Archive for Service Cuts

Updated 12:20 p.m.: Next week at the March meeting of the MTA Board, those who hold the fate of the New York City transportation network in their hands will vote to approve a sweeping array of service cuts aimed at partially closing a $751 million gap in the MTA’s budget. While the elimination of free student travel remains a key centerpiece to this plan, MTA Chair and CEO Jay Walder announced that the Board would delay a vote on the fate of the Student MetroCards until June.

Walder’s announcement came on the heels of a Wednesday meeting with students and transit advocates who support free rides. While some have billed it an outright victory for the students, the program is far from saved. Rather, the MTA can delay this vote until the summer because it will not take the authority long to implement a half-fare plan in September as provided for in the current plan.

Still, Walder stressed his willingness to work with the city and state to find the funds for the program. “I strongly believe that students in New York City should be able to travel to school without paying, just like students around the state,” Walder said. “The MTA has been compared to the yellow school bus, and that’s a good analogy. Students don’t pay to get on the school bus, but the bus doesn’t show up unless the State or school district provides funding. I wish I could commit to fund this program, but the MTA simply does not have the money to cover this State and City responsibility any longer.”

He continued: “I also want to take away any confusion about whether or not this will be dealt with at the board meeting on March 24th. There is no need to deal with it at the board meeting on March 24th. We’d like to leave additional time, as much time as possible for discussion with the city and the state.”

The comforting news out of Wednesday’s meeting came from the student statements. Those in attendance seemed to recognize that New York’s politicians — and not its transit authority — should be the ones funding student travel. “We want the state and the city to bring new revenue sources that can keep flowing in and this is for the broader budget,” one student said to New York 1.

Still, though, elected officials do not seem willing to find the money for the free rides. Even though they’re happy sinking money into a yellow school bus system and even though every other district in the nation pays for student travel, the Mayor thinks he’s already doing enough. “The state cut back the subsidies and cut back the monies they give to the MTA,” he said. “I’m sympathetic. He’s got to balance his budget.” Students be damned, says Walder. They can pay.

Those organizing the students called yesterday’s meeting “a step forward” but recognize that much work remains to be done. Both the city and state have little money available, and if free student travel is the victim of multiple budget crunches, the only avenue students may be able to pursue is to agitate for better representatives in Albany and City Hall. New York shouldn’t let its students down, but the MTA should not be paying for student travel out of its own pocket. With three months to go, the student MetroCards are on life support. Will someone save them?

Categories : MetroCard, Service Cuts
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Although I referred to the MTA’s public hearings last week as political theater, I recognize that, as happened in 1990, these hearings can impact the MTA’s decision to cut services. Today, the Daily News reports, unsurprisingly, that the MTA is reconsidering some bus route eliminations. The report is light on details, but the Post says Walder will try to encourage $5 million in internal belt-tightening over eliminated some bus routes. For local neighborhoods who are on the verge of seeing their buses disappear, this is a good news indeed.

On the other hand, the MTA has a larger problem. When the cuts were first proposed the authority’s deficit was around $350 million, but today, it is approximately $751 million. Walder says the agency will eliminate administrative positions and stop some technology-based projects, but those cuts will save just $50 million annually. At some point, the authority is going to have to find big bucks, and if that means massive service cuts or a steep fare hike, New Yorkers who rely on the subways and buses for their daily needs are going to be feeling the pain.

Categories : Asides, Service Cuts
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The proceedings grew rowdy last night at the Brooklyn Museum as four people were arrested at the MTA hearing in the County of Kings last night. Police had to remove these people — assumed to be students — from the auditorium last night when they jumped the line at the podium and refused to cede ground to those waiting to speak.

Meanwhile, news reports say hundreds of people attended hearings in the Bronx and Brooklyn last night, and as you can imagine, the grandstanding politicians were at it again. Assembly rep Vanessa Gibson joined the chorus of elected officials who decided to blame the MTA for her own personal inability to lead and govern in Albany. It’s too bad these people getting arrested can’t direct their passion and ire toward Gibson and her ilk — those politicians who are able to skip the line and speak before everyone else does. With a vehement public urging them on, Albany would finally have the impetus to approve the policies and ensure the money the MTA so badly needs.

Categories : Asides, Service Cuts
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Over the last few months, I’ve repeatedly touched upon issues of cost in relation to the MTA’s decision to cut student MetroCards. As I explained again on Monday, it should cost between $687-$800 a year for one student’s school year travel without the option of free transit.

But what of the costs to the state to fund student travel? Tom Namako of The Post tackled this subject this week, and his findings are both staggering and unsurprising. The state won’t pony up more than $25 million — down for $45 million, up from $6 million — a year for student MetroCards, but it is content to spend over $1 billion busing students to school via the fleet of yellow buses. Namako also notes that the MetroCard program “help[s] move four times as many students at one-fifth of the cost of school buses.”

Namako continues:

The agency said it spends about $214 million to transport 585,000 students for free every year, with the city and state putting in only $45 million and $25 million respectively. Meanwhile, the Education Department’s $1 billion school-bus program moves only about 140,000 students, city statistics show.

That’s $786 million more for 445,000 fewer students. But city officials insist that money can’t be taken from one group and given to the other. “Busing requirements are set by state law. The city does not have the option of using busing money to fund MetroCards,” said one mayoral aide.

The DOE determines who is eligible for both yellow bus and free MTA services.

This is a staggering failure of politics and common sense from the city and state of New York City. Both of the entities responsible for getting students to school have been handed a literal golden transportation ticket, and they are both on the verge of letting the plan lapse. Meanwhile, these governments are content to flush money down the drain via a costly and inefficient yellow school busing system.

The MTA remains the nation’s only transit agency tasked with footing the bill for student transport, and there is simply no justification for it. It’s time for the state and city to swallow their anger and do the right thing. If the students are left stranded, it will be the fault of City Hall and Albany and not the MTA.

Categories : MetroCard, Service Cuts
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The MTA’s proposed service cuts and the plan to eliminate the student MetroCards will come under fire at this week’s hearings. (Map via NYC Transit’s book of service changes)

Ed. Note (11:30 a.m.): An earlier version of this post focused on the critique of the MTA’s proposed bus service changes. Because of some conflicts in the arguments, I’ve updated this post.

Last night, the first of the MTA’s service cut hearings invaded New York City. Due to some law school obligations and assignments this week, I don’t believe I’ll be able to attend any, but I can tell from the coverage (Times, Daily News) that I’m not missing much. A bunch of people are railing against the MTA, and a bunch of politicians who have the checkbook power to stop the cuts are grandstanding instead of paying up. Been there, done that, and we know how that story ends.

This year’s format differs a bit from last year’s, and the MTA has taken some flack for the change in schedule. As the hearings hit the five boroughs and outer-lying areas this week, the authority has decided to double-book. For example, tonight, both the Bronx and Brooklyn host hearings, and MTA Board members and top officials will have to determine which of the two events they should attend.

Politicians and some rider advocates claim that this packed schedule does a disservice to angry riders who want their voices heard. The MTA has a different take. Authority heads want “to hear from folks throughout the region, not to allow the same people to testify nine different times,” MTA spokesman Aaron Donovan said to The Times. After watching the same people say the same thing over and over again last year, I can understand why the MTA would want to eliminate that noise at their hearings.

Despite my inherent skepticism of the impact of these hearings — after all, nothing short of a miracle that happens at these hearings will help generate the $750 million the authority needs — some interesting ideas come out of these hearings. Some people stress the human element of transit and call for certain bus lines to be maintained. Others express their opinions on the cut package as a whole. And sometimes the MTA is listening.

Take, for instance, this report from December 1990. Nearly twenty years ago, the MTA found itself in a similar situation. The Authority was short over $200 million and had planned to eliminate numerous bus routes and scheduled trains. After vehement public protest, the authority decided to approve a 10-cent far hike and engaged in some serious internal belt-tightening.

Today, though, while I’ve long advocated raising the fares, especially in light of the fact that we don’t pay enough as it is, the MTA may be left with no choice. They will have to cut services to cover its gap, and they may, as officials have started to hint this week, raise the fares as well. The politicians can squawk; the people can protest; but with a deficit representing nearly seven percent of its overall budget and no funds from Albany on the horizon, the MTA will simply just sit there, listen and enact its planned cuts in the end.

Categories : Service Cuts
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Student protests and parental complaints about the MTA’s proposed student MetroCard cuts are on the verge of taking center stage this week as the MTA Board gears up to hold hearings on its slate of service cuts. The Tri-State Transportation Campaign has a prime to the hearings, and I wanted to take a few minutes today to once again revisit the issue of free student transportation in New York City.

Since the MTA announced its plans to cut free student travel, advocacy groups and students have been up in arms. Just last week, a group of students delivered a letter to the MTA Board, a protest I said had the right message but the wrong audience. (Streetsblog too questioned that protest and the head of the Transit Riders Council urged the students to target City Hall.) Yet, before the traveling service cut circus hits a borough near you, let’s revisit a pair of arguments that continue to plague the student MetroCard debate.

