Malcolm Smith

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.

In case you've forgotten who's in charge these days, Governor Paterson's nomination of Jay Walder to succeed Lee Sander as MTA chief was quickly met with a joint statement from Malcolm Smith, John Sampson, and Fare Hike Four members Pedro Espada and Carl Kruger. In the interest of "transparency and accountability," the senators say they plan to put Walder in front of their committees before any decision is made. Kruger, for his part, tells The Daily Politics that he doesn't consider the backbone of the region's economy to be a particularly urgent agenda item.

Now that Governor Paterson has backtracked on his pledge to secure a long-term solution to New York's transit funding crisis, the push is on to spin the slapdash result as a responsible outcome, not a capitulation to Albany's lowest common denominator.

We were half-kidding last week when we said state legislators were open to taxing anything from pet food to shoelaces as long as they could say they had saved the MTA, and as long as drivers could continue to cross East and Harlem River bridges at no cost. Turns out it's no joke after all, according to Senate Majority Leader Malcolm Smith.

Here's another wake-up call for state legislators dithering over a transit funding package: The sinking economy continues to choke off revenues for New York City's subways and buses. The MTA finance committee announced this afternoon that the agency's budget gap is $621 million bigger than previously forecast. That's on top of the $1.2 billion hole that brought about the imminent doomsday fare hike and service cuts. The culprit? Plummeting revenue from dedicated taxes, fares, and tolls.

While Majority Leader Malcolm Smith insists he can round up enough votes to pass the latest Senate MTA rescue plan, The Daily Politics reports that Bronx Assemblyman Peter Rivera participated in a rally today outside City Hall in protest of the proposal's $1 taxi surcharge, a facet of the bill that has also drawn fire from Mayor Bloomberg.

Senate Majority Leader Malcolm Smith has come out with another MTA funding proposal, which again gives commuters who drive across East and Harlem River bridges a free pass. The $1.76 billion it would generate annually for the MTA falls more than $300 million short of the projected revenue from the original Ravitch plan ($2.1 billion). Liz Benjamin at the Daily Politics has the details:

Last week, some of the biggest unions in New York came out in favor of the Ravitch Commission's MTA rescue plan, including the bridge tolls that a handful of state senators refuse to support. So, what is the stance of the Working Families Party, which is closely aligned with labor? Founded in 1998, the WFP is a growing force in city and state politics. Its endorsement, and the ballot line that comes with it, has become a sought-after electoral commodity. In the current round of state budget talks, the party is widely credited for advancing higher taxes on wealthy New Yorkers, now viewed as all but inevitable.

If you're the sort of person who just can't resist unscientific internet polls (and I am), there are a couple of good ones about the current state of MTA rescue talks. In NY1's who-to-blame poll, ineffectual Senate Majority Leader Malcolm Smith was getting off scot-free as of about 4:30 this afternoon: