Albany, NY – State, MTA Leaders Reach Bailout Deal

    10

    The New York State Senate has reached a deal to avoid the MTA’s doomsday budget.

    Join our WhatsApp group

    Subscribe to our Daily Roundup Email


    The Senate’s Democratic majority reached a tentative agreement with the 32 members needed to approve a bailout of New York City’s transit system. The bailout would avert double-digit fare increases and service cuts scheduled for next month.

    Senate Majority Leader Malcolm Smith met privately with key suburban senators in opposition into the evening Monday.

    Concessions include special funding to school districts to exempt them from the payroll tax that would help fund the bailout.

    Democratic Gov. David Paterson proposes the so-called bullet aid for schools as a way to get enough votes for a bailout before fare increases begin at the end of May.

    Paterson’s plan to bail out the MTA calls for a hefty payroll tax and a taxi surcharge.

    Democratic Gov. David Paterson proposes the so-called bullet aid for schools as a way to get enough votes for a bailout before fare increases begin at the end of May.

    Senators Brian Foley and Craig Johnson agreed to the funding bill, which gives Democrats enough support to get the bill passed.

    As it stands right now, the biggest change in this funding bill is a lower taxi surcharge fee, which goes back to 50-cents. The fee is expected to raise $95 million a year, all of which would go to the MTA.

    Other parts of the bill include:

    A payroll tax of 34 cents per $100 of payroll for all counties except Putnam, Orange and Dutchess. Those counties would pay 25 cents. The payroll tax is expected to raise $1.49 billion a year.
    Car registration fees would go up $25 which will raise $130 million a year.
    A five percent sales tax hike on car rentals, raising $35 million a year.

    Governor Paterson basically gave up on a quick way to pay for big capital projects like the 2nd Avenue Subway.
    He said the immediate goal is to close the MTA’s budget gap to avoid major fare increases and service cuts, now just weeks away.

    Mayor Michael Bloomberg argued against a short-term solution.
    “There is no painless option, but the issues will be no simpler a few months from now than they are today, which is why Albany must find a permanent stream of funding for capital projects  not next fall, but right now,” he said.

    A vote on the plan could come as early as Tuesday.


    Listen to the VINnews podcast on:

    iTunes | Spotify | Google Podcasts | Stitcher | Podbean | Amazon

    Follow VINnews for Breaking News Updates


    Connect with VINnews

    Join our WhatsApp group


    10 Comments
    Most Voted
    Newest Oldest
    Inline Feedbacks
    View all comments
    Anonymous
    Anonymous
    14 years ago

    its just a nicer doomsday

    Anonymous
    Anonymous
    14 years ago

    At .34% of all payrolls (34 cents per $100 of payroll) the PR tax is not going to make a huge diffrence to any employer.

    Anonymous
    Anonymous
    14 years ago

    The biggest problem with this payroll tax is that it enhances the policy of tax the rich to help the poor — and although some of the employers may not benefit by eliminating the new MTA increase, they still must pay for it.

    Anonymous
    Anonymous
    14 years ago

    This will last until the next budget discussions and then the doomsday scenario will repeat itself. Then the fare will go up and all the other new fees and taxes will be in place. Patterson and the rest have just delayed the inevitable. Maybe we need more than a new governor, maybe we need new legislators who aren’t career politicians vested in their own interests.

    Charlie Hall
    Charlie Hall
    14 years ago

    This is a terrible idea. But allowing the MTA to go through with these proposed cuts would be even more terrible. I commend the Senate and the Governor for biting the bullet and doing what was needed even though it will not be popular.

    Let MTA go bankrupt
    Let MTA go bankrupt
    14 years ago

    This is a simple story of a very non responsible agency gobbling up billions with no accounting

    Anonymous
    Anonymous
    14 years ago

    I do not think that it will work. Tourists who come here and stay in hotels do not need to rent cars and will think twice if they have to!! Who is the MTA going to be accountable to?? Who is their bookkeeper?? Who is going to audit their books??

    Anonymous
    Anonymous
    14 years ago

    Calling it a bullet is appropriate. It is loaded in the gun pointed at the taxpayers.