Updated 03/14/2009 09:39 AM
MTA Board, Again, Threatens Fare Hikes Without Albany Aid
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Just 12 days from the deadline for action, the MTA once again renewed its call for funding from Albany at an emergency board meeting Friday, saying without it fare hikes will be necessary.
The MTA's chief financial officer ran through the numbers, showing without a financial rescue from Albany, it must move forward with plans to raise fares and cut services on March 25.
"This is big stuff," said MTA Chairman Dale Hemmerdinger. "And I think [state lawmakers] don't really understand what's at stake. These are 30 percent increases that will go into effect. Trains that will not be there. Bus service that won't be there. People who won't be able to get to the doctors, won't be able to get to school, won't be able to get to work, or it will take them a significant amount longer."
The MTA revealed Friday a timeline for how service cuts would be rolled out.
In the spring, customer service agents would be eliminated, and some token booths would shut. Cuts in bus service would follow in July and cuts in subway service would come in December.
"We will be forced to lay off approximately 1,100 of our hardworking men and women," said MTA Executive Director and Chief Executive Officer Elliot "Lee" Sander.
Board members say that even with these changes, the agency will still face a $290 million deficit in 2010. Therefore, further budget-reducing measures will still be required.
Former MTA Chairman Richard Ravitch had been brought in by current MTA leaders to come up with alternatives to close the MTA's $1.2 billion budget gap and avoid massive fare hikes and service cuts.
His commission proposed a payroll tax of one-third of one percent on all businesses in the MTA region. His other, more controversial proposal, was to add tolls on the previously free East River and Harlem River bridges.
The State Senate remains locked in negotiations with less than two weeks to go before the MTA's deadline.
The major sticking point is the Ravitch Commission's idea of imposing tolls on the bridges.
"It's unfortunate because we're closer than ever. We now have the support of the governor," said MTA Executive Director and Chief Executive Officer Elliot "Lee" Sander. "We have the support of the mayor. We have support of the Assembly. We just need for the State Senate to put it all together."
Majority Leader Malcolm Smith says Senate Democrats are working on their own version of a rescue plan, which may replace bridge tolls with alternative increases in DMV fees or gasoline taxes.
In a sign of how slowly this issue is moving in Albany, Smith turned to questioning the MTA's March 25 deadline.
"I just don't think it's appropriate for the MTA to sort of hold the public hostage and say, 'Well if we don't get to the deadline we're going to charge you more,'" said Smith. "I mean the public didn't cause their failures in terms of how they manage their budget."
"You have to print new fare tables. You have to print mail-and-ride tickets. You have to mail the mail-and-ride tickets," said Hilary Ring, director of government affairs for the MTA, defending the deadline. "You have to program the machines. You have to program the bus fare boxes. You have to do all this stuff that takes about two months to do."
Governor David Paterson and Assembly Speaker Sheldon Silver have both expressed support for new tolls on the East River and Harlem River bridges.
The MTA has said it will have to raise fare and toll revenues by 23 percent without help from the state.