1. The city and state are the ones who should be funding transit and not the MTA

Over the last few months, MTA officials have continually tried to lay blame for the student transit funding disaster on the state and with good reason. “I would love to see students have free trips to school but I believe that’s a responsibility that the city and state have to come to,” MTA CEO and Chairman Jay Walder said 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 to me recently as well. “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.”

The reality is that the state and city have failed in their responsibility to fund transit. When the Student MetroCard program started, it was, as Metro reminded us today and I wrote in December, set to cost $135 million, and the city, state and MTA were to carry equal funding burdens of $45 million. That was in 1995, and since then, the city has never increased its contributions while the state’s have declined to $6 million. The MTA is left covering the costs, and as the below graph shows, those costs have soared.

The MTA knows it can recoup nearly $214 million in revenue by the 2011-2012 school year by charging students, and unless the city and state want to pay for student transit — a burden the state and localities carry elsewhere through New York — the MTA just should not be expected to pay.

2. A family will have to pay $687 per school year per student for transit

Some transit advocates have alleged that full-fare student transit will cost a family $1068 per student per year, but that number is simply wrong. That is the cost of 12 30-day unlimited ride MetroCards — or one year’s worth of travel. The only problem with that assumption is that students aren’t in school 12 months a year. In New York, students have 180 school days over nine months.

As I explored in depth in December, paying only for two rides per student per day for school days only would cost a family $687.90 per student. Paying for unlimited rides throughout the school year would cost just over $800 per student. For many families, these costs are a significant burden, but the true cost of transit to and from school is 64 percent lower than what may would have you believe. It’s irresponsible math to allege otherwise.

Some parents may claim that the Student MetroCard program allows their student to travel elsewhere after school. As long as that third trip is to an activity, then students are permitted to do so with their cards. Otherwise, the MTA is simply subsidizing free transit that isn’t related to school at all. The agency shouldn’t be expected to do that.

In the end, many New Yorkers, such as Michael Gould-Wartofsky who wrote a Huffington Post column on the topic, will try to blame the MTA. This is indicative of the MTA’s fat-cat culture, they’ll say, and it shows a callous disregard for students and families — especially lower class students and families — in New York City. It’s nothing of the sort. It is but another example of the why politicians scapegoat the MTA, and it’s one that should not be tolerated.

“Nowhere else in the United States is the public transportation system responsible for the costs of transporting students to school,” MTA spokesman Aaron Donovan said. “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.”

Categories : MetroCard, Service Cuts
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Following this morning’s meeting, Jay Walder spent a few minutes talking to reporters about the upcoming layoffs soon to impact the MTA. The personnel reductions will go into effect in 60 days, and the 1000 jobs on the chopping block will be the first in what could be a wave of layoffs this year.

The agency, said Walder, is now facing a $750 million deficit that has emerged since December, and the agency looks to save money both for its 2010 fiscal year and going forward, it will have to learn to operate as a leaner organization. “The reality is that the vast majority of our costs are labor,” Walder said at his press conference. “[The MTA's savings] will come in the form of layoffs.”

For now, the first round of cuts for New York City Transit will target approximately 500 station agents and 600 administrative personnel. The Long Island Rail Road announced that it would shave 150 jobs as well. There, 90 administrative positions will go, and 60 engineers and conductors will lose their jobs as well. “My sense is that there will be additional staff reductions from consolidations that the MTA will be focused on,” LIRR President Helena Williams said to Newsday today.

During his press conference, Walder repeatedly stressed how the MTA will follow agreed-upon collective bargaining provisions for layoffs. “We will be following all of the negotiated arrangements,” he said more than once. According to a Pete Donohue article, the TWU’s agreement with the MTA once had a no-layoffs provisions, but it was “traded away” during the 2002 labor negotiations. The MTA does not have to offer severance to its unionized employees, and the severance package for the axed administrative personnel will be based on senior and will not exceed $20,000, Walder said.

The TWU, meanwhile, is attempting to evaluate its position. According to a report this morning in amNew York, the MTA offered to avert these layoffs in exchange for a pay freeze, but the TWU rejected that offer. After engaging in a legal fight for its raises — raises that are costing the MTA $100 million in money it doesn’t have this year — the TWU is not going to give those up so quickly.

Yet at a time when agency finances are sour and everyone else is paying the price, the TWU is celebrating its raises and vowing a fight. In a website announcement informing its members of higher salaries, TWU President John Samuelsen promised to combat the layoffs. “I realize that it has been a long and frustrating wait” for the raises, he said. “But the wait is over. We can now move on to devote our full attention to current battle to preserve transit jobs and service, and to prevent the MTA from balancing its self-inflicted budget wounds on the backs of Local 100 members and New York’s working families.”

