MTA Politics

The New York State Governor who oversaw the most expansive cuts and constant fare hikes in recent subway history has been nominated to the MTA Board by his successor in Albany. Gov. Andrew Cuomo has named former state executive David Paterson to fill the board seat vacated by the departure of Nancy Shevell. Paterson could serve in this unpaid role for as many as six years.

“Governor Paterson has dedicated his life to working for the people of this state and I am excited that he will continue his public service at the MTA,” Cuomo said today in a statement. “Governor Paterson’s energy, expertise, and experience will benefit the millions of New Yorkers who rely on the MTA every day. I look forward to working together as we continue to reform the MTA and improve service for New Yorkers.”

MTA officials echoed Cuomo’s praise. MTA Chairman Joseph Lhota issued a statement:

“I applaud Governor Andrew Cuomo’s nomination of former Governor David Paterson to the Board of the Metropolitan Transportation Authority. I have known the former Governor for 35 years and look forward to the opportunity to work with him again. He has long shared the Governor’s commitment to our mission of providing safe, efficient and effective transportation to more than 8.5 million riders every day. Once confirmed by the Senate, former Governor Paterson will bring a unique and practical perspective, particularly with respect to issues affecting minority communities and disabled New Yorkers. I look forward to former Governor Paterson bringing to our board deliberations the charm, wit and compassion he has shown throughout his public life.”

According to Pete Donohue of the Daily News, who first broke news of the appointment this morning, Cuomo’s desire to strengthen race relations may have played a role in this appointment as Paterson does not have much of a traditional transit background. Shevell, on the other hand, had worked for nearly 30 years in the trucking industry.

The former governor vowed to “take tough stands” on the MTA Board, but I still have to wonder about the wisdom of this pick. After naming Jay Walder to head the MTA, Paterson had a very hands-off approach to transit issues. The New York native repeatedly used his executive budgeting powers to reallocate supposedly dedicated MTA funds to other state projects, and he barely raised a finger when the MTA had to cut service and raise fares in 2010.

Yet, despite Paterson’s record, even Transportation Alternatives seems prepared to offer up their praise. “With another planned fare hike looming in January 2013, Paterson’s experience as a governor and state senator will prove critical to working with Albany lawmakers to find new funding for our transit system, sparing overburdened New Yorkers yet another fare hike. Paterson knows well that straphangers can’t handle another hit to their wallets—as Governor, he saw New Yorkers endure back to back fare hikes and reap service cuts in return. He also created new funding for our transit system. If anyone knows New Yorkers are tired of paying more for less and how to find fairer ways to invest in transit, it’s David Paterson,” Paul Steely White, Executive Director of Transportation Alternatives, said in a statement.

While it’s true that Paterson was head of the state during the implementation of the payroll tax, his path there left him with few options. He didn’t have the political respect to push through bridge tolls, and he settled for the measure the legislature was willing to adopt. Was he forward-thinking or simply bowing to the winds of pressure Albany? Paterson’s record suggests an outlook not nearly as rosy as Trans Alt puts forward.

His appointment will have to go through the New York State Senate for confirmation, but such a vote is generally viewed as a mere formality.

Last week, straphangers at a random smattering of subway stations scattered throughout the city found themselves with a free ride. On Wednesday morning, protestors from Occupy Wall Street allegedly in conjunction with some TWU rank-and-file members posted faux-service advisory signs in certain stations and propped open emergency exits so that subway riders could enter the system for free. Five days later, authorities are investigating, and TWU higher-ups are disavowing any ties to this stunt.

The tale begins on Wednesday morning when Occupy Wall Street protestors, posing as MTA workers, propped open the doors at around 20 stations. At around 5 a.m., masked men and women chained open gates at a variety of stations, and while many gates were restored by 8:30, some were left open during the bulk of the a.m. rush. According to The Daily News, stations included 135th St. on the No. 3 and 116th St. on the No. 6 in Manhattan; Halsey St. on the L, Ninth Ave. on the D, Beverly Road on the Q and Carroll St. on the F in Brooklyn, and Steinway St. and 65th St. on the R in Queens.

