Local Leaders Call On MTA To Maximize Assets
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Before riders dig deeper into their wallets for a MetroCard, some City Council members said they want know what's in the Metropolitan Transportation Authority's wallet. NY1's Ty Chandler filed the following report. The MTA painted a gloomy financial picture Thursday when it unveiled its doomsday budget. But some city lawmakers are not convinced a 23 percent fare hike is necessary.
"Before the MTA tells riders that they have to deal with less service for a higher fare, the MTA has an absolute obligation to maximize their assets," said Councilman Eric Gioia.
Councilman Gioia and Councilman David Yassky stood outside of the MTA's Madison Avenue headquarters Sunday, where they said that the building is just one of the many assets the MTA could do without.
"I think a lot of people would like to have their office on Madison Avenue," Gioia said. "But there's a big difference between what you want and what you need."
Gioia says the MTA has an extensive real estate portfolio that could be worth as much as a billion dollars. He says the MTA used tax dollars to pay for a report to look for ways to maximize those assets, but says the MTA has refused to release its findings, calling them flawed.
"Withholding a taxpayer-funded report while at the same time claiming you're broke is the height of arrogance," said Gioia.
In a statement, the MTA says it "is continually assessing its assets for revenue-generating opportunities." It also says "no taxpayer-funded studies were commissioned nor completed."
But Gioia says the MTA has a reputation for a lack of transparency, and he finds it hard to just take their word for it.
"They've lost all ability to get the benefit of the doubt," he said.
Other city officials think a solution is spreading the burden to drivers. City Comptroller Bill Thompson proposes a weight-based car registration fee for the metropolitan area: the bigger your car, the bigger the fee.
"This regional plan could potentially generate additional revenue of $350 million from city residents, and approximately $1 billion from the entire metropolitan commuter transportation district," said Thompson.
Thompson says the fee, plus a commuter tax, could generate $1.8 billion per year.
The MTA says it's working with the Ravitch Commission on solving its critical funding needs. The commission is set to release its recommendations December 5th.