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02/28/2011 08:15 PM

MTA Ready To Meet State's Fiscal Challenges, Officials Say

By: Erin Billups

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While testifying before a state budget committee in Albany Monday, transit officials say they will be sparing straphangers from more bad news this year, even in the face of new state budget cuts. NY1's Erin Billups filed the following report.

Governor Andrew Cuomo wants to cut about $100 million from the funding of the Metropolitan Transportation Authority, but its head says the agency is ready to meet the state’s challenges without burdening commuters.

“We will not look to service cuts and we will not look to fare increases. We will look, as we have been doing, for ways that we can continue to reduce our cost structure," said MTA Chairman & CEO Jay Walder.

Last year, the MTA laid off more than 1,700 workers. While Walder wouldn't say it outright, he's not ruling out more layoffs this year.

“Well we've said and I'll continue to say is that we’re working on a plan right now to be able to deal with that," Walder said.

The MTA reduced spending last year by $525 million and hopes to continue that trend, but Walder says they’ll need the legislature’s help to do so.

The MTA wants legislative approval to expand enforcement of bus lane rules past the pilot program on First and Second Avenues, where there’s been a 19 percent reduction in travel time.

He says a more efficient bus system will lower costs.

"That’s phenomenal, that's terrific. And if we could replicate that in other places by using camera technology by freeing up bus lanes that already exist I think that would be a huge benefit," Walder said.

During a budget hearing Monday, lawmakers from Long Island and the Hudson Valley pelted Walder with criticism of the MTA's commuter payroll tax.

“It’s killing businesses and it’s making Long Island harder and harder to afford to live there," said State Assemblyman Al Graf of Long Island.

Walder says phasing out the tax -- which brings in $1.4 billion annually -- is not a remote possibility.

“I do not believe that you can take that resource out of the MTA without having a devastating impact upon the region and regional economy," he said.

Walder, however, did not shoot down a suggestion of exchanging the MTA payroll tax for congestion pricing for cars entering Manhattan.