slam rather than help the authority. Sitting here today, it’s easy to see how we haven’t learned from history, and maybe the MTA — or the NYCTA — is an experiment in government that never really had a chance. It isn’t a failed one per se, but as the MTA tries to solve a massive deficit by cutting services the city needs, I have to wonder when, if ever, our politicians will wake up to reality.

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Later this morning, at 9:30 a.m., the MTA Board will convene for its monthly meeting. Unlike previous months’ gatherings, February’s will be a fairly routine one. The service cut proposals are being digested, and while MTA CEO and Chairman Jay Walder will field some questions on yesterday’s announcement on job cuts, the big-ticket budgetary items won’t arise again until after next month’s public hearings.

Yet, the meetings will not be without some raucous controversy. Each month, the MTA begins its meeting with a public comment period, and today’s should witness some strident comments. TWU officials will speak out against the plan to lay off 500 union workers, and rider advocacy representatives will again bemoan the cuts. The biggest group there to present demands of the MTA will be the Students for Transportation Justice, an alliance of students seemingly organized with the help of the Working Families Party.

According to a release emailed out to writers last night, this coalition of student groups will attend the board meeting in an effort to gain an audience with Walder and to protest the planned elimination of the free Student MetroCard program. The students, said the WFP, “will attempt to deliver a letter to Chairman Walder signed by thousands of students, parents, and activists asking that the MTA hold an open meeting with student leaders and act to save student MetroCards.”

This isn’t the first time these students have tried to get Walder’s attention. Students for Transportation Justice sent Walder a letter in early February that went ignored, and the Working Families Party volunteered its services in a petition drive. As of this writing, the petition has received 13,391 signatures, and the WFP is trying to drum up support from a total of 50,000 New Yorkers.

There is but one problem with the WFP and its platform: It’s completely directed at the wrong people. Sure, these students can show up at MTAHQ later this morning and speak their minds during the opening minutes of the board meeting. They can also make a show of calling on the MTA to save Student MetroCards, but they will be preaching to the choir. It’s a matter of economics, and right now, the MTA does not have the money to fund free transit for students and shouldn’t be picking up the political slack on student transportation either.

The MTA said as much to me last week. “We agree that school children should not have to pay to get to school, but funding this service is the responsibility of the State and City,” Jeremy Soffin, agency spokesperson, said. “The MTA has been called the yellow school bus for New York City, and that’s a good analogy. All over the state school kids get picked up by yellow school buses, and they don’t pay to ride. But the bus doesn’t show up unless state or local government pays the bus company.”

Still, the Working Families Party, a pro-teachers union organization, is turning to the MTA and not to politicians who control the purse strings. Were the WFP to spend their efforts speaking out about Albany’s and City Hall’s dereliction of duty when it comes to funding for student transportation, attention would inevitably fall on the Department of Education. Why doesn’t the DOE fund student travel as DOEs do throughout the state and country? Eventually, pressure would build on the education officials, and the DOE would have to find more money for transportation. Pressure on the DOE would bring nothing but scrutiny to a beleaguered teachers union, and the Working Families Party can’t have that.

So we’re left with a movement with a message that winds up falling on the wrong ears. The WFP can rile up the crowd. They, as so many politicians do these days, can dump on the MTA. But it will be all for naught. Until activist groups and political parties put real pressure on Albany and City Hall, the MTA will be left flapping in the wind with empty pockets and no plans for free student MetroCards.

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Meet Felix Ortiz, Democrat and Assembly representative from New York City’s 51st District. A member of the Assembly since 1994, Ortiz represents an area of Brooklyn that encompasses Boerum Hill, Borough Park, Gowanus, Red Hook, South of Park Slope, Sunset Park, Windsor Terrace and Wyckoff. As a 16-year Assembly veteran, he keeps a rather low profile but was instrumental in getting the nation’s first ban on hand-held cell phone use while driving approved by the state.

This week, he entered the MTA fray when Gotham Gazette’s David King talked to him for an extensive piece on the state of the MTA’s finances. King’s thoroughly examination of the current financial crisis summarizes the various proposals and issues, and it covers ground I’ve been focusing on for the last few months. He did, however, get some choice quotes from Felix Ortiz on the Student MetroCard issue. Take a look:

“Our working and lower-income families will not be able to absorb these additional costs, especially in the current depressed economic state we are in,” said Assemblyman Felix Ortiz. “This cut is discriminatory in that it affects minority communities to a much higher degree. Everyone is entitled to an education; it should never become a privilege for those who can afford it.”

Ortiz said he can’t see providing the MTA with more funding until the agency makes its accounting more transparent. “Until they reveal their two sets of books and say here is book A and book B, we can’t listen to the MTA. We need to fire everyone, restructure and reorganize,” Ortiz said. “The MTA needs to get rid of the fat at the top.

The emphasis in there — highlight to show the sheer ignorance in Ortiz’s statement — is mine. Here is a man elected every two years to represent New Yorkers in the state Assembly, and he is not versed in the issue of the day. He is dragging up a seven-year-old charge, one levied at the MTA by a corrupt state comptroller and eventually disprove in a court of law, as indication that the MTA is not to be trusted or even funded. He wants to break labor contracts and break down the city’s transit system before he would even deign to fund the agency.