Considering how the MTA is balancing its Albany-inflicted budget wounds on the backs of every single transit-dependent New Yorker, that’s a bold claim by Samuelsen. Still, I would expect nothing less from a union president who must protect his members’ interests, jobs and money.

These cuts, though, are just the first of many. During his press conference, Walder did not beat around the bush. As the service cuts are implemented, he said, the MTA will probably have to lay off more workers, unionized or not. The agency is planning to overhaul the way it does business administratively, and unless Albany is willing to step in and do what it must, we will soon see an MTA operating with fewer services and far fewer employees.

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MTA CEO and Chairman Jay Walder officially announced plans to eliminate 1000 MTA jobs as part of the agency’s comprehensive cost-cutting measures designed to close a $761 million budget gap. As I reported late last night, the layoff plans will include 600 administrative jobs and 500 station agent positions. The station agent positions were slated for elimination through attrition, but the MTA’s dire financial situation has forced the authority to speed up the timetable for cutting personnel levels.

“The State’s economic crisis demands that the MTA move quickly and decisively to cut costs, and that is exactly what we are doing,” Walder said in a statement. “These layoffs are extremely painful, but we must live within our means and make the tough decisions that businesses and families across New York are making.” The agency noted that it would “comply with applicable statutory and collective bargaining obligations” for those unionized workers due to lose their jobs and that non-union workers would be offered severance packages.

Meanwhile, as part of his overall push to change the way the MTA operates and improve its financially accountability and efficiency, Walder promised more cost-cutting measures in the future. If he is successful, Walder could, despite having to inflict pain upon riders and workers, vastly improve the beleaguered authority. “This is just the beginning of a comprehensive overhaul of how the MTA does business,” he said. “We will be reducing overtime, consolidating redundant functions and working with suppliers to lower costs. We will not stop until I can say that every dollar the MTA receives is spent wisely.”

Categories : Asides, Service Cuts
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As the MTA looks to close an ever-widening budget gap, the agency will have to trim from every department, and everyone involved in the daily operations of our public transportation network will feel the pain. From those of us rely on the subways and buses to get to and from the office and school to those of us who work for the MTA, we all will pay the price. We’ve heard a lot about the authority’s plans to cut transit service, and today, the MTA will announce a sweeping set of personnel cuts designed to save $50 million.

The story is a big one. MTA CEO and Chairman Jay Walder is going to propose laying off more than 1000 workers. If all goes according to his plan, 450 of those workers fired will be unionized station agents. Another 600 — or 15 percent of the MTA’s non-unionized workforce — will be let go from various administrative positions. The major news outlets broke this story late last night, and many of the local 10 and 11 o’clock newscasts featured it at or near the top of the hour. For an agency saddled with what many believe to be an unmanageably and unnecessarily large workforce, these cuts are but a start in Walder’s fat-trimming efforts.

Of course, these cuts won’t go down easily. While Walder has the discretion to fire non-unionized MTA employees, the TWU has vowed to fight cuts no matter how small a percentage of the unionized workforce these cuts represent. Originally, these workers were to be let go via attrition, and the layoffs add a political element to the budgetary battles. “If they announce layoffs, they are going to be hearing from us,” TWU Local 100 President John Samuelsen said to The Times.

As always, Samuelsen, protective of his jobs, grabbed the upper hand politically and framed this debate as one involving the safety of the MTA’s riders. Focusing on the MTA’s decision to target station agents, he bashed the supposed safety aspect of person-less stations. “Their idea of customer service is digitalized signage, rather than a human being protecting you against crime or directing you when you’re lost in the subway,” he said.

This isn’t a new argument in any sense, and yet, it’s one with which I find myself continually fighting. From a safety perspective, the station agents serve one of two purposes: Either their presence alone is a deterrent to potential criminals or straphangers feel safer knowing that a station agent is present whether or not these agents do anything to increase subway safety. The real answer probably lies in the intersection between those two roles, but there is a problem with that assumption: The station agents are not legally obligated to do anything, and they can’t see the platforms beyond the fare control areas.

Over the last few years, we’ve heard a lot about the station agents as the MTA eliminated many of them in late 2008. Since then, the pro-station agent crowd has defended them on the grounds of safety. But in a landmark case a few years ago, a New York state court found that the station agents had no affirmative duty to act if they knew someone in their station was in trouble. They have no sidearms and can do nothing about a crime in progress. Meanwhile, vast stretches of these stations are invisible to the booth agents, and in those cases, the workers won’t prevent any crime at all except as they would serving as a potential deterrent. With subway crime at all time lows, continued enforcement, and not the presence of workers who can’t do much, is the key to keeping the system safe.

