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It’s Time to Latch New York’s Transit Lockbox

2010 MTA service cuts went into effect after hundreds of millions of dollars were diverted from the budget by Albany.

In June, the NY State Legislature passed “transit lockbox” legislation to make it harder for Albany politicians to redirect money from dedicated transit funds, as has been done in recent years. Months later, the bill (A6766/S4257) has yet to be signed into law — and many are worried that a worsening state budget picture means that dedicated transit funds are at risk again.

Last Monday, the state budget office announced that, due to the weak economy, a $350 million gap had opened up in this year’s budget, and next year’s budget gap had grown to at least $3 billion. Albany politicians set a bad precedent by diverting hundreds of millions of dollars in dedicated MTA taxes for the budget over the past three years. This was one of the factors behind the MTA’s 2010 service cuts — the deepest in decades — which saved the agency less than $100 million.

The lockbox bill would stop such “budget sweeps” by the executive branch. Because the taxes which fund transit (which include a petroleum business tax, real estate taxes, and a downstate payroll tax) are statutorily dedicated, only a constitutional amendment can make them truly ironclad. But the law also includes a disclosure requirement. If the legislature votes to divert transit funds, it must release a “diversion impact statement” that includes the amount of the diversion, the total diversion over the preceding five years, and an estimate of how transit service, maintenance, and security will be affected. This would make it easier for the public to hold elected officials accountable.

Photo: Transportation Nation.

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[…] With State Finances Deteriorating, New York Needs to Lock Down Transit Funds (MTR) […]

Larry Littlefield
Larry Littlefield
12 years ago

“This would make it easier for the public to hold elected officials accountable.”

How do you do that when no one runs against incumbents, and the situation is rigged to keep challengers off the ballot?

Can we stop saying things like this? There are a limited number of special interests with enough organization and money to launch a primary challenge. And they are the only people that matter in Albany.

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[…] With State Finances Deteriorating, New York Needs to Lock Down Transit Funds (MTR) […]

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[…] MTA funds to bolster New York State’s General Fund, the substance of the matter is this: the lockbox law brokered by Governor Cuomo in 2011 is meaningless.  With one key clause — “notwithstanding […]

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