A few hours later, Occupy Wall Street claimed responsibility for the action. On the group’s blog, they wrote about their reasoning:

This morning before rush hour, teams of activists, many from Occupy Wall Street, in conjunction with rank and file workers from the Transport Workers Union Local 100 and the Amalgamated Transit Union, opened up more than 20 stations across the city for free entry. As of 10:30 AM, the majority remain open. No property was damaged. Teams have chained open service gates and taped up turnstiles in a coordinated response to escalating service cuts, fare hikes, racist policing, assaults on transit workers’ working conditions and livelihoods — and the profiteering of the super-rich by way of a system they’ve rigged in their favor.

For the last several years, riders of public transit have been under attack. The cost of our Metrocards has been increasing, while train and bus service has been steadily reduced. Budget cuts have precipitated station closings and staff/safety reductions. Police routinely single out young black and Latino men for searches at the turnstile. Layoffs and attrition means cutting staff levels to the bare minimum, reducing services for seniors and disabled riders. At the same time, MTA workers have been laid off and have had their benefits drastically reduced. Contract negotiations are completely stalled.

Working people of all occupations, colors and backgrounds are expected to sacrifice to cover the budget cut by paying more for less service. But here’s the real cause of the problem: the rich are massively profiting from our transit system. Despite the fact that buses and subways are supposed to be a public service, the government and the MTA have turned the system backwards—into a virtual ATM for the super-rich. Instead of using our tax money to properly fund transit, Albany and City Hall have intentionally starved transit of public funds for over twenty years; the MTA must resort to bonds (loans from Wall Street) to pay for projects and costs. The MTA is legally required to funnel tax dollars and fares away from transportation costs and towards interest on these bonds, called “debt service.” This means Wall Street bondholders receive a huge share of what we put into the system through the Metrocards we buy and the taxes we pay: more than $2 billion a year goes to debt service, and this number is expected to rise every year. If trends continue, by 2018 more than one out of every five dollars of MTA revenue will head to a banker’s pockets.

If anything, the underlying message is on point. Albany has indeed left the MTA high and dry, and the debt bomb continues to tick. At some point, as bond underwriters continue to profit, straphangers will be left paying an ever-higher share of debt. Some projects should be funded via debt, but most should not.

Anyway, even with this message, fallout has been swift. Occupy Wall Street alleged that TWU workers participated in the fare strike, but union leaders denied this claim. “We knew nothing about it,” TWU Local 100 President John Samuelsen said to The Daily News. An ATU official told amNew York that his union had reason to believe members were involved, and the MTA said nothing.

Nearly immediately, the NYPD, Occupy Wall Street’s main foil, began to investigate, and according to Gothamist, the FBI paid a visit to some of the rank-and-file who work at the targeted stations. This weekend, surveillance videos of the action emerged, and The Daily News noted that investigations have continued into the identities of those responsible.

What a mess, huh? Someone will get in trouble for this move; someone will get too up in arms over this; and someone will blame the Occupiers for the MTA’s budget woes when the March fare numbers come in under projection. That’s the way of things. What should not get lost in this is, as I mentioned, the valid points. The MTA is picking up more and more debt, and riders will pay more and more for services that many think aren’t up to par. Should we take it or fight back? The only people listening are Occupiers, and their message is lost in Albany amongst those who control the purse strings and policies.

When MTA CEO and Chairman Joe Lhota fired off a letter to the New York Senate Republicans that questioned their commitment to transit within New York, we all knew the letter would not go unanswered, and last week, Dean Skelos and his entourage responded in turn. With a little bit of faux-concern, Skelos along with Senators Charles J. Fuschillo and Martin J. Golden claimed they denied the MTA capital funding because they truly honestly are deeply concerned with the MTA’s looming debt crisis.

The full letter is available here, and I’ll excerpt.