Meanwhile, these employees, who field an average of around four customer requests per shift, would help out in situations involving lost passengers or those with bulky luggage. Yet, as the numbers show, those occasions are rare indeed. The MTA won’t eliminate station agents in high-traffic areas with large numbers of travelers. The agents instead will vanish from stations that won’t frequently miss them.

The MTA is up a proverbial creek without a paddle these days. The authority is broke, and New York’s politicians are searching for any way possible to avoid funding transit. If these workers are the sacrifice the city must pay, until the politicians are willing to find a lasting solution, we will have to suffer through a system with fewer station agents.

Categories : Service Cuts
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At the end of this post is a poll about how you think the MTA should balance its budget. Scroll down or click here to vote.

For 44 years, from 1904 to 1948, subway fares in New York City cost riders one nickel. The Buffalo Head became the symbol of a subway ride for millions of New Yorkers, and by 1948, the five-cent fare had become a political issue. Those running the city’s transit systems could not sustain the system on five cents per ride — or the 1948 equivalent of two cents in 1904 money — but politicians ran populist campaigns focused around saving the low subway fare.

If that sounds familiar, well, that’s because it is. History has a funny way of repeating itself in local politics, and the subways have long been used as a political football of sorts. Fiscal improprieties and fare hikes have been the cause of politicians for decades even as the very same politicians refuse to find adequate funds for the underground veins of New York City.

Recently, we’ve seen all sorts of fare and fiscal shenanigans involving the MTA. When the Board had to raise fares in 2008 to cover an expected economic shortfall, then-Gov. Eliot Spitzer pushed to maintain a $2 base fare while upping the price on the rest of the MTA’s fare options. In 2009, the MTA raised fares by approximately 10 percent as part of the Albany funding package.

And so we arrive in 2010. Nearly a year ago, the agency vowed to avoid a fare hike this year, and we’re seeing that political drama in the form of service cuts play out. Were a fare hike on the table, the agency would be in line to raise the fares in four consecutive years and potentially five out of seven years for a biannual cost-of-living fare adjustment is likely in 2011. This hike — a centerpiece of the Ravitch Report designed to free the MTA from some economic uncertainty — remains up to the discretion of Albany as Ravitch’s recommendations were not adopted.

As the MTA unveiled its fiscal problems to the city in December, the agency clearly did not believe it to be politically expedient to put forth a budget balanced on the backs of a fare hike. In fact, not once did anyone at the authority mention a fare hike. Rather, as the end-of-year returns and 2010 projections rolled in, the MTA quickly embraced service cuts. Although many of these service cuts could be viewed as refinements that should better help the MTA address transit needs, the fact remains that these are cuts through and through. In particular, the Student MetroCards are a prime example of that trimming.

Over the last few weeks, many have asked me why the agency didn’t consider a fare hike and what a hike proposal would potentially look like. We’ll start with the latter question. In general, a one percent increase in fare yield — or money collected — will lead to an increase in revenue at the MTA of approximately $50 million. To cover the 2010 budget gap — estimated right now at around $350-$400 million — the MTA would have to increase fare yield by eight percent. That doesn’t correspond directly to a fare increase of eight percent because of the agency’s discounts, but we could assume an increase of 10 percent. A 30-Day Unlimited Ride Card would probably be nearing that magical $100 mark, and everything else would increase accordingly.

So why didn’t the MTA go this route? As I explained above, politics played no small role in this decision. The agency seemingly did not believe it could renege on its promise to avoid a fare hike this year, and it had a better card to play. By throwing down the Student MetroCard issue and forcing politicians to respond to charges of underfunding student transportation, the MTA could hope to generate more political agita that should result in more student funds. At the least, it’s a safer bet than anything fare related. There, politicians would stomp their feet and approve another fare hike.

In the end, though, we pay through service cuts. We will see train headways increased, load guidelines revised, neighborhood bus routes restructured and eliminated and service generally slowed down. Eventually, we’ll have to pay higher fares or else the MTA won’t be able to sustain an adequate transit network for New York City. With these cuts, the authority is beginning to run up against that boundary.

So in the grand tradition of bloggers who don’t have the right answer to tough questions, I leave you with a poll. Would you rather have a service cut this year or fare hikes? I err on the side of fare hikes simply because services rolled back take a long time to restore; the fares will eventually go up anyway. Not everyone agrees.

To balance its budget, the MTA can either resort to fare hikes or service cuts. Which option would you prefer?
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Categories : Fare Hikes, Service Cuts
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