If only Ortiz were a lone insane voice amidst a sea of MTA sanity, I wouldn’t be so concerned with him. But he joins a long list of elected representatives — including current city comptroller John Liu, Peter Vallone and Aileen Gunther — who bring up trumped up charges as a way to eschew responsibility over the need to fund the MTA and student travel in New York City. This is a failure of government to an extreme.

At the end of the day, Ortiz’s statements aren’t completely about the alleged corruption at the MTA. No one is saying it’s a well run organization, but they don’t have two books and have vastly improved the transparency of their finances. Instead, it’s about an Assembly representative who won’t find money for student transit foisting the state’s problems onto an easy scapegoat. As the MTA said in a statement to me last week, “We agree that school children should not have to pay to get to school, but funding this service is the responsibility of the State and City. The MTA has been called the yellow school bus for New York City, and that’s a good analogy. All over the state school kids get picked up by yellow school buses, and they don’t pay to ride. But the bus doesn’t show up unless state or local government pays the bus company.”

If Ortiz or Liu or Gunther or Vallone want to waste his or her time blaming the victim, so be it. The MTA will turn to its last recourse and cut the services that matter to these officials’ constituents.

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When Eliot Spitzer won the governship in 2006, David Paterson, then Lieutenant Governor, never expected to wind up as the state’s chief executive for the better part of Spitzer’s term. Felled by a sex scandal in early 2008, Spitzer had to give way to Paterson, and since then, Paterson’s approval ratings have plummeted. Late last week, The Times, in a well-reported piece, accused him of being aloof, disinterested and simply bad at his job. It was, in my eyes, a worse indictment of his ability to govern than any uncovered scandal could have been.

Yet, Paterson will truck on. He announced this weekend that, despite rumors of a primary challenge from fellow Democrat Andrew Cuomo, Paterson will take his 26-percent approval rating on the road from Niagra to New York and Nassau in an effort to win the governorship in his own right. In his announcement speech on Saturday, he appealed to the MTA’s political and economic woes as a sign of the need for his leadership.

Claiming, in a positive light, that he has “done more in my two years of governor than most governors have done in two terms,” Paterson jumped into the fray. “So,” he said, “if you want a candidate that’s always telling the special interest what they want to hear but has never told the people of New York what they’re going to do about the problems of our time, balancing the budget, balancing the M.T.A. budget, rebuilding Ground Zero, stopping the violence among teenagers, then, don’t pick me as governor.”

Explicit in that statement is the claim that Paterson has told us what he plans to do about the problems of balancing the MTA budget. Implicit in that statement is the claim that Paterson is on the side of the MTA and will help balance the budget. As far as I can tell, neither of those statements are true.

So what, then, has David Paterson done for the MTA since taking over for Eliot Spitzer on March 17, 2008? He started his tenure off on the right foot when he announced support for congestion pricing. That, unfortunately, went nowhere. Paterson didn’t offer up much leadership on congestion pricing, and although congestion pricing remains one of the better solutions to the MTA’s woes, Paterson has not raised the issue since he endorsed the Ravitch Plan in early December 2008.

Since then, Paterson hasn’t offered up much of anything for the MTA. He dithered as the State Senate bickered and provided little leadership as the MTA faced its Doomsday last spring. His great compromise was one that simply promised schools a tax rebate. More problematic though are his recent positions and moves that have actively eliminated funding for MTA programs. He rescinded $140 million in state appropriations and has cut state Student MetroCard contributions from $45 million annually to just $6 million. His representative to the state’s capital review board torpedoed the MTA’s latest five-year plan.

Paterson is a born and bred New Yorker. He grew up in Brooklyn, went to Columbia and studied law at Hofstra before working in Queens and representing the Borough of Kings in the State Senate. He knows how valuable the MTA is to the city, the metropolitan area and the state at large. Yet, his record on the MTA is one that should not inspire the belief that he can, as he claims, balance the MTA budget.

As he gears up his run for governor, David Paterson is asking us to trust him on issues of transit while his record speaks to two years of last chances and lower state contributions. With Election Day nearly eight months away, Paterson can change his record on the MTA with one strike of the pen and some good old politicking. Right now, though, as the MTA moves into the political forefront of what promises to become a tedious race for the governship, Paterson has a long way to go.

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Updated 5:05 p.m.: When it comes to New York State’s legislative bodies, the Assembly generally has a better reputation than the inept Senate. Sheldon Silver has his caucus largely under control, and the Assembly can, with a few major exceptions, pass the legislation it needs to pass. Yet, when individual members of the Assembly start to speak out, boy, does the Assembly start to look bad.

Today’s Stupid MTA Statement of the Day comes to us from Richard Brodsky, Jeffrey Dinowitz and Linda Rosenthal. Brodsky, head of the committee that oversees the state’s public authorities, has sent a letter to the MTA Board criticizing the authority for its “decision to put students and families out as a pawn in the struggle to increase City and State funding.” He continued: “Simply stated, we ask that you immediately withdraw the threat to student fares.”