“Let us assure that the Senate understands the critical role the MTA plays in our State’s economy and supports capital investment in the MTA system…However, allowing a staggering $42 billion bonding debt level is of great concern, especially at the same time the MTA has many unresolved issues in its financial plan.

While we recognize the importance of advancing capital projects, we also recognize the importance of funding them in a fiscally responsible and prudent manner. The MTA’s 2012-15 financial plan contains several risks which could adversely impact its ability to fund the remainder of the 2010-2014 Capital Program. The MTA is currently projecting deficits of $141 million and $211 million in 2014 and 2015, respectively. These deficits include factoring in 7.5 percent fare and toll increases in both 2013 and 2015, increases which have yet to be approved by the MTA Board and have never been supported by the Senate Republican Conference.

The MTA’s financial plan also assumes that it will be able to reach a new labor contract which includes three years of no wage increases, unless there are offsetting productivity improvements. If the MTA is unable to achieve these assumed labor contract savings, it would add substantial costs to its operating budget.

Now, nothing these three illustrious Senators say is incorrect. The MTA’s financial plan does rest on some tenuous assumptions, and they are relying on a net-zero wage increase — something that will be achieved through negotiations or layoffs. But this letter doesn’t address Lhota’s main concerns. By playing fast and loose with the MTA’s capital funding, Skelos and the Senate GOP representatives are risking billions in federal financing and the timely completion of East Side Access, Phase 1 of the Second Ave. Subway and countless other capital program items that keep our subway system running.

It’s also disingenuous for anyone in Albany to now express concerns over the MTA’s debt levels. For decades, Albany has scaled back direct investment in the MTA as the authority has turned toward debt financing. Now that austerity is all the rage amongst Tea Party voters, Skelos has found responsible budgeting at the worst possible time, and he has decided to blame the victim by denying it money.

The MTA needs to do a better job of reining in costs. It must not be spending so much on construction and labor. But right now, it also has to finish up to mega-projects, and billions of dollars of money is on the line. This is a game of political chicken the MTA can ill afford to play.

Hot on the heels of yesterday’s dismaying news concerning the GOP-lead State Senate budget resolution that withdrew state support of the MTA capital fund, authority Chairman and CEO Joe Lhota struck back. In a pointedly-worded letter to Dean Skelos, the New York State Senate Majority Leader, Lhota urged the Senate Republicans to reverse course and questioned their commitment to both transit and growing jobs in New York State.

Noting that the request to increase the MTA’s bonding limit as well as a direct grant from the State were included in the Governor’s budget and the Assembly’s plan, Lhota bemoaned the Senate resolution. “These items, along with approval of the MTA’s proposed amendment to the 2010-2014 Capital Program, are essential to allow us to continue to make the important transportation investments that the twelve counties of the Metropolitan Transportation New York Region desperately need.”

In the letter, Lhota, a former Giuliani confidante, hit back at the GOP over their claims of job creation. Transit, he said, is what spurs job growth. It helps ferry New Yorkers to their jobs, and by purchasing services and supplies from New York businesses, it keeps the upstate economy afloat and growing as well. “Over 80% of commuters into the NY central business district during peak hours use the MTA systems, and MTA’s 2012 capital program alone will account for over 20% of New York City construction jobs,” he wrote. “Furthermore, the Capital Program’s continued purchase of rail cars, buses and other equipment provides significant economic benefit to New Yorkers far beyond the New York Metropolitan region.”

Behind this game of Russian roulette Skelos is playing with the MTA’s capital budget, the Senate GOP is also putting billions in federal loans at risk as well. The MTA is currently negotiating with the feds for a $3 billion loan that will push East Side Access and Phase 1 of the Second Ave. Subway to completion. The loan is contingent on a fully funded capital plan, and New York, says Lhota, must show “an equal commitment to maintaining the transit network’s new and existing infrastructure.”

