Transit Funding

In a 40-22 vote last night, the State Senate voted to phase out the payroll mobility tax, which generates about $1.5 billion per year for the MTA. The Senate proposal would eliminate the tax entirely in suburban areas while reducing it in New York City. Though the bill is expected to go exactly nowhere in the Democratic Assembly, it's a sign of the intense opposition to the payroll tax among Republicans and in the suburbs, as well as the collective delusion about the state of the MTA's finances.

Efforts to protect dedicated transit funds from Albany budget raids moved forward on Tuesday as a coalition of transportation advocates went to the state capitol to lobby for transit riders. The transit lockbox bill immediately picked up five sponsors, and more seem poised to sign on.

This year's legislative session is rapidly coming to a close in Albany. With the state legislature wrapping up its regularly scheduled official business on June 20, the Capitol is entering a period of intense activity as legislators and lobbyists make a final push for their priorities.

Momentum is growing in the push to protect dedicated MTA funds from Albany's predations, but with only one month left in the legislative session, time is ticking. Assembly Member Jim Brennan and Senator Marty Golden, the bipartisan sponsors of the transit funding lockbox bill, stood today with a broad coalition of transit advocates in the Times Square subway station to make a final push for their legislation.

Today’s Senate Banking Committee hearing held some good news for transit riders. Unintuitive though it may be, Banking has jurisdiction over public transportation in the Senate. While in the House, the Transportation and Infrastructure Committee handles every aspect of the reauthorization, in the Senate the bill gets carved up. Environment and Public Works is taking the lead, with the specifics on transit left to Banking. Luckily, there are some transit champions on Banking: Jack Reed (D-RI), Chuck Schumer (D-NY), Robert Menendez (D-NJ) and Jeff Merkley (D-OR) to name a few.

If your roads are congested, your bus lines are getting cut, and money is flowing to brand-new roads to nowhere, don’t blame your mayor. Chances are, he or she is as mad about it as you are. Mayors are speaking out against ineffective transportation funding mechanisms that direct scarce resources to sprawling highways and away from urban transit and safer streets for walking and biking

Five Senate Republicans, led by Sen. John Bonacic, are making transit advocates an offer they can probably refuse. The payoff is appealing: state authorization for bridge tolls on the East River bridges. But the price they are demanding in return, the total repeal of the payroll mobility tax outside New York City, is too high to pay.

Last week we wrote about how the looming $10 billion deficit in the MTA's capital plan could lead to a $3.00 fare and $137 monthly pass within three years. That's not the only way the transit authority could decide to respond to a lack of funding, however.

With each passing month, the MTA comes closer to the day of reckoning on its unfunded capital plan -- the maintenance work that keeps trains and buses running and the expansion projects that provide more access to the system. While the first two years of the 2010-2014 capital budget were funded, there is a $10 billion deficit in the remaining three. So far, there doesn't seem to be any plan from the city, state, or federal government to find this funding. In fact, between the State Senate's goal of repealing the MTA payroll tax and the House GOP's budget-slashing, there may be more obvious paths to the MTA losing revenue than gaining it.