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.

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.

When Andrew Cuomo released his executive budget in February, it included a $100 million raid on dedicated transit funds. As Cuomo hammers out the budget in negotiations with the State Assembly and Senate, however, it seems that the MTA could lose up to another $170 million. Both houses of the legislature are seeking cuts and the issue appears to be very much alive.

In amendments to the state budget released last week [PDF], the Cuomo administration claims that its $100 million raid on dedicated MTA funds was a one-time deal that won't be repeated in the next three years.

The MTA is still staring down a $10 billion hole in its capital plan, and the consequences of that deficit continue to roll closer. Unless money is found by the end of the year, transit expansions like the Second Avenue Subway will slow down and important maintenance will be left undone. But despite the approaching deadline, no one in Albany seems willing to step up and even begin to tackle the issue.

Reactions to Governor Cuomo's proposed budget are beginning to come in. The cuts to transit, which are being pegged at $100 million, are being portrayed as painful, though perhaps not devastating.