That commitment is currently absent. “If the Senate’s budget resolution were enacted,” he wrote, “it would clearly call into question the State’s commitment to its transit system and will jeopardize the loan and our ability to complete East Side Access and the current phase of the Second Avenue Subway as well.” Of course, decades of divestment by the state and outright theft of supposedly dedicated transit dollars should have called into question that commitment long ago, but Lhota has to play politics here as well.

In its coverage of this looming fiasco, Streetsblog noted how GOP Senators in Albany will hold transit hostage in exchange for road dollars, and that is exactly what I noted last night. Upstate representatives claim the MTA does nothing for their districts when, in fact, these capital dollars support manufacturing in upstate towns. And so we will wait. We’ll wait for the horse-trading and the political machinations.

As I said last night, though, New York City and New York State cannot afford this game. If the Republicans dig on on spurious claims of being unaware of what the capital money will go toward, if they do not budget, the MTA could lose out on billions of dollars that are designed to help expand our transit network. That is a fate we should not and do not want to contemplate.

The New York State budgeting process is, by all accounts, a very, very messy one, and it’s even worse when the Senate is controlled by one party and the Assembly and Governorship controlled by the other. This year, with GOP lawmakers pushing for spending cuts and the MTA seeking money for its ongoing capital work, the debate over downstate dollars may turn sour. Yesterday, the New York State Senate, controlled by Republicans, voted to cut all capital subsidies for the MTA.

“The Senate budget resolution is right in line with our priorities to cut taxes, control spending and create jobs,” Senate Majority Leader Dean Skelos said. “I am confident that we will be able to work with the Governor and Assembly to get a new budget enacted well before the deadline that includes our priorities.”

The move, as first reported by Celeste Katz and Glenn Bain for The Daily News’ Daily Politics site, came as part of the one-chamber budget resolution. In this document [pdf], Senate Republicans voiced how they would vote on the various measures associated with Gov. Andrew Cuomo’s budget plan. The Assembly conducts a similar vote, and the two resultant documents are used during the budget negotiation process.

Here, the MTA came out as big losers. The State Senate voted against a Cuomo proposal to appropriate $770 million to the MTA for capital projects, and they voted against a plan to increase the MTA’s bond cap by $7 billion. As The News noted, State Democrats were livid:

Not only did Senate Republicans cut $770 million in capital financing for the Metropolitan Transportation Authority, they also rejected the agency’s bid for a $7 billion increase in its bonding cap — which according to Democratic Sen. Martin Dilan (D-Brooklyn) would jeopardize the MTA’s ability to qualify for more than $2 billion in federal financing.

“It will bring the East Side Access project to a complete halt, Second Avenue subway to a complete halt,” said Dilan, who is the ranking Democrat on the Transportation Committee.

Dilan also warned that the loss of funding would jeopardize the MTA’s ability to purchase new subway cars from upstate factories. “It is very irresponsible,” Dilan said. “They are putting the lives of individuals who are employed throughout the State of New York.”

Republicans, especially those of the upstate variety, claim they are seeking out information on “what specific capital projects would be funded,” but one revealed his true colors. John DeFrancisco, the Budget Committee chair from Syracuse, worried about funding levels for upstate bridges and roads. “We don’t have too many MTA trains going to Syracuse,” he said.

This is, of course, a mess. Upstaters who live off the spoils of New York City’s state-powering economy have long refused to support transit. They want money for upstate roads that do not do nearly as much for the state’s economy as the MTA does, and now they’re playing a very dangerous game with much-needed MTA funding. The authority has to secure these dollars to continue work on the Second Ave. Subway and East Side Access. To say that state lawmakers do not know what capital projects are being considered is a load of bunk.

It is easy for us in the city to shake our fists as folks like DeFrancisco and wonder why someone from Syracuse, for instance, has such an overwhelming say in what New York City needs. We are, after all, both the carrot and stick for a state that would otherwise be in dire financial straits without us. Yet, it’s worth remembering that this is just one step in the process. Cuomo seems to understand, at least begrudgingly, that the MTA needs these dollars, and Sheldon Silver, for his faults, will fight tooth and nail for it.

