Joseph Lhota, a former Giuliani official, has been named chairman and CEO of the MTA.
Jay Walder’s replacement atop the MTA now has a name and a politically pedigree, but much like the new incoming head of the Port Authority, he doesn’t have a resume replete with transit experience. After conducting an extensive search and interview process over the last few months, Gov. Andrew Cuomo has named Joseph Lhota, a MTA Board member and one-time deputy mayor during the Giuliana Administration, to succeed Jay Walder as CEO and Chairman of the MTA. Nuria Fernandez will serve as the authority’s Chief Operating Officer.
“I am pleased to accept the recommendation of the extraordinary search committee and nominate Joe Lhota to be the next chairman and CEO of the MTA,” Governor Cuomo said this afternoon. “Joe Lhota brings one-of-a-kind managerial, government, and private sector experience to the job and a lifelong commitment to public service that will benefit all straphangers. I look forward to working together as we continue to reform the MTA, reduce costs, and improve service for New Yorkers. I thank the members of the MTA Search Advisory Committee for their diligent work and thorough review.”
The search committee had also recommended Neil Peterson and current Transit president Thomas Prendergast as potential replacements for Walder, but Lhota earned the Governor’s stamp of approval. “Millions of New Yorkers depend on the MTA every day and they deserve the most efficient and effective service. Throughout my career in both the public and private sectors, I have initiated reforms that are performance-based and that cut costs, and I look forward to bringing this same approach to the MTA,” Lhota said.
Lhota, who will begin serving as the interim head of the MTA later this year and must face a Senate confirmation process, first came to light as a potential candidate last week. At a time when the MTA must confront intense union negotiations and a multi-billion-dollar gap in the capital funding plan, Lhota will be expected to serve as a manager during tense times. No stranger to New York State government, Lhota served as the Deputy Mayor for Operations under Rudy Giuliani and spent time as the city Budget Director as well.
While Budget Director, Lhota, according to the governor’s press release, “cut costs, led agency reorganizations and consolidations, and implemented performance-based strategic planning,” and it’s clear that he is expected to do the same with the MTA. Fernandez, his new COO, was the one-time head of the Chicago Airport Systems and has served as an executive with the U.S. Department of Transportation, the Washington Metropolitan Area Transit Authority and the Chicago Transit Authority. She has significant transit planning experience in the private sector as well.
Lhota, who will receive a salary that will be five percent less than Walder’s, has a full plate. Senate Republicans are still making noises about repealing the payroll tax — a move that would cripple the MTA — while riders want more frequent service and cleaner trains without having to pay a higher fare. Few people, it seemed, really wanted to inherit the CEO/Chairman job, and Lhota will have to convince skeptical New Yorkers and transit advocates who fear more service cuts that he’s up to the task.
Various members of the governor’s search committee praised the selection — some with more hyperbole than others. “The ideal candidate to lead the MTA is experienced in finance, business, and government, and cares deeply about public service. Joe Lhota meets all of these criteria, and I can think of no one better suited to this critical position,” Richard Ravitch said.
Other advocates were a bit warier. “We hope Mr. Lhota’s business acumen will help guide the agency towards more sound fiscal footing without compromising service and affordability for the system’s 8.5 million daily riders,” Kate Slevin from the Tri-State Transportation Campaign said. “We also hope he will continue the innovative service improvements executed by his predecessor, including subway countdown clocks, rapid bus service, and nonstop tolling.”
Lhota, who Robert Yaro of the RPA called a “fiscally prudent and seasoned manager,” will face increased scrutiny over the next few months as he readies for the job and undergoes what is sure to be a loud confirmation hearing. As Paul Steely White, the head of Transportation Alternatives, said, “To succeed, Joseph Lhota must continue Jay Walder’s commitment to transit riders. With the MTA facing a $9.9 billion gap in its capital budget, New Yorkers want an MTA Chair will ensure that elected officials increase the funding needed to maintain the public transit system and prevent further fare hikes and service cuts.” Savior or stop-gap, Lhota will have to deliver.
8 comments
I see he had constantly been referred to as being an outsider from the transportation industry .. yet he served on the BOD of MTA.
For what it’s worth, he served on the MTA Board for approximately 10 months. Didn’t serve a full term. I’m not quite sure why.
He’s gonna need to pull some strings and use that “experience” to get actual funding for the MTA. Maybe get the state to return the money it took from the MTA the past couple of years.
I don’t see why there is all this concern about the head of the MTA having experience in transportation.
The purpose of the MTA is to pay debts and retirement benefits. Transportation is a side issue. If you don’t believe me, just look at how the use of its resources is changing over time.
Pension costs are what, 10% of the budget? And that’s only because of the financial collapse a few years ago and the need to contribute greater sums of money to shore up the pension system.
401Ks are not safe. They were never supposed to be the only means by which people retire. You’re supposed to have a pension, savings (or a 401K) and social security. The reason pension costs are going up everywhere is in large part due to Wall Street’s deregulation and being out of control.
Absolutely. When did pensions become a dirty word? Everyone who works should have a pension. This moving away from pensions in the broader economy is insane, and it was a choice- a political decision.
“This moving away from pensions in the broader economy is insane, and it was a choice- a political decision.”
Your decision, every time you go shopping and choose a lower price and/or better quality item, to have private sector pensions taken away.
The TWU should agree to have 1/3 of everyone’s pay in script rather than legal tender. Script that can only be redeemed in select business establishments where workers get one year in retirement for each year worked.
BTW, for pensions not to destroy whatever organization issues them, enough money has to be set aside year-by-year to pay for them. So what happens, as in 2000, when all of a sudden pensions are changed to be richer?
All those past years, those additional moneys that should have been set aside for the higher costs had not been set aside. So the cost is huge, devastating. And described as zero.
Wall Street is not out of control. It was out of control in 2000, when a temporary stock market bubble had people grabbing money that did not actually exist. The value of stock ownership then was the same as now — the dividends you get. I believe that is currently 2.0% of what you pay for the stock, no average.
The appropiate amount of money should be set aside and not looted as has been the case in American private industry.