The Gotham Gazette has seen the letter and provides an excerpt sure to boil your blood:

“While the MTA asserts it needs $214 million in additional state and city aid to preserve the program, the actual cost of free and discounted student fares is close to zero. We reject the MTA’s assertion that the program must be valued at the ostensible lost revenue, and point out that state and city funding for the program actually exceeds the cost of providing the service.”

It is irresponsible economics — and flat-out wrong — for Brodsky to say the cost of free fares is “close to zero.” As I explained when City Comptroller John Liu brought up this same spurious argument, free doesn’t mean no cost. The MTA has to staff more trains and clean up more stations. They have to pay the costs associated with 133.4 million people a year entering the system for free, and that is not something that carries a price tag “close to zero.”

Meanwhile, Dinowitz and Rosenthal leaped into the fray with statements that are simply inexplicable in their absurdity. Dinowitz proclaimed the MetroCard Cuts to be “disgusting and immoral,” and Rosenthal called the move “shameful.” That’s right; members one of the state bodies responsible for approving a budget that striped state funding of student transit have the audacity to slam the MTA for its unwillingness to pay nearly $200 million of money that it doesn’t have for free student travel. When I last I checked, the MTA was a transportation authority and not a school bus provider.

The people who are truly “disgusting and immoral” and also “shameful” are these very same legislatures in Albany who control the purse strings. These are the people who have shot down congestion pricing and East River Bridge tolls, the people who don’t fight for dollars for the MTA and just slam the MTA when its economics go sour. These are the people we vote to represent us and who fail at that task in so many ways.

No politician has yet to explain why the MTA should foot the bill for student transit. The politics of asking a transit agency to cover for the Department of Education, the city and the state do not make sense. As Aaron Donovan, an agency spokesperson said in December, “Nowhere else in the United States is the public transportation system responsible for the costs of transporting students to school. In other municipalities throughout the country the local government will provide that transportation free of charge, and in most cases, provide a fleet of yellow buses.”

Yet when faced with the political and economic reality of student travel, the state Assembly representatives are more than willing to eschew any sense of responsibility toward the city’s students. It’s far easier and politically palatable to scapegoat the MTA than to accept the blame for failed economic and education policy initiatives.

This morning, Public Advocate Bill de Blasio flyered some major subways stops in an effort to convince New Yorkers to call upon Albany to fund student transit. He, at least, has the right idea in mind, but as Brodsky, Dinowitz and Rosenthal have highlighted today, those efforts will come to naught. Albany has simply become a wall standing in the way of New York City’s transit present and future.

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Calling New York a failed state in its current iteration isn’t too much of a stretch. We have a governor with no public support, and a State Senate that can’t stop its in-fighting long enough to pass any sort of legislation. When they do get their collective acts together for a long enough period of time to get something done, the results fall far short of what is promised as is the case with last May’s MTA funding package.

Over the weekend — unfortunately on a Saturday when fewer people are around to read it — The New York Times took Albany to task for its MTA failures. In a scathing editorial, the Gray Lady called upon Albany to find a better solution for the MTA. With a budget shortfall of nearly $800 million, the MTA is on borrowed time, and The Times succinctly outlines the sources of the shortfall. Tax revenues are down; the payroll tax brought in $200 million less than expected; fare revenue is down by $100 million; Albany cut $143 million; the upcoming TWU raises will cost the agency $100 million. It is a perfect storm of bad circumstances.

The Times though is concerned with the machinations in Albany right now. Writes the paper:

Now Governor Paterson is threatening to make things worse. In a clear pander to suburban voters in this year’s governor’s race, he is calling for cutting the payroll tax in seven suburban counties around the city while increasing the payroll tax in the city’s five boroughs.

A Legislature that is heavy on representatives from New York City is unlikely to go along — at least on raising the city’s taxes. The danger is that legislators, also facing voters this year, will decide to cut suburban payroll taxes without making up the loss to the transportation authority.

Some advocates are suggesting the agency shift some of its federal stimulus money — supposed to be reserved for maintenance, subway construction and upgrades — to use for operations. Transportation experts warn that if that happens, the system would deteriorate. Remember the ratty old subways of 30 years ago?

Albany must come up with a lasting solution for the M.T.A. That means leaving the payroll tax alone and finding new revenue sources — starting with tolls on Manhattan’s free bridges that could raise an estimated $600 million a year. It may mean raising fares, although that should be a last resort. It will mean supporting the new Metropolitan Transportation Authority chairman, Jay Walder, including in his plans to lay off workers as he streamlines the system.

What it should not mean is doing away with free passes for needy students. Both the state and city will have to contribute more to help pay $214 million a year to help keep these students in school.

The transit system that feeds the New York City area is crucial to the welfare and commercial vitality of the entire state. Governor Paterson and the Legislature have a responsibility to make sure it has the money it needs to keep working.

In a nutshell, this editorial tracks closely with everything I’ve been writing over the last few months. Albany must find a better solution. It’s time to renew the push for East River Bridge Tolls. It’s time for a sensible solution for transit in a city more heavily dependent on its subways and buses than any other in the nation.

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