Right now, State Republicans in the Senate can say they voted against MTA spending before it becomes a fixture in the budget. They’ll engage in some good old fashioned horse-trading, and the money will be there. But make no mistake about it: Upstate Senators from both sides of the aisle aren’t going out of their way to do the city and its transportation network any favors, and within the five boroughs, that should be a great cause for concern.

Were the food ban to pass, this man would not be permitted to eat in the subway. (Photo by flickr user phogel)

Senator Bill Perkins does not, like most New Yorkers, like rats all that much. He doesn’t want to be reminded that millions of them coexist with the human residents in this fine city of ours, and he particularly doesn’t want to see them at his subway stop, on his subway platform, in the tracks or perhaps even in the train. I can’t say I blame him too much.

The truth about rats in New York City — and it’s one we don’t like to admit — is that they are drawn to human waste. They feast on our garbage, and as long as we supply them with garbage, they’ll eat and be merry. The subways provide them with ample garbage. Harried New Yorkers are always eating, and although most straphangers make use of the trash receptacles, as the MTA has dubbed them, even if just a few bad eggs throw their food scraps onto the tracks or station floors, the rats will find a way to them.

And so Bill Perkins wants to head off that behavior by cutting off the source of food. There shall be, he has proposed, no eating in the subway. His bill has cleared the State Senate’s Transportation Committee, although 9 of the 16 yea votes came with reservations, and now it sits with the Finance Committee. Perhaps it will pass, and the challenge will fall to the enforcers. Perhaps it shall die a death in Albany.

Yesterday, while on a trip to speak out in support of transit funding, MTA CEO and Chairman offered up his views on the proposed food ban, and it is not on his transit wishlist. “I do not support the bill,” Lhota said to The Times. “It severely hurts and impacts minority communities. I don’t want to deny the kid the only time that day he’s going to get food.”

The new Chairman says that too many people, from workers to students, need their commute time to grab a quick bite and that the ban would be a burden. Lhota, however, is familiar with Perkins’ work as the two have tried to combat New York’s rat problem for years. The MTA head though didn’t offer up praise for the Senator. “The idea that we worked together in the past goes far beyond the reality. As a legislator, he does nothing but talk and talk and talk, and he does nothing,” he said.

Perkins countered with a different take. He claimed Lhota once offered up support for the food ban and believes his bill to be the key to controlling rats underground. That is a bold claim indeed. “If that’s his position, I’m sorry to hear that,” Perkins said of Lhota. “I think there is a great need for us to control eating in the subways to get control of the rodent infestation. We’re still trying to convince him.”

There is, of course, another way to look at this issue. As Cap’n Transit noted to me via Twitter last night, perhaps this issue is being improperly framed. The problem isn’t that people can eat underground; rather, the problem is that no one is there to clean up the garbage. Trash bags sit in stations for days, and rats find their ways to neglected sources of food. The Cap’n believes rehiring cleaners could make stations tidier while providing jobs for the unemployed. If Albany were to focus on such a solution, it could create a better win-win-win.

Meanwhile, I’m torn. Eating on the subway is not the most sanitary of things to do, and folks who chow down on complex meals are often disrespectful toward their fellow commuters and themselves. That people think the subway floor is an appropriate place for discarded chicken bones or unwanted french fries simply makes it worse. And so, dear readers, I shall leave the question up to you.

Update (2:30 p.m.): Facing criticism from other state officials for his comments, Lhota, noted during his time in the Guiliania Administration for his temper, issued a formal apology to Perkins this afternoon. “I would like to apologize to Senator Perkins for my comments in The Times today,” he said. “Bill is an excellent legislator with great constituent services, and I share his commitment to addressing the problem of rat proliferation in New York City. Though we agree on many rat related issues, we disagree on banning food on the subways. I have a great deal of respect for Senator Perkins.”